Document:

LOAN AGREEMENT
                          dated as of December 12, 2000
                                      among
                             CVTI RECEIVABLES CORP.
                                   as Borrower
                                       and
                            COVENANT TRANSPORT, INC.,
                               as Master Servicer
                                       and
                       THREE PILLARS FUNDING CORPORATION,
                                    as Lender
                                       and
                   SUNTRUST EQUITABLE SECURITIES CORPORATION,
                                as Administrator

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                                TABLE OF CONTENTS

                                                                            Page

                              ARTICLE I DEFINITIONS

Section 1.1    Defined Terms.................................................  1
Section 1.2    Other Definitional Provisions................................. 17
Section 1.3    Other Terms................................................... 17
Section 1.4    Computation of Time Periods................................... 18

              ARTICLE II LENDER'S COMMITMENT, BORROWING PROCEDURES

                                 AND LENDER NOTE

Section 2.1    Lender's Commitment........................................... 18
Section 2.2    Borrowing Procedures.......................................... 18
Section 2.3    Funding....................................................... 18
Section 2.4    Representation and Warranty................................... 18
Section 2.5    Early Termination of Lender's Commitment...................... 19
Section 2.6    Voluntary Termination of Lender's Commitment; Reduction of
               Facility Limit................................................ 19
Section 2.7    Note.......................................................... 19

                        ARTICLE III INTEREST, FEES, ETC.

Section 3.1    Interest Rates................................................ 20
Section 3.2    Interest, Payment Dates....................................... 20
Section 3.3    Interest Allocations.......................................... 21
Section 3.4    Fees.......................................................... 21
Section 3.5    Computation of Interest and Fees.............................. 21

       ARTICLE IV REPAYMENTS AND PREPAYMENTS; DISTRIBUTION OF COLLECTIONS

Section 4.1    Repayments and Prepayments.................................... 21
Section 4.2    Application of Collections.................................... 22
Section 4.3    Application of Certain Payments............................... 23
Section 4.4    Due Date Extension............................................ 23
Section 4.5    Making of Payments............................................ 23

                           ARTICLE V SECURITY INTEREST

Section 5.1    Grant of Security............................................. 24
Section 5.2    Administrator Appointed Attorney-in-Fact...................... 25
Section 5.3    Administrator May Perform..................................... 25
Section 5.4    Release of Collateral......................................... 25

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                        ARTICLE VI INCREASED COSTS, ETC.

Section 6.1    Increased Costs............................................... 26
Section 6.2    Funding Losses................................................ 27
Section 6.3    Withholding Taxes............................................. 27

                       ARTICLE VII CONDITIONS TO BORROWING

Section 7.1    Initial Loan.................................................. 28
Section 7.2    All Loans..................................................... 30

                   ARTICLE VIII REPRESENTATIONS AND WARRANTIES

Section 8.1    Organization and Good Standing, etc........................... 30
Section 8.2    Power and Authority; Due Authorization........................ 31
Section 8.3    No Violation.................................................. 31
Section 8.4    Validity and Binding Nature................................... 31
Section 8.5    Government Approvals.......................................... 31
Section 8.6    Solvency...................................................... 31
Section 8.7    Margin Regulations............................................ 32
Section 8.8    Quality of Title.............................................. 32
Section 8.9    Offices....................................................... 32
Section 8.10   Compliance with Applicable Laws; Licenses, etc................ 32
Section 8.11   No Proceedings................................................ 32
Section 8.12   Investment Company Act, Etc................................... 33
Section 8.13   Eligible Receivables.......................................... 33
Section 8.14   Accuracy of Information....................................... 33
Section 8.15   No Material Adverse Change.................................... 33
Section 8.16   Trade Names and Subsidiaries.................................. 33
Section 8.17   Accounts...................................................... 34
Section 8.18   Sales by Originators.......................................... 34

              ARTICLE IX COVENANTS OF BORROWER AND MASTER SERVICER

Section 9.1    Affirmative Covenants......................................... 34
Section 9.2    Negative Covenants of Borrower................................ 40

                  ARTICLE X SIGNIFICANT EVENTS AND THEIR EFFECT

Section 10.1   Events of Default............................................. 42
Section 10.2   Amortization Events........................................... 42

                         ARTICLE XI THE MASTER SERVICER

Section 11.1   Covenant as Initial Master Servicer........................... 44
Section 11.2   Certain Duties of Master Servicer............................. 44
Section 11.3   Servicing Compensation........................................ 47

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Section 11.4   Agreement Not to Resign....................................... 48
Section 11.5   Designation of Master Servicer................................ 48
Section 11.6   Termination................................................... 48
Section 11.7   Master Servicer Events of Default............................. 48

                            ARTICLE XII ADMINISTRATOR

Section 12.1   Authorization and Action...................................... 49
Section 12.2   Administrator and Affiliates.................................. 50

                            ARTICLE XIII ASSIGNMENTS

Section 13.1   Restrictions on Assignments................................... 50
Section 13.2   Documentation................................................. 50
Section 13.3   Rights of Assignee............................................ 51
Section 13.4   Notice of Assignment.......................................... 51

                           ARTICLE XIV INDEMNIFICATION

Section 14.1   General Indemnity of Borrower................................. 51
Section 14.2   Indemnity of Master Servicer.................................. 51

                            ARTICLE XV MISCELLANEOUS

Section 15.1   No Waiver; Remedies........................................... 52
Section 15.2   Amendments, Etc............................................... 52
Section 15.3   Notices, Etc.................................................. 52
Section 15.4   Costs, Expenses and Taxes..................................... 53
Section 15.5   Binding Effect; Survival...................................... 53
Section 15.6   Captions and Cross Reference.................................. 54
Section 15.7   Severability.................................................. 54
Section 15.8   Governing Law................................................. 54
Section 15.9   Counterparts.................................................. 54
Section 15.10  Submission to Jurisdiction; Waiver of Trial by Jury........... 54
Section 15.11  No Recourse Against Lender.................................... 55
Section 15.12  No Proceedings................................................ 55
Section 15.13  Confidentiality of Agreement.................................. 55
Section 15.14  Entire Agreement.............................................. 55

Exhibits
--------

Exhibit A      Form of Borrowing Request (Section 2.2)
Exhibit B      Form of Lender Note (Section 2.7)
Exhibit C      Form of Monthly Report (Section 9.1(e)(ii))

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Exhibit D      Form of Borrowing Base Certificate (Section 7.1(k))
Exhibit E      Form of Collection Account Agreement
Exhibit F      [Reserved]
Exhibit G      Form of Originator Note
Exhibit H      Form of Withdrawal Certificate (Section 11.2(d))

Schedules
---------

Schedule I     Description of Collection Account
Schedule II    [Reserved]
Schedule III   Form of Contract
Schedule IV    Description of Proceedings
Schedule V     Collateral Review Requirements
Schedule VI    Notice Addresses

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                                 LOAN AGREEMENT

         THIS LOAN  AGREEMENT  is made and entered into as of December 12, 2000,
among CVTI RECEIVABLES CORP., a Nevada  corporation  ("CVTI" or the "Borrower"),
COVENANT TRANSPORT,  INC., a Nevada corporation  ("Covenant Nevada"), as initial
master  servicer  hereunder  (in such  capacity  the "Master  Servicer"),  THREE
PILLARS FUNDING CORPORATION  ("TPFC"), a Delaware corporation (together with its
successors and permitted assigns,  "Lender"),  and SUNTRUST EQUITABLE SECURITIES
CORPORATION, a Tennessee corporation,  as agent and administrator for Lender (in
such  capacity,  together with its successor and assigns in such  capacity,  the
"Administrator.")

                                   BACKGROUND

         1.  Borrower  desires that Lender  extend  financing to Borrower on the
terms and subject to the conditions set forth herein.

         2. Lender is willing to provide such financing on the terms and subject
to the conditions set forth in this Agreement.

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
agreements herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.1       Defined Terms.

         As used in this  Agreement,  the  following  terms  have the  following
meanings:

Accounts Receivable Turnover Ratio: For any Due Period, the ratio computed as of
the last day of such Due Period by dividing (a) the  aggregate  amount of Credit
Sales during the most recent twelve Due Periods by (b) the rolling  twelve month
average of the aggregate Unpaid Balance of Receivables.

Administrator: As defined in the Preamble

Administrator's Account: As defined in Section 4.5.

Advance Rate: The percentage equal to (a) 100% minus (b) the Reserve Percentage.

Adverse Claim: A Lien,  security  interest,  pledge,  charge or encumbrance,  or
similar right or claim of any Person.

Affected  Party:  Each of Lender,  any  Liquidity  Bank,  any Credit  Bank,  any
permitted assignee of Lender, any Credit Bank or any Liquidity Bank, any Support
Provider  and  any  holder  of  a

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participation  interest in the rights and  obligations  of any Liquidity Bank or
Credit Bank under the Liquidity  Agreement or the Credit Agreement,  as the case
may be, Administrator and any holding company of Bank.

Affiliate:  Of any Person means any other Person that (a) directly or indirectly
controls, is controlled by or is under common control with such Person or (b) is
an  officer  or  director  of such  Person.  A  Person  shall  be  deemed  to be
"controlled  by"  another  Person if such other  Person  possesses,  directly or
indirectly,  power (i) to vote 15% or more of the securities (on a fully diluted
basis)  having  ordinary  voting power for the election of directors or managing
partners of such other  Person,  or (ii) to direct or cause the direction of the
management  and policies of such other Person  whether by contract or otherwise.
With  respect  to  Covenant  Nevada,  Covenant  Tennessee  and  CVTI,  the  term
"Affiliate" shall not include Transplace.com, LLC.

Aggregate  Unpaid  Balance:  At any time,  the aggregate  Unpaid  Balance of all
Eligible Receivables at such time.

Agreement: This Loan Agreement, as it may be amended,  supplemented or otherwise
modified from time to time in accordance with the terms hereof.

Allocations:  As defined in Section 3.3.

Alternative  Rate: For any Interest Period,  an interest rate per annum equal to
either  (a) the  LIBOR  Rate or (b) if the  LIBOR  Rate is  unavailable  for any
reason, the Base Rate.

Alternative Rate Allocation:  As defined in Section 3.3.

Amortization Event:  Any of the events described in Section 10.2.

Applicable Margin:  As defined in the Fee Letter.

Bank:  SunTrust Bank, a Georgia banking corporation.

Bankruptcy  Code:  The  United  States   Bankruptcy  Reform  Act  of  1978,  (11
U.S.C.ss.101, et seq.) as amended.

Base Rate: (a) On any date, if any Event of Default or Servicer Event of Default
has occurred,  a  fluctuating  rate of interest per annum equal to the higher of
the Prime Rate or the Federal Funds Rate most  recently  determined by Bank plus
0.50%;  (b) On any date, if no Event of Default or Servicer Event of Default has
occurred,  the lower of the Prime Rate or the Federal  Funds Rate most  recently
determined by Bank plus 0.50%.

Borrower:  As defined in the Preamble.

Borrowing Base: At any time an amount equal to (a) the Advance Rate times (b) an
amount equal to (i) the Aggregate  Unpaid  Balance at such time,  minus (ii) the
aggregate Excess Concentration Amount for all Obligors at such time.

Borrowing Base Certificate:  As defined in Section 7.1(k).

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Borrowing  Base  Deficit:  An amount  equal to the  excess of (a) the  aggregate
principal amount of all outstanding Loans under the Lender Note over (b) the sum
of the Borrowing Base plus all Collections on deposit in the Collection Account.

Borrowing Request:  As defined in Section 2.2.

Business  Day:  Any day on which (a) Bank is not  authorized  or  required to be
closed for  business in Atlanta,  Georgia and (b)  commercial  banks in New York
City are not  authorized  or  required  to be closed  and, in the case of a Rate
Setting Day, banks are open for business in London, England.

Closing Date:  The date of the first Loan hereunder.

Code: The Internal  Revenue Code of 1986, as amended,  or any successor  statute
thereto, including the regulations promulgated thereunder.

Collateral:  As defined in Section 5.1(a)(iv).

Collateral Review:  As defined in Section 9.1(e)(v).

Collection  Account:  Collectively,  (i) the Primary Collection Account and (ii)
that certain bank account numbered 24851369  maintained with Diamond State Bank,
each of which is identified as "CVTI Collection Account", in Borrower's name and
pledged, on a first-priority basis, to Administrator pursuant to Section 5.1(a).

Collection  Account  Agreement:  Any  agreement  by and among  Borrower,  Master
Servicer,   Originators,   Administrator  and  a  Collection  Account  Bank,  in
substantially  the form attached hereto as Exhibit E or such other form approved
by  Administrator,  specifying  the  rights of Lender and  Administrator  in the
Collection Account.

Collection Account Bank:  Any bank holding the Collection Account.

Collection Policy:  Those collection and credit policies of each Originator with
respect  to its  respective  Receivables,  as  amended  from  time  to  time  in
accordance with this Agreement.

Collections:  (a) all payments  received in respect of the  Receivables,  in the
form of cash, checks, wire transfers, ACH transfers or any other form of payment
in accordance with the terms of a Receivable or otherwise, (b) all proceeds from
the sale or other disposition of any collateral  securing a Receivable,  (c) any
repurchase  amounts,  (d) any  insurance  proceeds or sales tax refund  payments
received  in  respect  of a  Receivable  and (e) any  indemnification,  recourse
payments or other amounts  payable to Borrower or any Originator in respect of a
Receivable  pursuant to this Agreement,  the Receivables  Purchase  Agreement or
otherwise.

Commercial Paper Notes: Short-term promissory notes issued by Lender to fund its
Loans or investments in receivables or other financial assets.

Commercial  Paper Rate:  For any day during any Interest  Period,  the per annum
rate  equivalent  to the sum of (a) the weighted  average of the per annum rates
paid or payable by TPFC from

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time to time as  interest on or  otherwise  in respect of the  Commercial  Paper
Notes issued by TPFC that are allocated,  in whole or in part, by  Administrator
(on behalf of TPFC) to fund or maintain  the advances  outstanding  under Lender
Note,  and (b) the  commissions  and  charges  charged by  placement  agents and
commercial paper dealers with respect to such Commercial Paper Notes.

Commitment  Termination  Date:  The  earliest  to  occur  of (a)  the  Scheduled
Commitment  Termination  Date,  (b) the  date  of any  termination  of  Lender's
Commitment  pursuant to Section 2.5, (c) the date of any termination of Lender's
Commitment, in whole, by Borrower pursuant to Section 2.6, and (d) the effective
date on which Lender's Commitment is terminated pursuant to Section 10.3.

Concentration  Limit:  (a) For any Obligor that is not a Special  Obligor  whose
short term unsecured debt rating is (i)greater than or equal to A2 by S&P and P2
by Moody's  and less than or equal to A1+ by S&P or P1 by  Moody's,  6.0% of the
Aggregate Unpaid Balance;  (ii) equal to A3 by S&P and P3 by Moody's,  4% of the
Aggregate Unpaid Balance;  (b) for any Obligor that is not a Special Obligor who
does  not have a short  term  unsecured  debt  rating,  but who has a long  term
unsecured debt rating which is (i) greater than or equal to A - by S&P and A3 by
Moody's  and  less  than or equal  to AAA by S&P and Aaa by  Moody's,  6% of the
Aggregate  Unpaid  Balance or (ii) greater than or equal to BBB- by S&P and Baa3
by Moody's and less than or equal to BBB+ by S&P and Baa1 by Moody's,  4% of the
Aggregate  Unpaid Balance and (c) for any Obligor that is not a Special  Obligor
who (i) has no short  term or long term  unsecured  debt  rating by both S&P and
Moody's or (ii) has any long term unsecured debt that is not rated at least BBB-
by  S&P  and  Baa3  by  Moody's,  2%  of  the  Aggregate  Unpaid  Balance.   The
Concentration Limit for a Special Obligor shall be 6%.

Consolidated  Tangible Net Worth: At any date,  with respect to any Person,  the
consolidated   stockholders'   equity  of  such  Person  and  its   consolidated
Subsidiaries,  plus the principal  amount of  subordinated  debt of such Person,
minus (to the extent  reflected in determining such  consolidated  stockholders'
equity) all intangible  assets  (determined in accordance with GAAP) as reported
in the audited  consolidated  financial statements of such Person for the fiscal
year in question.

Contract:  Either a written  agreement between an Originator and a Person, or an
invoice delivered to a Person by an Originator, pursuant to which such Person is
obligated to pay such Originator for services.

Covenant Nevada:  As defined in the Preamble.

Covenant  Tennessee:  Covenant  Transport,  Inc.,  a Tennessee  corporation  and
wholly-owned Subsidiary of Covenant Nevada.

Covered Taxes:  As defined in Section 6.3(a).

CP Allocation:  As defined in Section 3.3.

Credit  Advance:  A drawing under a letter of credit issued pursuant to a Credit
Agreement for the account of Lender,  a loan to Lender under a Credit  Agreement
or any other advance or

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disbursement  of funds to Lender or for  Lender's  account  pursuant to a Credit
Agreement or any such letter of credit, in each case to the extent such drawing,
loan,  advance or disbursement  has not been repaid or reimbursed to Credit Bank
in accordance with the related Credit Agreement.

Credit Agreement: Includes any program-wide agreement entered into by any Credit
Bank providing for the issuance of one or more letters of credit for the account
of  Lender,  the  issuance  of one or more  surety  bonds  for  which  Lender is
obligated to reimburse the  applicable  Credit Bank for any drawings  hereunder,
the sale by Lender to any Credit Bank of receivables or other  financial  assets
owned or held by Lender (or portions  thereof) and/or the making of loans and/or
other  extensions of credit to Lender in connection  with its  commercial  paper
program,  together with any cash collateral agreement,  letter of credit, surety
bond or other  agreement  or  instrument  executed and  delivered in  connection
therewith (but excluding the Liquidity Agreement,  or similar agreement,  or any
voluntary advance agreement).

Credit  Bank:  Includes  Bank and any other or  additional  bank or other Person
(other than Borrower or other  customer of Lender or any  liquidity  provider as
such) now or hereafter  extending credit or a purchase  commitment to or for the
account  of  Lender  or  issuing  a  letter  of  credit,  surety  bond or  other
instrument,  in  each  case to  support  any  obligations  arising  under  or in
connection with Lender's commercial paper program.

Credit Sales: For any Due Period,  the aggregate amount of all trade receivables
with credit  terms of any kind  originated  by the  Originators  during such Due
Period.

Cut-Off Date:  November 30, 2000.

CVTI : As defined in the Preamble.

Days Sales Outstanding  Ratio: For any Due Period,  the ratio computed as of the
last day of such Due Period by dividing (a) 360 by (b) the  Accounts  Receivable
Turnover Ratio for such Due Period.

Debt: Of any Person means,  without  duplication,  (a) all  indebtedness of such
Person for borrowed money,  (b) all indebtedness of such Person for the deferred
purchase  price of property  or  services  (other  than  property  and  services
purchased,  and expense accruals and deferred compensation items arising, in the
ordinary course of business),  (c) all  obligations of such Person  evidenced by
notes,  bonds,  debentures or other similar instruments (other than performance,
surety and appeal bonds  arising in the ordinary  course of  business),  (d) all
indebtedness  of such Person  created or arising under any  conditional  sale or
other title retention agreement with respect to property acquired by such Person
(even  though  the  rights  and  remedies  of the  seller or lender  under  such
agreement  in the event of default are limited to  repossession  or sale of such
property),  (e) all  obligations  of such Person under leases which have been or
should be, in accordance with GAAP,  recorded as capital  leases,  to the extent
required  to  be  so  recorded,  (f)  all  reimbursement,   payment  or  similar
obligations of such Person, contingent or otherwise, under acceptance, letter of
credit or similar  facilities  (other than letters of credit in support of trade
obligations or in connection with workers' compensation, unemployment insurance,
old-age  pensions and other social  security  benefits in the ordinary course of
business),  (g) all net  obligations  of such Person in respect of interest rate
swap, cap, collar, swaption, option or similar

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agreements,  (h) all  obligations  arising  in  connection  with a sale or other
transfer of any of such Person's  financial assets which are, or are intended to
be,  classified as loans for federal tax  purposes,  (i) all Debt referred to in
clauses (a) through (h) above guaranteed  directly or indirectly by such Person,
or in effect  guaranteed  directly  or  indirectly  by such  Person  through  an
agreement (i) to pay or purchase such Debt or to advance or supply funds for the
payment or purchase of such Debt, (ii) to purchase,  sell or lease (as lessee or
lessor) property, or to purchase or sell services,  primarily for the purpose of
enabling the debtor to make payment of such Debt or to assure the holder of such
Debt  against  loss in respect of such Debt,  (iii) to supply funds to or in any
other manner invest in the debtor  (including  any agreement to pay for property
or services  irrespective  of whether such property is received or such services
are rendered) or (iv) otherwise to assure a creditor  against loss in respect of
such Debt, and (j) all Debt referred to in clauses (a) through (h) above secured
by (or for which the holder of such Debt has an existing  right,  contingent  or
otherwise,  to be secured by) any lien,  security  interest  or other  charge or
encumbrance upon or in property  (including,  without  limitation,  accounts and
contract  rights) owned by such Person,  even though such Person has not assumed
or become liable for the payment of such Debt.

Default Rate:  As defined in Section 3.1(c).

Default  Ratio:  With  respect  to any Due  Period,  the ratio  (expressed  as a
percentage)  computed as of the last day of such Due Period, by dividing (a) the
Unpaid Balance of Receivables that became Defaulted  Receivables during such Due
Period by (b) Credit  Sales for the Due Period four (4) months prior to such Due
Period.

Defaulted  Receivable:  Any  Receivable (a) which has been, or should have been,
written  off as  uncollectible  by the Master  Servicer in  accordance  with the
Collection  Policy,  (b) as to which, at the end of any Due Period, any payment,
or part thereof,  remains  unpaid for 91 days or more past the due date for such
payment,  determined by reference to the original  contractual  payment terms of
such  Receivable or (c) as to which the Obligor thereon has suffered an Event of
Bankruptcy.

Delinquency  Ratio:  With respect to any Due Period,  the ratio  (expressed as a
percentage)  computed as of the last day of such Due Period, by dividing (a) the
Unpaid  Balance of Receivables  which are Delinquent  Receivables as of the last
day of such Due Period by (b) an amount equal to the Aggregate Unpaid Balance as
of the last day of such Due Period,  minus the  aggregate  Excess  Concentration
Amount as of the last day of such Due Period.

Delinquent  Receivables:  A Receivable (other than a Defaulted Receivable) as to
which all or any part of a scheduled  payment remains unpaid for 61 days or more
from the original due date for such payment.

Deposit Date:  As defined in Section 11.2(d)(ii).

Dilution Horizon Ratio: With respect to any Due Period, the ratio computed as of
the last day of such Due Period by dividing (a) Credit Sales for such Due Period
by (b) an amount  equal to the  Aggregate  Unpaid  Balance as of the last day of
such Due Period,  minus the aggregate Excess Concentration Amount as of the last
day of such Due Period.

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Dilution  Ratio:  With  respect to any Due  Period,  the ratio  (expressed  as a
percentage)  computed  as of the last day of such Due Period,  by  dividing  (a)
Dilutions  for such Due Period by (b) Credit  Sales for the Due Period one month
prior to such Due Period.

Dilution  Reserve:  With respect to any Due Period the product of (a) the sum of
(i) the product of (1) the Stress Factor times (2) the Expected  Dilution  Ratio
plus (ii) the product of (1) the positive  difference,  if any,  between (x) the
Dilution  Spike  Rate less (y) the  Expected  Dilution  Ratio  times (2) a ratio
computed by dividing  (A) the Dilution  Spike Rate by (B) the Expected  Dilution
Ratio times (b) the Dilution Horizon Ratio.

Dilutions:  With respect to any Due Period, the aggregate amount of returns, net
credits,  and any other non-cash reductions to the Credit Sales that occurred or
were made, granted or incurred during such Due Period.

Dilution Spike Rate: With respect to any Due Period,  the highest Dilution Ratio
over the most recent twelve-month period.

Distribution  Date:  The  22nd  day  of  each  month  (beginning  in  the  month
immediately following the month in which the initial Loan is made hereunder) or,
if such day is not a Business Day, the Business Day immediately thereafter.

Documents:  All  documentation  relating to the Receivables  including,  without
limitation, the Contracts, billing statements and computer records and programs.

Dollar(s) and the sign $: Lawful money of the United States of America.

Due Period:  Each calendar month.

Eligible Receivables:  Each Receivable:

         (a) that was created in compliance,  in all material respects, with the
Collection  Policy in the regular  and  ordinary  course of the  business of the
related Originator;

         (b) that was  created  pursuant  to a Contract  that  complies,  in all
material respects,  with the related  Originator's  standard  administration and
documentation policies and procedures;

         (c)  [reserved];

         (d)  that is not a Delinquent Receivable or a Defaulted Receivable;

         (e) as to  which,  at the  time  of the  sale  of  such  Receivable  to
Borrower,  the related  Originator  was the sole owner  thereof and had good and
marketable  title thereto,  free and clear of all Liens and Adverse Claims,  and
which was sold or contributed to Borrower  pursuant to the Receivables  Purchase
Agreement;

         (f) that is not an obligation of the government of the United States or
any Governmental Authority;

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<PAGE>

         (g) the  assignment  of which by the  related  Originator  to  Borrower
pursuant to the Receivables  Purchase  Agreement does not contravene or conflict
with  any law,  rule or  regulation  or any  contractual  or other  restriction,
limitation or encumbrance,  and the sale or assignment of which does not require
the consent of the Obligor thereof;

         (h) which is denominated  and payable in Dollars and is only payable in
the United States of America;

         (i) the Obligor of which is a United States resident;

         (j) the Obligor of which is not an  Affiliate  of any  Originator  or a
Governmental Authority;

         (k) that arises  under a Contract  which has been duly  authorized  and
which,  together  with such  Receivable,  is in full  force and  effect and such
Contract,  together  with such  Receivable,  constitutes  the  legal,  valid and
binding  payment  obligation  of the Obligor with respect  thereto,  enforceable
against  such  Obligor in  accordance  with its terms and is not  subject to any
right of rescission,  setoff,  counterclaim or defense (including the defense of
usury) or to any repurchase obligation or return right;

         (l) that  does  not  contravene  any  applicable  requirements  of law
(including without limitation all laws, rules and regulations  relating to truth
in lending,  fair credit billing,  fair credit  reporting,  fair debt collection
practices and privacy) and which  complies with all applicable  requirements  of
law  and  with   respect  to  which  all   consents,   licenses,   approvals  or
authorizations  of, or  registrations  or  declarations  with, any  governmental
authority  required to be obtained,  effected or given by the related Originator
in connection  with the creation or the execution,  delivery and  performance of
such  Receivable,  have been duly  obtained,  effected  or given and are in full
force and effect;

         (m) that complies with all  applicable  requirements  of the Collection
Policy;

         (n) as to which each of Borrower's and Administrator's (for the benefit
of the Secured Parties) first priority  security interest in such Receivable has
been perfected under the applicable UCC and other applicable laws;

         (o) as to which the Master  Servicer or any Originator is in possession
of the related Receivable File;

         (p) which provides for repayment in full of the Unpaid Balance  thereof
within 30 days of the date of the creation thereof;

         (q) the  terms of which  have not been  modified  or  waived  except as
permitted under the Collection Policy and this Agreement; and

         (r) which  constitutes  an  "account"  or "chattel  paper" under and as
defined in Article 9 of the UCC of all applicable jurisdictions.

                                       8

<PAGE>

ERISA: The Employee Retirement Income Security Act of 1974, as it may be amended
from time to time and the regulations promulgated thereunder.

Event of  Bankruptcy:  Shall be deemed to have occurred with respect to a Person
if either:

         (a) a  case  or  other  proceeding  shall  be  commenced,  without  the
application or consent of such Person,  in any court,  seeking the  liquidation,
reorganization,  debt  arrangement,  dissolution,  winding up, or composition or
readjustment of debts of such Person,  the  appointment of a trustee,  receiver,
custodian, liquidator, assignee, sequestrator or the like for such Person or all
or substantially  all of its assets,  or any similar action with respect to such
Person under any law relating to bankruptcy, insolvency, reorganization, winding
up or composition  or adjustment of debts;  or an order for relief in respect of
such Person shall be entered in an involuntary case under the federal bankruptcy
laws or other similar laws now or hereafter in effect; or

         (b) such Person  shall  commence a voluntary  case or other  proceeding
under any applicable bankruptcy, insolvency,  reorganization,  debt arrangement,
dissolution or other similar law now or hereafter in effect, or shall consent to
the  appointment of or taking  possession by a receiver,  liquidator,  assignee,
trustee, custodian,  sequestrator (or other similar official) for such Person or
for any substantial part of its property,  or shall make any general  assignment
for the  benefit  of  creditors,  or shall  fail to,  or  admit in  writing  its
inability  to, pay its debts  generally as they become due, or, if a corporation
or similar  entity,  its board of directors  shall vote to implement  any of the
foregoing.

Event of Default:  Any of the events described in Section 10.1.

Excess  Concentration  Amount:  At any time with  respect  to any  Obligor,  the
amount, if any, by which the aggregate Unpaid Balance of all Receivables of such
Obligor exceeds the Concentration  Limit for such Obligor, in each case, at such
time.

Expected  Dilution  Ratio:   With  respect  to  any  Due  Period,   the  rolling
twelve-month  average  Dilution Ratio for the most recently  ended  twelve-month
period.

Facility Limit:  As defined in Section 2.1.

Federal Funds Rate: For any period,  a fluctuating  interest rate equal for each
day during such  period to the  weighted  average of the federal  funds rates as
quoted by Bank and confirmed in the Federal Reserve Board Statistical Release as
H.15(519),  or any successor or substitute  publication selected by Bank (or, if
such day is not a Business Day, for the next preceding Business Day), or if, for
any reason,  such rate is not  available on any day, the rate  determined in the
sale opinion of Bank,  to be the rate at which  federal  funds are being offered
for sale in the national federal funds market at 9:00 a.m. (New York time).

Federal Reserve Board:  The Board of Governors of the Federal Reserve System and
any successor thereto.

Fee Letter:  As defined in Section 3.4.

                                       9

<PAGE>

Fees: All fees and other amounts payable by Borrower to  Administrator or Lender
pursuant to the Fee Letter.

Fiscal Year:  Each calendar year.

GAAP:  Generally accepted United States accounting  principles as in effect from
time to time.

Governmental  Authority:  The  United  States  of  America,  any  state or other
political subdivision thereof and any entity exercising executive,  legislative,
judicial, regulatory or administrative functions of or pertaining to government.

Indemnified Amounts:  As defined in Section 14.1.

Indemnified Party:  As defined in Section 14.1.

Initial  Purchase Date:  The first Purchase Date to occur under the  Receivables
Purchase Agreement.

Interest Period: With respect to any Loan: (a) the period commencing on the date
of the initial  funding of such Loan and ending on, but excluding,  the Business
Day  immediately  preceding  the  next  following  Distribution  Date;  and  (b)
thereafter,   each  period  commencing  on,  and  including,  the  Business  Day
immediately  preceding a  Distribution  Date and ending on, but  excluding,  the
Business  Day  immediately  preceding  the  next  following  Distribution  Date;
provided,  however,  that if any  Interest  Period  for any Loan that  commences
before the Commitment  Termination  Date would otherwise end on a date occurring
after such Commitment  Termination  Date, such Interest Period shall end on such
Commitment  Termination  Date and the duration of each such Interest Period that
commences on or after the Commitment  Termination Date, if any, shall be of such
duration as shall be selected by Administrator.

IRS:  The Internal Revenue Service.

Lender:  As defined in the Preamble.

Lender Note:  As defined in Section 2.7.

Lender's Commitment:  As defined in Section 2.1.

Liabilities:  With respect to any Person,  all  obligations of such Person which
would, in accordance with GAAP, be classified on a balance sheet as liabilities,
including,  without  limitation,  (a) Debt secured by Liens against  property of
such Person whether or not such Person is liable for the payment thereof and (b)
deferred liabilities.

LIBOR Rate: For any Interest Period,  the rate per annum on the Rate Setting Day
of such Interest Period shown on Telerate Page 3750 or any successor page as the
composite  offered rate for London  interbank  deposits for one month,  as shown
under the heading  "USD" as of 11:00 a.m.  (London  time);  provided that in the
event no such rate is shown, the LIBOR Rate shall be the rate per annum (rounded
upwards, if necessary,  to the nearest 1/16th of one percent) based on the rates
at which Dollar deposits for one month are displayed on the Reuters Screen as of
11:00

                                       10

<PAGE>

a.m. (London time) on the Rate Setting Day (it being understood that if at least
two such rates appear on such page, the rate will be the arithmetic mean of such
displayed rates);  provided further, that in the event fewer than two such rates
are displayed,  or if no such rate is relevant, the LIBOR Rate shall be the rate
per annum  equal to the  average of the rates at which  deposits  in Dollars are
offered by Administrator  at approximately  11:00 a.m. (London time) on the Rate
Setting Day to prime banks in the London interbank market for a one month.

Lien: Any mortgage, pledge, assignment,  lien, security interest or other charge
or  encumbrance  of  any  kind,  including  the  retained  security  title  of a
conditional vendor or a lessor.

Liquidity  Agreement:  Includes  (a)  the  Liquidity  Asset  Purchase  Agreement
(regarding CVTI, dated as of December 12, 2000, among Lender, as borrower, Bank,
as  liquidity  agent for the  Liquidity  Banks,  SunTrust  Equitable  Securities
Corporation,  as administrator for Lender,  and the Liquidity Banks, and (b) any
other  agreement  hereafter  entered  into by Lender  providing  for the sale by
Lender  of  Loans  (or  portions  thereof),  or the  making  of  loans  or other
extensions  of credit to Lender  secured by security  interests in the Loans (or
portions thereof),  to support all or part of Lender's payment obligations under
the Commercial  Paper Notes or to provide an alternate means of funding Lender's
investments in accounts  receivable or other financial  assets,  in each case as
amended, supplemented or otherwise modified from time to time.

Liquidity Bank: Includes Bank and the various financial  institutions as are, or
may become, parties to the Liquidity Agreement, as purchasers thereunder.

Loan:  Any  amount  disbursed  as  principal  by Lender to  Borrower  under this
Agreement.

LockBox:  As defined in Section 11.2(c).

Loss Horizon Ratio: With respect to any Due Period, the ratio computed as of the
last day of such Due Period by dividing (a) the sum of (i) Credit Sales for such
Due Period plus (ii) Credit Sales for the immediately preceding Due Period, plus
(iii) Credit Sales for the second (2nd) immediately  preceding Due Period,  plus
(iv) Credit Sales for  the third (3rd) immediately  preceding Due Period, by (b)
an amount equal to the Aggregate  Unpaid  Balance as of the last day of such Due
Period,  minus the aggregate Excess  Concentration Amount for all Obligors as of
the last day of such Due Period.

Loss  Reserve:  With  respect to any Due Period,  the product of (a) the highest
rolling  three-month  average  Default  Ratio  over the most  recent  twelve Due
Periods, (b) the Loss Horizon Ratio and (c) the Stress Factor.

Mail Payments:  As defined in Section 11.2(c) hereof.

Master Servicer: Covenant Nevada, or its successor in interest, or any successor
Master Servicer appointed as provided in Section 11.5.

Material Adverse Effect:  With respect to any event or circumstance,  a material
adverse effect on: (a) the business,  assets,  financial condition or operations
of Borrower, Originators or Master Servicer; (b) the ability of Master Servicer,
Originators  or  Borrower to perform  their  respective  obligations  under this
Agreement or any other Transaction Document; (c) the validity,

                                       11

<PAGE>

enforceability  or  collectibility  of this  Agreement or any other  Transaction
Document; (d) the existence,  perfection or priority of (i) Administrator's (for
the benefit of the Secured Parties) security interest in the Collateral, or (ii)
Borrower's   ownership   interest  in  the   Receivables;   (e)  the   validity,
enforceability or  collectibility of the Receivables;  or (f) the ability of the
Originators to generate  Receivables of a credit quality at least equal to those
existing on the Closing Date.

Month End Date:  The last day of each calendar month.

Monthly Report:  As defined in Section 9.1(e)(ii).

Moody's:  Moody's Investors Service, Inc.

Obligations:  All  obligations  (monetary or  otherwise)  of Borrower to Lender,
Administrator,  any Affected Party or any Indemnified Party and their respective
successors,  permitted  transferees  and assigns  arising under or in connection
with this Agreement,  Lender Note and each other Transaction  Document,  in each
case however created, arising or evidenced, whether direct or indirect, absolute
or contingent, now or hereafter existing, or due or to become due.

Obligor: With respect to any Receivable, the Person or Persons obligated to make
payments with respect to such Receivable, including any guarantor thereof.

Originators: Covenant Tennessee , and Southern Refrigerated, in their respective
capacities as originators under the Receivables Purchase Agreement.

Originator Note: Collectively,  (a) the subordinated promissory note dated as of
the initial Purchase Date issued by Borrower to Covenant  Tennessee  pursuant to
the Receivables Purchase Agreement,  (b) the subordinated  promissory note dated
as of the initial  Purchase  Date  issued by  Borrower to Southern  Refrigerated
pursuant to the  Receivables  Purchase  Agreement  and (c) any other  promissory
notes  subsequently  issued by Borrower to Covenant  Tennessee  and/or  Southern
Refrigerated  pursuant to the Receivables  Purchase Agreement,  which promissory
notes in each case shall be in the form of Exhibit G hereto.

Originator  Payables:  (a) the  obligation of any  Originator to make a payment,
pursuant  to  Section  2.4  of  the  Receivables  Purchase  Agreement,  for  any
Receivable  that  was  represented  to be an  Eligible  Receivables  was  not an
Eligible  Receivable on the date such  Receivable was sold by such Originator to
Borrower,  and (b) all other  amounts owed by such  Originator  to Borrower from
time to time pursuant to this Agreement or the Receivables Purchase Agreement.

Permitted Investments:  At any time:

         (a) marketable obligations issued by, or the full and timely payment of
which is  directly  and fully  guaranteed  or  insured  by,  the  United  States
government or any other government with an equivalent  rating,  or any agency or
instrumentality  thereof when such marketable obligations are backed by the full
faith and  credit of the United  States  government  or such other  equivalently
rated  government,  as the case may be, but excluding any  securities  which are
derivatives of such obligations;

                                       12

<PAGE>

         (b) time deposits,  bankers' acceptances and certificates of deposit of
any domestic  commercial bank or any United States branch or agency of a foreign
commercial bank which (i) has capital,  surplus and undivided  profits in excess
of  $100,000,000  and which has a  commercial  paper or  certificate  of deposit
rating  meeting the  requirements  specified in clause (c) below (or  equivalent
rating  from the Rating  Agencies)  or (ii) is set forth in a list (which may be
updated from time to time) (A) approved by Administrator and (B) with respect to
which a written  statement has been obtained from each of the Rating Agencies to
the effect that the rating of the Commercial  Paper Notes will not be downgraded
or withdrawn solely as a result of the acquisition of such investments;

         (c)  commercial  paper  which  is (i)  rated  at  least  as high as the
Commercial  Paper  Notes by the  Rating  Agencies,  or (ii) set  forth in a list
(which may be updated from time to time) (A) approved by  Administrator  and (B)
with respect to which a written  statement  has been  obtained  from each of the
Rating Agencies to the effect that the rating of the Commercial Paper Notes will
not be downgraded  or withdrawn  solely as a result of the  acquisition  of such
investments;

         (d) secured  repurchase  obligations  for underlying  securities of the
types  described in clauses (a) and (b) above  entered into with any bank of the
type described in clause (b) above; and

         (e) freely  redeemable shares in money market funds which invest solely
in obligations,  bankers' acceptances,  time deposits,  certificates of deposit,
repurchase  agreements and commercial paper of the types described in clause (a)
through (d) above,  without regard to the limitations as to the maturity of such
obligations,  bankers'  acceptances,  time  deposits,  certificates  of deposit,
repurchase  agreements or commercial  paper set forth below,  which are rated at
least  "AAm" or  "AAmg"  or their  equivalent  by at least  one  Rating  Agency,
provided that there is no r-highlighter affixed to such rating.

Person:  An individual,  partnership,  limited  liability  company,  corporation
(including  a  business  trust),  joint  stock  company,  trust,  unincorporated
association,  joint venture,  government or any agency or political  subdivision
thereof or any other entity.

Primary  Collection  Account:  That certain bank account  numbered  000428869474
maintained with Bank of America, N.A.

Prime Rate: As of any date of determination,  the rate of interest most recently
announced by Bank at its principal office in Atlanta,  Georgia as its prime rate
(it being  understood that at any one time there shall exist only one such prime
rate so announced,  which rate is not necessarily intended to be the lowest rate
of interest determined by Bank in connection with extensions of credit).

Program Documents:  The Liquidity Agreement, the Credit Agreement, the Voluntary
Advance  Agreement,   the  documents  under  which  Administrator  performs  its
obligations  with  respect to Lender's  commercial  paper  program and the other
documents to be executed  and  delivered in  connection  therewith,  as amended,
supplemented or otherwise modified from time to time.

Purchase Date:  As defined in the Receivables Purchase Agreement.

                                       13

<PAGE>

Rate Setting Day: For any Interest  Period,  two (2) Business  Days prior to the
commencement  of such Interest  Period.  In the event such day is not a Business
Day, then the Rate Setting Day shall be the immediately preceding Business Day.

Rating Agencies:  S&P and Moody's.

Receivable:  With respect to any Obligor, the indebtedness of such Obligor under
a Contract  arising from the  rendering  of services,  and includes the right to
payment of any  interest,  finance,  returned  check or late  charges  and other
obligations of such Obligor with respect thereto.

Receivable  File: With respect to a Receivable,  (a) the Contract giving rise to
the  Receivable  and  other  evidences  of  the  Receivable  including,  without
limitation,  tapes,  discs,  punch cards and related property and rights and (b)
each UCC financing statement related thereto, if any.

Receivables Purchase Agreement: The Receivables Purchase Agreement,  dated as of
December 12, 2000, by and between Covenant Tennessee,  Southern Refrigerated and
Borrower, as such Receivables Purchase Agreement may be amended, supplemented or
otherwise  modified  from  time  to time  with  the  prior  written  consent  of
Administrator.

Regulatory  Change:  Relative to any Affected  Party:  (a) any change in (or the
adoption,   implementation,   change  in  the   phase-in  or   commencement   of
effectiveness  of) any:  (i) United  States  Federal or state law or foreign law
applicable to such Affected Party, (ii) regulation,  interpretation,  directive,
requirement  or request  (whether or not having the force of law)  applicable to
such Affected  Party of (A) any court or government  authority  charged with the
interpretation  or administration of any law referred to in clause (a)(i), or of
(B) any  fiscal,  monetary  or other  authority  having  jurisdiction  over such
Affected Party, or (iii) GAAP or regulatory  accounting principles applicable to
such Affected Party and affecting the  application to such Affected Party of any
law, regulation,  interpretation,  directive, requirement or request referred to
in clause (a)(i) or (a)(ii)  above;  (b) any change in the  application  to such
Affected  Party of any  existing  law,  regulation,  interpretation,  directive,
requirement,  request or  accounting  principles  referred to in clause  (a)(i),
(a)(ii) or (a)(iii)  above;  or (c) the issuance,  publication or release of any
regulation,  interpretation,   directive,  requirement  or  request  of  a  type
described  in clause  (a)(ii)  above to the effect that the  obligations  of any
Liquidity Bank under the Liquidity  Agreement are not entitled to be included in
the zero  percent  category  of  off-balance  sheet  assets for  purposes of any
risk-weighted  capital  guidelines  applicable  to  such  Liquidity  Bank or any
related Affected Party.

Related  Security:  With  respect to any  Receivable,  (a) all right,  title and
interest,  but none of the obligations,  of the related  Originator,  in, to and
under other Liens and property  subject to Liens from time to time purporting to
secure payment of such  Receivable,  whether pursuant to the Contract related to
such  Receivable  or  otherwise,  (b) all UCC  Financing  Statements  or similar
instruments covering any collateral securing payment of such Receivable, (c) all
guaranties,  indemnities,  insurance and other agreements (including the related
Receivable File) or arrangement and other collateral of whatever  character from
time to time supporting or securing payment of such Receivable, whether pursuant
to the  Contract  relating  to such  Receivable  or  otherwise  relating to such
Receivable and (d) all other  instruments  and all rights under the

                                       14

<PAGE>

documents in the  Receivable  File relating to such  Receivables  and all rights
(but not obligations) relating to such Receivables.

Reporting Date:  As defined in Section 9.1(e)(ii).

Requirements  of Law:  For any  Person  or any of its  property  shall  mean the
certificate of  incorporation  or articles of  association  and by-laws or other
organizational or governing documents of such Person or any of its property, and
any statute, law, treaty, rule or regulation,  or determination of an arbitrator
or  Governmental  Authority,  in each case  applicable  to or binding  upon such
Person or any of its  property or  businesses  or to which such Person or any of
its property or businesses is subject, whether federal, state or local.

Reserve Floor:  For any Due Period, 12.1%.

Reserve  Percentage:  The percentage  equal to the greater of (a) the sum of (i)
the Loss Reserve,  (ii) the Dilution Reserve,  (iii) the Yield Reserve, and (iv)
the Servicing Reserve and (b) the Reserve Floor.

Reuters  Screen:  The display page  designated  as "LIBO" on the Reuter  Monitor
Money Rates Service (or such other page as may replace that page on that service
for the purpose of displaying rates comparable to the LIBOR Rate).

S&P:  Standard & Poor's, a division of The McGraw-Hill Companies, Inc.

Scheduled Commitment Termination Date:  December 11, 2001.

Secured Obligations:  As defined in Section 5.1(b).

Secured  Parties:  The  holders  from  time to time of the  Secured  Obligations
including, without limitation, Lender and Administrator.

Servicer Event of Default:  As defined in Section 11.7.

Servicing Fee: As to any Due Period, the monthly fee payable to Master Servicer,
which,  so long as  Covenant  Nevada is Master  Servicer,  shall be equal to the
Servicing Fee Rate divided by 12 multiplied by the aggregate  Unpaid  Balance of
the  Receivables at the beginning of such Due Period.  The Servicing Fee for any
successor  Master  Servicer  shall be equal to the fee  reasonably  agreed to by
Administrator and such successor.

Servicing Fee Rate:  1.80%.

Servicing  Reserve:  With  respect  to any Due  Period,  the  product of (a) the
highest Days Sales Outstanding Ratio during the most recent twelve-month period,
(b) the Stress Factor, (c) 2.40% and (d) 1/360.

Significant Event:  Any Amortization Event.

                                       15

<PAGE>

Solvent:  With respect to any Person that as of the date of  determination  both
(a)(i)  the then  fair  saleable  value of the  property  of such  Person is (A)
greater than the total amount of liabilities (including contingent  liabilities)
of such Person and (B) not less than the amount that will be required to pay the
probable  liabilities  on such  Person's  then  existing  debts  as they  become
absolute and matured considering all financing  alternatives and potential asset
sales  reasonably  available to such Person;  (ii) such Person's  capital is not
unreasonably small in relation to its business or any contemplated or undertaken
transaction;  and (iii) such  Person does not intend to incur,  or believe  (nor
should it reasonably  believe)  that it will incur,  debts beyond its ability to
pay such debts as they become due; and (b) such Person is  "solvent"  within the
meaning  given that term and similar  terms under  applicable  laws  relating to
fraudulent  transfers  and  conveyances.  For purposes of this  definition,  the
amount of any  contingent  liability at any time shall be computed as the amount
that,  in light of all of the facts and  circumstances  existing  at such  time,
represents  the amount  that can  reasonably  be expected to become an actual or
matured liability.

Southern  Refrigerated:  Southern  Refrigerated  Transport,  Inc.,  an  Arkansas
corporation.

Special  Obligor:  So long as it does not have any debt  rating  by both S&P and
Moody's, EGL Eagle Global Logistics.

Stated Maturity Date: December 11, 2001; provided,  however,  that such date may
be accelerated pursuant to Section 10.3.

Stress Factor:  2.0.

Subsidiary:  With  respect to any  Person,  a  corporation  of which such Person
and/or its other  Subsidiaries  own,  directly  or  indirectly,  such  number of
outstanding  shares as have more than 50% of the  ordinary  voting power for the
election of directors.

Support  Provider:  Includes  any entity now or  hereafter  extending  credit or
liquidity  support or having a commitment to extend credit or liquidity  support
to or for the  account  of, or to make  loans to or  purchases  from,  Lender or
issuing a letter of credit,  surety  bond or other  instrument  to  support  any
obligations  arising under or in connection with the commercial paper program of
Lender.

Telerate  Page 3750:  The  display  designated  as "Page  3750" on the  Telerate
Service  (or such  other  page as may  replace  "Page  3750" on that  service or
another service as may be nominated by the British  Bankers'  Association as the
information  vendor for the purpose of displaying  British Bankers'  Association
Interest Settlement Rate for Dollars).

Transaction  Documents:  This  Agreement,  the Receivables  Purchase  Agreement,
Lender Note,  the Fee Letter,  the  Originator  Note and the other  instruments,
certificates,  agreements,  reports and  documents to be executed and  delivered
under or in connection with this Agreement or the Receivables Purchase Agreement
(except  the  Program  Documents),  as  any  of the  foregoing  may be  amended,
supplemented,  amended and restated,  or otherwise modified from time to time in
accordance with this Agreement and the Receivables Purchase Agreement. Each such
document is a Transaction Document.

                                       16

<PAGE>

UCC:  The  Uniform  Commercial  Code as from  time  to  time  in  effect  in the
applicable jurisdiction or jurisdictions.

Unmatured Significant Event: Any event that, if it continues uncured, will, with
lapse of time or notice or lapse of time and notice,  constitute  a  Significant
Event.

Unpaid Balance:  With respect to any Receivable the aggregate amount required to
prepay in full the principal of, and all interest, finance, prepayment and other
fees or charges of any kind payable in respect of, such Receivable.

Voluntary Advance Agreement: The Voluntary Advance Agreement,  dated as of March
11,  1999,  among  Lender,  Administrator  and  Bank,  as  it  may  be  amended,
supplemented or otherwise modified from time to time.

Yield  Reserve:  With respect to any Due Period,  the product of (a) the highest
Days Sales Outstanding Ratio during the most recent twelve-month period, (b) the
Stress  Factor,  (c) the  Prime  Rate as in  effect  on the last day of such Due
Period and (d) 1/360.

         Section 1.2       Other Definitional Provisions.

         (a)  Unless  otherwise  specified  therein,  all terms  defined in this
Agreement have the meanings as so defined herein when used in Lender Note or any
other  Transaction  Document,  certificate,  report  or other  document  made or
delivered pursuant hereto.

         (b) Each term defined in the singular  form in Section 1.1 or elsewhere
in this  Agreement  shall mean the plural  thereof  when the plural form of such
term is used in this Agreement,  Lender Note or any other Transaction  Document,
certificate,  report or other document made or delivered  pursuant  hereto,  and
each term  defined in the plural  form in  Section  1.1 shall mean the  singular
thereof when the singular form of such term is used herein or therein.

         (c) The words  "hereof,"  "herein,"  "hereunder" and similar terms when
used in this  Agreement  shall refer to this Agreement as a whole and not to any
particular  provision  of this  Agreement,  and  article,  section,  subsection,
schedule and exhibit  references  herein are  references to articles,  sections,
subsections,   schedules  and  exhibits  to  this  Agreement   unless  otherwise
specified.

         Section 1.3       Other Terms.

         All accounting terms not specifically defined herein shall be construed
in  accordance  with  GAAP.  All  terms  used  in  Article  9 of the UCC and not
specifically defined herein, are used herein as defined in such Article 9.

         Section 1.4       Computation of Time Periods.

         Unless  otherwise  stated in this  Agreement,  in the  computation of a
period of time from a specified date to a later  specified date, the word "from"
means "from and  including"  and the words "to" and  "until"  each means "to but
excluding."

                                       17

<PAGE>

                                   ARTICLE II

                    LENDER'S COMMITMENT, BORROWING PROCEDURES
                                 AND LENDER NOTE

         Section 2.1       Lender's Commitment.

         On the terms and subject to the conditions set forth in this Agreement,
Lender  agrees to make loans to Borrower on a revolving  basis from time to time
(the  "Lender's  Commitment")  before the  Commitment  Termination  Date in such
amounts as may be from time to time  requested  by Borrower  pursuant to Section
2.2; provided,  however,  that the aggregate  principal amount of all Loans from
time  to  time  outstanding  hereunder  shall  not  exceed  the  lesser  of  (a)
$62,000,000 (the "Facility Limit") and (b) the Borrowing Base. Within the limits
of Lender's  Commitment,  Borrower may borrow,  prepay and  reborrow  under this
Section 2.1.

         Section 2.2       Borrowing Procedures.

         Borrower  (or the Master  Servicer  on its  behalf)  may request a Loan
hereunder by giving notice to  Administrator  of a proposed  borrowing not later
than 2:00 p.m.  (New York City time),  two  Business  Days prior to the proposed
date of such  borrowing  (or such lesser  period of time as Lender may consent);
provided that Borrower shall not request,  and Lender shall not make, Loans more
than two  times  during  any Due  Period.  Each  such  notice  (herein  called a
"Borrowing  Request")  shall be in the form of Exhibit A and shall  include  the
date and amount of such  proposed  borrowing.  Any  Borrowing  Request  given by
Borrower  (or the Master  Servicer on its behalf)  pursuant to this  Section 2.2
shall be irrevocable and binding on Borrower.

         Section 2.3       Funding.

         Subject to the  satisfaction  of the conditions  precedent set forth in
Article VII with respect to such Loan and the  limitations  set forth in Section
2.1,  Lender  shall  make the  proceeds  of such  requested  Loan  available  to
Administrator  at its  office  in  Atlanta,  Georgia  in same  day  funds on the
proposed  date of  borrowing.  Upon  receipt  by  Administrator  of such  funds,
Administrator  will make such funds available to Borrower at such office on such
date.  Each borrowing shall be on a Business Day and shall be in an amount of at
least $1,000,000 and in integral multiples of $500,000.

         Section 2.4       Representation and Warranty.

         Each   request   for  a   borrowing   pursuant  to  Section  2.2  shall
automatically   constitute  a   representation   and  warranty  by  Borrower  to
Administrator  and Lender that on the requested  date of such  borrowing (a) the
representations  and  warranties  contained  in  Article  VIII  will be true and
correct  as of  such  requested  date  as  though  made  on  such  date,  (b) no
Significant Event or Unmatured  Significant Event has occurred and is continuing
or will  result  from  such  borrowing,  and (c)  after  giving  effect  to such
requested  borrowing,  the aggregate  principal balance of the outstanding Loans
hereunder  will not  exceed the lesser of the  Borrowing  Base and the  Facility
Limit.

                                       18

<PAGE>

         Section 2.5       Early Termination of Lender's Commitment.

         Lender's Commitment shall terminate and Lender shall have no obligation
to make any further Loans (or to fund any increase in any existing Loan), on the
earliest date of termination of (a) the Liquidity Banks'  commitments  under the
Liquidity  Agreement  or (b) the  Credit  Banks'  commitments  under the  Credit
Agreement.  Administrator  agrees to use its reasonable efforts to give Borrower
at least 30 days' prior written notice of the termination of Lender's Commitment
pursuant to clause (a) or (b) above.

         Section 2.6 Voluntary Termination of Lender's Commitment;  Reduction of
Facility Limit.

         Borrower  may, in its sole  discretion  for any reason upon at least 10
days'  notice  to  Administrator  (with a copy to  Lender),  terminate  Lender's
Commitment  in whole,  or,  reduce in part the unused  portion  of the  Facility
Limit;  provided,  however  that (a) each such  partial  reduction  will be in a
minimum  amount of $5,000,000 or a higher  integral  multiple of $1,000,000  and
shall not reduce the Facility  Limit below  $25,000,000,  and (b) in  connection
therewith Borrower shall comply with Section 3.2(b) and Section 4.1(b).

         Section 2.7       Note.

         Each Loan from Lender shall be evidenced  by a single  promissory  grid
note  (herein,  as amended,  modified,  extended or replaced  from time to time,
called the "Lender Note") substantially in the form set forth in Exhibit B, with
appropriate  insertions,  payable  to  the  order  of  Lender.  Borrower  hereby
irrevocably authorizes  Administrator in connection with Lender Note to make (or
cause to be made) appropriate  notations on the grid attached to Lender Note (or
on any continuation of such grid, or at Administrator's option, in its records),
which  notations,  if made,  shall  evidence,  inter  alia,  the  date  of,  the
outstanding  principal of, and the interest rate and Interest Period  applicable
to the Loans evidenced thereby.  Such notations shall be rebuttably  presumptive
evidence  of the  subject  matter  thereof,  absent  manifest  error;  provided,
however,  that the  failure  to make  any  such  notations  shall  not  limit or
otherwise affect any Obligations of Borrower.

                                   ARTICLE III

                              INTEREST, FEES, ETC.

         Section 3.1       Interest Rates.

         Borrower hereby promises to pay interest on the unpaid principal amount
of each Loan (or each portion thereof) for the period  commencing on the date of
such Loan until such Loan is paid in full, as follows:

         (a) at all times while the making or  maintenance  of such Loan (or the
applicable  portion  thereof) by Lender is funded by the issuance of  Commercial
Paper Notes of Lender, during each Interest Period, at a rate per annum equal to
the sum of (i) the  Commercial  Paper Rate  applicable to such Interest  Period,
plus (ii) the Applicable Margin;

                                       19

<PAGE>

         (b) at all times while the making or  maintenance  of such Loan (or the
applicable  portion  thereof) by Lender is funded  during each  Interest  Period
pursuant to the Liquidity  Agreement or the Voluntary  Advance  Agreement,  at a
rate per annum equal to the sum of (i) the  Alternative  Rate applicable to such
Interest Period, plus (ii) the Applicable Margin; and;

         (c)  notwithstanding  the  provisions of the preceding  clauses (a) and
(b), in the event that a Significant Event or an Unmatured Significant Event has
occurred and is  continuing,  at a rate per annum (the "Default  Rate") equal to
the Base Rate  applicable from time to time (but not less than the interest rate
in effect for such Loan as at the date of such Significant Event), plus a margin
of 3.00%.

         After  the date any  principal  amount  of any Loan is due and  payable
(whether on the Stated Maturity Date,  upon  acceleration or otherwise) or after
any other monetary  Obligation of Borrower  arising under this  Agreement  shall
become due and payable,  Borrower shall pay (to the extent  permitted by law, if
in respect of any unpaid amounts representing  interest) interest (after as well
as before  judgment)  on such  amounts at a rate per annum  equal to the Default
Rate. No provision of this Agreement or Lender Note shall require the payment or
permit  the  collection  of  interest  in excess  of the  maximum  permitted  by
applicable law.

         Section 3.2       Interest, Payment Dates.

         Interest accrued on each Loan shall be payable, without duplication:

         (a) on the Stated Maturity Date;

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

         (c) on each  Distribution  Date prior to the Stated  Maturity  Date and
thereafter on the last day of each Interest Period; and

         (d) on that  portion of any Loan the Stated  Maturity  Date of which is
accelerated pursuant to Section 10.3, immediately upon such acceleration.

         Section 3.3       Interest Allocations.

         Administrator  shall  from  time to  time  and in its  sole  discretion
determine  whether  interest  in respect of the Loans then  outstanding,  or any
portion  thereof,  shall be calculated by reference to the Commercial Paper Rate
(such portion being herein called a "CP  Allocation")  or the  Alternative  Rate
(such portion being herein called an "Alternative Rate Allocation", and together
with a CP Allocation  individually  called an  "Allocation",  and  collectively,
"Allocations");  provided, however, that, Administrator shall use its reasonable
efforts to allocate  all or  substantially  all of the Loans from Lender to a CP
Allocation;  provided further, however, that Administrator may determine, at any
time and in its sole  discretion,  that the Commercial Paper Rate is unavailable
or  otherwise  not  desirable,  in which  case the  Loans  from  Lender  will be
allocated  to an  Alternative  Rate  Allocation  (unless the Default  Rate is in
effect).

         Section 3.4       Fees.

                                       20

<PAGE>

         Borrower  agrees to pay  Administrator  and Lender  certain fees in the
amounts  and on  the  dates  set  forth  in the  letter  agreement  executed  in
connection herewith between Borrower,  Administrator and Lender (as the same may
be amended, supplemented or otherwise modified, the "Fee Letter").

         Section 3.5       Computation of Interest and Fees.

         All  interest  and fees  shall be  computed  on the basis of the actual
number of days  (including  the first day but excluding the last day)  occurring
during  the  period  for  which  such  interest  or fee is  payable  over a year
comprised of 360 days.

                                   ARTICLE IV

             REPAYMENTS AND PREPAYMENTS; DISTRIBUTION OF COLLECTIONS

         Section 4.1       Repayments and Prepayments.

         Borrower shall repay in full the unpaid  principal  amount of each Loan
on the Stated Maturity Date. Prior thereto, Borrower:

         (a) may, from time to time on any Business  Day, make a prepayment,  in
whole or in part, of the outstanding  principal  amount of any Loans;  provided,
however,  that,  unless  otherwise  consented  to  by  Administrator,  all  such
voluntary prepayments shall require at least two Business Days' (or, in the case
of a voluntary prepayment of $10,000,000 or more, at least seven Business Days')
prior written notice to Administrator and all such voluntary partial prepayments
shall be in a minimum amount of $1,000,000 and an integral multiple of $100,000;

         (b) shall,  on each date when any reduction in the Facility Limit shall
become  effective  pursuant to Section 2.6, make a prepayment of the Loans in an
amount  equal to the excess,  if any,  of the  aggregate  outstanding  principal
amount of the Loans over the Facility Limit as so reduced;

         (c) shall,  immediately  upon any  acceleration  of the Stated Maturity
Date of any Loans pursuant to Section 10.3, repay all Loans, unless, pursuant to
Section 10.3(a),  only a portion of all Loans is so accelerated,  in which event
Borrower shall repay the accelerated portion of the Loans; and

         (d) may, if at any time a Borrowing  Base Deficit  shall exist,  make a
prepayment (out of funds set aside pursuant to Section 4.2(d))of the Loans in an
amount  equal to such  Borrowing  Base  Deficit,  such payment to be made within
three (3) Business Days. Each such prepayment shall be subject to the payment of
any amounts required by Section 6.2.

         Each  payment or  prepayment  shall be  subject  to the  payment of any
amounts required by Section 6.2 resulting from a prepayment or payment of a Loan
on a day other than the last day of the Interest Period for such Loan.

         Section 4.2       Application of Collections.

                                       21

<PAGE>

         (a) All  Collections  deposited  in the  Collection  Account  shall  be
distributed  by the Master  Servicer  at such times and in the order of priority
set forth in this Section 4.2.

         (b) On each Distribution Date prior to the Commitment Termination Date,
the  Master  Servicer  shall  distribute  from  Collections  on  deposit  in the
Collection  Account on such Distribution  Date, the following  amounts,  without
duplication, in the following order of priority:

         first, to  Administrator  on behalf of Lender,  interest accrued on the
Loans during the related  Interest  Period (plus,  if applicable,  the amount of
interest on the Loans accrued for any prior  Interest  Period to the extent such
amount has not been  distributed to Lender,  and to the extent permitted by law,
interest thereon);

         second, to Administrator on behalf of the appropriate Persons, all Fees
accrued during such Due Period (plus, if applicable,  the amount of Fees accrued
for any prior Due Period to the extent such amount has not been  distributed  to
Lender or Administrator);

         third, if the Master Servicer is not Covenant Nevada or an Affiliate of
Covenant Nevada,  to the Master Servicer,  the accrued Servicing Fee payable for
the related Due Period (plus, if applicable, the amount of Servicing Fee payable
for any prior Due Period to the extent such amount has not been  distributed  to
Master Servicer);

         fourth,  to  Administrator  on  behalf of  Lender,  as a  repayment  of
principal of the Loans, an amount equal to the Borrowing Base Deficit, if any;

         fifth, to Administrator on behalf of the appropriate Persons, all other
Obligations then payable by Borrower under this Agreement;

         sixth,  if the Master  Servicer is Covenant  Nevada or an  Affiliate of
Covenant Nevada,  to the Master Servicer,  the accrued Servicing Fee payable for
the related Due Period (plus, if applicable, the amount of Servicing Fee payable
for any prior Due Period to the extent such amount has not been  distributed  to
Master Servicer); and

         seventh, so long as no Significant Event or Unmatured Significant Event
shall be continuing, the balance, if any, to Borrower.

         (c) On and after the Commitment Termination Date,  Administrator shall,
on the last day of each Interest Period,  distribute from the Collection Account
the following amounts, without duplication, in the following order of priority:

         first,  to  Administrator  on behalf of Lender,  the accrued but unpaid
interest on the Loans;

         second,  to  Administrator  on behalf of the appropriate  Persons,  all
accrued but unpaid Fees;

         third, if the Master Servicer is not Covenant Nevada or an Affiliate of
Covenant Nevada, to the Master Servicer, the accrued but unpaid Servicing Fee;

                                       22

<PAGE>

         fourth, to Administrator on behalf of Lender, the outstanding principal
amount of the Loans;

         fifth, to Administrator on behalf of the appropriate Persons, all other
Obligations payable by Borrower under this Agreement;

         sixth,  if the Master  Servicer is Covenant  Nevada or an  Affiliate of
Covenant Nevada,  to the Master Servicer,  the accrued but unpaid Servicing Fee;
and

         seventh, once all amounts described in clauses first through sixth have
been paid in full, the balance, if any, to Borrower.

         Section 4.3       Application of Certain Payments.

         Each  payment of  principal of the Loans shall be applied to such Loans
as  Borrower  shall  direct  or, in the  absence  of such  notice or during  the
existence of a Significant  Event or after the Commitment  Termination  Date, as
Administrator shall determine in its discretion.

         Section 4.4       Due Date Extension.

         If any payment of principal or interest  with respect to any Loan falls
due on a day which is not a Business  Day,  then such due date shall be extended
to the next following Business Day, and additional  interest shall accrue at the
applicable interest rate and be payable for the period of such extension.

         Section 4.5       Making of Payments.

         All  payments of  principal  of, or  interest  on, the Loans and of all
Fees, and all amounts to be deposited by Borrower or Master Servicer  hereunder,
shall be made by Borrower or Master Servicer, as applicable, no later than 10:00
a.m.  (New York City time),  on the Business Day when due in lawful money of the
United States of America in same day funds to Bank, as Administrator, Reference:
Three Pillars Funding Corporation/Covenant Transport, Inc., Transaction, Account
No.  880171236,  ABA No. 061000104 at Bank's office at 25 Park Place in Atlanta,
Georgia, Attn: Mary Hinsberg (the "Administrator's  Account"). Funds received by
Administrator after 10:00 a.m. New York City time, on the date when due, will be
deemed to have been received by  Administrator  on its next  following  Business
Day.

                                    ARTICLE V

                                SECURITY INTEREST

         Section 5.1       Grant of Security.

         (a)  Borrower  hereby  assigns  and pledges to  Administrator  (for the
benefit of the Secured  Parties),  and hereby grants to  Administrator  (for the
benefit of the Secured Parties) a

                                       23

<PAGE>

security interest in all of Borrower's  right,  title and interest in and to the
following, whether now or hereafter existing and wherever located:

                  (i)  all Receivables, Related Security and Receivable Files;

                  (ii) all of Borrower's rights, remedies, powers and privileges
         in respect of the Receivables  Purchase  Agreement,  including a direct
         right  to  cause  any  Originator  to make  payments  with  respect  to
         Dilutions  or  with  respect  to  Receivables  that  are  not  Eligible
         Receivables pursuant to the Receivables Purchase Agreement;

                  (iii) the LockBox and the Collection  Account and all funds on
         deposit therein,  together with all  certificates  and instruments,  if
         any, from time to time evidencing  such accounts,  and funds on deposit
         and all investments made with such funds,  all claims  thereunder or in
         connection therewith,  and interest,  dividends,  moneys,  instruments,
         securities and other property from time to time received, receivable or
         otherwise distributed in respect of any or all of the foregoing; and

                  (iv) all products and proceeds (including, without limitation,
         insurance proceeds) of, and additions,  improvements and accessions to,
         and books and records  describing or used in connection  with,  all and
         any of the  property  described  above  (items  (i)  through  (iv)  are
         collectively referred to as the "Collateral").

         (b) This grant of security  secures the payment and  performance of all
Obligations  of  Borrower  now or  hereafter  existing or arising  under,  or in
connection  with,  the Loan  Agreement,  Lender Note and each other  Transaction
Document,  whether for principal,  interest,  costs, fees, expenses or otherwise
(all such obligations of Borrower being called the "Secured Obligations").

         (c) This grant of security shall create a continuing  security interest
in the Collateral and shall:

                  (i) remain in full force and effect until Administrator's (for
         the benefit of the Secured  Parties)  interest in the Collateral  shall
         have been released in accordance with Section 5.4;

                  (ii) be binding upon Borrower, its successors, transferees and
         assigns; and

                  (iii)  inure,   together  with  the  rights  and  remedies  of
         Administrator  (for the benefit of the Secured Parties)  hereunder,  to
         the  benefit  of  Administrator   and  each  Secured  Party  and  their
         respective successors, transferees and assigns.

         Section 5.2       Administrator Appointed Attorney-in-Fact.

         Borrower hereby irrevocably appoints  Administrator (for the benefit of
the Secured Parties) as Borrower's attorney-in-fact,  with full authority in the
place and stead of Borrower and in the name of Borrower or otherwise,  from time
to time in  Administrator's  discretion,  after the  occurrence  and  during the
continuation  of a  Significant  Event to take any  action  and to  execute  any
instrument which Administrator may deem necessary or advisable to accomplish the
purposes of the Transaction Documents, including, without limitation:

                                       24

<PAGE>

         (a) to ask, demand, collect, sue for, recover, compromise,  receive and
give  acquittance  and  receipts  for  moneys  due and to become due under or in
respect of any of the Collateral;

         (b) to receive,  endorse,  and collect any drafts or other instruments,
documents and chattel paper, in connection with clause (a) above;

         (c) to file any claims or take any action or institute any  proceedings
which Administrator may deem necessary or desirable for the collection of any of
the  Collateral  or  otherwise to enforce the rights of  Administrator  (for the
benefit of the Secured Parties) with respect to any of the Collateral;

         (d) to  sell,  transfer,  assign  or  otherwise  deal  in or  with  the
Collateral or any part thereof  pursuant to the terms and conditions  hereunder;
and

         (e) to  perform  the  affirmative  obligations  of  Borrower  under the
Transaction Documents.

Administrator  agrees to give Borrower and Master Servicer written notice of the
taking of any such action,  but the failure to give such notice shall not affect
the rights,  power or authority of Administrator with respect thereto.  Borrower
hereby  acknowledges,  consents  and agrees that the power of  attorney  granted
pursuant to this Section 5.2 is irrevocable and coupled with an interest.

         Section 5.3       Administrator May Perform.

         If  Borrower   fails  to  perform  any  agreement   contained   herein,
Administrator  (for the benefit of the Secured  Parties) may itself perform,  or
cause performance of such agreement,  and the expenses of Administrator incurred
in connection therewith shall be payable by Borrower.

         Section 5.4       Release of Collateral.

         Administrator's  (for the benefit of the Secured Parties) right,  title
and interest in the Collateral shall be released effective on the date occurring
after the Commitment  Termination  Date on which all Secured  Obligations  shall
have been finally and fully paid and performed.

                                   ARTICLE VI

                              INCREASED COSTS, ETC.

         Section 6.1       Increased Costs.

         If any change in  Regulation D of the Board of Governors of the Federal
Reserve System, or any Regulatory  Change, in each case occurring after the date
hereof:

         (a) shall  subject any Affected  Party to any tax, duty or other charge
with  respect  to any Loan made or funded  by it, or shall  change  the basis of
taxation of payments to such

                                       25

<PAGE>

Affected  Party of the principal of or interest on any Loan owed to or funded by
it or any other amounts due under this  Agreement in respect of any Loan made or
funded by it (except for changes in the rate of tax on the overall net income of
such Affected Party imposed by the  jurisdiction in which such Affected  Party's
principal executive office is located); or

         (b) shall impose,  modify or deem  applicable  any reserve  (including,
without limitation, any reserve imposed by the Board of Governors of the Federal
Reserve  System,  but excluding  any reserve  included in the  determination  of
interest rates pursuant to Section 3.1), special deposit or similar  requirement
against assets of,  deposits with or for the account of, or credit  extended by,
any Affected Party;

         (c) shall  change the  amount of  capital  maintained  or  required  or
requested or directed to be maintained by any Affected Party; or

         (d) shall  change the  amount of  capital  maintained  or  required  or
requested or directed to be maintained by any Affected Party; or

and the result of any of the  foregoing  is or would be to (i) increase the cost
to or to impose a cost on (A) an Affected Party funding or making or maintaining
any Loan  (including  extensions  of credit under the Liquidity  Agreement,  the
Voluntary  Advance  Agreement or any Credit  Advance,  or any commitment of such
Affected Party with respect to any of the foregoing),  or (B)  Administrator for
continuing its or Borrower's relationship with Lender, (ii) to reduce the amount
of any sum received or  receivable  by an Affected  Party under this  Agreement,
Lender Note, the Liquidity  Agreement,  the Voluntary  Advance  Agreement or the
Credit Agreement with respect thereto,  or (iii) in the good faith determination
of such  Affected  Party,  to reduce  the rate of return  on the  capital  of an
Affected  Party as a  consequence  of its  obligations  hereunder,  or under the
Liquidity  Agreement,  the Voluntary Advance  Agreement or Credit Agreement,  or
arising in  connection  herewith or  therewith  to a level below that which such
Affected Party could otherwise have achieved, then after demand by such Affected
Party to Borrower  (which  demand shall be  accompanied  by a written  statement
setting forth the basis of such demand),  Borrower shall pay such Affected Party
such additional  amount or amounts as will (in the reasonable  determination  of
such Affected  Party)  compensate such Affected Party for such increased cost or
such  reduction.  Such written  statement  (which shall include  calculations in
reasonable  detail)  shall,  in the absence of  manifest  error,  be  rebuttably
presumptive evidence of the subject matter thereof.

         Section 6.2       Funding Losses.

         Borrower  hereby  agrees that upon demand by any Affected  Party (which
demand  shall be  accompanied  by a  statement  setting  forth the basis for the
calculations of the amount being claimed)  Borrower will indemnify such Affected
Party against any net loss or expense  which such Affected  Party may sustain or
incur (including, without limitation, any net loss or expense incurred by reason
of the  liquidation or  reemployment of deposits or other funds acquired by such
Affected  Party to fund or  maintain  any Loan made by Lender to  Borrower),  as
reasonably  determined by such Affected Party, as a result of (a) any payment or
prepayment (including any mandatory prepayment) of any Loan on a date other than
the  last day of the  Interest  Period  for such  Loan,  or (b) any  failure  of
Borrower to borrow any Loan on a date specified therefor in a

                                       26

<PAGE>

related  Borrowing  Request.  Such written  statement  shall,  in the absence of
manifest  error,  be  rebuttably  presumptive  evidence  of the  subject  matter
thereof.

         Section 6.3       Withholding Taxes.

         (a) All payments made by Borrower or Master Servicer hereunder shall be
made free and clear of, and without  reduction or withholding  for or on account
of, any present or future taxes, now or hereafter  imposed,  levied,  collected,
withheld or assessed by any  Governmental  Authority or other  taxing  authority
excluding,  in the case of Administrator and Lender, net income taxes imposed on
Administrator   or  Lender  by  the   jurisdiction   under  the  laws  of  which
Administrator  or Lender is organized  or any  political  subdivision  or taxing
authority  thereof or therein (such taxes,  excluding such net income taxes, the
"Covered  Taxes").  If any Covered  Taxes are  required to be withheld  from any
amounts  payable  to  Administrator  or  Lender,   the  amounts  so  payable  to
Administrator  or Lender shall be increased to the extent  necessary to yield to
Administrator  or Lender (after  payment of all taxes) all such amounts  payable
hereunder at the rates or in the amounts specified herein.  Whenever any Covered
Taxes are  payable by  Borrower  or Master  Servicer,  as  promptly  as possible
thereafter,  Borrower or Master Servicer shall send to Administrator for its own
account or for the account of Lender, as the case may be, a certified copy of an
original  official  receipt  received  by Borrower  or Master  Servicer  showing
payment  thereof.  If Borrower or Master Servicer fails to pay any Covered Taxes
when due to the appropriate  taxing authority or fails to remit to Administrator
the required documentary  evidence,  Borrower or Master Servicer shall indemnify
Administrator  and Lender for such Covered Taxes and any incremental  taxes that
may become payable by Administrator or Lender as a result of any such failure.

         (b) At least  five (5)  Business  Days prior to the first date on which
any payments,  including discount or Fees, are payable hereunder for the account
of Lender,  if Lender is not  incorporated  under the laws of the United States,
Lender  agrees to deliver to each of  Borrower  and  Administrator  two (2) duly
completed copies of (i) United States Internal Revenue Service Form 1001 or 4224
(or  successor  applicable  form)  certifying  that such  Lender is  entitled to
receive payments hereunder without deduction or withholding of any United States
federal income taxes or (ii) United States Internal  Revenue Service Form W-8 or
W-9 (or successor  applicable form) to establish an exemption from United States
backup  withholding  tax.  Lender  shall  replace  or  update  such  forms as is
necessary or appropriate to maintain any applicable exemption or as is requested
by Administrator or Borrower.  If Lender does not deliver the forms described in
this Section  6.3(b),  Borrower or  Administrator  shall withhold  United States
federal  income taxes from any payments  made  hereunder at the  statutory  rate
applicable  to payments  made to Lender.  Lender  agrees to  indemnify  and hold
Borrower and Administrator  harmless for any United States federal income taxes,
penalties,  interest and other costs and losses  incurred or payable by Borrower
or  Administrator  as a result of either (i) Lender's failure to submit any form
required to be provided  pursuant to this Section  6.3(b) or (ii)  Borrower's or
Administrator's  reliance on any form that Lender has provided  pursuant to this
Section 6.3(b).

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<PAGE>

                                   ARTICLE VII

                             CONDITIONS TO BORROWING

         The making of any Loan hereunder is subject to the following conditions
precedent:

         Section 7.1       Initial Loan.

         The  obligation  of Lender to make the initial  Loan  hereunder  is, in
addition to the conditions  precedent  specified in Section 7.2,  subject to the
condition precedent that Administrator shall have received all of the following,
each duly  executed  and dated  the date of such Loan (or such  earlier  date as
shall be satisfactory to Administrator),  in form and substance  satisfactory to
Administrator:

         (a)  Resolutions.  Certified  copies  of  resolutions  of the  Board of
Directors  of  Borrower,  Master  Servicer and each  Originator  authorizing  or
ratifying  the  execution,  delivery  and  performance,   respectively,  of  the
Transaction  Documents to which it is a party, together with a certified copy of
its articles or certificate of incorporation and by-laws.

         (b) Consents,  etc.  Certified  copies of all documents  evidencing any
necessary  corporate action,  consents and governmental  approvals (if any) with
respect to the Transaction Documents.

         (c)  Incumbency  and  Signatures.  A certificate of the Secretary or an
Assistant  Secretary of each of Borrower,  Master  Servicer and each  Originator
certifying  the  names  of its  officer  or  officers  authorized  to  sign  the
Transaction Documents to which it is a party.

         (d)  Good  Standing   Certificates.   Good  standing  certificates  for
Borrower,  Master  Servicer  and each  Originator  issued  as of a  recent  date
acceptable to Administrator by (i) the Secretary of State of the jurisdiction of
such Person's incorporation or organization,  and (ii) the Secretary of State of
the jurisdiction  where such Person's chief executive office and principal place
of business are located.

         (e) Financing Statements. (i) Acknowledgment copies of proper financing
statements  (Form  UCC-1),  filed on or prior to the date of the  initial  Loan,
naming  Borrower  as debtor and  Administrator  (for the  benefit of the Secured
Parties)  as the  secured  party  as may be  necessary  or,  in the  opinion  of
Administrator,  desirable  under  the UCC to  perfect  Administrator's  (for the
benefit of the  Secured  Parties)  security  interest  in the  Collateral,  (ii)
acknowledgment copies of proper financing  statements,  filed on or prior to the
date of the  initial  Loan,  naming  each of  Covenant  Tennessee  and  Southern
Refrigerated  as  seller/debtor,   Borrower  as   purchaser/secured   party  and
Administrator   as  assignee  as  may  be  necessary   or,  in  the  opinion  of
Administrator,  desirable under the UCC to perfect Borrower's ownership interest
in the Receivables  and (iii) executed copies of proper Uniform  Commercial Code
Form UCC-3 termination  statements,  if any,  necessary to release all liens and
other Adverse Claims of any Person in the Collateral  granted by Borrower or any
Originator.

                                       28

<PAGE>

         (f) Search Reports.  A written search report ("Search Report") provided
to  Administrator by a search service  acceptable to  Administrator  listing all
effective financing statements that name Borrower or any Originator as debtor or
assignor  and that are filed in the  jurisdictions  in which  filings  were made
pursuant  to  Section  7.1(e)  above  and  in  such  other   jurisdictions  that
Administrator shall reasonably  request,  together with copies of such financing
statements  (none of which shall cover any  Collateral  or interests  therein or
proceeds of any thereof), and tax and judgment lien search reports from a Person
satisfactory  to  Administrator  showing no evidence of such lien filed  against
Borrower or any  Originator;  provided,  however a Search Report with respect to
the Borrower in Arkansas and the related  financing  statement  may be delivered
with such other  documents  or  opinions  as the  Administrator  may  reasonably
request no later than thirty days after the date hereof.

         (g) Fee  Letter;  Payment of Fees.  The Fee Letter,  together  with all
outstanding Fees payable pursuant to the Fee Letter.

         (h)  Receivables  Purchase  Agreement.  (i) Duly executed and delivered
counterparts of the Receivables Purchase Agreement and all documents, agreements
and  instruments  contemplated  thereby,  and  (ii)  evidence  that  each of the
conditions  precedent to the execution and delivery of the Receivables  Purchase
Agreement  has been  satisfied  to  Administrator's  satisfaction,  and that the
initial assignments and transfers under the Receivables  Purchase Agreement have
been consummated.

         (i)  Opinions  of  Counsel.  Opinions  of counsel to  Borrower,  Master
Servicer  and  the   Originators   in  form  and   substance   satisfactory   to
Administrator.

         (j) Lender Note.  Lender Note, duly executed by Borrower.

         (k) Borrowing Base  Certificate.  A certificate,  substantially  in the
form of Exhibit D (a "Borrowing Base Certificate"),  duly executed by an officer
of Borrower (or the Master  Servicer on its behalf) showing a calculation of the
Borrowing Base as of the date of such initial Loan.

         (l) Collection Account  Agreements.  The Collection Account Agreements,
duly executed by all of the parties thereto.

         (m) Releases. Releases and termination statements duly executed by each
Person, other than Borrower, that has an interest in the Receivables.

         (n)  Other.   Such  other  documents,   certificates  and  opinions  as
Administrator may request.

         Section 7.2       All Loans.

         The making of the initial Loan and each  subsequent Loan are subject to
the following further conditions precedent that:

         (a) No Default,  etc. (i) No Significant Event or Unmatured Significant
Event has  occurred  and is  continuing  or will  result from the making of such
Loan,  (ii) the  representations

                                       29

<PAGE>

and  warranties  of Borrower and Master  Servicer  contained in Article VIII are
true and correct as of the date of such requested  Loan, with the same effect as
though  made on the date of such Loan,  and (iii)  after  giving  effect to such
Loan,  the aggregate  unpaid  balance of the Loans will not exceed the Borrowing
Base or the Facility  Limit.  By making a Borrowing  Request,  Borrower shall be
deemed to have  represented and warranted that items (i), (ii), and (iii) in the
preceding sentence are true and correct.

         (b)  Borrowing  Request,  etc.  Administrator  shall  have  received  a
Borrowing  Base  Certificate  and Borrowing  Request for such Loan in accordance
with Section 2.2, together with all items required to be delivered in connection
therewith.

         (c) Commitment  Termination Date. The Commitment Termination Date shall
not have occurred.

         (d) Collateral Review.  Administrator shall have received for all Loans
subsequent  to the initial Loan on the Closing Date the  most-recent  Collateral
Review pursuant to Section 9.1(e)(v).

                                  ARTICLE VIII

                         REPRESENTATIONS AND WARRANTIES

         In order  to  induce  Lender  and  Administrator  to  enter  into  this
Agreement and, in the case of Lender,  to make Loans hereunder,  Borrower hereby
represents and warrants to Administrator and Lender as to itself as follows, and
Master Servicer hereby represents and warrants to Lender and Administrator as to
itself as follows:

         Section 8.1       Organization and Good Standing, etc.

         Each of Borrower  and Master  Servicer has been duly  organized  and is
validly  existing  and  in  good  standing  under  the  laws  of  its  state  of
organization, with power and authority to own their respective properties and to
conduct their  respective  businesses as such properties are presently owned and
such businesses are presently conducted. Each of Borrower and Master Servicer is
duly  licensed or qualified to do business as a foreign  entity in good standing
in the  jurisdiction  where its principal  place of business and chief executive
office are located and in each other  jurisdiction in which the failure to be so
licensed or qualified has had, or would be reasonably  likely to have a Material
Adverse Effect.

         Section 8.2       Power and Authority; Due Authorization.

         Each of  Borrower  and Master  Servicer  has (a) all  necessary  power,
authority  and legal right to (i) execute,  deliver and perform its  obligations
under this Agreement and each of the other Transaction  Documents to which it is
a party, and (ii) in the case of Borrower, to borrow on the terms and subject to
the  conditions  herein  provided,  and (b) duly  authorized,  by all  necessary
action, the execution,  delivery and performance of this Agreement and the other
Transaction  Documents to which it is a party and, in the case of Borrower,  the
borrowing,  and the granting of security  therefor,  on the terms and conditions
provided  herein.  Master Servicer had at all

                                       30

<PAGE>

relevant times, and now has, all necessary  power,  authority and legal right to
perform its duties as Master Servicer.

         Section 8.3       No Violation.

         The consummation of the transactions contemplated by this Agreement and
the other  Transaction  Documents  and the  fulfillment  of the terms hereof and
thereof will not (a) conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time or both) a
default under, (i) the organizational  documents of Borrower or Master Servicer,
or  (ii)  any  indenture,  loan  agreement,  pooling  and  servicing  agreement,
receivables purchase agreement,  mortgage,  deed of trust, or other agreement or
instrument  to which  Borrower or Master  Servicer is a party or by which any of
them or any of their  respective  properties is bound,  (b) result in or require
the creation or  imposition  of any Adverse  Claim upon any of their  respective
properties pursuant to the terms of any such indenture, loan agreement,  pooling
and servicing  agreement,  receivables  purchase  agreement,  mortgage,  deed of
trust, or other agreement or instrument, other than pursuant to the terms of the
Transaction Documents,  or (c) violate any law or any order, rule, or regulation
applicable  to  Borrower or Master  Servicer or of any court or of any  federal,
state or foreign regulatory body,  administrative  agency, or other governmental
instrumentality  having  jurisdiction  over  Borrower,  any Originator or Master
Servicer or any of their respective properties.

         Section 8.4       Validity and Binding Nature.

         This Agreement is, and the other Transaction Documents to which it is a
party when duly  executed  and  delivered  by  Borrower or Master  Servicer  (as
applicable) and the other parties thereto will be, the legal,  valid and binding
obligation  of  Borrower  or Master  Servicer  (as  applicable)  enforceable  in
accordance with their respective terms,  except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization,  moratorium or similar law
affecting creditors' rights generally and by general principles of equity.

         Section 8.5       Government Approvals.

         No  authorization  or approval or other  action by, and no notice to or
filing with, any governmental  authority or regulatory body required for the due
execution,  delivery  or  performance  by  Borrower  or Master  Servicer  of any
Transaction Document to which it is a party remains unobtained or unfiled.

         Section 8.6       Solvency.

         Borrower is Solvent.

         Section 8.7       Margin Regulations.

         Neither  Borrower  or Master  Servicer  is engaged in the  business  of
extending  credit for the purpose of purchasing or carrying margin stock, and no
proceeds of any Loans,  directly or indirectly,  will be used for a purpose that
violates,  or would be inconsistent with,  Regulations T, U and X promulgated by
the Federal Reserve Board from time to time.

                                       31

<PAGE>

         Section 8.8       Quality of Title.

         The Collateral,  including,  without  limitation,  the Receivables,  in
which a security interest is to be granted to Administrator  (for the benefit of
the Secured Parties)  pursuant to this Agreement shall be owned by Borrower free
and  clear  of any  Adverse  Claim.  Borrower  has a  first  priority  perfected
ownership  interest in the  Receivables.  This  Agreement  creates a valid first
priority  security  interest in favor of  Administrator  (for the benefit of the
Secured   Parties)  in  the  Collateral,   including   without   limitation  the
Receivables,  which security  interest has been perfected (free and clear of any
Adverse Claim) as security for the Obligations. No effective financing statement
or other  instrument  similar in effect  covering any of the  Collateral  or any
interest  therein  is on file  in any  recording  office  except  for  financing
statements that may be filed (a) in favor of  Administrator  (for the benefit of
the Secured Parties) in accordance with this Agreement, (b) in favor of Borrower
in accordance with the Receivables Purchase Agreement,  or (c) UCC-3 termination
statements  necessary  to release all Liens and Adverse  Claims of any Person in
the Collateral granted by Borrower or any Originator.

         Section 8.9       Offices.

         The principal place of business and chief executive  office of Borrower
and Master Servicer is located at the address referred to on Schedule VI to this
Agreement(or at such other locations, notified to Administrator in jurisdictions
where all action required thereby has been taken and completed).

         Section 8.10      Compliance with Applicable Laws; Licenses, etc.

         (a) Each of  Borrower  and Master  Servicer is in  compliance  with the
requirements  of all  applicable  laws,  rules,  regulations,  and orders of all
governmental  authorities,  a breach  of any of  which,  individually  or in the
aggregate, would be reasonably likely to have a Material Adverse Effect.

         (b)  Neither  Borrower  nor  Master  Servicer  has failed to obtain any
licenses,  permits, franchises or other governmental authorizations necessary to
the  ownership  of its  properties  or to the  conduct  of its  business,  which
violation or failure to obtain has had, or would be reasonably likely to have, a
Material Adverse Effect.

         Section 8.11      No Proceedings.

         Except as described in Schedule IV,

         (a) there is no order,  judgment,  decree,  injunction,  stipulation or
consent  order of or with  any  court or  other  government  authority  to which
Borrower  or  Master  Servicer  is  subject,  and  there  is  no  action,  suit,
arbitration,   regulatory  proceeding  or  investigation  pending,  or,  to  the
knowledge of Borrower or Master  Servicer,  threatened,  before or by any court,
regulatory  body,  administrative  agency  or  other  tribunal  or  governmental
instrumentality,  against  Borrower or Master Servicer that,  individually or in
the  aggregate,  has had,  or is  reasonably  likely to have a Material  Adverse
Effect; and

                                       32

<PAGE>

         (b) there is no action, suit,  proceeding,  arbitration,  regulatory or
governmental  investigation,  pending or, to the knowledge of Borrower or Master
Servicer,  threatened,  before or by any court, regulatory body,  administrative
agency,  or other  tribunal or  governmental  instrumentality  (i) asserting the
invalidity of this  Agreement,  Lender Note or any other  Transaction  Document,
(ii) seeking to prevent the issuance of Lender Note or the  consummation  of any
of  the  other  transactions   contemplated  by  this  Agreement  or  any  other
Transaction Document or (iii) seeking to adversely affect the federal income tax
attributes of Borrower.

         Section 8.12      Investment Company Act, Etc.

         Neither Borrower nor Master Servicer is an "investment  company" within
the meaning of the  Investment  Company Act of 1940,  as amended,  or a "holding
company",  or a "subsidiary  company", of a "holding company", or an "affiliate"
of a "holding  company",  or of a "subsidiary  company" of a "holding  company",
within  the  meaning of the  Public  Utility  Holding  Company  Act of 1935,  as
amended.

         Section 8.13      Eligible Receivables.

         Each  Receivable   included  in  the  Borrowing  Base  as  an  Eligible
Receivable on the date of any Borrowing Base Certificate,  Monthly Report or any
Loan shall be an Eligible Receivable on such date.

         Section 8.14      Accuracy of Information.

         All information  heretofore  furnished by, or on behalf of, Borrower or
Master  Servicer to  Administrator  or Lender in connection with any Transaction
Document, or any transaction contemplated thereby, is true and accurate in every
material respect (without omission of any information  necessary to prevent such
information from being materially misleading).

         Section 8.15      No Material Adverse Change.

         Since September 30, 2000,  there has been no material adverse change in
the  collectibility  of the  Receivables or Master  Servicer's or Borrower's (a)
financial  condition,  business  or  operations  or (b)  ability to perform  its
obligations under any Transaction Document.

         Section 8.16      Trade Names and Subsidiaries.

         Borrower has not used any other names, trade names or assumed names for
the six year  period  preceding  the  date of this  Agreement.  Borrower  has no
Subsidiaries  and does not own or  hold,  directly  or  indirectly,  any  equity
interest in any Person.

         Section 8.17      Accounts.

         Set forth in Schedule I hereto is a complete and accurate  description,
as of the Closing Date, of the Collection  Account and the LockBoxes  maintained
by any  Originator,  Borrower or Master  Servicer  for the purpose of  receiving
Collections with respect to Receivables. The Collection Account has been validly
and  effectively  assigned to  Administrator  pursuant to this Agreement and the
Collection Account Agreements.  The Collection Account Agreements

                                       33

<PAGE>

continue to be the legal, valid and binding  obligations of the parties thereto,
enforceable  against such parties in accordance with their respective terms, and
Borrower and Master Servicer acknowledge that all cash and other proceeds of the
Receivables will be deposited in the Collection  Account in accordance with this
Agreement and are subject to the terms and conditions of this Agreement. None of
the  Originators,  Master  Servicer or Borrower  has granted any interest in the
Collection  Account or any LockBox to any Person other than  Administrator,  and
Administrator has exclusive control of the Collection Account and the LockBox.

         Section 8.18      Sales by Originators.

         Each sale of  Receivables by any Originator to Borrower shall have been
effected under,  and in accordance  with the terms of, the Receivables  Purchase
Agreement,  including  the payment by Borrower to such  Originator  of an amount
equal to the purchase  price therefor as described in the  Receivables  Purchase
Agreement,  and each such sale shall have been made for  "reasonably  equivalent
value" (as such term is used under Section 548 of the  Bankruptcy  Code) and not
for or on account of  "antecedent  debt" (as such term is used under Section 547
of the Bankruptcy Code) owed by Borrower to such Originator.

                                   ARTICLE IX

                    COVENANTS OF BORROWER AND MASTER SERVICER

         Section 9.1       Affirmative Covenants.

         From the date  hereof  until the first day,  following  the  Commitment
Termination  Date,  on which all  Obligations  shall have been finally and fully
paid and  performed,  Borrower  hereby  covenants  and  agrees  with  Lender and
Administrator that as to itself, and Master Servicer hereby covenants and agrees
with Lender and Administrator as to itself, that it will:

         (a) Compliance with Laws, Etc. Comply in all material respects with all
applicable laws, rules,  regulations and orders of all governmental  authorities
(including those which relate to the Receivables).

         (b)  Preservation  of  Corporate  Existence.  Preserve and maintain its
existence  rights,   franchises  and  privileges  in  the  jurisdiction  of  its
incorporation or organization, and qualify and remain qualified in good standing
as a foreign entity in the  jurisdiction  where its principal  place of business
and its chief executive office are located and in each other  jurisdiction where
the  failure to  preserve  and  maintain  such  existence,  rights,  franchises,
privileges and qualifications would have a Material Adverse Effect.

         (c)  Performance  and  Compliance  with  Receivables.  Timely and fully
perform and comply with all provisions, covenants and other promises required to
be observed by it under the Receivables and all other agreements related to such
Receivables.

         (d)  Collection  Policy.  Comply  in all  material  respects  with  the
Collection Policy applicable to the Receivables.

         (e)      Reporting Requirements.  Furnish to Administrator and Lender:

                                       34

<PAGE>

                  (i)      Financial Statements.

                           (A) as soon as available,  and in any event within 95
                  days after the end of each Fiscal Year of Borrower,  a copy of
                  the annual report for such Fiscal Year of Borrower including a
                  copy of the balance sheet of Borrower, in each case, as at the
                  end of such Fiscal Year,  together with the related statements
                  of earnings and cash flows for such Fiscal Year,  certified by
                  the  chief  executive  officer,  chief  financial  officer  or
                  controller of Borrower (which  certification  shall state that
                  such balance sheet and statements fairly present the financial
                  condition  and results of  operations  for such Fiscal Year in
                  accordance  with GAAP),  together with a  certificate  of such
                  officer  stating  that such  officer has obtained no knowledge
                  that a Significant  Event or Unmatured  Significant  Event has
                  occurred  and is  continuing,  or if, in the  opinion  of such
                  officer,  such a  Significant  Event or Unmatured  Significant
                  Event has  occurred and is  continuing,  a statement as to the
                  nature thereof;

                           (B) as soon as  available  and in any event within 95
                  days after the end of each Fiscal Year of Covenant  Nevada,  a
                  balance  sheet of  Covenant  Nevada as of the end of such year
                  and  statements of income and retained  earnings and of source
                  and  application  of  funds of  Covenant  Nevada,  along  with
                  consolidating statements, for the period commencing at the end
                  of the  previous  Fiscal  Year and ending with the end of such
                  year, in each case setting forth  comparative  figures for the
                  previous Fiscal Year, certified without material qualification
                  in    a    manner    satisfactory    to    Administrator    by
                  PricewaterhouseCoopers  LLP  or  other  nationally  recognized
                  independent public accountants acceptable to Administrator (it
                  being understood that delivery of Covenant  Nevada's Form 10-K
                  for such Fiscal Year filed with the  Securities  and  Exchange
                  Commission will satisfy the foregoing  requirement),  together
                  with a certificate of such accounting firm stating that in the
                  course  of the  regular  audit  of the  business  of  Covenant
                  Nevada,  which audit was  conducted in  accordance  with GAAP,
                  such   accounting  firm  has  obtained  no  knowledge  that  a
                  Significant Event or Unmatured  Significant Event has occurred
                  and is  continuing,  or if, in the opinion of such  accounting
                  firm, such a Significant Event or Unmatured  Significant Event
                  has occurred and is  continuing,  a statement as to the nature
                  thereof; and

                           (C) as soon as  available  and in any event within 50
                  days after the end of each fiscal quarter,  quarterly  balance
                  sheets and quarterly  statements of source and  application of
                  funds and quarterly statements of income and retained earnings
                  of  Covenant  Nevada,  certified  by the  chief  executive  or
                  financial  officer or  controller  of Covenant  Nevada  (which
                  certification   shall  state  that  such  balance  sheets  and
                  statements fairly present the financial  condition and results
                  of  operations  for such fiscal  quarter,  subject to year-end
                  audit  adjustments)  (it being  understood  that  delivery  of
                  Covenant  Nevada's  Form 10-Q  filed with the  Securities  and
                  Exchange  Commission  for such fiscal quarter will satisfy the
                  foregoing  requirement),  delivery of which balance sheets and
                  statements shall be accompanied by a certificate of such chief
                  financial   officer  or  controller  to  the

                                       35

<PAGE>

                  effect  that  no  Significant Event or  Unmatured  Significant
                  Event has occurred and is continuing.

                  (ii)  Monthly  Reports.  On or  before  the  20th  day of each
         calendar  month  (each,  a "Reporting  Date"),  Master  Servicer  shall
         prepare and deliver to Administrator and Lender a report, substantially
         in  the  form  of  Exhibit  C or  in  such  other  form  acceptable  to
         Administrator  (a "Monthly  Report"),  as of the immediately  preceding
         Month End Date signed by an authorized officer of Master Servicer.

                  (iii) Significant Events. As soon as possible but in any event
         within  three days after any  officer of  Borrower  or Master  Servicer
         becomes aware of the occurrence of a Significant  Event or an Unmatured
         Significant  Event,  or  a  Purchase  Termination  Event  or  Incipient
         Purchase  Termination  Event under (and as defined in) the  Receivables
         Purchase  Agreement,  an  officer's  certificate  of Borrower or Master
         Servicer,  as the case may be,  setting forth details of such event and
         the action that Master Servicer,  Borrower or Originators,  as the case
         may be, proposes to take with respect thereto.

                  (iv) Servicing Certificate.  Master Servicer shall deliver, or
         cause to be delivered, to Administrator,  on or before the date that is
         95 days after the end of each Fiscal  Year,  an  officer's  certificate
         signed by the president,  chief executive officer or any vice president
         of Master  Servicer,  dated as of the last day of the preceding  Fiscal
         Year,  stating that (A) a review of the  activities of Master  Servicer
         during the  preceding  Fiscal  Year and of its  performance  under this
         Agreement has been made under such officer's supervision and (B) to the
         best of such officer's knowledge, based on such review, Master Servicer
         has  fulfilled its  obligations  under the  Agreement  throughout  such
         Fiscal  Year and has  complied  in all  respects  with  the  Collection
         Policy,  or, if there has been a default in the fulfillment of any such
         obligation,  specifying each such default known to such officer and the
         nature and status thereof.

                  (v) Collateral  Review. As soon as possible,  and in any event
         within 60 days  after the  Closing  Date,  and after  each  semi-annual
         period  thereafter,  a  report  of  the  independent  certified  public
         accountants  of  Covenant  Nevada  (each  such  report,  a  "Collateral
         Review") which satisfies the requirements set forth on Schedule V.

                  (vi) Collection Policy.  On or before April 15 of each year, a
         summary  of  any  changes to  the Collection  Policy  made  during  the
         previous year.

                  (vii)    [Reserved].

                  (viii)  Other.  Promptly,   from  time  to  time,  such  other
         information,  documents,  records or reports respecting the Collateral,
         the Receivables or the condition or operations, financial or otherwise,
         of Borrower,  any Originator or Master  Servicer as  Administrator  may
         from time to time reasonably  request in order to protect the interests
         of  Administrator  or Lender under or as contemplated by this Agreement
         or the other Transaction Documents.

                                       36

<PAGE>

         (f) Use of Proceeds.  Borrower shall use the proceeds of the Loans made
hereunder solely in connection with the acquisition or funding of Receivables or
the  repayment  of  amounts  owned  under  the  Originator  Note  in  connection
therewith.

         (g) Separate Legal Entity. Borrower hereby acknowledges that Lender and
Administrator are entering into the transactions  contemplated by this Agreement
and the other  Transaction  Documents in reliance upon Borrower's  identity as a
legal entity separate from any other Person.  Therefore, from and after the date
hereof, Borrower shall take all reasonable steps to continue Borrower's identity
as a  separate  legal  entity  and to make it  apparent  to third  Persons  that
Borrower  is an entity with assets and  liabilities  distinct  from those of any
other Person,  and is not a division of any other Person.  Without  limiting the
generality of the foregoing and in addition to and consistent  with the covenant
set forth in  Section  9.1(b),  Borrower  shall  take such  actions  as shall be
required in order that:

                  (i)  Borrower  will be a  special  purpose  corporation  whose
         primary  activities are restricted in its certificate of  incorporation
         to owning  financial  assets and financing the acquisition  thereof and
         conducting  such other  activities as it deems necessary or appropriate
         to carry out its primary activities;

                  (ii) Not less than one member of Borrower's Board of Directors
         (the  "Independent  Director")  shall be an individual  who is not, and
         during  the past  five (5) years has not  been,  a  director,  officer,
         employee or 5% beneficial owner of the outstanding  common stock of any
         Person or entity  beneficially  owning any outstanding shares of common
         stock of Covenant Nevada or any Affiliate thereof;  provided,  however,
         that an  individual  shall  not be  deemed  to be  ineligible  to be an
         Independent  Director  solely  because  such  individual  serves or has
         served in the capacity of an "independent director" or similar capacity
         for special  purpose  entities  formed by Covenant Nevada or any of its
         Affiliates.  The certificate of incorporation of Borrower shall provide
         that (A) the Board of Directors  shall not  approve,  or take any other
         action to cause the filing of, a  voluntary  bankruptcy  petition  with
         respect to Borrower unless the  Independent  Director shall approve the
         taking of such  action in writing  prior to the taking of such  action,
         and (B) such  provision  cannot be amended  without  the prior  written
         consent of the Independent Director;

                  (iii) Any  employee,  consultant  or agent of Borrower will be
         compensated  from  funds of  Borrower,  as  appropriate,  for  services
         provided to Borrower;

                  (iv) Borrower  will allocate and charge fairly and  reasonably
         overhead  expenses shared with any other Person. To the extent, if any,
         that  Borrower  and any other  Person  share items of expenses  such as
         legal, auditing and other professional services,  such expenses will be
         allocated  to the  extent  practical  on the basis of actual use or the
         value of services rendered, and otherwise on a basis reasonably related
         to the actual use or the value of services rendered;

                  (v)  Borrower's  operating  expenses  will  not be paid by any
         other Person except as permitted  under the terms of this  Agreement or
         otherwise consented to by Administrator and Lender;

                                       37

<PAGE>
                  (vi)   Borrower's  books  and   records  will  be   maintained
         separately from those of any other Person;

                  (vii) All audited financial  statements of any Person that are
         consolidated  to include  Borrower will contain  detailed notes clearly
         stating that (A) all of  Borrower's  assets are owned by Borrower,  and
         (B) Borrower is a separate corporate entity;

                  (viii)  Borrower's  assets will be maintained in a manner that
         facilitates  their  identification  and  segregation  from those of any
         other Person;

                  (ix) Borrower will strictly observe  corporate  formalities in
         its  dealings  with all other  Persons,  and  funds or other  assets of
         Borrower will not be commingled with those of any other Person;

                  (x) Borrower shall not,  directly or  indirectly,  be named or
         enter  into  an  agreement  to be  named,  as a  direct  or  contingent
         beneficiary or loss payee,  under any insurance  policy with respect to
         any amounts  payable due to  occurrences or events related to any other
         Person; and

                  (xi) Any Person that renders or otherwise  furnishes  services
         to  Borrower  will be  compensated  thereby  at  market  rates for such
         services it renders or otherwise  furnishes thereto.  Borrower will not
         hold itself out to be responsible  for the debts of any other Person or
         the decisions or actions  respecting  the daily business and affairs of
         any other Person.

         (h) Adverse Claims on Receivables.  Defend each Receivable  against all
claims and demands of all Persons at any time  claiming the same or any interest
therein adverse to Administrator and the Secured Parties.

         (i) Further Assurances.  At their expense, perform all acts and execute
all documents  reasonably  requested by  Administrator  at any time to evidence,
perfect,   maintain  and  enforce  the  title  or  the   security   interest  of
Administrator in the Receivables and the priority thereof. Borrower will, at the
reasonable  request of Administrator,  execute and deliver financing  statements
relating to or covering the  Collateral  and, where  permitted by law,  Borrower
shall authorize  Administrator to file one or more financing  statements  signed
only by  Administrator.  Borrower and Master  Servicer  shall cause its computer
records,  master data processing records and other books and records relating to
the Receivables to be marked,  with a legend stating that the  Receivables  have
been sold to Borrower and that the Collateral has been pledged to  Administrator
for the benefit of the Secured Parties.

         (j) Servicing.  Master  Servicer  shall use all reasonable  measures to
prevent or minimize any loss being  realized on a Receivable  and shall take all
reasonable steps to recover the full amount of such loss.  Master Servicer shall
follow such practices and  procedures for servicing the  Receivables as would be
customary  and  usual  for  a  prudent  servicer  under  similar  circumstances,
including using reasonable efforts to realize upon any recourse to the Obligors.

         (k)  Inspection.  Master  Servicer  and Borrower  shall permit  Lender,
Administrator or their duly authorized representatives, attorneys or auditors to
inspect  the  Receivables,  the

                                       38

<PAGE>

Receivable  Files,  Documents  and the related  accounts,  records and  computer
systems, software and programs used or maintained by Borrower or Master Servicer
at such times as Lender or Administrator may reasonably request;  provided, that
all inspections occurring after a Significant Event has occurred shall be at the
expense of Borrower. Upon instructions from Lender or Administrator, Borrower or
Master  Servicer shall release any Document to Lender or  Administrator,  as the
case may be.

         (l)  Cooperation.  Borrower  and Master  Servicer  shall  provide  such
cooperation,  information and assistance,  and prepare and supply  Administrator
with such data regarding the  performance  by the Obligors of their  obligations
under the  Receivables  and the  performance by Borrower and Master  Servicer of
their  respective  obligations  under  the  Transaction  Documents,  as  may  be
reasonably requested by Administrator from time to time.

         (m) Facility. Master Servicer shall maintain its facility from which it
services  the  Receivables  in its  present  condition,  ordinary  wear and tear
excepted,  or such other  facility of similar  quality,  security  and safety as
Master  Servicer may select from time to time.  Master  Servicer  shall make all
property tax  payments,  lease  payments and all other  payments with respect to
such facility.  Master Servicer shall (i) ensure that  Administrator  shall have
complete and unrestricted access, at Master Servicer's expense, to such facility
and all computers and other systems relating to the servicing of the Receivables
and all persons  employed at such facility,  (ii) use its best efforts to retain
the employees based at such facility to provide  assistance to Administrator and
(iii)  continue  to store on a daily  basis all  back-up  files  relating to the
Receivables  and the servicing of the  Receivables at the facilities of Covenant
Tennessee,  Southern  Refrigerated,  or such other  storage  facility of similar
quality, security and safety as Master Servicer may select from time to time, in
the case of each of  clauses  (i),  (ii) and  (iii)  until  the  receipt  of all
Collections in respect of all Receivables or all  Receivables  have been written
off in accordance with the Collection Policy.

         (n) Accounts.  Borrower shall not maintain any bank accounts other than
the Collection  Account described on Schedule I. Except as set forth in the last
sentence of Section 11.2(c)(ii)  Borrower shall not make, nor will it permit any
Originator  or  Master  Servicer  to make,  any  change in its  instructions  to
Obligors regarding payments to be made to a LockBox. Neither Borrower nor Master
Servicer shall, nor will it permit any Originator to, add any Collection Account
Bank or Collection Account,  to those listed on Schedule I unless  Administrator
shall  have  consented  thereto  and  received  a copy of any new duly  executed
Collection  Account  Agreement.  Neither Borrower nor Master Servicer shall, nor
will it permit any Originator to, terminate any Collection Account Bank or close
any Collection Account unless  Administrator shall have received at least thirty
(30) days prior notice of such termination.

         Section 9.2       Negative Covenants of Borrower and Master Servicer.

         From the date  hereof  until the first day,  following  the  Commitment
Termination  Date,  on which all  Obligations  shall have been finally and fully
paid and performed,  each of Borrower and Master Servicer  hereby  covenants and
agrees.

         (a) Sales,  Liens,  Etc. Except pursuant to, or as contemplated by, the
Transaction  Documents,  Borrower shall not sell, assign (by operation of law or
otherwise) or otherwise

                                       39

<PAGE>

dispose of, or create or suffer to exist  voluntarily or, for a period in excess
of 5 days,  involuntarily  any Adverse Claims upon or with respect to any of its
assets, including,  without limitation,  the Collateral, any interest therein or
any right to receive any amount from or in respect thereof.

         (b)  Mergers, Acquisitions, Sales, Subsidiaries, Etc.

                  (i) Certain Restrictions on Borrower.  Borrower shall not:

                           (A) be a party to any  merger  or  consolidation,  or
                  directly or  indirectly  purchase or otherwise  acquire all or
                  substantially  all of the assets or any stock of any class of,
                  or any  partnership  or joint  venture  interest in, any other
                  Person, except for Permitted  Investments,  or sell, transfer,
                  assign, convey or lease any of its property and assets (or any
                  interest  therein) other than pursuant to, or as  contemplated
                  by, this Agreement or the other Transaction Documents;

                           (B) make,  incur or suffer to exist an investment in,
                  equity  contribution  to,  loan  or  advance  to,  or  payment
                  obligation  in  respect  of the  deferred  purchase  price  of
                  property  from,   any  other  Person,   except  for  Permitted
                  Investments or pursuant to the Transaction Documents;

                           (C)  create  any  direct or  indirect  Subsidiary  or
                  otherwise  acquire direct or indirect  ownership of any equity
                  interests  in any other  Person  other  than  pursuant  to the
                  Transaction Documents; or

                           (D) enter  into any  transaction  with any  Affiliate
                  except for the  transactions  contemplated  by the Transaction
                  Documents  and other  transactions  upon  fair and  reasonable
                  terms  materially no less  favorable to Borrower than would be
                  obtained  in a  comparable  arm's  length  transaction  with a
                  Person not an Affiliate.

         (c) Change in Business Policy:  Change in Collection  Policy.  Borrower
shall not make any change in the character of its business. Neither Borrower nor
Master  Servicer  shall  make any  change in the  Collection  Policy  that could
adversely affect the collectibility of any Receivable.

         (d) Other Debt.  Borrower  shall not incur any Debt to any Person other
than pursuant to this Agreement, the Receivables Purchase Agreement or otherwise
in connection with a transaction  involving  Lender,  Bank, any Credit Bank, any
Liquidity  Bank or any other Persons  providing  liquidity or credit  support to
Lender.

         (e) Certificate of Incorporation and By-Laws.  Borrower shall not amend
its certificate of incorporation or by-laws.

         (f) Chief Executive  Office.  The principal place of business and chief
executive  office of each of  Borrower  and  Master  Servicer  is located at the
address referred to on Schedule VI to this Agreement. Originals or duplicates of
documents and records  evidencing all Receivables are kept at, and only at, said
offices, and neither Borrower nor Master Servicer shall

                                       40

<PAGE>

move its chief executive  office or permit the documents and records  evidencing
the Receivables to be moved unless (i) Borrower or Master Servicer,  as the case
may be, shall have given to Administrator prior written notice thereof,  clearly
describing  the new location,  and (ii)  Borrower  shall have taken such action,
satisfactory  to  Administrator,  to maintain the title or ownership of Borrower
and any security  interest of Administrator in the Collateral at all times fully
perfected and in full force and effect. Master Servicer shall not, in any event,
move  the  location  where it  conducts  the  servicing  and  collection  of the
Receivables  from the address  referred  to on  Schedule  VI to this  Agreement,
without the prior written consent of  Administrator,  which consent shall not be
unreasonably withheld.

         (g)  Financing  Statements.  Borrower  shall not execute any  effective
financing  statement (or similar  statement or instrument of registration  under
the laws of any  jurisdiction) or statements  relating to any Receivables  other
than the financing statements described in Section 7.1(e).

         (h)  Business  Restrictions.  Borrower  shall  not  (i)  engage  in any
business  or  transactions,  or be a  party  to  any  documents,  agreements  or
instruments,  other than the  Transaction  Documents or those  incidental to the
purposes  thereof,  or (ii) make any  expenditure  for any  assets  (other  than
Receivables) if such  expenditure,  when added to other such  expenditures  made
during the same calendar year would, in the aggregate, exceed $10,500; provided,
however,  that  the  foregoing  will  not  restrict  Borrower's  ability  to pay
servicing  compensation as provided herein and, so long as no Significant  Event
or Unmatured  Significant Event shall have occurred and be continuing,  and that
Borrower's  tangible net worth,  after giving effect thereto,  shall not be less
than $2,000,000, Borrower's ability to pay amounts due on the Originator Note or
other payments or distributions legally made to Borrower's equity owners.

                                    ARTICLE X

                       SIGNIFICANT EVENTS AND THEIR EFFECT

         Section 10.1      Events of Default.

         Each of the following  shall  constitute an Event of Default (an "Event
of Default") under this Agreement:

         (a) Non-Payment of Loans,  Etc. Borrower shall fail to make any payment
when due of any  principal  of or interest on any Loan,  or payment of any other
amount payable by Borrower hereunder, including, without limitation, interest on
any Loan or any Fees,  or shall  fail to make any  deposit  required  to be made
hereunder when due and such failure shall continue for three Business Days.

         (b)  Non-Compliance  with  Other  Provisions.  Borrower  shall  fail to
perform or observe  any other  term,  covenant or  agreement  contained  in this
Agreement  or any other  Transaction  Document  on its part to be  performed  or
observed and any such failure shall remain  unremedied for thirty days after the
earlier to occur of (i)  Borrower  having  knowledge  thereof and (ii)  Borrower
having received written notice thereof from Lender or Administrator.

                                       41

<PAGE>

         (c) Breach of  Representations  and Warranties.  Any  representation or
warranty of Borrower made or deemed to have been made  hereunder or in any other
Transaction  Document or any other  writing or  certificate  furnished  by or on
behalf of Borrower to  Administrator  or Lender for purposes of or in connection
with this Agreement or any other  Transaction  Document shall prove to have been
false or  incorrect  in any  material  respect  when made or deemed to have been
made,  and shall continue to be false or incorrect for a period of 30 days after
the earlier to occur of (i) Borrower having obtained  knowledge thereof and (ii)
Borrower having received written notice thereof from Lender or Administrator.

         (d) Bankruptcy. An Event of Bankruptcy shall have occurred and remained
continuing with respect to Borrower.

         (e) Tax Liens.  The IRS shall file notice of a lien pursuant to Section
6323 of the Code with  regard to any of the  assets of  Borrower,  and such lien
shall not have been released within 5 Business Days.

         Section 10.2      Amortization Events.

         Each of the  following  shall  constitute  an  Amortization  Event  (an
"Amortization Event") under this Agreement:

         (a) Servicer  Event of Default.  A Servicer Event of Default shall have
occurred and remained continuing.

         (b) Borrowing  Base Deficit.  A Borrowing  Base Deficit shall exist and
such condition shall continue unremedied for three Business Days.

         (c) Default  Ratio.  The Default Ratio shall be equal to or exceed 1.5%
on a rolling three month average basis.

         (d)  Delinquency  Ratio.  The  Delinquency  Ratio  shall be equal to or
exceed 1.5% on a rolling three month average basis.

         (e) Dilution Ratio. The Dilution Ratio shall be equal to or exceed 1.0%
on a rolling three month average basis.

         (f)  Accounts   Receivable  Turnover  Ratio.  The  Accounts  Receivable
Turnover Ratio is less than 6.75 for any Due Period.

         (g) Event of  Default.  An Event of  Default  shall have  occurred  and
remained continuing;

         (h) Validity of Transaction Documents. (i) Any Transaction Document, or
any lien or security  interest granted  thereunder,  shall (except in accordance
with its terms), in whole or in part, terminate,  cease to be effective or cease
to be the legally valid, binding and enforceable obligation of Borrower,  Master
Servicer or any Originator  party to such Transaction  Document,  (ii) Borrower,
any Originator or Master Servicer shall, directly or indirectly,  contest in any
manner such effectiveness,  validity,  binding nature or enforceability or (iii)
any security  interest

                                       42

<PAGE>

securing  any  Obligation  shall,  in whole or in part,  cease to be a perfected
first priority security interest.

         Section 10.3      Effect of Significant Event.

         (a) Optional  Termination.  Upon the occurrence of a Significant  Event
(other than an Event of Default  described  in Section  10.1(d)),  Administrator
may, and at the request of Lender shall,  by notice to Borrower (a copy of which
shall be promptly forwarded by Administrator to each Rating Agency), declare all
or any  portion  of the  outstanding  principal  amount  of the  Loans and other
Obligations to be due and payable and/or Lender's Commitment (if not theretofore
terminated)  to be terminated by declaring the  Commitment  Termination  Date to
have  occurred,  whereupon  the full  unpaid  amount  of such  Loans  and  other
Obligations  which  shall be so  declared  due and  payable  shall be and become
immediately  due and payable,  without  further  notice,  demand or presentment,
and/or, as the case may be, Lender's Commitment shall terminate.

         (b) Automatic  Termination.  Upon the occurrence of an Event of Default
described in Section 10.1(d)),  the Commitment  Termination Date shall be deemed
to  have  occurred  automatically,  and all  outstanding  Loans  and  all  other
Obligations  shall become  immediately and  automatically  due and payable,  all
without presentment, demand, protest, or notice of any kind.

         (c) Notice to Rating Agencies.  Administrator  shall notify each Rating
Agency of the occurrence of any continuing Significant Event, promptly following
its actual knowledge thereof.

                                   ARTICLE XI

                               THE MASTER SERVICER

         Section 11.1      Covenant Nevada as Initial Master Servicer.

         The servicing, administering and collection of the Receivables shall be
conducted  by the  Person  designated  from  time  to time  as  Master  Servicer
hereunder.  Until such time as  Administrator  shall notify  Covenant  Nevada in
writing  pursuant  to Section  11.6 hereof of the  revocation  of such power and
authority,  Borrower,  Lender and Administrator  hereby appoint Covenant Nevada,
and Covenant Nevada hereby agrees to act, as Master Servicer hereunder.  Each of
the Originators named in the Receivables  Purchase  Agreement,  agrees to act as
subservicer for the purpose of performing  certain duties and  obligations  with
respect to all Receivables  purchased by Borrower from such Originator  pursuant
to the terms of the Receivables Purchase Agreement. In so acting as subservicer,
each  Originator  shall comply with, and agrees to be bound by, all of the terms
and  provisions  of  this  Agreement   applicable  to  such  Originator  in  the
performance  of  its  duties  as  subservicer;   provided,  however,  that  each
Originator  (i) shall cease to act as  subservicer  upon the  termination of the
Master Servicer  pursuant to Section 11.6, (ii) shall not be entitled to receive
any  Servicing  Fee provided for herein,  and (iii) shall not be bound by, or be
deemed to have made,  any of the  representations,  warranties  or  covenants in
Article VIII except as expressly provided in the Receivables Purchase Agreement.

                                       43

<PAGE>

         Section 11.2      Certain Duties of Master Servicer.

         (a) Authorization to Act as Borrower's Agent.  Borrower hereby appoints
Master  Servicer as its agent for the  following  purposes:  (i)  selecting  the
amount of each  requested  Loan and  executing  Borrowing  Requests on behalf of
Borrower,  (ii) making  transfers  among,  deposits to and withdrawals  from all
deposit  accounts of Borrower  for the  purposes  described  in the  Transaction
Documents,  (iii)  arranging  payment by Borrower of all Fees,  expenses,  other
Obligations  and other amounts  payable under the  Transaction  Documents,  (iv)
causing the  repayment  and  prepayment  of the Loans as  required or  permitted
pursuant to Section 4.1 and (v) executing  and  preparing  the Monthly  Reports;
provided,  however,  that Master  Servicer shall act in such capacity only as an
agent of Borrower and shall incur thereby no additional obligations with respect
to any  Loan.  Borrower  irrevocably  agrees  that  (A) it shall be bound by all
proper actions taken by Master Servicer pursuant to the preceding sentence,  and
(B) Lender, Administrator and the banks holding all deposit accounts of Borrower
are entitled to accept submissions, determinations,  selections, specifications,
transfers,  deposits and withdrawal requests,  and payments from Master Servicer
on behalf of Borrower.

         (b)  Covenant  Nevada to Act as Master  Servicer.  (i) Master  Servicer
shall  service  and  administer  the  Receivables  on  behalf  of  Borrower  and
Administrator (for the benefit of the Secured Parties) and shall have full power
and authority,  acting alone and/or through  subservicers as provided in Section
11.2(b)(iii), to do any and all things which it may deem reasonably necessary or
desirable in connection  with such  servicing and  administration  and which are
consistent  with this  Agreement.  Consistent  with the terms of this Agreement,
Master Servicer may waive,  modify or vary any term of any Receivable or consent
to the  postponement  of strict  compliance with any such term or in any manner,
grant   indulgence   to  any  Obligor  if,  in  Master   Servicer's   reasonable
determination,  such waiver,  modification,  postponement  or  indulgence is not
materially  adverse to the  interests  of  Borrower  or  Administrator  (for the
benefit of the Secured Parties); provided, however, that Master Servicer may not
permit any  modification  with respect to any  Receivable  that would reduce the
Unpaid  Balance  (except for actual  payments  thereof),  or extend the due date
thereof,  except that Master  Servicer  may take such  actions  with  respect to
Defaulted  Receivables  if such actions  will, in Master  Servicer's  reasonable
business  judgment,  maximize  the  Collections  thereof.  Without  limiting the
generality of the foregoing,  Master  Servicer in its own name or in the name of
Borrower is hereby  authorized  and empowered by Borrower  when Master  Servicer
believes it appropriate  in its best judgment to execute and deliver,  on behalf
of Borrower,  any and all  instruments of satisfaction  or  cancellation,  or of
partial or full release or discharge and all other comparable instruments,  with
respect to the Receivables.

                  (ii)  Master   Servicer   shall  service  and  administer  the
         Receivables  by  employing  such   procedures   (including   collection
         procedures) and degree of care, in each case consistent with applicable
         law, with the Collection Policy and with prudent industry standards, as
         are   customarily   employed  by  Master   Servicer  in  servicing  and
         administering   receivables   owned  or  serviced  by  Master  Servicer
         comparable  to the  Receivables.  Master  Servicer  shall  not take any
         action  to  impair  Administrator's  (for the  benefit  of the  Secured
         Parties)  security  interest  in any  Receivable,  except to the extent
         allowed pursuant to this Agreement or required by law.

                                       44

<PAGE>

                  (iii) Master  Servicer may perform any of its duties  pursuant
         to this  Agreement,  including  those  delegated to it pursuant to this
         Agreement,  through subservicers appointed by Master Servicer, provided
         that   such   subservicing   arrangements   may   be   terminated,   at
         Administrator's  discretion, upon the replacement of Covenant Nevada as
         Master Servicer.  Such  subservicers  may include  Affiliates of Master
         Servicer.  Notwithstanding  any  such  delegation  of  a  duty,  Master
         Servicer shall remain  obligated and liable for the performance of such
         duty as if Master Servicer were performing such duty.

                  (iv) Master Servicer may take such actions as are necessary to
         discharge  its  duties  as  Master  Servicer  in  accordance  with this
         Agreement,  including  the power to  execute  and  deliver on behalf of
         Borrower such instruments and documents as may be customary,  necessary
         or desirable in connection  with the  performance of Master  Servicer's
         duties under this Agreement (including consents, waivers and discharges
         relating to the Receivables).

                  (v) Master Servicer shall keep separate  records  covering the
         transactions contemplated by this Agreement, including the identity and
         collection  status of each  Receivable  purchased by Borrower  from any
         Originator and the Originator Payables.

         (c)  Collections.  (i) On or prior to the Closing  Date,  Borrower  and
Master  Servicer  shall  have  established  and shall  maintain  thereafter  the
following  system of collecting and processing  Collections of Receivables.  The
Obligors  of  Covenant  Tennessee  shall  be  instructed  to  make  payments  of
Receivables  by wire  transfer  to the  Primary  Collection  Account or by check
mailed  to a post  office  box  listed  on  Schedule  I  (each a  "LockBox"  and
collectively,  the "LockBoxes")(such  payments,  upon receipt in a LockBox being
referred to herein as "Mail Payments").

                  (ii) On or prior to the Closing Date, Administrator shall have
         received a consent to assignment  of the  assignment of each LockBox to
         Administrator.  Master  Servicer's  right of  access  thereto  shall be
         revocable  at the  option  of  Administrator  upon  the  occurrence  of
         Unmatured  Significant Event or Significant  Event. In addition,  after
         the occurrence of any Unmatured  Significant  Event or any  Significant
         Event,  Master Servicer agrees that it shall,  upon the written request
         of Administrator, notify all Obligors under Receivables to make payment
         thereof  to (A) one or more  bank  accounts  and/or  post-office  boxes
         designated  by  Administrator  and  specified in such notice or (B) any
         successor Master Servicer appointed hereunder.

                  (iii) Master Servicer shall remove all Mail Payments, or cause
         all Mail  Payments  to be  removed,  from each  LockBox by the close of
         business on each Business Day and deposited into the Primary Collection
         Account.  Master Servicer shall cause all payments received directly by
         Master  Servicer or otherwise  to be deposited in a Collection  Account
         within three (3) Business Days after receipt  thereof.  Master Servicer
         shall  process  all such Mail  Payments,  and all wire  transfers,  ACH
         payments  and other  payments  on the date  received by  recording  the
         amount of the payment  received  from the  Obligor  and the  applicable
         account or invoice number.

                                       45

<PAGE>

                  (iv) All  Collections  received  by an  Originator  or  Master
         Servicer in respect of  Receivables  will,  pending  remittance  to the
         Collection  Account as provided  herein,  be held by such Originator or
         Master  Servicer in trust for the exclusive  benefit of  Administrator,
         and shall not be  commingled  with any other  funds or property of such
         Originator or Master Servicer.

                  (v) Borrower and Master Servicer hereby irrevocably  waive any
         right to set off against, or otherwise deduct from, any Collections.

                  (vi) In  performing  its  duties  and  obligations  hereunder,
         Master  Servicer  (A) shall  not  impair  the  rights  of  Borrower  or
         Administrator  in any Receivable,  (B) shall not amend the terms of any
         Receivable other than in accordance with the Collection Policy and this
         Agreement,  and (C) shall be  entitled  to commence or settle any legal
         action to  enforce  collection  of any  Receivable.  In the event  that
         Master  Servicer  shall breach any of its covenants set forth in clause
         (A), (B) or (C) of this Section 11.2(c)(vi),  Master Servicer shall pay
         the  Unpaid  Balance  of  each  Receivable   affected  thereby  on  the
         Distribution  Date following the Due Period in which such event occurs.
         For the purposes of Section 11.7 hereof,  Master  Servicer shall not be
         deemed to have breached its obligations under this Section  11.2(c)(vi)
         unless  it  shall  fail  to  make  such  payment  with  respect  to any
         Receivable affected by Master Servicer's noncompliance with clause (A),
         (B) or (C) of this Section 11.2(c)(vi).

                  (vii) All payments or other  amounts  collected or received by
         Master  Servicer  in  respect of a  Receivable  shall be applied to the
         Unpaid Balance of such Receivable.

         (d) Collection Account. (i) On any Business Day, Borrower may withdraw,
or permit Master Servicer to withdraw,  for any purpose or use permitted hereby,
including, without limitation, paying the purchase price of Receivables acquired
by Borrower under the Receivables Purchase Agreement,  funds that are on deposit
in the Collection  Account,  provided that (A) no Significant Event or Unmatured
Significant  Event  has  occurred  and is  continuing  and  (B)  the  Commitment
Termination  Date has not occurred.  On the first Business Day of each week, the
Master Servicer shall deliver a certificate to Administrator,  which certificate
shall be  substantially  in the form of Exhibit H hereto and which shall certify
to the Administrator  that (x) the requirements set forth in clauses (A) and (B)
of the  immediately  proceeding  sentence  were  satisfied  with respect to each
withdrawal  made from the Collection  Account on any day during the  immediately
preceding  week and (y) after giving effect to all  withdrawals  made during the
immediately  preceding  week, no Borrowing  Base Deficit  exists or has occurred
and, as of the last day of the previous week, there were funds in the Collection
Account at least equal to the interest on the Loans and the Fees accrued through
such date.

                  (ii) Prior to 3:00 p.m.,  New York time,  on the  Business Day
         preceding  each  Distribution  Date  (a  "Deposit  Date"),  the  Master
         Servicer  shall  deposit  or  cause  to be  deposited  in  the  Primary
         Collection  Account,  to the extent not already on deposit therein,  an
         amount  equal  to,  without  duplication,  the  lesser  of (1)  (I) the
         aggregate  amount of all  Collections  received  during the immediately
         preceding Due Period,  plus (II) the aggregate  amounts due from Master
         Servicer on such  Distribution  Date  pursuant  to Section  11.2(c)(vi)
         hereof,  plus (III) the aggregate amount of Originator Payables paid on

                                       46

<PAGE>

         such  Distribution  Date and (2) the amounts  due on such  Distribution
         Date pursuant to clauses first through sixth of Section 4.2(b), and the
         remainder  of the  Collections  from such Due  Period  shall be applied
         pursuant to the  Receivables  Purchase  Agreement,  provided  that if a
         Significant  Event or Unmatured  Significant  Event shall exist on such
         Distribution Date or the Commitment Termination Date has occurred, then
         the Master Servicer shall deposit all of the amounts  described in this
         Section  11.2(d)(ii) in the Primary  Collection Account on such Deposit
         Date.

                  (iii) Master Servicer shall  distribute the amounts on deposit
         in the  Primary  Collection  Account in  accordance  with  Section  4.2
         hereof.

                  (iv) Funds deposited in the Collection Account may be invested
         by Master Servicer in Permitted  Investments that mature not later than
         the Business Day next preceding the Distribution Date. All income, gain
         or  losses  realized  from any such  investment  shall be  credited  or
         debited  (as  applicable)  to the  balance of the  Collection  Account.
         Master  Servicer  shall have no obligation to reimburse the  Collection
         Account for any losses realized by reason of such investments.

                  (v) On any day on which a Borrowing  Base Deficit shall exist,
         the Master Servicer shall cause an amount of Collections  equal to such
         Borrowing  Base  Deficit to be set aside and  retained  in the  Primary
         Collection  Account for  application in accordance with this subsection
         (d). Such funds shall be held in the Primary  Collection  Account until
         the earlier of (i) any  prepayment  made pursuant to the  provisions of
         Section  4.1(d) and (ii) any payment made pursuant to the provisions of
         Section 4.2(a) or 4.2(b), as the case may be.

         Section 11.3      Servicing Compensation.

         Master Servicer, as compensation for its activities hereunder, shall be
entitled to receive  the  Servicing  Fee,  which shall be payable by Borrower on
each Distribution Date from funds on deposit in the Primary  Collection  Account
in accordance  with Section 4.2.  Master  Servicer  shall be required to pay all
expenses  incurred by it in connection with its servicing  activities  hereunder
(including payment of the fees and expenses of any subservicer) and shall not be
entitled to reimbursement therefor except as specifically provided herein.

         Section 11.4      Agreement Not to Resign.

         Covenant Nevada  acknowledges that Lender and Administrator have relied
on Covenant  Nevada's  agreement  to act as Master  Servicer  hereunder in their
respective decisions to execute and deliver the respective Transaction Documents
to which they are parties.  In  recognition of the  foregoing,  Covenant  Nevada
agrees not to resign as Master Servicer  voluntarily,  except as required by law
(as evidenced by the delivery of an outside opinion of counsel to Administrator,
in form and substance satisfactory to Administrator),  without the prior written
consent of Administrator.

         Section 11.5      Designation of Master Servicer.

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<PAGE>

         Borrower  agrees not to designate any Person other than Covenant Nevada
as Master Servicer without the prior written consent of Administrator.

         Section 11.6      Termination.

         The authorization of Master Servicer to act on behalf of Borrower under
this Agreement and the other  Transaction  Documents shall terminate at the sole
discretion  of  Administrator  upon the  replacement  of  Master  Servicer  by a
successor Master Servicer selected by Administrator.

         Section 11.7      Master Servicer Events of Default.

         Each of the following  shall  constitute a Servicer Event of Default (a
"Servicer Event of Default") under this Agreement:

         (a) failure by the Master Servicer to make any payments  required to be
made by it hereunder on the day on which such payment is required to be made and
such failure continues for three Business Days;

         (b) failure on the part of the Master Servicer to observe or perform in
any respect any other covenants or agreements of the Master  Servicer  contained
herein which  continues  unremedied for a period of 30 days after the earlier of
(i) Master  Servicer's  knowledge thereof and (ii) receipt by Master Servicer of
written notice thereof from Lender or Administrator;

         (c) the delegation by the Master Servicer of its duties hereunder;

         (d) any  representation,  warranty or certification  made by the Master
Servicer herein proves to have been incorrect when made;

         (e) so long  as  Covenant  Nevada  shall  be the  Master  Servicer  the
Consolidated  Tangible Net Worth of Covenant  Nevada shall be less than or equal
to $80,000,000;

         (f) an Event of  Bankruptcy  shall have  occurred  with  respect to the
Master Servicer or any Originator;

         (g) a final judgment or judgments for the payment of money in excess of
$10,000 in the aggregate shall have been rendered against Borrower or $5,000,000
in the aggregate shall have been rendered  against  Covenant Nevada and the same
shall have remained unsatisfied and in effect, without stay of execution,  for a
period of 30 consecutive  days after the period for appellate  review shall have
elapsed; or

         (h) Covenant  Nevada shall fail to pay any Debt in excess of $5,000,000
when due, or a default shall have occurred and be continuing with respect to any
such Debt which default  results in, or would permit,  the  acceleration of such
Debt.

         At any time during the  continuance  of any Servicer  Event of Default,
Administrator may, in its sole discretion,  notify Master Servicer in writing of
the revocation of its appointment as Master Servicer hereunder.  Upon revocation
of  Master  Servicer's  appointment  hereunder,  Administrator  shall  appoint a
successor Master Servicer.

                                       48

<PAGE>

         Master Servicer agrees that upon receipt of written  notification  from
Administrator  of the  revocation  of Master  Servicer's  appointment  as Master
Servicer   hereunder,   Master  Servicer  shall  upon  the  written  request  of
Administrator (which request may be contained in the notification of revocation)
(i) notify all Obligors under the  Receivables to make payment thereof to a bank
account(s) or post office box designated by Administrator  and specified in such
notice,  and  (ii)  pay to  Administrator  (or  its  designee)  immediately  all
Collections  then  held  or  thereafter  received  by  Master  Servicer  or  any
Originator of  Receivables,  together with all other payment  obligations of the
Master Servicer hereunder owing to Lender or Administrator.

         Master Servicer shall, at its sole cost and expense, cooperate with and
assist the successor Master Servicer (including,  without limitation,  providing
access to, and  transferring,  all Receivable  Files and all records  (including
data-processing  records) relating thereto (which shall be held in trust for the
benefit of the parties hereto in accordance  with their  respective  interests))
and allowing the  successor  Master  Servicer to use all  licenses,  hardware or
software  necessary or desirable to collect the  Receivables).  Covenant  Nevada
irrevocably agrees to act (if requested to do so) as the  data-processing  agent
for the successor Master Servicer (in  substantially the same manner as Covenant
Nevada  conducted  such  data-processing  functions  while it  acted  as  Master
Servicer).

                                   ARTICLE XII

                                  ADMINISTRATOR

         Section 12.1      Authorization and Action.

         Lender hereby appoints SunTrust Equitable Securities Corporation as its
Administrator for purposes of the Transaction  Documents and authorizes SunTrust
Equitable  Securities  Corporation  in such  capacity to take such action on its
behalf under each Transaction Document and to exercise such powers hereunder and
thereunder as are delegated to SunTrust  Equitable  Securities  Corporation,  as
Administrator, by the terms hereof and thereof, together with such powers as are
reasonably incidental thereto.

         Section 12.2      Administrator and Affiliates.

         Bank and any of its  Affiliates  may  generally  engage  in any kind of
business  with  Borrower,  Bank,  Master  Servicer,  any  Obligor,  any of their
respective  Affiliates and any Person who may do business with or own securities
of  Borrower,  Bank,  Master  Servicer,  any Obligor or any of their  respective
Affiliates,  all  as if  SunTrust  Equitable  Securities  Corporation  were  not
Administrator and without any duty to account therefor to Lender.

                                  ARTICLE XIII

                                   ASSIGNMENTS

         Section 13.1      Restrictions on Assignments.

         Neither Borrower nor Master Servicer may delegate any of its duties, or
assign its rights,  hereunder or any interest  herein  without the prior written
consent of Administrator and Lender.

                                       49
<PAGE>

Lender  may not assign its  rights  hereunder,  any Loan or Lender  Note (or any
portion  thereof) to any Person  without the prior written  consent of Borrower;
provided, however, that:

         (a) Lender may  assign,  or grant a  security  interest  in, all or any
portion of the Loans and Lender Note to Credit Bank,  any Liquidity Bank (or any
successor of any thereof by merger,  consolidation or otherwise),  any Affiliate
of  Credit  Bank or any  Liquidity  Bank in  connection  with a draw  under  the
Liquidity  Agreement  or a Credit  Advance  (which  may then  assign  all or any
portion thereof so assigned or any interest  therein to such party or parties as
it may choose); and

         (b) Lender may assign any Loan to any other  Person  proposed by Lender
and  consented to by Borrower  (such consent not to be  unreasonably  withheld).
Administrator  shall  promptly  provide  notice of any such  assignment  to each
Rating Agency.

         Within five  Business  Days after  notice to  Borrower of any  proposed
assignment by Lender for which Borrower's  consent is required,  Borrower agrees
to advise  Administrator of its consent or non-consent thereto. If Borrower does
not  consent  to such  assignment  Lender  may  immediately  assign the Loan (or
portion  thereof) that was subject to such proposal to Bank,  any Liquidity Bank
or any Affiliate of Bank or any Liquidity Bank.  Subject to Section 13.2, all of
the aforementioned assignments shall be upon such terms and conditions as Lender
and the assignee may mutually agree.

         Section 13.2      Documentation.

         Lender shall  deliver to each assignee an  assignment,  in such form as
Lender and the related  assignee may agree,  duly executed by Lender,  assigning
any such Loan to the assignee, and Lender shall promptly execute and deliver all
further  instruments  and  documents,  and take  all  further  action,  that the
assignee  may  reasonably  request,  in order to perfect,  protect or more fully
evidence the  assignee's  right,  title and interest in and to such Loan, and to
enable the assignee to exercise or enforce any rights  hereunder or under Lender
Note evidencing such Loan.

         Section 13.3      Rights of Assignee.

         Upon the  foreclosure  of any assignment of any Loans made for security
purposes,  or upon any other assignment of any Loan from Lender pursuant to this
Article XIII, the respective  assignee  receiving such assignment shall have all
of the rights of Lender  hereunder to the extent of such assignment with respect
to such Loans and all  references  to Lender in  Section  6.1 shall be deemed to
apply to such assignee to the extent of such assignment.

         Section 13.4      Notice of Assignment.

         Lender shall provide notice to Borrower of any assignment  hereunder by
Lender to any assignee.  Lender  authorizes  Administrator to, and Administrator
agrees  that it shall,  endorse  Lender  Note to reflect  any  assignments  made
pursuant to this Article XIII or otherwise.

                                       50

<PAGE>

                                   ARTICLE XIV

                                 INDEMNIFICATION

         Section 14.1      General Indemnity of Borrower.

         Without  limiting  any  other  rights  which any such  Person  may have
hereunder  or  under  applicable  law,   Borrower  hereby  agrees  to  indemnify
Administrator,  Lender, Master Servicer,  each Liquidity Bank, each Credit Bank,
Bank,  each of  Bank's  Affiliates  and  each of  their  respective  successors,
transferees, participants and assigns and all officers, directors, shareholders,
controlling  persons,  employees and agents of any of the foregoing (each of the
foregoing Persons being individually called an "Indemnified  Party"),  forthwith
on demand, on an after-tax basis, from and against any and all damages,  losses,
claims,  liabilities  and  related  costs  and  expenses,  including  reasonable
attorneys'  fees and  disbursements  (all of the  foregoing  being  collectively
called "Indemnified Amounts") awarded against or incurred by any of them arising
out of or relating to any Transaction Document or the transactions  contemplated
thereby, any commingling of funds (whether or not permitted  hereunder),  or the
use of proceeds therefrom by Borrower, including (without limitation) in respect
of the funding of any Loan or in respect of any Receivable;  excluding, however,
(a)  Indemnified  Amounts  to the  extent  determined  by a court  of  competent
jurisdiction to have resulted from gross negligence or willful misconduct on the
part of such  Indemnified  Party and (b) any tax upon or  measured by net income
(except those described in Section 6.1(a)) on any Indemnified Party.

         Section 14.2      Indemnity of Master Servicer.

         Without  limiting  any  other  rights  which any such  Person  may have
hereunder or under applicable law,  Covenant Nevada as Master  Servicer,  hereby
agrees to indemnify each Indemnified  Party forthwith on demand, on an after-tax
basis,  from and  against any and all  Indemnified  Amounts  awarded  against or
incurred by any of them arising from,  or related to, the  negligence or willful
misconduct of Covenant Nevada,  the inaccuracy of any representation or warranty
of Covenant Nevada, or the failure of Covenant Nevada to perform its obligations
under any Transaction Document;  excluding,  however, (a) Indemnified Amounts to
the extent determined by a court of competent jurisdiction to have resulted from
gross negligence or willful  misconduct on the part of such  Indemnified  Party,
(b)  Indemnified  Amounts to the extent solely due to non-payment by any Obligor
of an amount due and payable with respect to a  Receivable  for credit  reasons,
and (c) any tax upon or measured by net income on any Indemnified Party.

                                   ARTICLE XV

                                  MISCELLANEOUS

         Section 15.1      No Waiver; Remedies.

         No failure on the part of Lender, Administrator,  any Indemnified Party
or any Affected Party to exercise, and no delay in exercising,  any right, power
or remedy  hereunder shall operate as a waiver thereof;  nor shall any single or
partial exercise by any of them of any right, power or remedy hereunder preclude
any other or further exercise thereof, or the exercise of any other

                                       51

<PAGE>

right,  power or remedy.  The remedies  herein  provided are  cumulative and not
exclusive of any remedies provided by law. Without limiting the foregoing,  each
of Bank,  each  Credit  Bank and each  Liquidity  Bank is hereby  authorized  by
Borrower 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 Bank, such Credit Bank or such Liquidity Bank to or for the credit
or the account of Borrower,  now or hereafter existing under this Agreement,  to
Administrator,  any Affected Party,  any  Indemnified  Party, or Lender or their
respective successors and assigns.

         Section 15.2      Amendments, Etc.

         No  amendment,  modification  or waiver of, or consent with respect to,
any provision of this Agreement and any Schedules  hereto,  or Lender Note shall
in any event be  effective  unless the same  shall be in writing  and signed and
delivered  by (a)  Borrower,  Master  Servicer,  Administrator  and Lender (with
respect to an  amendment),  or (b)  Administrator  and Lender (with respect to a
waiver or consent by them) or Master  Servicer  or Borrower  (with  respect to a
waiver or  consent  by them),  as the case may be,  and then any such  waiver or
consent  shall be effective  only in the specific  instance and for the specific
purpose for which given;  provided,  however, that no material amendment of this
Agreement   (other  than  an  amendment  to  extend  the  Scheduled   Commitment
Termination  Date) shall be effective  unless  Lender (or  Administrator  on its
behalf) shall have received  written  confirmation  by the Rating  Agencies that
such  amendment  shall not cause the rating on the then  outstanding  Commercial
Paper Notes to be  downgraded  or  withdrawn.  Administrator  shall provide each
Rating  Agency with a copy of each  amendment to or consent or waiver under this
Agreement promptly following the effective date thereof.

         Section 15.3      Notices, Etc.

         All notices and other  communications  provided  for  hereunder  shall,
unless   otherwise   stated   herein,   be  in  writing   (including   facsimile
communication)  and shall be  personally  delivered or sent by  certified  mail,
postage  prepaid,  or by  facsimile,  to the  intended  party at the  address or
facsimile number of such party set forth opposite its name on Schedule VI hereto
or at such other  address or  facsimile  number as shall be  designated  by such
party in a written  notice to the other  parties  hereto.  All such  notices and
communications shall be effective,  (a) if personally delivered,  when received,
(b) if sent by certified  mail,  three Business Days after having been deposited
in the mail, postage prepaid, (c) if sent by overnight courier, one Business Day
after having been given to such courier,  and (d) if  transmitted  by facsimile,
when sent,  receipt  confirmed  by telephone or  electronic  means,  except that
notices and communications  pursuant to Section 2.2 shall not be effective until
received.

         Section 15.4      Costs, Expenses and Taxes.

         In addition to its obligations  under Section 14.1,  Borrower agrees to
pay on demand:

         (a) all costs and  expenses  incurred by  Administrator,  Lender,  each
Liquidity  Bank, each Credit Bank and Master Servicer in connection with (i) the
preparation,  execution,  delivery,  administration  and  enforcement of, or any
breach of, this Agreement,  Lender Note, the other  Transaction  Documents,  the
Liquidity  Agreement and, to the extent directly related to this

                                       52

<PAGE>

Agreement,  the Program Documents  (including any amendments or modifications of
or supplements to the Program  Documents  directly  related to this  Agreement),
including,  without  limitation,  the reasonable fees and expenses of counsel to
any of such Persons  incurred in connection  therewith,  (ii) the  perfection of
Administrator's security interest in the Collateral,(iii) the maintenance of the
Collection Account,  (iv) the audit of the books,  records and procedures of the
Originators, Master Servicer and Borrower by Administrator's auditors (which may
be  employees  of  Administrator),  and (v) Rating  Agency  fees  related to the
transactions contemplated by this Agreement; and

         (b) all stamp and other  taxes and fees  payable  or  determined  to be
payable in connection with the execution, delivery, filing and recording of this
Agreement,  Lender  Note,  the other  Transaction  Documents,  or (to the extent
directly  related  to this  Agreement)  the  Program  Documents,  and  agrees to
indemnify  each  Indemnified  Party against any  liabilities  with respect to or
resulting from any delay in paying or omission to pay such taxes and fees.

         Section 15.5      Binding Effect; Survival.

         This  Agreement  shall be  binding  upon and  inure to the  benefit  of
Borrower,  Bank, Covenant Nevada,  Lender,  Administrator,  and their respective
successors  and assigns,  and the provisions of Article VI and Article XIV shall
inure to the  benefit  of the  Affected  Parties  and the  Indemnified  Parties,
respectively,  and their respective successors and assigns;  provided,  however,
nothing  in the  foregoing  shall be  deemed to  authorize  any  assignment  not
permitted  by Article  XIII.  This  Agreement  shall create and  constitute  the
continuing  obligations of the parties hereto in accordance with its terms,  and
shall  remain in full force and effect  until  such time,  after the  Commitment
Termination  Date,  when all  Obligations  have been  finally and fully paid and
performed.   The  rights  and  remedies  with  respect  to  any  breach  of  any
representation  and  warranty  made by Borrower or Master  Servicer  pursuant to
Article VIII and the  indemnification  and payment provisions of Article XIV and
Article VI, Sections 15.4, 15.11 and 15.12 shall be continuing and shall survive
any  termination  of this  Agreement and any  termination  of Covenant  Nevada's
rights  to act as Master  Servicer  hereunder  or under  any  other  Transaction
Document.

         Section 15.6      Captions and Cross References.

         The  various  captions  (including,  without  limitation,  the table of
contents) in this Agreement are provided solely for convenience of reference and
shall  not  affect  the  meaning  or  interpretation  of any  provision  of this
Agreement.  Unless  otherwise  indicated,  references  in this  Agreement to any
Section,  Appendix,  Schedule  or Exhibit  are to such  Section of or  Appendix,
Schedule or Exhibit to this Agreement, as the case may be, and references in any
Section,  subsection,  or clause to any  subsection,  clause or subclause are to
such subsection, clause or subclause of such Section, subsection or clause.

         Section 15.7      Severability.

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

                                       53

<PAGE>

         Section 15.8      Governing Law.

         THIS  AGREEMENT  AND LENDER  NOTE  SHALL BE A  CONTRACT  MADE UNDER AND
GOVERNED BY THE  INTERNAL  LAWS OF THE STATE OF NEW YORK  WITHOUT  REGARD TO THE
CONFLICT OF LAW  PRINCIPLES  THEREOF  (OTHER THAN SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).

         Section 15.9      Counterparts.

         This  Agreement  may be  executed  by the  parties  hereto  in  several
counterparts,  each of which shall be deemed to be an original  but all of which
shall  constitute  together  but one  and the  same  agreement.  Delivery  of an
executed counterpart of a signature page to this Agreement by facsimile shall be
effective as delivery of a manually executed counterpart Agreement.

         Section 15.10     Submission to Jurisdiction; Waiver of Trial by Jury.

         (a)  Borrower and Master  Servicer  hereby  submit to the  nonexclusive
jurisdiction  of any United States  District Court for the Southern  District of
New York and of any New York  state  court  sitting  in New  York,  New York for
purposes  of  all  legal  proceedings  arising  out  of,  or  relating  to,  the
Transaction  Documents or the transactions  contemplated  thereby.  Borrower and
Master Servicer hereby  irrevocably  waive, to the fullest extent possible,  any
objection it may now or hereafter  have to the venue of any such  proceeding and
any claim that any such  proceeding has been brought in an  inconvenient  forum.
Nothing in this Section 15.10 shall affect the right of  Administrator or Lender
to bring any action or  proceeding  against  Borrower or Master  Servicer or its
property in the courts of other jurisdictions.

         (b) TO THE EXTENT  PERMITTED  BY  APPLICABLE  LAW,  EACH  PARTY  HERETO
IRREVOCABLY  WAIVES  ALL  RIGHT OF TRIAL BY JURY IN ANY  ACTION,  PROCEEDING  OR
COUNTERCLAIM  ARISING OUT OF, OR IN CONNECTION WITH, ANY TRANSACTION DOCUMENT OR
ANY MATTER ARISING THEREUNDER.

         Section 15.11     No Recourse Against Lender.

         The obligations of Lender under this Agreement are solely the corporate
obligations of Lender. No recourse shall be had for any obligation,  covenant or
agreement  (including,  without  limitation,  the payment of any amount owing in
respect to this  Agreement or the payment of any fee  hereunder or for any other
obligation  or claim)  arising out of or based upon this  Agreement or any other
agreement,  instrument or document entered into pursuant hereto or in connection
herewith  against  any  stockholder,   employee,   officer,  director,  manager,
administrator, partner or incorporator of Lender, as such, by the enforcement of
any assessment or by any legal or equitable proceeding, by virtue of any statute
or otherwise.

         Section 15.12     No Proceedings.

         Each of the  parties  hereto  hereby  agree that it will not  institute
against  Lender,  or join any other Person in instituting  against  Lender,  any
insolvency  proceeding  (namely,  any  proceeding of the type referred to in the
definition of Event of Bankruptcy) so long as any Commercial  Paper Notes issued
by Lender  shall be  outstanding  and there shall not have elapsed one year plus
one

                                       54

<PAGE>

day  since  the last  day on which  any such  Commercial  Paper  Notes  shall be
outstanding.  The provisions of this Section 15.12 shall survive the termination
hereof.

         Section 15.13     Confidentiality of Agreement.

         Unless otherwise  consented to by  Administrator,  each of Borrower and
Master  Servicer  hereby  agrees that it will not  disclose  the contents of any
Transaction  Document,  or any other  confidential  or  proprietary  information
furnished by  Administrator  or Lender to any Person  other than its  Affiliates
(which  Affiliates shall have executed an agreement  satisfactory in form and in
substance  to  Administrator  to be bound by this  Section  15.13)  auditors and
attorneys or as required by applicable law.

         Section 15.14     Entire Agreement.

         THIS  AGREEMENT  AND  THE  OTHER  TRANSACTION  DOCUMENTS  EXECUTED  AND
DELIVERED  HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND
THERETO AND MAY NOT BE  CONTRADICTED  BY EVIDENCE OF PRIOR,  CONTEMPORANEOUS  OR
SUBSEQUENT  ORAL  AGREEMENTS  OF  THE  PARTIES.  THERE  ARE  NO  UNWRITTEN  ORAL
AGREEMENTS AMONG THE PARTIES.

                      [signature pages begin on next page]

                                       55

<PAGE>

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

                                       CVTI RECEIVABLES CORP.,
                                       as Borrower

                                       By:    /s/ Joey B. Hogan
                                       Name:  Joey B. Hogan
                                       Title: CFO

                                       COVENANT TRANSPORT, INC.,
                                       as Master Servicer

                                       By:    /s/ Joey B. Hogan
                                       Name:  Joey B. Hogan
                                       Title: CFO

                                       THREE PILLARS FUNDING CORPORATION,
                                       as Lender

                                       By:    /s/ Douglas K. Johnson
                                       Name:  Douglas K. Johnson
                                       Title: President

                                       SUNTRUST EQUITABLE SECURITIES
                                       CORPORATION, as Administrator

                                       By:    /s/ Amy W. Medendorp
                                       Name:  Amy W. Medendorp
                                       Title: Managing Director

<PAGE>

                                    EXHIBIT A

                            FORM OF BORROWING REQUEST

To:   Three Pillars Funding Corporation ("Lender")
      SunTrust Equitable Securities Corporation ("Administrator")

From: CVTI Receivables Corp. ("Borrower")

Re:   Loan Agreement, dated as of December 12, 2000, between Borrower,
      Covenant Transport, Inc., a Nevada corporation ("Covenant Nevada") as
      initial master servicer, Lender and the Administrator as heretofore
      amended, (the "Agreement")

A.    (i)   Pursuant to Section 2.2, the undersigned hereby
            requests a Loan from Lender in an amount equal
            to the following (at least $1,000,000 and in
            integral multiples of $500,000                         $____________

      (ii)  The date such Loan is requested is:

      (iii) The total principal  amount of Loans  outstanding
            under the Loan  Agreement,  including the amount
            in (i) above, is equal to:                             $____________

      (iv)  The amount in (iii) above does not exceed the
            Borrowing Base as of the date hereof or the
            Facility Limit ($62,000,000)

B.    (i)   The Aggregate Unpaid
            Balance as of the date hereof
            is equal to:                                           $____________

      (ii)  The aggregate Excess Concentration Amount as
            of the date hereof is:                                 $____________

      (iii) (A)   The Loss Reserve is:                             ____________%

            (B)   The Dilution Reserve is:                         ____________%

            (C)   The Yield Reserve is:                            ____________%

            (D)   The Servicer Reserve is:                         ____________%

            (E)   The sum of (A), plus (B), and (C),
                  plus (D) is:                                     ____________%

            (F)   The Reserve Floor is:                                    12.1%

            (G)   The Advance Rate (100% minus the greater
                  of (E) and (F) is:                               ____________%

<PAGE>

      (iv)  The Borrowing Base ([(i) minus (ii)] times (iii) (G))
            as of the date hereof is equal to:                     $____________

C.    As of the date hereof and the date of making of the Loans, (i) each of the
      representations and warranties  contained in Article VIII of the Agreement
      shall be true and correct on and as of the date  hereof  and,  the date of
      such Loan, (ii) no Significant  Event or Unmatured  Significant  Event has
      occurred and is continuing or shall exist after giving effect to the Loans
      requested  hereby,  (iii) no Servicer Event of Default has occurred and is
      continuing  and (iv)  after  giving  effect  to the  Loan,  the  aggregate
      principal  balance of the outstanding  Loans hereunder will not exceed the
      Borrowing Base or the Facility Limit.

      Capitalized  terms used but not  defined  herein  shall have the  meanings
      given to them in the Agreement.

<PAGE>

The undersigned certifies to the accuracy of the foregoing.

                                              CVTI RECEIVABLES CORP.

Date:________________                  By:______________________________________
                                              Name:_____________________________
                                              Title:____________________________

                                              COVENANT TRANSPORT, INC., a Nevada
                                              corporation, as initial Master
                                              Servicer

                                       By:______________________________________
                                              Name:_____________________________
                                              Title:____________________________

<PAGE>

                                    EXHIBIT B

                               FORM OF LENDER NOTE

$62,000,000                                                    December 12, 2000

         FOR VALUE RECEIVED,  CVTI RECEIVABLES  CORP., a Nevada corporation (the
"Borrower"),  promises to pay to THREE PILLARS  FUNDING  CORPORATION,  as lender
(the "Lender") the principal sum of SIXTY-TWO MILLION DOLLARS  ($62,000,000) or,
if less, the unpaid principal amount of the aggregate loans (each a "Loan") made
by the Lender to the Borrower  pursuant to the Agreement (as defined below),  as
set  forth  on  the  attached  Schedule,  as  specified  in  Section  2.7 of the
Agreement,  and to pay interest on the unpaid  principal  amount of each Loan on
each day that such unpaid  principal  amount is  outstanding  as provided in the
Agreement  on each  Distribution  Date and each  other  dates  specified  in the
Agreement.

         This Lender Note is issued  pursuant to the Loan Agreement  dated as of
December 12, 2000 (as amended, restated or otherwise modified from time to time,
the  "Agreement")  among  the  Borrower,  Covenant  Transport,  Inc.,  a  Nevada
corporation as master servicer, Three Pillars Funding Corporation, as lender and
SunTrust Equitable Securities Corporation,  as administrator.  Capitalized terms
used but not defined in this Lender Note are used with the meanings  ascribed to
them in the Agreement.

         Notwithstanding any other provisions  contained in this Lender Note, if
at any time the rate of interest payable by the Borrower under this Lender Note,
when combined  with any and all other charges  provided for in this Lender Note,
in the  Agreement  or in any other  document  (to the extent such other  charges
would  constitute  interest  for the  purpose  of any  applicable  law  limiting
interest that may be charged on this Lender  Note),  exceeds the highest rate of
interest  permissible under applicable law (the "Maximum Lawful Rate"),  then so
long as the Maximum  Lawful Rate would be exceeded,  the rate of interest  under
this  Lender  Note shall be equal to the  Maximum  Lawful  Rate.  If at any time
thereafter the rate of interest  payable under this Lender Note is less than the
Maximum  Lawful Rate,  the Borrower  shall  continue to pay interest  under this
Lender  Note at the Maximum  Lawful  Rate until such time as the total  interest
paid by the  Borrower is equal to the total  interest  that would have been paid
had applicable law not limited the interest rate payable under this Lender Note.
In no event shall the total  interest  received by the Lender  under this Lender
Note exceed the amount which the Lender  could  lawfully  have  received had the
interest  due under  this  Lender  Note been  calculated  since the date of this
Lender Note at the Maximum Lawful Rate.

<PAGE>

         Payments of the  principal  of, and interest on, Loans  represented  by
this  Lender  Note shall be made by the  Borrower  to the holder  hereof by wire
transfer  of  immediately  available  funds  in the  manner  and at the  address
specified  for such purpose as provided in Section 4.5 of the  Agreement,  or in
such  manner or at such other  address as the holder of this  Lender  Note shall
have  specified  in  writing  to the  Borrower  for such  purpose,  without  the
presentation  or  surrender of this Lender Note or the making of any notation on
this Lender Note.

         If any payment under this Lender Note falls due on a day which is not a
Business  Day,  then  such due date  shall be  extended  to the next  succeeding
Business Day and interest  shall be payable on any  principal so extended at the
applicable interest rate.

         If all or a  portion  of (i) the  principal  amount  hereof or (ii) any
interest payable thereon or (iii) any other amounts payable  hereunder shall not
be paid when due (whether at  maturity,  by  acceleration  or  otherwise),  such
overdue amount shall bear interest at a rate per annum that is equal to the Base
Rate  plus  3.00%,  in each  case  from  the  date of such  non-payment  to (but
excluding) the date such amount is paid in full.

         Portions or all of the principal amount of the Lender Note shall become
due and payable at the time or times set forth in the Agreement.  Any portion or
all of the  principal  amount of this Lender Note may be prepaid,  together with
interest thereon (and as set forth in the Agreement,  certain costs and expenses
of the  Lender) at the time and in the  manner set forth in, but  subject to the
provisions of, the Agreement.

         Except as provided in the  Agreement,  the  Borrower  expressly  waives
presentment,  demand, diligence,  protest and all notices of any kind whatsoever
with respect to this Lender Note.

         All  amounts  evidenced  by  this  Lender  Note  and all  payments  and
prepayments of the principal  hereof and the respective dates and maturity dates
thereof shall be endorsed by the Lender on the schedule attached hereto and made
a part hereof or on a  continuation  thereof which shall be attached  hereto and
made a part hereof, or otherwise recorded by the Lender in its internal records;
provided,  however, that the failure of the Lender to make such a notation shall
not in any way limit or otherwise  affect the  obligations of the Borrower under
this Lender Note as provided in the Agreement.

         The  holder  hereof  may  sell,  assign,  transfer,   negotiate,  grant
participations  in or otherwise  dispose of all or any portion of any Loans made
by the Lender and represented by this Lender Note and the indebtedness evidenced
by this Lender Note.

         This Lender Note is secured by the security  interests granted pursuant
to Section 5.1 of the Agreement.  The holder of this Lender Note and the Lender,
is entitled to the benefits of the Agreement  and may enforce the  agreements of
the Borrower  contained in the Agreement and exercise the remedies  provided for
by, or otherwise available in respect of,

<PAGE>

the Agreement, all in accordance with, and subject to the restrictions contained
in,  the terms of the  Agreement.  If a  Significant  Event  shall  occur and be
continuing,  the unpaid  balance of the  principal of all Loans,  together  with
accrued interest thereon,  shall be declared,  and become due and payable in the
manner and with the effect provided in the Agreement.

         This Lender Note is the Lender Note referred to in the Agreement.

         THIS LENDER NOTE SHALL BE CONSTRUED IN ACCORDANCE  WITH AND GOVERNED BY
THE  LAWS OF THE  STATE  OF NEW  YORK  WITHOUT  REGARD  TO THE  CONFLICT  OF LAW
PRINCIPLES   THEREOF  (OTHER  THAN  SECTION  5-1401  OF  THE  NEW  YORK  GENERAL
OBLIGATIONS LAW).

                  [Remainder of Page Intentionally Left Blank]

<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Lender Note as on
the date first written above.

                                       CVTI RECEIVABLES CORP.

                                       By:______________________________________
                                              Name:
                                              Title:

<PAGE>

                             Schedule to Lender Note

-------------- ------------ ------------ ------------- ------------- -----------
Date of Loan    Principal    Principal    Outstanding    Interest    Interest
or Repayment    Amount of    Amount of    Principal      Rate        Period
                Loan         Repayment    Amount
-------------- ------------ ------------ ------------- ------------- -----------
-------------- ------------ ------------ ------------- ------------- -----------

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

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

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

<PAGE>

                                    Exhibit C

                             Form of Monthly Report

<PAGE>

                          CVTI RECEIVABLES CORPORATION
                                 MONTHLY REPORT
                       $62,000,000 SECURITIZATION FACILITY

Due Period:                                          From:
                                                           ---------------------
                                                     To:
                                                           ---------------------

Number of days in the Due Period:                          ---------------------

Report Date:                                               ---------------------

Facility Amount:                                           ---------------------

Revolving Period or Amortization Period?                   ---------------------

Has a Significant Event Occurred?                          ---------------------

Total Number of Active Accounts:                           ---------------------

Pursuant to Section  9.1.e.ii of the Loan  Agreement,  dated as of December  xx,
2000  as  amended  from  time  to  time,  (the  "Loan  Agreement"),  among  CVTI
Receivables Corporation, as Borrower, Covenant Nevada, as Master Servicer, Three
Pillars  Funding  Corporation,  as  Lender  and  SunTrust  Equitable  Securities
Corporation,  as  Administrator,  the Master  Servicer  is  required  to prepare
certain  information each Due Period regarding the Receivables  described in the
Loan Agreement. The undersigned,  a duly authorized representative of the Master
Servicer,  does hereby certify:

I.   Capitalized  terms used in this Report have their  respective  meanings set
     forth in the Loan  Agreement.  References  herein to certain  sections  and
     subsections are references to their respective  sections and subsections of
     the Loan Agreement.

II.  This Report is being  delivered  pursuant  to Section  9.1.e.ii of the Loan
     Agreement.

III. Covenant  Nevada,  is the Master  Servicer  under the Loan  Agreement.  The
     undersigned is an authorized officer of the Master Servicer.

IV.  The date of this  Report is on, or prior to,  the  twentieth  day after the
     Month End Date related to the Due Period specified above.

V.   No  Amortization  Event or Event of  Default  has  occurred  under the Loan
     Agreement.

VI.  As of the date hereof, to the best knowledge of the undersigned, the Master
     Servicer  has  performed in all  material  respects all of its  obligations
     under the Loan  Agreement  through  the Month End Date  related  to the Due
     Period specified above.

<PAGE>

         Accounts Receivable Information
       1 Beginning Unpaid Balance of all Receivables:      _____________________
       2 Credit Sales for the current Due Period:          _____________________
       3 Collections received during the current Due
         Period:                                           _____________________
       4 Receivables Charged-Off during the current Due
         Period:                                           _____________________
       5 Dilutions for the current Due Period:             _____________________
       6 Net credits for the current Due Period:           _____________________
       7 Ending Unpaid Balance of all Receivables:         _____________________

         Aging Report  (Unpaid Balances as of the Month End Date)
       8 Current:                                          _____________________
       9 Receivables 31-60 days past invoice date
         (1-30 DPD):                                       _____________________
      10 Receivables 61-90 days past invoice date
         (31-60 DPD):                                      _____________________
      11 Receivables 91-120 days past invoice date
         (61-90 DPD):                                      _____________________
      12 Receivables 121-150 days past invoice date
         (91-120 DPD):                                     _____________________
      13 Receivables 151+ days past invoice date
         (121+ DPD):                                       _____________________
      14 Total Receivables:                                _____________________
      15 Delinquent Receivables: (Line 11)                 _____________________
      16 Receivables  from  customers in bankruptcy
         included in Lines 8, 9, and 10:                   _____________________
      17 Receivables from customers in bankruptcy
         included in Line 11:                              _____________________
      18 Defaulted Receivables: (Line 4 + Line 12 +
         Line 13 + Line 16 + Line 17)                      _____________________

         Eligible Receivables Information
      19 Unpaid Balance of all Receivables as of the
         Month End Date: (Line 7)                          _____________________
      20 Unpaid  Balance of  Receivables  over 60 days
         past due: (Line 11 + Line 12+ Line13)             _____________________
      21 Unpaid Balance of Receivables for non-Delinquent
         customers in Bankruptcy:  (Line 16)               _____________________
      22 Unpaid Balance of remaining  Receivables with
         Affiliated or Governmental Obligors:              _____________________
      23 Unpaid Balance of remaining non-U.S. Dollar
         denominated Receivables:                          _____________________
      24 Unpaid Balance of remaining Receivables with
         non-U.S. domiciled Obligors:                      _____________________
      25 Unpaid Balance of remaining Receivables with
         terms > 30 days:                                  _____________________
      26 Unpaid Balance of remaining Receivables failing
         to satisfy clauses (a),  (b), (c), (e), (g),
         (k), (l), (m), (n), (o), (q), and (r):            _____________________
      27 Aggregate Unpaid Balance: (Line 19 - Sum
         (Lines 20 - 26))                                  _____________________

         Concentration Limits (List all obligors in excess of 3% along with
         their allowable %)

            -------------------------------------------------------------------
                                                 Concentration
                       Credit Rating                 Limit
            -------------------------------------------------------------------
                    A-1+/P-1 (AAA/Aaa)                6%
               A-1/P-1 (AA-/Aa3 to AA+/Aa1)           6%
                 A-2/P-2 (A-/A3 to A+/A1)             6%
              A-3/P-3 (BBB/Baa3 to BBB+/Baa1)         4%
                          NIG/NR                      2%
                EGL Eagle Global Logistics            6%
            -------------------------------------------------------------------

                  Credit      Concentration     Eligible Rec
Obligor Name      Rating          Limit           Balance          Excess Amount
------------     ---------------------------------------------------------------
   a.
                 ---------------------------------------------------------------
   b.
                 ---------------------------------------------------------------
   c.
                 ---------------------------------------------------------------
   d.
                 ---------------------------------------------------------------
   e.
                 ---------------------------------------------------------------
   f.
                 ---------------------------------------------------------------
   g.
                 ---------------------------------------------------------------
   h.
                 ---------------------------------------------------------------

<PAGE>

   i.
                 ---------------------------------------------------------------
   j.
                 ---------------------------------------------------------------

  28 Total Excess Concentration Amount:                    ---------------------

<PAGE>

<TABLE>
<CAPTION>

      <S>                                                  <C>                     <C>
         Days Sales Outstanding Ratio                                                 (b) Ending Rec
         ----------------------------                        (a) Credit Sales              Balance

      29 Figures for the current Due Period:               _____________________   _____________________
      30 Figures for the previous Due Period:              _____________________   _____________________
      31 Figures for the Due Period 2 periods ago:         _____________________   _____________________
      32 Figures for the Due Period 3 periods ago:         _____________________   _____________________
      33 Figures for the Due Period 4 periods ago:         _____________________   _____________________
      34 Figures for the Due Period 5 periods ago:         _____________________   _____________________
      35 Figures for the Due Period 6 periods ago:         _____________________   _____________________
      36 Figures for the Due Period 7 periods ago:         _____________________   _____________________
      37 Figures for the Due Period 8 periods ago:         _____________________   _____________________
      38 Figures for the Due Period 9 periods ago:         _____________________   _____________________
      39 Figures for the Due Period 10 periods ago:        _____________________   _____________________
      40 Figures for the Due Period 11 periods ago:        _____________________   _____________________

      41 Aggregate Credit Sales during the last 12 Due Periods:                    _____________________
      42 Current 12-month average aggregate Upaid Balance of all Receivables:      _____________________
      43 Accounts Receivable Turnover Ratio: (Line 41 / Line 42)                   _____________________
      44 Current Days Sales Outstanding Ratio: (360 / Line 43)                     _____________________
      45 DSO Ratio for the previous Due Period:                                    _____________________
      46 DSO Ratio for the Due Period 2 periods ago:                               _____________________
      47 DSO Ratio for the Due Period 3 periods ago:                               _____________________
      48 DSO Ratio for the Due Period 4 periods ago:                               _____________________
      49 DSO Ratio for the Due Period 5 periods ago:                               _____________________
      50 DSO Ratio for the Due Period 6 periods ago:                               _____________________
      51 DSO Ratio for the Due Period 7 periods ago:                               _____________________
      52 DSO Ratio for the Due Period 8 periods ago:                               _____________________
      53 DSO Ratio for the Due Period 9 periods ago:                               _____________________
      54 DSO Ratio for the Due Period 10 periods ago:                              _____________________
      55 DSO Ratio for the Due Period 11 periods ago:                              _____________________

         Loss Reserve
      56 Receivables 91 - 120 DPD during the current Due Period: (Line 12)         _____________________
      57 Charge-Offs for the current Due Period: (Line 4)                          _____________________
      58 Receivables whose obligors entered bankruptcy during the current Due
         Period, to the extent not included in Line 56 or Line 57:                 _____________________
      59 Credit Sales for the Due Period 4 periods ago: (Line 33a)                 _____________________
      60 Default Ratio for the current Due Period: ((Line 56 + Line 57 +
         Line 58) / Line 59)                                                       _____________________

                                                                                    (b) 3-Month Average
                                                             (a) Default Ratio          Default Ratio

      61 Ratios for the current Due Period:                _____________________   _____________________
      62 Ratios for the previous Due Period:               _____________________   _____________________
      63 Ratios for the Due Period 2 Periods ago:          _____________________   _____________________
      64 Ratios for the Due Period 3 Periods ago:          _____________________   _____________________
      65 Ratios for the Due Period 4 Periods ago:          _____________________   _____________________
      66 Ratios for the Due Period 5 Periods ago:          _____________________   _____________________
      67 Ratios for the Due Period 6 Periods ago:          _____________________   _____________________
      68 Ratios for the Due Period 7 Periods ago:          _____________________   _____________________
      69 Ratios for the Due Period 8 Periods ago:          _____________________   _____________________
      70 Ratios for the Due Period 9 Periods ago:          _____________________   _____________________
      71 Ratios for the Due Period 10 Periods ago:         _____________________   _____________________
      72 Ratios for the Due Period 11 Periods ago:         _____________________   _____________________
      73 Ratios for the Due Period 12 Periods ago:         _____________________
      74 Ratios for the Due Period 13 Periods ago:         _____________________

</TABLE>

<PAGE>

      75 Highest 3-month average Default Ratio over the
         last 12 months:  (Max (Lines 61b - 72b))          _____________________
      76 Stress Factor:                                    _____________________
      77 Credit Sales for the last 4 Due Periods:
         (Line 29a + Line 30a + Line 31a + Line 32a)       _____________________
      78 Aggregate Unpaid Balance less Excess
         Concentrations: (Line 27 - Line 28)               _____________________
      79 Loss Horizon Ratio: (Line 77 / Line 78)
      80 Loss Reserve: (Line 75 * Line 76 * Line 79)       _____________________

         Dilution Reserve
      81 Dilutions for the current Due Period:
         (Line 5)                                          _____________________
      82 Credit Sales for the previous Due Period:
         (Line 30a)                                        _____________________
      83 Dilution Ratio for the current Due Period:
         (Line 81 / Line 82)                               _____________________
      84 Dilution Ratio for the previous Due Period:       _____________________
      85 Dilution Ratio for the Due Period 2 Periods
         ago:                                              _____________________
      86 Dilution Ratio for the Due Period 3 Periods
         ago:                                              _____________________
      87 Dilution Ratio for the Due Period 4 Periods
         ago:                                              _____________________
      88 Dilution Ratio for the Due Period 5 Periods
         ago:                                              _____________________
      89 Dilution Ratio for the Due Period 6 Periods
         ago:                                              _____________________
      90 Dilution Ratio for the Due Period 7 Periods
         ago:                                              _____________________
      91 Dilution Ratio for the Due Period 8 Periods
         ago:                                              _____________________
      92 Dilution Ratio for the Due Period 9 Periods
         ago:                                              _____________________
      93 Dilution Ratio for the Due Period 10 Periods
         ago:                                              _____________________
      94 Dilution Ratio for the Due Period 11 Periods
         ago:                                              _____________________
      95 Current 12-month average Dilution Ratio:
         (Average Lines 83 - 94)                           _____________________
      96 Stress Factor:                                    _____________________
      97 Dilution Spike Rate: (Max Lines 83 - 94           _____________________
      98 Credit Sales for the current Due Period:
         (Line 29a)                                        _____________________
      99 Aggregate Unpaid Balance less Excess
         Concentrations: (Line 27 - Line 28)               _____________________
     100 Dilution Horizon Ratio: (Line 98 / Line 99)
     101 Dilution Reserve:                                 _____________________
         ((Line 95 * Line 96) + ((Line  97 - Line 95)
         * (Line 97 / Line  95))) * Line 100)              _____________________

         Yield Reserve
     102 Suntrust Prime Rate:                              _____________________
     103 Highest DSO Ratio during the last 12 Due
         Periods: (Max Lines 44 - 55)                      _____________________
     104 Stress Factor:                                    _____________________
     105 Yield Reserve: (Line 102 * Line 103 * Line 104
         * 1/360)                                          _____________________

         Servicing Reserve
     106 Highest DSO Ratio during the last 12 Due
         Periods: (Max Lines 44 - 55)                      _____________________
     107 Stress Factor:                                    _____________________
     108 Backup Servicer Fee:                              _____________________
     109 Servicing Reserve: (Line 106 * Line 107 *
         Line 108 * 1/360 )                                _____________________

         Advance Rate
     110 Reserve Floor:
     111 Calculated Reserve: (Line 80 + Line 101 + Line 105 + Line 109)
     112 Reserve Percentage: (Max Lines 110 - 111)
     113 Advance Rate: (100% - Line 112)

<PAGE>

         AMORTIZATION EVENTS
         -------------------

         Borrowing Base Deficit Test
     114 Aggregate Unpaid Balance: (Line 27)               _____________________
     115 Excess Concentration Amount: (Line 28)            _____________________
     116 Advance Rate: (Line 113)                          _____________________
     117 Borrowing Base: ((Line 114 - Line 115) *
         Line 116)                                         _____________________
     118 Collections currently on deposit in the
         Collection Account:                               _____________________
     119 Maximum Borrowing Amount: (Line 117 + Line 118)   _____________________
     120 Commercial Paper Outstanding:                     _____________________
     121 Difference:                                       _____________________
     122 Compliance: (Yes if zero or positive)             _____________________

         Default Ratio Test
     123 Current 3-month average Default Ratio: (Line 61b) _____________________
     124 Three-month average Default Ratio Trigger:        _____________________
     125 Compliance: (Yes if Line 123 < Line 124)          _____________________

         Delinquency Ratio Test
     126 Delinquent Receivables for the current Due
         Period: (Line 15)                                 _____________________
     127 Aggregate Unpaid Balance less Excess
         Concentrations: (Line 27 - Line 28)               _____________________
     128 Delinquency Ratio for the current Due Period:
         (Line 126 / Line 127)                             _____________________
     129 Delinquency Ratio for the previous Due Period:    _____________________
     130 Delinquency Ratio for the Due Period 2 periods
         ago:                                              _____________________
     131 Current 3-month average Delinquency Ratio:
         (Average(Lines 128 - 130))                        _____________________
     132 Three-month average Delinquency Ratio Trigger:    _____________________
     133 Compliance: (Yes if Line 131 < Line 132)          _____________________

         Dilution Ratio Test
     134 Dilution Ratio for the current Due Period:
         (Line 83)                                         _____________________
     135 Dilution Ratio for the previous Due Period:
         (Line 84)                                         _____________________
     136 Dilution Ratio for the Due Period 2 periods ago:
         (Line 85)                                         _____________________
     137 Current 3-month average Dilution Ratio:
         (Average(Lines 134 - 136))                        _____________________
     138 Three-month average Dilution Ratio Trigger:       _____________________
     139 Compliance: (Yes if Line 137 < 138)               _____________________

         Accounts Receivable Turnover Ratio Test
     140 Accounts Receivable Turnover Ratio for the
         current Due Period: (Line 43)                     _____________________
     141 Accounts Receivable Turnover Ratio Trigger:       _____________________
     142 Compliance: (Yes if Line 140 >= Line 141)         _____________________

            IN WITNESS WHEREOF, the undersigned has duly executed this Report on
xxx xx, 200x.

            Covenant Nevada

            By: ___________________________
                Joey Hogan
                CFO

<PAGE>

                                    Exhibit D

                       Form of Borrowing Base Certificate

<PAGE>

                           BORROWING BASE CERTIFICATE

To:    SunTrust Equitable Securities
       303 Peachtree Street, 24th Floor
       Atlanta, GA 30308

Re:    CVTI Receivables Corp.

We refer to the Loan  Agreement,  dated as of December  __, 2000 as amended from
time to time, (the "Loan Agreement"), among CVTI Receivables Corp., as Borrower,
SunTrust Bank, as Servicer,  Three Pillars  Funding  Corporation,  as Lender and
SunTrust Equitable Securities Corporation, as Administrator. This certificate is
delivered to you pursuant to the terms of the Loan Agreement.  Capitalized terms
used but not otherwise  defined herein shall have the same meanings herein as in
the Loan Agreement.

We hereby  certify and warrant to the  Administrator  and the Lender that at the
close of business on ______  ____,  _______  (the  "Borrowing  Base  Calculation
Date"), the Borrowing Base and the Maximum Borrowing Amount were as follows:

1.  Aggregate Unpaid Balance detailed in the most recent
    Monthly Servicer Report:                                         $       -
2.  Excess Concentration Amount detailed in the most recent
    Monthly Servicer Report:                                         $       -
3.  Receivables Purchased since the most recent Monthly Servicer
    Report:                                                          $       -
4.  Collections since the most recent Monthly Servicer Report:       $       -
5.  Advance Rate detailed in the most recent Monthly Servicer
    Report:                                                                0.00%
6.  Borrowing Base: ((Line 1 - Line 2 + Line 3 - Line 4) * Line 5)   $       -
7.  Cash currently on deposit in the Collection Account:             $       -
8.  Maximum Borrowing Amount: (Line 5 + Line 6)                      $       -
9.  Current amount of Commercial Paper outstanding:                  $       -
10. Difference:  (Line 7 - Line 8)                                   $       -
11. Compliance?:  (Yes if Line 8 is zero or positive)                       YES

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

<PAGE>

     IN WITNESS WHEREOF,  the Servicer has caused the Certificate to be executed
and delivered by a Responsible Officer the ___th day of ____, ________.

                                          COVENANT TRANSPORT, INC.,
                                          as Master Servicer

                                          By:___________________________________
                                          Officer

<PAGE>

                                    Exhibit E

                      Form of Collection Account Agreement

                          COLLECTION ACCOUNT AGREEMENT

                           [Letterhead of Originator]

                                December 12, 2000

[Name of Collection Bank]
[Address]

Attention:  ___________________________

         Re:      Covenant Transport, Inc.
                  Southern Refrigerated Transport, Inc.

Ladies and Gentlemen:

Reference  is  made  to  our  the  account  numbers  [_________________________]
maintained with you (the "Account")  pursuant to a collection  account agreement
between  the  undersigned  and you,  the  terms  and  conditions  of  which  are
incorporated herein by reference (the "Collection Account Agreement").  Pursuant
to a Receivables  Purchase Agreement,  dated as of December 12, 2000 as amended,
supplemented or otherwise modified from time to time, among Covenant  Transport,
Inc.,  a  Tennessee  corporation  ("Covenant  Tennessee"  or  an  "Originator"),
Southern   Refrigerated   Transport,   Inc.   ("Southern   Refrigerated"  or  an
"Originator,"  together with Covenant Tennessee,  the  "Originators"),  and CVTI
Receivable Corp. ("CVTI"), as purchaser,  we have sold and/or may hereafter sell
to  CVTI  certain  of  the  accounts,  chattel  paper,  instruments  or  general
intangibles (collectively,  "Receivables") with respect to which payments are or
may hereafter be made to the Account. Pursuant to a Loan Agreement,  dated as of
December 12, 2000 (as amended,  supplemented or otherwise  modified from time to
time, the "Loan Agreement"),  among CVTI, as borrower, Covenant Transport, Inc.,
a Nevada  corporation as initial master servicer  ("Covenant Nevada" or " Master
Servicer")   (the   Originators  and  the  Master  Servicer  being  referred  to
hereinafter  collectively  as  the  "Seller  Parties"),  Three  Pillars  Funding
Corporation as lender ("TPFC" or the "Lender") and SunTrust Equitable Securities
Corporation, as administrator (the "Administrator"), Lender has agreed to extend
financing to CVTI on the terms and subject to the  conditions set forth therein.
Capitalized  terms used but not defined herein shall have the meanings  ascribed
to them in the Loan Agreement.

For purposes of this letter agreement, SunTrust Equitable Securities Corporation
is acting as Administrator for TPFC. We hereby transfer exclusive  ownership and
control of the

<PAGE>

Account  to the  Administrator,  for the  benefit of TPFC,  subject  only to the
condition  subsequent that the Administrator  shall have given you notice of its
election  to  assume  such   ownership  and  control,   which  notice  shall  be
substantially in the form attached hereto as Annex A.

We hereby irrevocably instruct you, at all times from and after the date of your
receipt of notice from the  Administrator  of its  assumption  of control of the
Account as described above, (i) to make all payments to be made by you out of or
in connection with the Account directly to the  Administrator in accordance with
the instructions of the  Administrator,  (ii) to hold all moneys and instruments
delivered to the Account  administered by you for the order of the Administrator
(for the benefit of the TPFC),  (iii) to refrain  from  initiating  any transfer
from the Account to any Seller  Party and (iv) to change the name of the Account
to "SunTrust  Equitable  Securities  Corporation.,  as  Administrator  for Three
Pillars Funding  Corporation." The Administrator agrees to execute your standard
wire  transfer  documentation  in effect from time to time,  or other  customary
documentation  related to wire  transfers,  prior to the  initiation of any wire
transfers.

We also  hereby  notify  you that,  at all times from and after the date of your
receipt of notice from the  Administrator as described above, the  Administrator
shall be  irrevocably  entitled  to  exercise in our place and stead any and all
rights in respect  of or in  connection  with the  Account,  including,  without
limitation,  (a) the right to specify when  payments are to be made out of or in
connection  with  the  Account  and (b) the  right  to  require  preparation  of
duplicate monthly bank statements on the Account for the  Administrator's  audit
purposes  and mailing of such  statements  directly to the  Administrator  at an
address specified by the Administrator.

Notices from the Administrator  and other notices or  communications  under this
letter  agreement may be personally  served or sent by facsimile or by certified
mail, return receipt requested, or by express mail or courier, to the address or
facsimile  number set forth under the  signature of the  relevant  party to this
letter  agreement (or to such other address or facsimile  number as the relevant
party shall have  designated by written notice to the party giving the aforesaid
notice  or other  communication).  Notwithstanding  the  foregoing,  any  notice
delivered  by you may be  delivered  by  regular  mail.  If  notice  is given by
facsimile,  it will be deemed to have been  received when the notice is sent and
receipt is confirmed by telephone or other  electronic  means. All other notices
will be deemed to have been received  when actually  received or, in the case of
personal delivery, delivered.

By  executing  this letter  agreement,  you  acknowledge  the  existence  of the
Administrator's  right to ownership and control of the Account and its ownership
(on behalf of TPFC and CVTI as the parties having  interests in such amounts) of
the amounts from time to time on deposit  therein,  and agree that from the date
hereof the Account  shall be  maintained  by you for the benefit of, and amounts
from time to time therein held by you for, the  Administrator (on behalf of TPFC
and CVTI) on the terms  provided  herein.  Except as otherwise  provided in this
letter agreement, payments to the Account are to be processed in accordance with
the

<PAGE>

standard  procedures  currently  in effect.  All  service  charges and fees with
respect  to  the  Account  shall  continue  to be  payable  by us as  under  the
arrangements currently in effect.

By  executing  this letter  agreement,  you  irrevocably  waive and agree not to
assert,  claim or endeavor to exercise,  irrevocably bar and estop yourself from
asserting,  claiming or exercising, and acknowledge that you have not heretofore
received a notice, writ, order or any form of legal process from any other party
asserting,  claiming or exercising, any right of set-off, banker's lien or other
purported  form of claim with  respect to the  Account or any funds from time to
time therein.  Except for your right to payment of your service charges and fees
and your right to make deductions for returned  items,  you shall have no rights
in the Account or funds  therein.  To the extent you may ever have such  rights,
you  hereby  expressly  subordinate  all  such  rights  to  all  rights  of  the
Administrator.

Notwithstanding  any other provision of this letter  agreement,  it is agreed by
the parties hereto that you shall not be liable to TPFC or the Administrator for
any action taken by you or any of your directors,  officers, agents or employees
in accordance  with this letter  agreement at the request of the  Administrator,
except for your or such person's own gross negligence or willful misconduct.

This  letter  agreement  may be executed  by the  signatories  hereto in several
counterparts,  each of which shall be deemed to be an original  and all of which
shall together constitute but one and the same letter agreement.  Delivery of an
executed  counterpart of a signature page to this letter  agreement by facsimile
shall be effective as delivery of a manually executed counterpart to this letter
agreement.  This letter agreement shall be governed by and interpreted under the
laws of the State of _______.

You may terminate this letter agreement by canceling the Account maintained with
you, which  cancellation  and  termination  shall become  effective only upon 30
days' prior written notice thereof from you to the Administrator.  Incoming mail
addressed to the Account received after such cancellation  shall be forwarded in
accordance with the Administrator's instructions. This letter agreement may also
be terminated upon written notice to you by the  Administrator  stating that the
Loan  Agreement  is no longer in effect.  Except as  otherwise  provided in this
paragraph,  this letter  agreement may not be altered,  modified,  terminated or
amended in any  respect,  nor may any  right,  power or  privilege  of any party
hereunder  be waived or released or  discharged,  except upon  execution  by all
parties  hereto of a written  instrument  so  providing.  In the event  that any
provision in this letter  agreement is in conflict with, or  inconsistent  with,
any provision of the Collection Account Agreement,  this letter will exclusively
govern and control.  Each party agrees to take all actions reasonably  requested
by any other  party to carry out the  purposes of this  letter  agreement  or to
preserve and protect the rights of each party hereunder.

Please  acknowledge  your  agreement  to the  terms  set  forth  in this  letter
agreement by signing the six copies of this letter agreement  enclosed  herewith
in the space  provided  below and  returning  each of such signed  copies to the
Administrator.

<PAGE>

                                  Very truly yours,

                                  COVENANT TRANSPORT, INC.,
                                  a Tennessee corporation

                                  By:___________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________

                                  Address for notice:
                                  400 Birmingham Highway
                                  Chattanooga, TN 37419

                                  Attention:  David Hughes
                                  Facsimile:  (423) 821-5442

                                  SOUTHERN REFRIGERATED TRANSPORT, INC.

                                  By:___________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________

                                  Address for notice:
                                  Highway 51 North
                                  Ashdown, Arkansas 71822.

                                  Attention: David Hughes
                                  Facsimile:  (423) 821-5442

<PAGE>

Accepted and confirmed as of
the date first written above:

THREE PILLARS FUNDING CORPORATION,
as Lender

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

Address for notice:
c/o Amacar Group, L.L.C.
6525 Morrison Boulevard
Suite 318
Charlotte, North Carolina 28211

Attention:    Doug Johnson
Facsimile No: (704) 365-1362

SUNTRUST EQUITABLE SECURITIES CORPORATION
as Administrator

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

Address for notice:
24th Floor MC3950
303 Peachtree Street
Atlanta, Georgia 30308

Attention:  James Bennison
Facsimile:  (404) 230-1344

<PAGE>

CVTI RECEIVABLES CORP.,

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

Address for notice:
400 Birmingham Highway
Chattanooga, TN 37419

Attention:  David Hughes
Facsimile:  (423) 821-5442

[Name of Collection Bank]
as Collection Bank

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

Address for notice:

Attention:
Facsimile No:

<PAGE>

                                                                      ANNEX A to
                                                    Collection Account Agreement

              [FORM OF NOTICE OF ASSUMPTION OF CONTROL OF ACCOUNT]

                         [Letterhead of Collection Bank]

                            __________________, 200_

[Name of Collection Bank]
[Address of Collection Bank]
 ------------------------------
------------------------------

Re:      Covenant Transport, Inc.
         Collection Account No.___________

Ladies and Gentlemen:

Reference is made to the letter  agreement  dated December 12, 2000 (as amended,
supplemented  or otherwise  modified from time to time, the "Letter  Agreement")
among Covenant Transport,  Inc.,  Southern  Refrigerated  Transport,  Inc., CVTI
Receivables  Corp., Three Pillars Funding  Corporation (the "Lender"),  SunTrust
Equitable  Securities  Corporation,  as Administrator  for the Lender,  and you,
concerning the above-described Collection Account (the "Account").

We hereby  give you notice of our  assumption  of  ownership  and control of the
Account as provided in the Letter Agreement.

We  hereby  instruct  you to make  all  payments  to be made by you out of or in
connection with the Account  [directly to the  undersigned,  at [our address set
forth above],  for the account of [Three Pillars Funding  Corporation]  (account
no. ___________)].

         [Other instructions]

                                       Very truly yours,
                                       SUNTRUST EQUITABLE SECURITIES
                                       CORPORATION,
                                       as Administrator

                                       By:______________________________________

<PAGE>

                                       Name:____________________________________
                                       Title:___________________________________

<PAGE>

                                    EXHIBIT F

                                   [RESERVED]

<PAGE>

                                    EXHIBIT G

                             FORM OF ORIGINATOR NOTE

                                 ORIGINATOR NOTE

New York, New York

_______, 2000

         FOR  VALUE  RECEIVED,  CVTI  Receivables  Corp,  a  Nevada  corporation
("CVTI")    promises    to   pay   to    [ORIGINATOR]    at   the    office   of
[_________________________________],  the  principal  sum equal to the aggregate
amount due and owing to [Originator]  pursuant to Section 2.3 of the Receivables
Purchase  Agreement as adjusted  from time to time  pursuant to Sections 2.4 and
2.5 of the  Receivables  Purchase  Agreement  (as the same may be  increased  or
decreased from time to time),  on the date which is twelve months  following the
Purchase Termination Date under the Receivables Purchase Agreement.

         Section  1.01.   Receivables  Purchase  Agreement.   This  Note  is  an
"Originator  Note"  described in, and is subject to the terms and conditions set
forth in, the Receivables Purchase Agreement,  dated as of December__,  2000 (as
amended, supplemented, or otherwise modified from time to time, the "Receivables
Purchase  Agreement"),  between CVTI, as the Purchaser,  Covenant Tennessee,  as
Originator, and Southern Refrigerated,  as Originator.  Reference is hereby made
to the  Receivables  Purchase  Agreement for a statement of certain other rights
and obligations of CVTI and each Originator. In the case of any conflict between
the terms of this Note and the terms of the Receivables Purchase Agreement,  the
terms of the Receivables Purchase Agreement shall control.

         Section  1.02.  Definitions.  Capitalized  terms used (but not defined)
herein have the meanings ascribed thereto in the Receivables  Purchase Agreement
or in the Loan Agreement (as defined in the Receivables Purchase Agreement).  In
addition, as used herein, the following terms have the following meanings:

         "Final  Maturity  Date"  means the date that falls one year and one day
after the later of (x) the Purchase  Termination  Date and (y) the date on which
the principal  amount of the Loans shall have been reduced to zero and all other
amounts payable by CVTI to Lender, the  Administrator,  the Affected Parties and
Indemnified  Parties  under the  Transaction  Documents  shall have been paid in
full.

         "Junior  Liabilities"  means all  obligations  of CVTI to  [Originator]
under this Note.

         "Senior Agent" means the Administrator.

         "Senior  Indebtedness" means all (a) obligations of CVTI under the Loan
Agreement  dated as of  December___,  2000 (as in effect from time to time,  the
"Loan Agreement") among

<PAGE>

CVTI,  Covenant  Transport,  Inc.  ("Covenant  Nevada" or the "Master Servicer")
Three  Pillars  Funding   Corporation  (the  "Lender")  and  SunTrust  Equitable
Securities Corporation,  as Administrator (the "Administrator") and any renewal,
extension,  restatement or refunding  thereof and (b) all obligations of CVTI to
the Senior Interest Holders,  howsoever created,  arising or evidenced,  whether
direct or indirect, absolute or contingent, now or hereafter existing, or due or
to become due on or before the Final Maturity Date.

         "Senior Interest Holders" means, collectively, the Senior Agent and the
Indemnified Parties.

         "Subordination Provisions" means, collectively, clauses (a) through (k)
of Section 1.07 hereof.

         Section 1.03. Interest.  Subject to the Subordination Provisions,  CVTI
promises to pay interest on the aggregate  unpaid  principal amount of this Note
outstanding on each day at a variable rate per annum equal to _____________.

         Section 1.04.  Interest  Payment  Dates.  Subject to the  Subordination
Provisions,  CVTI shall pay accrued  interest on this Note on each  Distribution
Date and on the Final  Maturity Date (or, if any such day is not a Business Day,
the next succeeding  Business Day). CVTI also shall pay accrued  interest on the
principal amount of each prepayment hereof on the date of each such prepayment.

         Section 1.05. Basis of Computation. Interest accrued hereunder shall be
computed for the actual number of days elapsed on the basis of a 360-day year.

         Section 1.06.  Principal  Payment Dates.  Subject to the  Subordination
Provisions,  any  unpaid  principal  of this  Note  shall  be paid on the  Final
Maturity  Date (or,  if such date is not a  Business  Day,  the next  succeeding
Business Day). Subject to the Subordination Provisions,  the principal amount of
and  accrued  interest on this Note may be prepaid on any  Business  Day without
premium or penalty.

         Section 1.07. Subordination Provisions.  CVTI covenants and agrees, and
[Originator],  by its  acceptance of this Note,  likewise  covenants and agrees,
that the payment of all Junior  Liabilities is hereby expressly  subordinated in
right of payment to the payment and  performance of the Senior  Indebtedness  to
the extent and in the manner set forth in the following  clauses of this Section
1.07.  To the extent  this  Section  1.07  conflicts  with the terms of the Loan
Agreement, the terms of the Loan Agreement shall control.

         (a) No payment or other  distribution  of CVTI's  assets of any kind or
character,  whether in cash, securities,  or other rights or property,  shall be
made on  account  of this  Note  except  to the  extent  such  payment  or other
distribution is (i) permitted under the Loan Agreement and (ii) made pursuant to
Section 1.04 or 1.06 of this Note;

         (b) If an Event of Bankruptcy  has occurred with respect to CVTI or the
Purchase Termination Date has occurred, then the Senior Indebtedness shall first
be paid and performed in full and in cash before  [Originator] shall be entitled
to receive  and to retain any payment or  distribution  in respect of the Junior
Liabilities.  In  order  to  implement  the  foregoing:  (i)  all

<PAGE>

payments  and  distributions  of any kind or  character in respect of the Junior
Liabilities to which  [Originator]  would be entitled except for this subsection
1.07.(b)  shall be made  directly  to the Senior  Agent (for the  benefit of the
Senior Interest Holders);  and (ii) [Originator]  hereby irrevocably agrees that
the Senior Agent, in the name of [Originator] or otherwise, may demand, sue for,
collect, receive and receipt for any and all such payments or distributions, and
file,  prove and vote or consent in any such  proceeding with respect to any and
all claims of  [Originator]  relating  to the Junior  Liabilities,  in each case
until the Senior  Indebtedness shall have been paid and performed in full and in
cash.

         (c) In the  event  that  [Originator]  receives  any  payment  or other
distribution  of any  kind or  character  from  CVTI or from  any  other  source
whatsoever,  in  respect  of the Junior  Liabilities,  other  than as  expressly
permitted by the terms of this Note, such payment or other distribution shall be
received  in trust for the Senior  Interest  Holders and shall be turned over by
[Originator]  to the  Senior  Agent  (for the  benefit  of the  Senior  Interest
Holders) forthwith.  All payments and distributions received by the Senior Agent
in respect of this Note, to the extent  received in or converted  into cash, may
be applied by the Senior Agent (for the benefit of the Senior Interest  Holders)
first to the  payment of any and all  reasonable  expenses  (including,  without
limitation,  reasonable  attorneys'  fees  and  other  legal  expenses)  paid or
incurred by the Senior Agent or the Senior  Interest  Holders in enforcing these
Subordination  Provisions,  or in  endeavoring  to collect  or realize  upon the
Junior   Liabilities,   and  any  balance  thereof  shall,   solely  as  between
[Originator]  and the Senior  Interest  Holders,  be applied by the Senior Agent
toward the  payment of the Senior  Indebtedness  in a manner  determined  by the
Senior Agent to be in  accordance  with the Loan  Agreement;  but as between the
Purchaser and its creditors,  no such payments or  distributions  of any kind or
character  shall be deemed to be  payments  or  distributions  in respect of the
Senior Indebtedness.

         (d)  Upon  the  final  payment  in  full  and in  cash  of  all  Senior
Indebtedness,  [Originator]  shall be  subrogated  to the  rights of the  Senior
Interest  Holders  to  receive  payments  or  distributions  from  CVTI that are
applicable to the Senior  Indebtedness  until the Junior Liabilities are paid in
full.

         (e) These Subordination  Provisions are intended solely for the purpose
of defining the relative rights of [Originator], on the one hand, and the Senior
Interest  Holders,  on the other hand.  Nothing  contained in the  Subordination
Provisions or elsewhere in this Note is intended to or shall impair,  as between
CVTI, its creditors (other than the Senior Interest  Holders) and  [Originator],
CVTI's  obligation,  which is  unconditional  and  absolute,  to pay the  Junior
Liabilities as and when the same shall become due and payable in accordance with
the terms  hereof and of the  Receivables  Purchase  Agreement  or to affect the
relative  rights of  [Originator]  and  creditors of CVTI (other than the Senior
Interest Holders).

         (f)  [Originator]  shall not, until the Senior  Indebtedness  have been
finally paid and  performed  in full and in cash,  (i) cancel,  waive,  forgive,
transfer or assign,  or commence  legal  proceedings  to enforce or collect,  or
subordinate to any obligation of CVTI, howsoever created,  arising or evidenced,
whether  direct  or  indirect,  absolute  or  contingent,  or now  or  hereafter
existing,  or due or to become  due,  other  than the Senior  Indebtedness,  the
Junior Liabilities,  or any rights in respect thereof or (ii) convert the Junior
Liabilities  into an equity  interest in the

<PAGE>

Purchaser,  unless,  in the  case  of  each  of  clauses  (i)  and  (ii)  above,
[Originator]  shall have received the prior written  consent of the Senior Agent
in each case.

         (g) [Originator]  shall not, without the advance written consent of the
Senior  Agent,  commence,  or join with any  other  Person  in  commencing,  any
bankruptcy, reorganization,  arrangement, insolvency or liquidation proceedings,
or other  proceedings under any federal or state bankruptcy or similar law, with
respect to CVTI until at least one year and one day shall have passed  since the
Senior  Indebtedness  shall have been finally paid and  performed in full and in
cash.

         (h) If,  at any  time,  any  payment  (in  whole or in part)  made with
respect to any Senior  Indebtedness is rescinded or must be restored or returned
by a Senior  Interest Holder (whether in connection with any Event of Bankruptcy
or otherwise),  these Subordination Provisions shall continue to be effective or
shall be  reinstated,  as the case may be, as though  such  payment had not been
made.

         (i) Each of the Senior Interest  Holders may, from time to time, to the
extent  consistent  with the  Transaction  Documents,  at its  sole  discretion,
without  notice to  [Originator],  and without  waiving any of its rights  under
these Subordination  Provisions,  take any or all of the following actions:  (i)
retain  or obtain an  interest  in any  property  to  secure  any of the  Senior
Indebtedness;  (ii) retain or obtain the primary or secondary obligations of any
other obligor or obligors with respect to any of the Senior Indebtedness;  (iii)
extend or renew for one or more periods (whether or not longer than the original
period),  alter or  exchange  any of the  Senior  Indebtedness,  or  release  or
compromise  any  obligation  of any  nature  with  respect  to any of the Senior
Indebtedness;  (iv)  amend,  supplement,  or  otherwise  modify any  Transaction
Document;  and (v) release its security  interest in, or  surrender,  release or
permit  any  substitution  or  exchange  for all or any  part of any  rights  or
property securing any of the Senior Indebtedness,  or extend or renew for one or
more  periods  (whether or not longer  than the  original  period),  or release,
compromise,  alter or exchange any obligations of any nature of any obligor with
respect to any such rights or property.

         (j)  [Originator]  hereby  waives:  (i) notice of  acceptance  of these
Subordination  Provisions by any of the Senior Interest Holders;  (ii) notice of
the existence,  creation,  non-payment or  non-performance  of all or any of the
Senior  Indebtedness;  and (iii) all  diligence in  enforcement,  collection  or
protection of, or realization upon the Senior  Indebtedness,  or any thereof, or
any security therefor.

         (k) These Subordination  Provisions  constitute a continuing offer from
CVTI to all Persons who become the holders of, or who  continue to hold,  Senior
Indebtedness; and these Subordination Provisions are made for the benefit of the
Senior  Interest  Holders,  and the Senior  Agent may  proceed  to enforce  such
provisions on behalf of each of such Persons.

         Section  1.08.  Amendments,  Etc.  No  failure  or delay on the part of
[Originator]  in  exercising  any power or right  hereunder  shall  operate as a
waiver  thereof,  nor shall any single or partial  exercise of any such power or
right  preclude  any other or further  exercise  thereof or the  exercise of any
other power or right.  No amendment,  modification or waiver of, or consent with
respect to, any  provision of this Note shall in any event be  effective  unless
(a) the  same  shall  be

<PAGE>

in writing  and  signed  and  delivered  by CVTI and  [Originator],  and (b) all
consents  required for such actions under the  Transaction  Documents shall have
been received by the appropriate Persons.

         Section 1.09. Limitation on Interest.  Notwithstanding anything in this
Note to the contrary,  CVTI shall never be required to pay unearned  interest on
any amount outstanding hereunder, and shall never be required to pay interest on
the principal amount outstanding  hereunder,  at a rate in excess of the maximum
interest rate that may be contracted for, charged or received without  violating
applicable federal or state law.

         Section 1.10. No Negotiation.  This Note is not negotiable.

         Section  1.11.  Governing  Law.  THIS NOTE  SHALL BE  GOVERNED  BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICT OF LAWS  PRINCIPLES  (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

         Section  1.12.  Captions.  Paragraph  captions  used in this  Note  are
provided solely for convenience of reference and shall not affect the meaning or
interpretation of any provision of this Note.

         IN WITNESS WHEREOF, the undersigned has caused this Note to be executed
by its officer thereunto duly authorized on the date first above written.

                                            CVTI RECEIVABLES CORP.

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

<PAGE>

                                    EXHIBIT H

                         FORM OF WITHDRAWAL CERTIFICATE
                                       OF
                        COVENANT TRANSPORT, INC (NEVADA)

         This  Certificate  is  made  pursuant  to the  provisions  of the  Loan
Agreement,  dated as of December___,  2000, (the  "Agreement") by and among CVTI
RECEIVABLES CORP., a Nevada corporation,  as borrower, COVENANT TRANSPORT, INC.,
a Nevada holding  corporation  ("Company"),  as initial master  servicer,  THREE
PILLARS FUNDING  CORPORATION,  a Delaware  corporation,  ("Lender") and SUNTRUST
EQUITABLE  SECURITIES  CORPORATION,  a  Tennessee  corporation,   as  agent  and
administrator  for  Lender.  Capitalized  terms used  herein  and not  otherwise
defined shall have the meaning set forth in the Agreement.

         The undersigned,  as ______________________ of the Company, DOES HEREBY
CERTIFY that:

1.    This certificate relates to the week ended on [month] __, 200_.

2.    On the following dates, the Company, as  Master  Servicer,  withdrew funds
from the  Collection  Account  in  accordance  with the  provisions  of  Section
11(c)(vii) of the Agreement (each, a "Withdrawal Date"): [list dates].

3.    On  each  Withdrawal  Date, no Significant Event or  Unmatured Significant
Event was in existence.

4.    On each Withdrawal Date, the Commitment Termination Date had not occurred.

5.    On [insert date that is last  Withdrawal  Date  for week  covered  by this
certificate]  no Borrowing  Base  Deficit  existed  after  giving  effect to the
withdrawal of funds from the Primary  Collection  Account on such day and, after
giving  effect to such  withdrawal,  there were funds in the Primary  Collection
Account at least equal to the interest on the Loans and the Fees accrued through
such date.

                  [Remainder of Page Intentionally Left Blank]

<PAGE>

         IN WITNESS WHEREOF, I have signed this certificate as of this _____ day
of _______, 200_.

                                   CONVENANT TRANSPORT, INC.,
                                   a Nevada corporation

                                   By:__________________________________________
                                   Name:________________________________________
                                   Title:_______________________________________

<PAGE>

                                   Schedule I

                        Description of Collection Account

------------------------------ ------------------------------- -----------------
Name and Address of Bank            LockBox Number and           Account Number
                                    Address (if applicable)
------------------------------ ------------------------------- -----------------
------------------------------ ------------------------------- -----------------
Bank of America                     P.O. Box 841944              003782911511
Nashville, TN                       Dallas, TX
------------------------------ ------------------------------- -----------------
------------------------------ ------------------------------- -----------------
Diamond State Bank                  N/A                          0520764
Mineral Springs, AR 71851
------------------------------ ------------------------------- -----------------
------------------------------ ------------------------------- -----------------

<PAGE>

                                  Schedule II

                                    Reserved

<PAGE>

                                  Schedule III

                                Form of Contract

                        [Delivered Under Separate Cover]

<PAGE>

                                   Schedule IV

                           Description Of Proceedings

None.

<PAGE>

                                   Schedule V
                         Collateral Review Requirements

I.       Initial Report of Independent Accountants

         (a)    the  report shall  be  titled the "Initial Report of Independent
                Accountants on Agreed Upon Procedures";

         (b)    the  report shall  be addressed to  Covenant Transport, Inc., as
                Master Servicer and to SunTrust Equitable Securities Corporation
                as Administrator:

                           Tim Mueller
                           SunTrust Equitable Securities Corp.
                           Mail Code 3950
                           303 Peachtree Street, 24th Floor
                           Atlanta, GA  30308

         (c)    the agreed upon procedures shall be performed by
                PricewaterhouseCoopers LLP as engaged by the Master Servicer;

         (d)    the report shall be delivered on April 15, 2001; and

         (e)    the agreed  upon  procedures  shall  entail  the  selection of a
                non-systematic  sample  of  100  invoices  from  the  receivable
                schedule delivered by  Borrower pursuant to  the initial funding
                performance of the following:

                  (i)      agree invoice information including: customer name
                           and receivables balance to information on the report
                           generated by the receivable servicing system;

                  (ii)     determine that credit terms are indicated on the
                           invoice and do not exceed 30 days; and

                  (iii)    determine that the Originators' computer records have
                           been marked or stamped indicating that the Receivable
                           has been sold to CVTI Receivables Corp.

II.      Reports of Independent Accountants

         (a)    the report shall be titled "Report of Independent Accountants on
                Agreed Upon Procedures";

         (b)    the report shall be addressed as detailed in item I above;

         (c)    the agreed upon procedures shall be performed by
                PricewaterhouseCoopers LLP;

         (d)    the reports shall be delivered within 60 days after each
                semi-annual period following this transaction's Closing Date;
                and

<PAGE>

         (e)    the agreed upon procedures shall consist of the following:

                  (i)      agree the data on lines 1 through 6 and 8 through  13
                           from  three (3)  non-sytematically  selected  Monthly
                           Reports  as shown in  Exhibit  C for the most  recent
                           semi-annual  period to the  information  contained in
                           system  reports and  accounting  records  used in the
                           compilation of those Monthly Reports;

                  (ii)     request  personnel  responsible for the credit and/or
                           finance function at Covenant  Transport,  Inc. to (a)
                           identify  whether or not any customers  with balances
                           included as Receivables  are in  bankruptcy;  and (b)
                           provide  a list of the names of such  customers.  For
                           any such identified customers, compare the balance of
                           such Receivables contained in the system reports used
                           in the  compilation  of those  Monthly  Reports  with
                           amounts  contained  in lines 16 and 17 of the Monthly
                           Reports in item (i) above and report any differences;

                  (iii)    verify the mathematical accuracy of the Accounts
                           Receivable information and Aging Report in the
                           Monthly Reports in item (i) above;

                  (iv)     non-systematically  select a sample  of 100  invoices
                           from the  receivable  schedule  delivered by Borrower
                           pursuant to the subsequent  fundings  during the most
                           recent semi-annual period and perform the following:

                               (a)  agree invoice information including:
                               customer name and receivables balance to
                               information on a report generated by the
                               receivables servicing system;

                               (b)  determine that credit terms are on the
                               invoice and do not exceed 30 days;

                               (c)  determine  that  the  Originators'  computer
                               records  have been  marked or stamped to indicate
                               that  the   Receivable  has  been  sold  to  CVTI
                               Receivables Corp.;

                               (d) for  invoices  for which  payments  have been
                               received  verify that the  Collection was sent by
                               wire transfer to a Collection Account or by check
                               to a Lock-Box  and  deposited  into a  Collection
                               Account.

<PAGE>

                                   Schedule VI

                                Notice Addresses

Borrower:         CVTI Receivables Corp.
                  Address for notice

                  400 Birmingham Highway
                  Chattanooga, TN 37419

                  Attention:  David Hughes
                  Facsimile:  (423) 821-5442
                  Telephone:  (423) 821-1212

                  Principal Place of Business and Chief Executive Office:
                  Highway 51 North,
                  Ashdown, Arkansas 71822

Master Servicer:  Covenant Transport, Inc.
                  400 Birmingham Highway
                  Chattanooga, TN 37419

                  Attention:  David Hughes
                  Facsimile:  (423) 821-5442
                  Telephone:  (423) 821-1212

Lender:           Three Pillars Funding Corporation
                  c/o Amacar Group, L.L.C.
                  6525 Morrison Boulevard
                  Suite 318
                  Charlotte, North Carolina  28211

                  Attention:  Doug Johnson
                  Facsimile:  (704) 365-1362
                  Telephone:  (704) 365-0569

Administrator:    SunTrust Equitable Securities Corporation
                  24th Floor MC3950
                  303 Peachtree Street
                  Atlanta, Georgia  30308

                  Attention:  James Bennison
                  Facsimile:  (404) 230-1344
                  Telephone:  (404) 532-0766RECEIVABLES PURCHASE AGREEMENT

                          Dated as of December 12, 2000

                                     between

                             CVTI RECEIVABLES CORP.
                                  as Purchaser,

                            COVENANT TRANSPORT, INC.
                                as an Originator,

                                       and

                      SOUTHERN REFRIGERATED TRANSPORT, INC.
                                as an Originator

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

                              ARTICLE I DEFINITIONS

Section 1.1     Certain Defined Terms......................................... 1
Section 1.2     Accounting and UCC Terms...................................... 3

                  ARTICLE II AMOUNTS AND TERMS OF THE PURCHASES

Section 2.1     Purchase and Contribution of Receivables...................... 3
Section 2.2     Purchase Price................................................ 4
Section 2.3     Payment of Purchase Price..................................... 4
Section 2.4     Deemed Collections............................................ 5
Section 2.5     Adjustments................................................... 6
Section 2.6     Finance Charges............................................... 6
Section 2.7     Allocations of Collections.................................... 6

                       ARTICLE III CONDITIONS TO PURCHASES

Section 3.1     Conditions Precedent to Purchaser's Initial Purchase.......... 6
Section 3.2     Conditions Precedent to All Purchases......................... 7
Section 3.3     Conditions Precedent to Originator's Initial Sale............. 8

                    ARTICLE IV REPRESENTATIONS AND WARRANTIES

Section 4.1     Representations and Warranties of the Parties................. 8
Section 4.2     Additional Representations of the Originator.................. 9

                           ARTICLE V GENERAL COVENANTS

Section 5.1     Affirmative Covenants of the Originator.......................12
Section 5.2     Negative Covenants of the Originator......................... 15

        ARTICLE VI ADMINISTRATION AND COLLECTION OF PURCHASED RECEIVABLES

Section 6.1     Collection Procedures........................................ 17
Section 6.2     Purchase Information......................................... 17
Section 6.3     Compliance Statements........................................ 18
Section 6.4     Allocations and Applications of Collections.................. 18
Section 6.5     Termination...................................................18
Section 6.6     Responsibilities of the Originator........................... 18

                                       i

<PAGE>

                     ARTICLE VII PURCHASE TERMINATION EVENTS

Section 7.1     Purchase Termination Events...................................19
Section 7.2     Remedies..................................................... 20

                          ARTICLE VIII INDEMNIFICATION

Section 8.1     Indemnities by the Originator.................................21

                         ARTICLE IX THE ORIGINATOR NOTE

Section 9.1     Originator Note.............................................. 22
Section 9.2     Restrictions on Transfer of Originator Note.................. 23

                             ARTICLE X MISCELLANEOUS

Section 10.1    Amendments, Etc...............................................23
Section 10.2    Notices, Etc................................................. 24
Section 10.3    No Waiver; Remedies.......................................... 24
Section 10.4    Binding Effect; Governing Law................................ 24
Section 10.5    Costs, Expenses and Taxes.................................... 24
Section 10.6    No Bankruptcy Petition........................................25
Section 10.7    Acknowledgment of Assignments................................ 25
Section 10.8    Waiver of Setoff............................................. 25
Section 10.9    Severability..................................................25
Section 10.10   Counterparts..................................................25
Section 10.11   Grant of License to Use Trademarks........................... 26
Section 10.12   Jurisdiction; Consent to Service of Process...................26
Section 10.13   Third Party Beneficiaries.................................... 26
Section 10.14   Confirmation of Intent........................................26
Section 10.15   Confidentiality of Agreement................................. 27
Section 10.16   Section and Paragraph Headings................................27

Exhibits
--------

Exhibit A       Form of Originator Note
Exhibit B       Form of Purchase Report

Schedules
---------

Schedule I      Offices Where Books, Records, Etc., Evidencing Receivables are
                Kept
Schedule II     List of Trade Names

                                       ii

<PAGE>

Schedule III    Authorized Officers of Originator
Schedule IV     Notice Addresses of Parties

                                      iii

<PAGE>

                         RECEIVABLES PURCHASE AGREEMENT

RECEIVABLES  PURCHASE  AGREEMENT,  dated as of December 12, 2000, by and between
COVENANT TRANSPORT,  INC., a Tennessee  corporation  ("Covenant Tennessee" or an
"Originator") and SOUTHERN REFRIGERATED TRANSPORT, INC., an Arkansas corporation
("Southern   Refrigerated")  or  an  "Originator"  and  together  with  Covenant
Tennessee,  the "Originators"),  and CVTI Receivables Corp, a Nevada corporation
("CVTI" or the "Purchaser"), as Purchaser.

                              W I T N E S S E T H:

         WHEREAS,  each Originator  intends to sell Receivables to the Purchaser
on the terms and subject to the conditions set forth in this Agreement;

         WHEREAS,  to obtain the necessary  funds to purchase such  Receivables,
the  Purchaser,  the Master  Servicer,  Three Pillars  Funding  Corporation  and
SunTrust Equitable Securities Corporation,  as Administrator,  have entered into
the Loan Agreement;

         NOW,  THEREFORE,  in  consideration  of the  premises and of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.1       Certain Defined Terms.

         Capitalized  terms used in this  Agreement but not defined herein shall
have the meanings  assigned to such terms in the Loan Agreement.  This Agreement
is the Receivables Purchase Agreement referred to in the Loan Agreement. As used
in this Agreement,  the following terms shall have the following  meanings (such
meanings to be equally  applicable  to both the singular and plural forms of the
terms defined):

Additional   Receivable:   Any  Receivable  which  shall  be  purchased  by,  or
contributed to, the Purchaser on any Purchase Date other than the Closing Date.

Authorized  Officers:  Those officers of each Originator  designated in Schedule
III hereto (or in such other  Schedule as may be delivered to the parties hereto
from time to time) as duly  authorized to execute and deliver this Agreement and
any instruments or documents in connection herewith on behalf of each Originator
and to take,  from time to time, all other actions on behalf of each  Originator
in connection herewith.

Available Funds:  As defined in Section 2.3(b)(i).

Business  Day:  A day on which  each  Originator  and  Purchaser  is open at its
respective  address  specified in this  Receivables  Purchase  Agreement for the
purpose of conducting its business,

<PAGE>

except that, in respect of such  performance  or rights under this  Agreement as
involve the  Administrator,  such term shall have the meaning  assigned to it by
the Loan Agreement.

Contributed Receivables:  As defined in Section 2.1(c).

Cost  Discount:  As of any Month End Date,  the  product  of (i) the Days  Sales
Outstanding  Ratio for the Due Period ending on such Month End Date,  times (ii)
the Cost Rate for such Month End Date.

Cost Rate:  For any day during a Due Period means a rate equal to (a) the sum of
(i) the LIBOR Rate for such Due Period, plus (ii) 2.00% divided by (b) 360.

Fair Market  Value  Discount:  With  respect to any  Receivable,  (i) the Unpaid
Balance of such Receivable,  times (ii) the sum of the most recently  calculated
Loss Discount, plus the most recently calculated Cost Discount.

Incipient Purchase  Termination Event: Any condition,  act or event specified in
Section 7.1 that, with the giving of notice or the lapse of time, or both, would
become a Purchase Termination Event.

Ineligible Receivable:  As defined in Section 2.4.

Initial Contributed Receivables:  As defined in Section 2.1(b).

Loan  Agreement:  The Loan Agreement,  dated as of December 12, 2000,  among the
Purchaser,  as borrower,  Covenant  Nevada,  as master  servicer,  Three Pillars
Funding Corporation,  as lender, and SunTrust Equitable Securities  Corporation,
as administrator,  as amended,  supplemented or otherwise  modified from time to
time.

Loss  Discount:  As of any  Month  End Date  means  the  ratio,  expressed  as a
percentage,  of (i) the losses recognized for all Receivables  during the period
equal to twelve  calendar  months  ending on such Month End Date divided by (ii)
the Collections on all Receivables received during such period.

Purchase  Date:  Each Business Day occurring  prior to the Purchase  Termination
Date on which Purchaser purchases Receivables from an Originator pursuant to the
terms hereof.

Purchase Price:  As defined in Section 2.2.

Purchase Report:  A report in the form of Exhibit B.

Purchase  Termination  Date:  The date on which the  Purchaser's  obligation  to
purchase Receivables shall terminate pursuant to Section 7.1.

Purchase Termination Event:  As defined in Section 7.1.

                                       2

<PAGE>

Purchased Asset:  As defined in Section 2.1(a).

Purchaser:  As defined in the Preamble.

         Section 1.2       Accounting and UCC Terms.

         All accounting terms not specifically defined herein shall be construed
in  accordance  with  GAAP;  and all terms used in Article 9 of the UCC that are
used but not specifically defined herein are used herein as defined therein.

                                   ARTICLE II

                       AMOUNTS AND TERMS OF THE PURCHASES

         Section 2.1       Purchase and Contribution of Receivables.

         (a) Each Originator  hereby sells,  absolutely  assigns,  transfers and
conveys to the Purchaser on each Purchase  Date, on the terms and subject to the
conditions specifically set forth herein, all of its respective right, title and
interest,  in,  to  and  under  (i)  all  Receivables  (other  than  Contributed
Receivables),  now  existing  or  arising  hereafter  and prior to the  Purchase
Termination  Date,  and  all  payment  and  enforcement   rights  (but  not  any
obligations)  to, in and under the related  Contracts,  (ii) all Collections and
other  monies due or to become  due with  respect  to the  foregoing,  (iii) all
Related Security for the  Receivables,  (iv) all lockboxes and accounts to which
Collections are sent, and all funds and  investments  from time to time therein,
(v) all books and records  related to the foregoing and (vi) all proceeds of the
foregoing,  including,  without limitation,  insurance proceeds relating thereto
(collectively, the "Purchased Assets").

         (b) (b) In  consideration  of the capital stock of the Purchaser issued
to Covenant  Tennessee  and Southern  Refrigerated,  each  Originator  agrees to
contribute,  and does hereby  contribute  to the  Purchaser,  and the  Purchaser
hereby accepts from such Originator,  all of such Originator's  right, title and
interest in and to (i)  Receivables,  and all of the rights described in clauses
(ii) through (vi) of Section  2.1(a) related  thereto,  starting with the oldest
such Receivable such that the aggregate  Unpaid Balance of all such  Receivables
shall be as close as possible to, but not less than,  $2,000,000  (the  "Initial
Contributed Receivables") and (ii) all other Contributed Receivables.

         (c) On each Purchase Date, all of such  Originator's  right,  title and
interest  in  and to the  newly  created  Receivables  (other  than  Receivables
indicated on a Purchase Report as having been  contributed by such Originator to
the  Purchaser  (such  Receivables,   together  with  the  Initial   Contributed
Receivables,  the  "Contributed  Receivables"))  and the other Purchased  Assets
shall be sold, absolutely assigned, transferred and conveyed to the Purchaser by
the sale,  absolute  assignment,  transfer and conveyance set forth in paragraph
(a) above without any further action by such  Originator or the  Purchaser;  all
Contributed  Receivables (other than the Initial

                                       3

<PAGE>

Contributed  Receivables) shall be contributed to the Purchaser on the date they
are created without further action by such Originator or the Purchaser.

         (d)  The  parties  to  this  Agreement  intend  that  the  transactions
contemplated  hereby  shall  be,  and shall be  treated  as, a  purchase  by the
Purchaser and a sale by such Originator of the Purchased Assets (or, in the case
of  Contributed  Receivables,  as a  contribution  by  such  Originator  to  the
Purchaser)  and not as a lending  transaction.  All sales and  contributions  of
Receivables  by each  Originator  hereunder  shall be  without  recourse  to, or
representation or warranty of any kind (express or implied) by, such Originator,
except as otherwise  specifically  provided herein. The foregoing sale, absolute
assignment,  transfer and conveyance  does not constitute and is not intended to
result in a creation or assumption  by the  Purchaser of any  obligation of such
Originator  or any  other  Person  in  connection  with  the  Purchased  Assets,
including, without limitation any obligation to any Obligor.

         Section 2.2       Purchase Price.

         The amount  payable by the  Purchaser  (the  "Purchase  Price") for the
newly created  Receivables sold on any Purchase Date to the Purchaser under this
Agreement shall equal the aggregate  Unpaid Balance of such Receivables less the
Fair Market Value Discount for such Receivables.

         Section 2.3       Payment of Purchase Price.

         (a) On the Closing Date, the Purchaser shall pay the Purchase Price for
the purchase to be made from such  Originator  with  respect to the  Receivables
existing  on or prior to the Closing  Date  (other than the Initial  Contributed
Receivables)  (i) in cash in an  amount  equal  to the  amount  received  by the
Purchaser from the Lender in connection with the first Loan made pursuant to the
Loan  Agreement  and (ii) by the issuance of an  Originator  Note in the initial
principal  amount  equal to the  remainder  of the  Purchase  Price  owing after
subtracting the amount paid in cash.

         (b) On each  Purchase  Date  falling  after the Closing  Date until the
Purchase  Termination  Date, on the terms and subject to the  conditions of this
Agreement, the Purchaser shall pay to such Originator the Purchase Price for the
Receivables  and other Purchased  Assets  purchased from such Originator on such
Purchase Date as follows:

                  (i)  First,  by paying  to such  Originator  a portion  of the
         Purchase Price due by depositing  into such account as such  Originator
         shall  specify  immediately  available  funds from monies held by or on
         behalf of the  Purchaser  solely to the extent  that such monies do not
         constitute  Collections  that are required to be segregated and held by
         the Master Servicer or distributed to the  Administrator  or the Lender
         pursuant  to the  Loan  Agreement  on the  next  Distribution  Date  or
         required to be paid to the Master Servicer as the Servicer's Fee on the
         next Distribution Date, or otherwise  necessary to pay current expenses
         of the Purchaser (in its reasonable discretion) (such available monies,
         the

                                       4

<PAGE>

         "Available  Funds"),  subject to the terms of  the Loan Agreement.  Any
         Collections  that  have  been paid to such  Originator  during  any Due
         Period shall be credited  towards the Purchaser's  obligation  pursuant
         to this clause first;  provided,  however, that, if Collections paid to
         such  Originator  exceed  the Purchase  Price for  Receivables  and the
         other  Purchased  Assets  purchased from  such  Originator for such Due
         Period,  or,  absent a cash  payment,  the  Purchaser  shall  not have
         sufficient cash to meet its payment  obligations  pursuant to  the Loan
         Agreement,  such  Originator  shall  turn  over  such  excess   to  the
         Purchaser; and

                  (ii) Second,  by increasing the principal  amount  outstanding
         under the Originator Note issued to such Originator; provided, however,
         that the aggregate of the  principal  amounts  outstanding  at any time
         under the Originator  Notes may not exceed the lesser of (a) $1,860,000
         and (b) 3% of the Facility Limit; and

                  (iii)  Third,   unless  the  Purchase   Termination  Date  has
         occurred, at the option of such Originator, by accepting a contribution
         to the Purchaser's  capital in an amount equal to the remaining  unpaid
         balance of such Purchase Price in exchange for the capital stock of the
         Purchaser issued to the Originator making such contribution.

To the extent that (x) the amount due  pursuant  to Section 2.2 with  respect to
all  Receivables  created or originated by such Originator that arose during the
corresponding  Due Period is exceeded by (y) the amount paid to such  Originator
during such Due Period pursuant to the foregoing sentences for such Receivables,
and such excess is not turned  over to the  Purchaser  pursuant to clause  first
above,  such excess shall be treated as a reduction in the  principal  amount of
the  Originator  Note,  effective  as of the last day of the related Due Period;
provided,  however,  that if at any  time the  unpaid  principal  amount  of the
Originator  Note has  been  reduced  to  zero,  such  Originator  shall  pay the
Purchaser  the  remainder  owed with respect  thereto in  immediately  available
funds.

         (c) All payments  hereunder shall be made not later than 3:00 p.m. (New
York time) on the date  specified  therefor in lawful money of the United States
of  America  in same day  funds  (i) if to an  Originator,  to the bank  account
designated  in writing by such  Originator  to the  Purchaser and (ii) if to the
Purchaser, to the Collection Account.  Whenever any payment to be made hereunder
shall be stated to be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.

         (d) Except as expressly set forth herein, neither Originator shall have
any right under this Agreement,  by implication or otherwise, to repurchase from
the  Purchaser  any  Purchased  Asset nor to rescind or otherwise  retroactively
affect any  purchase of any  Purchased  Asset after the Purchase  Date  relating
thereto.

         Section 2.4       Deemed Collections.

                                       5

<PAGE>

         If any of the representations or warranties of any Originator contained
in  subsection  (a) or (b) of  Section  4.2 was not  true  with  respect  to any
Receivable  as  of  the  applicable  Purchase  Date  (any  such  Receivable,  an
"Ineligible  Receivable"),  such Originator  shall pay to the Purchaser a deemed
Collection equal to the Unpaid Balance of such Ineligible Receivable on the next
Purchase Date or, if the Purchase  Termination  Date has  occurred,  on the next
Business Day.  Prior to the Purchase  Termination  Date, but subject to the next
sentence,  such deemed  Collection  shall be paid (a) by reducing  the  Purchase
Price payable by the Purchaser to such  Originator  on the  applicable  Purchase
Date  pursuant  to  Section  2.2  hereof,  and  (b) to the  extent  such  deemed
Collection exceeds the Purchase Price payable on such Purchase Date, by reducing
the amount of the Originator  Note on such Purchase Date (or, once the amount of
the  Originator  Note has been  reduced to zero,  by making a cash payment to an
account  designated  by  the  Purchaser).  On  or  subsequent  to  the  Purchase
Termination  Date or if such amount is necessary to enable the Purchaser to make
any  payment  required  to be made on such date under the Loan  Agreement,  such
deemed  Collection  shall  be paid by wire  transfer  of cash to the  Collection
Account.

         Section 2.5       Adjustments.

         Each  Originator  may make an  adjustment  in the  principal  amount or
finance  or other  charges  accrued or payable  with  respect to a  Receivables,
provided that such adjustment is made in accordance  with the Collection  Policy
and the Loan Agreement.  The aggregate  amount of all such  adjustments  made by
such Originator subsequent to each Purchase Date shall be due and payable to the
Purchaser on the next Purchase Date  following the date of processing in respect
thereof or, if the Purchase Termination Date has occurred,  on the next Business
Day following such date of processing. The amounts due to the Purchaser pursuant
to the preceding sentence shall be paid on the due date therefor (a) by reducing
the Purchase  Price,  if any,  payable by the Purchaser on such date, and (b) to
the extent the amount due exceeds the Purchase Price payable on such date, or if
a payment of cash is necessary so that the  Purchaser  can make the payments due
on the next Distribution  Date pursuant to the Loan Agreement,  by wire transfer
of cash to the Collection Account.

         Section 2.6       Finance Charges.

         Finance charges, late charge revenue,  other fees and charges and other
similar items,  whenever  created (whether prior to or after the occurrence of a
Purchase  Termination  Event)  and  whenever  received  (prior  to or after  the
occurrence of a Purchase  Termination Event),  accrued in respect of Receivables
shall be the property of the Purchaser and all Collections  with respect thereto
shall be allocated and treated as Collections in respect of Receivables.

         Section 2.7       Allocations of Collections.

         For purposes of determining  the Unpaid  Balances of Receivables at any
time, the Purchaser and each Originator  agrees that such Originator shall apply
all Collections on a Receivable by Receivable basis.

                                       6

<PAGE>

                                   ARTICLE III

                             CONDITIONS TO PURCHASES

         Section 3.1       Conditions Precedent to Purchaser's Initial Purchase.

         The  obligation of the Purchaser to purchase  Receivables  hereunder on
the occasion of the Closing Date is subject to the conditions precedent (any one
or more of which can be waived by the Purchaser) that (a) the Loan Agreement and
the  other  Transaction  Documents  shall be in full  force and  effect  and all
conditions  to the  initial  advance  under the Loan  Agreement  shall have been
satisfied  or waived,  (b) the  Purchaser  shall have  received on or before the
Closing Date the following,  each (unless otherwise  indicated) dated the day of
such sale and in form and  substance  satisfactory  to the Purchaser and (c) the
conditions set forth in clauses (iii), (iv) and (v) shall have been satisfied:

                  (i) a  copy  of  duly  adopted  resolutions  of the  Board  of
         Directors of each  Originator  authorizing  or ratifying the execution,
         delivery and performance, respectively, of the Transaction Documents to
         which it is a party,  certified by the Secretary or Assistant Secretary
         of such Originator;

                  (ii) a  duly  executed  certificate  of  the  Secretary  or an
         Assistant  Secretary of each  Originator  certifying the names and true
         signatures  of the  Authorized  Officers  authorized  on behalf of such
         Originator to sign the Transaction Documents to which it is a party;

                  (iii)  the   Administrator   shall  be  satisfied   with  each
         Originator's systems,  computer programs,  related materials,  computer
         tapes,  disks and cassettes,  procedures and record keeping relating to
         and required for the collection of  Receivables  by the Purchaser,  and
         the Administrator shall be reasonably  satisfied that the procedures of
         each  Originator  for the  preparation,  storage and  retrieval of such
         materials are sufficient to permit the administration and collection of
         the  Receivables  by a  servicer  without  the  participation  of  such
         Originator or the Purchaser;

                  (iv) each Originator shall have filed and recorded, at its own
         expense,  UCC-1  financing  statements  with  respect to the  Purchased
         Assets in such manner and in such  jurisdictions  as are  necessary  or
         desirable to perfect the Purchaser's  ownership  interest thereof under
         the UCC and  delivered  a  file-stamped  copy of such  UCC-1  financing
         statements  or other  evidence of such filings to the Purchaser and the
         Administrator  on or prior to the date  hereof;  and all  other  action
         necessary  or  desirable,  in  the  opinion  of  the  Purchaser  or the
         Administrator,  to establish the Purchaser's ownership of the Purchased
         Assets shall have been duly taken;

                  (v) the  Purchaser and the  Administrator  shall have received
         photocopies  of reports of UCC searches in the central filing office of
         each Originator and any necessary

                                       7

<PAGE>

         local offices of each Originator with respect to  the Purchased  Assets
         reflecting  the  absence of Liens  thereon,  except  the Liens  created
         hereunder,   pursuant   to  the  Loan   Agreement   in  favor  of   the
         Administrator  and  except  for  Liens  as to which the  Purchaser  has
         received executed  UCC termination statements; and

                  (vi) the Purchaser and the  Administrator  shall have received
         such other documents, certificates and opinions as the Purchaser or the
         Administrator may request.

         Section 3.2       Conditions Precedent to All Purchases.

         The  obligation  of the  Purchaser to pay for each  Receivable  on each
Purchase  Date  (including  the  Closing  Date)  shall be subject to the further
conditions  precedent (any one of which can be waived by the Purchaser)  that on
such Purchase Date:

         (a) the following  statements shall be true (and the acceptance by each
Originator of the Purchase Price for any  Receivables on any Purchase Date shall
constitute  a  representation  and  warranty  by  such  Originator  that on such
Purchase Date such statements are true):

                  (i) the  representations  and  warranties  of each  Originator
         contained  in  Sections  4.1 and 4.2 shall be correct on and as of such
         Purchase Date as though made on and as of such date; and

                  (ii) no  Purchase  Termination  Event  or  Incipient  Purchase
         Termination Event shall have occurred and be continuing;

         (b) each  Originator  shall have clearly and  unambiguously  marked its
accounting records evidencing the Receivables being purchased  hereunder on such
Purchase Date with a legend stating that such  Receivables have been sold to the
Purchaser in accordance with this Agreement;

         (c) no material  change shall have occurred after the Closing Date with
respect to each Originator's  systems,  computer  programs,  related  materials,
computer tapes,  disks and cassettes,  procedures and record keeping relating to
and required for the  collection of the  Receivables  by such  Originator  which
makes them not  sufficient  and  satisfactory  in order to permit the  purchase,
administration  and collection of the Receivables by the Purchaser in accordance
with the terms and intent of this Agreement; and

         (d) the Purchaser shall have received such other approvals, opinions or
documents as the Purchaser may reasonably request.

         Section 3.3       Conditions Precedent to Originator's Initial Sale.

         The  obligation of each  Originator to make its initial sale is subject
to the  conditions  precedent  that such  Originator  shall have  received on or
before the date of such sale the

                                       8

<PAGE>

following,  each (unless otherwise  indicated) dated the day of such sale and in
form and substance satisfactory to such Originator:

         (a) a copy of duly adopted resolutions of the Board of Directors of the
Purchaser  authorizing  this  Agreement,  the  documents  to be delivered by the
Purchaser hereunder and the transactions  contemplated hereby,  certified by the
Secretary or Assistant Secretary of the Purchaser; and

         (b) a duly executed certificate of the Secretary or Assistant Secretary
of the  Purchaser  certifying  the names  and true  signatures  of the  officers
authorized on its behalf to sign this  Agreement  and the other  documents to be
delivered by it hereunder.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         Section 4.1       Representations and Warranties of the Parties.

         The Purchaser and each  Originator  each  represents and warrants as to
itself as follows:

         (a) Each  Originator and the Purchaser,  has been duly organized and is
validly  existing  and in good  standing  under  the  laws of the  state  of its
organization,  with full corporate power and authority to own its properties and
to  conduct  its  business  as  presently  conducted.  Each  Originator  and the
Purchaser is duly  qualified to do business and is in good standing as a foreign
entity (or is exempt from such  requirements),  and has obtained  all  necessary
licenses  and  approvals,  in the  jurisdiction  where  its  principal  place of
business and chief executive  office are located and in each other  jurisdiction
in which failure to so qualify or to obtain such  licenses and  approvals  would
have a  material  adverse  effect on the  conduct  of such  Originator's  or the
Purchaser's  business or on the ability of such Originator or the Purchaser,  as
the case may be, to perform its obligations under this Agreement.

         (b) The sale and  contribution  of Receivables  and the other Purchased
Assets pursuant to this Agreement, the performance of its obligations under this
Agreement and the consummation of the transactions herein contemplated have been
duly authorized by all requisite  corporate action and will not conflict with or
result in a breach of any of the terms or provisions of, or constitute a default
under,  or  result  in the  creation  or  imposition  of  any  lien,  charge  or
encumbrance  (other than  pursuant to this  Agreement  or the other  Transaction
Documents)  upon any of its  property  or assets,  pursuant  to the terms of any
indenture,  mortgage,  deed of  trust,  loan  agreement  or other  agreement  or
instrument to which it is a party or by which it is bound or to which any of its
property or assets is subject,  nor will such action  result in any violation of
the provisions of its  organizational  documents or of any statute or any order,
rule or regulation of any federal or state court or governmental  agency or body
having jurisdiction over it or any of its properties;  and no consent, approval,
authorization, order, registration or qualification of or with any such court or
any such  regulatory  authority  or other  such  governmental  agency or body is

                                       9

<PAGE>

required to be obtained by or with respect to each  Originator  or the Purchaser
for the sale or contribution  of Receivables  and the other Purchased  Assets or
the consummation of the transactions contemplated by this Agreement.

         (c) This  Agreement  has  been  duly  executed  and  delivered  by each
Originator  and the  Purchaser  and  constitutes  a valid  and  legally  binding
obligation  of such  Originator  and the  Purchaser,  respectively,  enforceable
against such Originator and the Purchaser,  respectively, in accordance with its
terms, except that the enforceability  thereof may be subject to (a) the effects
of  any  applicable  bankruptcy,   insolvency,   reorganization,   receivership,
conservatorship or other laws,  regulations and administrative  orders affecting
the  rights  of  creditors  generally  and  (b)  general  principles  of  equity
(regardless  of whether such  enforceability  is  considered  in a proceeding in
equity or law).

         (d)  There is no  pending  or,  to its  knowledge  after  due  inquiry,
threatened action or proceeding  affecting it or any of its Subsidiaries  before
any court, governmental agency or arbitrator, that may reasonably be expected to
materially  and  adversely  affect  its  condition   (financial  or  otherwise),
operations,  properties or prospects,  or its ability to perform its obligations
under this  Agreement,  or that  purports  to affect the  legality,  validity or
enforceability of this Agreement.  None of the transactions  contemplated hereby
is or is threatened to be restrained or enjoined (temporarily,  preliminarily or
permanently).

         Section 4.2       Additional Representations of the Originators.

         Each Originator additionally represents and warrants as follows:

         (a) Eligible  Receivable.  Unless otherwise specified in the applicable
Purchase Report,  all Receivables sold,  contributed and absolutely  assigned to
the Purchaser  hereunder on the Closing Date are Eligible  Receivables as of the
Closing Date and all Receivables  sold and absolutely  assigned to the Purchaser
hereunder on any Purchase  Date  subsequent to the Closing Date will be Eligible
Receivables as of such Purchase Date.

         (b) Sale of  Receivables.  Each  Originator  is,  as of the time of the
transfer to the Purchaser of each  Receivable  being sold or  contributed to the
Purchaser  on the Closing  Date,  and will be, as of the time of the transfer to
the Purchaser of each  Receivable  sold or  contributed  to the Purchaser on any
subsequent Purchase Date, the sole owner of such Receivable, free from any lien,
security interest,  encumbrance or other right, title or interest of any Person.
Each  Receivable  existing  on the  Closing  Date has  been,  and in the case of
Additional   Receivables   sold  or  contributed   hereafter,   such  Additional
Receivables will be, on the applicable  Purchase Date, conveyed to the Purchaser
free and  clear of any  Lien.  There is no  effective  financing  statement  (or
similar   statement  or  instrument  of  registration   under  the  law  of  any
jurisdiction) now on file or registered in any public office filed by or against
any  Originator or any Subsidiary of any Originator or purporting to be filed on
behalf of any  Originator  or any  Subsidiary  of any  Originator  covering  any
interest of any kind in any Purchased Assets which are being, or which hereafter
will be, sold or contributed to the  Purchaser,  and no Originator  will execute
nor will

                                       10

<PAGE>

there be on file in any public  office any  effective  financing  statement  (or
similar  statement  or  instrument  of  registration   under  the  laws  of  any
jurisdiction) or statements  relating to such Purchased  Assets,  except in each
case any financing  statements  filed in respect of and covering the purchase of
the  Purchased  Assets  by the  Purchaser  pursuant  to this  Agreement  and the
security  interest  created  pursuant  to the Loan  Agreement.  All  filings and
recordings  (including pursuant to the UCC) required to perfect the title of the
Purchaser  in each  Purchased  Asset  sold or  contributed  hereunder  have been
accomplished and are in full force and effect and each Originator  shall, at its
expense,  perform all acts and execute all  documents  necessary  or  reasonably
requested  by the  Purchaser or the  Administrator  at any time and from time to
time to  evidence,  perfect,  maintain  and  enforce  the title or the  security
interest of the Purchaser or the  Administrator  in the Purchased Assets and the
priority thereof.

         (c) Accuracy of Information.  All information  heretofore furnished by,
or on behalf of,  each  Originator  to the  Purchaser  or the  Administrator  in
connection  with  any  Transaction  Document,  or any  transaction  contemplated
thereby, is true and accurate in every material respect (without omission of any
information   necessary  to  prevent  such  information  from  being  materially
misleading).

         (d) Location of Office and Records. The principal place of business and
chief executive office of Covenant Tennessee, and the office where all Documents
are kept, is located at 400 Birmingham  Highway,  Chattanooga,  Tennessee 37419.
The  principal  place  of  business  and  chief  executive  office  of  Southern
Refrigerated, and the office where all Documents are kept, is located at Highway
51 North, Ashdown, Arkansas 71822.

         (e) Trade  Names.  Set forth on  Schedule  II hereto is a complete  and
accurate list of the trade names of each Originator and its Subsidiaries for the
six-year period preceding the date of this Agreement.

         (f) Financial  Statements.  Each Originator has heretofore furnished to
the Purchaser and the Administrator copies of Covenant Nevada's consolidated and
consolidating  balance  sheet and  statement  of income and changes in financial
condition  as of and for the Fiscal  Years ended  December 31, 1998 and December
31, 1999,  audited by and  accompanied by the opinion of  PricewaterhouseCoopers
LLP,  independent  public  accountants.  Except as  disclosed  in writing to the
Administrator  prior to the date of this  Agreement,  such financial  statements
present fairly in all material  respects the financial  condition and results of
operations of such Originator and its consolidated subsidiaries as of such dates
and for such periods;  such balance  sheets and the notes  thereto  disclose all
liabilities,  direct or  contingent,  of such  Originator  and its  consolidated
subsidiaries  as of the dates thereof  required to be disclosed by GAAP and such
financial  statements  were  prepared  in  accordance  with  GAAP  applied  on a
consistent  basis.  Since September 30, 2000, there has been no material adverse
change in the condition (financial or otherwise), operations, properties, assets
or  prospects  of  any  Originator,  except  as  disclosed  in  writing  to  the
Administrator on or prior to the date hereof.

                                       11

<PAGE>

         (g) No Consent.  No action,  consent or approval  of,  registration  or
filing  with or any other  action by any  Governmental  Authority  is or will be
required  in  connection  with  execution,  delivery  and  performance  of  this
Agreement  and  the  consummation  of  the  transactions  contemplated  by  this
Agreement,  except such as have been made or obtained  and are in full force and
effect.

         (h)  Administrator  Can Perform.  Upon the delivery by an Originator to
the Administrator of the computer tapes, disks,  cassettes and related materials
(in a generally  acceptable  readable format) relating to the  administration of
the  Receivables  pursuant to Section  6.2,  the  Administrator  shall have been
furnished with all materials and data necessary to permit  immediate  collection
of  the  Receivables  by  the  Administrator,  or any  party  designated  by the
Administrator, without the participation of such Originator in such collection.

         (i) Security Interest of Purchaser.  This Agreement constitutes a valid
sale,  transfer and absolute assignment to the Purchaser of all right, title and
interest in the Purchased  Assets.  Upon the filing of the financing  statements
described  in Section  3.1(c)(iv),  the  Purchaser  shall have a first  priority
perfected  ownership  interest  in the  Purchased  Assets  and  the  Contributed
Receivables  (except  to the  extent  such  first  priority  perfected  security
interest  was  assigned to the  Administrator  pursuant to the Loan  Agreement).
Except as otherwise provided in this Agreement, no Originator nor any Subsidiary
thereof  (other than  Purchaser)  nor any Person  claiming  through or under any
Originator or any Subsidiary  thereof (other than Purchaser) has any claim to or
interest in any Collection Account.

         (j) No Material  Adverse Change.  Since  September 30, 2000,  there has
been no material adverse change in the collectibility of the Receivables or each
Originator's ability to perform its obligations under any Transaction Document.

         (k) Solvency.  Both before and after giving effect to the  transactions
contemplated herein, each Originator is Solvent.

                                    ARTICLE V

                                GENERAL COVENANTS

         Section 5.1       Affirmative Covenants of the Originator.

         So long as the  Purchaser  shall  have any  interest  in any  Purchased
Asset,  each  Originator  shall,  unless the  Purchaser  otherwise  consents  in
writing:

         (a)  Financial  Statements,  Reports,  Etc.  Deliver  or  cause  to  be
delivered to the Purchaser and the Administrator:

                  (i) as soon as available and in any event within 95 days after
         the end of each  Fiscal  Year of Covenant  Nevada,  a balance  sheet of
         Covenant Nevada as of the end of such year and statements of income and
         retained  earnings and of source and  application

                                       12

<PAGE>

         of funds of Covenant  Nevada for the period  commencing  at  the end of
         the previous Fiscal Year and ending with the end of such year, in  each
         case setting forth  comparative  figures for  the previous Fiscal Year,
         certified without material  qualification in  a manner  satisfactory to
         the Purchaser and the Administrator  by  PricewaterhouseCoopers  LLP or
         other nationally recognized, independent public  accountants acceptable
         to the  Administrator  (it  being  understood that delivery of Covenant
         Nevada's Form 10-K for such Fiscal Year filed with  the  Securities and
         Exchange Commission will satisfy  the foregoing requirement),  together
         with a certificate of such  accounting firm stating that in  the course
         of the regular audit of the business of Covenant  Nevada,  which  audit
         was  conducted  in  accordance  with GAAP,  such  accounting  firm  has
         obtained no knowledge that  a Purchase  Termination  Event or Incipient
         Purchase  Termination Event has  occurred and is continuing,  or if, in
         the opinion of such accounting firm, such  a Purchase Termination Event
         or  Incipient   Purchase   Termination   Event   has  occurred  and  is
         continuing, a statement as to the nature thereof;

                  (ii) as soon as  available  and in any  event  within  45 days
         after the end of each  fiscal  quarter,  quarterly  balance  sheets and
         quarterly  statements of source and  application of funds and quarterly
         statements  of  income  and  retained   earnings  of  Covenant  Nevada,
         certified by the chief financial or executive  officer or controller of
         Covenant  Nevada  (which  certification  shall state that such  balance
         sheets and  statements  fairly  present  the  financial  condition  and
         results of  operations  for such  fiscal  quarter,  subject to year-end
         audit  adjustments)  (it being  understood  that  delivery  of Covenant
         Nevada's Form 10-Q filed with the  Securities  and Exchange  Commission
         for such  fiscal  quarter  will  satisfy  the  foregoing  requirement),
         delivery of which balance sheets and statements shall be accompanied by
         a  certificate  of  such  chief  financial  or  executive   officer  or
         controller  to  the  effect  that  no  Purchase  Termination  Event  or
         Incipient  Purchase  Termination  Event has occurred and is continuing;
         and

                  (iii) as soon as possible and in any event within one Business
         Day  after  any  officer  of  Covenant  Nevada  becomes  aware  of  the
         occurrence of a Servicer Event of Default, a Purchase Termination Event
         or  Incipient  Purchase  Termination  Event or an event that,  with the
         giving of notice or time elapse,  or both,  would constitute a Servicer
         Event of Default,  an officer's  certificate of Covenant Nevada setting
         forth  details of such event and the  action  that the Master  Servicer
         proposes to take with respect thereto.

         (b) Compliance with Laws, Etc. Comply, and cause all of the Receivables
to comply, in all material respects with all applicable laws, rules, regulations
and orders applicable to each Originator and the Receivables, including, without
limitation,   rules  and  regulations  relating  to  truth  in  lending,  retail
installment  sales,  fair credit billing,  fair credit  reporting,  equal credit
opportunity,  fair debt collection  practices,  privacy  environmental  matters,
labor,  taxation  and ERISA,  where in any such case  failure to so comply could
reasonably  be  expected  to have an adverse  impact on the  Receivables  or the
amount of  Collections  thereunder,  or on the  ability  of such  Originator  to
perform its obligations  hereunder or under the other  Transaction  Documents to
which it is a party.

                                       13

<PAGE>

         (c) Preservation of Corporate  Existence.  Preserve and maintain in all
material  respects  its  corporate  existence,  corporate  rights  (charter  and
statutory) and franchises.

         (d) Visitation Rights. Permit the Purchaser, the Administrator or their
duly   authorized   representatives,   attorneys  or  auditors  to  inspect  the
Receivables,  the  Documents  and the related  accounts,  records  and  computer
systems,  software and programs used or  maintained  by each  Originator at such
times  as the  Purchaser  or the  Administrator  may  reasonably  request.  Upon
instructions  from the Purchaser or the  Administrator,  each  Originator  shall
release any Document to the Purchaser or the Administrator, as the case may be.

         (e) Keeping of Records and Books of Account. Maintain and implement, or
cause to be maintained or implemented,  administrative and operating  procedures
necessary or advisable for the administration of all Receivables, and, until the
delivery to the  Purchaser or its designee,  keep and  maintain,  or cause to be
kept and  maintained,  all  documents,  books,  records  and  other  information
necessary or advisable for the administration of all Receivables.

         (f)  Performance  and  Compliance  with  Receivables.  Duly fulfill all
obligations  on its  part  to be  fulfilled  under  or in  connection  with  the
Receivables and the related Contracts, including complying with all requirements
of law applicable  thereto,  and will do nothing to impair the right,  title and
interest of the Purchaser in the Purchased Assets;  provided,  however,  that an
adjustment or  compromise  of a Receivable  pursuant to Section 2.5 shall not be
deemed to be a violation of this paragraph.

         (g) Location of Records.  Keep the chief  executive  office of Covenant
Tennessee located at 400 Birmingham  Highway,  Chattanooga,  Tennessee 37419 and
keep originals or duplicates of any Documents that it maintains at, and only at,
said  offices  and keep the  chief  executive  office of  Southern  Refrigerated
located at Highway  51 North,  Ashdown,  Arkansas  71822 and keep  originals  or
duplicates of any Documents that it maintains at, and only at, said offices.  No
Originator  will move its chief  executive  office or permit any  Documents  and
books  evidencing  the  purchased  Receivables  that it may maintain to be moved
unless  (i)  such  Originator   shall  have  given  to  the  Purchaser  and  the
Administrator  not less than 45 days'  prior  written  notice  thereof,  clearly
describing  the new  location,  and (ii) such  Originator  shall have taken such
action,  satisfactory  to the Purchaser and the  Administrator,  to maintain the
title or ownership of the Purchaser and any security  interest of, or any filing
in respect of title of, the  Purchaser  or the  Administrator  in the  Purchased
Assets at all times fully perfected and in full force and effect.  No Originator
may, in any event, move the location where it conducts any administration of the
Receivables from 400 Birmingham Highway, Chattanooga, Tennessee 37419 or Highway
51 North, Ashdown, Arkansas 71822, as the case may be, without the prior written
consent of the Administrator.

         (h)  Collection  Policy.  Comply  in all  material  respects  with  the
Collection Policy.

         (i) Insurance.  Keep its insurable properties adequately insured at all
times by  financially  sound  and  responsible  insurers;  maintain  such  other
insurance, to such extent and

                                       14

<PAGE>

against such risks,  including fire and other risks insured  against by extended
coverage, as is customary with companies of the same or similar size in the same
or  similar  businesses;  maintain  in full force and  effect  public  liability
insurance  against  claims  for  personal  injury  or death or  property  damage
occurring upon, in, about or in connection with the use of any properties owned,
occupied  or  controlled  by it or any  Subsidiary,  as the case may be, in such
amounts and with such deductibles as are customary with companies of the same or
similar size in the same or similar  businesses and in the same geographic area;
and maintain such other insurance as may be required by law.

         (j)  Obligations  and Taxes.  Pay and  discharge  promptly when due all
material  obligations incurred or arising, all sales tax and all material taxes,
assessments  and  governmental  charges  or levies  imposed  upon it or upon its
income or profits or in respect of its property  before the same shall become in
default, as well as all material lawful claims for labor, materials and supplies
or  otherwise  which,  if  unpaid,  might  become  a Lien or  charge  upon  such
properties or any part thereof;  provided,  however, that it and each Subsidiary
shall not be required to pay and discharge or to cause to be paid and discharged
any such  tax,  assessment,  charge,  levy or claim so long as the  validity  or
amount thereof shall be contested in good faith by appropriate  proceedings  and
for which each  Originator  shall have set aside on its books adequate  reserves
with respect thereto in accordance with GAAP.

         (k)  Obligations  with  Respect  to  Receivables.  Use  all  reasonable
measures to assist the  Purchaser in  preventing  or  minimizing  any loss being
realized on a Receivable  in which the  Purchaser  owns an interest and take all
reasonable  steps to assist the Purchaser in recovering  the full amount of such
loss.  Each  Originator  shall,  at its own expense,  take any such steps as are
necessary to maintain  perfection of the security interest,  if any,  associated
with a Receivable in the related goods and merchandise subject thereto.

         (l)  Furnishing   Copies,   Etc.  Furnish  to  the  Purchaser  and  the
Administrator  (i)  upon  the  Purchaser's  or the  Administrator's  request,  a
certificate  of the chief  financial  or  executive  officer of such  Originator
certifying,  as of the date  thereof,  that no  Purchase  Termination  Event has
occurred and is  continuing;  (ii) promptly  after  obtaining  knowledge  that a
Receivable was, at the time of the Purchaser's purchase thereof, not an Eligible
Receivable  (unless  specified  as such  pursuant  to  Section  4.2(a)),  notice
thereof; and (iii) promptly following request therefor,  such other information,
documents,  records  or reports  with  respect  to the  Purchased  Assets or the
conditions or operations,  financial or otherwise,  of such  Originator,  as the
Purchaser or the Administrator may from time to time reasonably request.

         (m) Obligation to Record and Report. To the fullest extent permitted by
GAAP and by applicable law, record each purchase of Purchased  Assets  hereunder
as a sale on its books and records,  reflect each such purchase in its financial
statements  as a sale and  recognize  gain or loss,  as the case may be, on each
such purchase.

         (n)  Continuing  Compliance  with the Uniform  Commercial  Code. At its
expense  perform all acts and  execute all  documents  necessary  or  reasonably
requested  by the  Purchaser  or

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<PAGE>

the  Administrator  at any time to evidence,  perfect,  maintain and enforce the
title or the  security  interest of the  Purchaser or the  Administrator  in the
Purchased  Assets and the priority  thereof.  Each  Originator  will execute and
deliver  financing  statements  relating to or  covering  the  Purchased  Assets
(reasonably  satisfactory  in form and substance to the  Purchaser)  and,  where
permitted by law, such Originator will authorize the  Administrator  to file one
or more financing  statements signed only by the Administrator.  Each Originator
shall cause its computer records, master data processing records and other books
and records relating to the Receivables to be marked, with a legend stating that
the  Receivables  have been sold,  absolutely  assigned and  transferred  to the
Purchaser.  Each Originator  shall deliver the Receivable  Files related to each
Receivable  to  the   Administrator   upon  request  by  the  Purchaser  or  the
Administrator;   provided  that  while  any  Document  is  in  custody  of  such
Originator, such Originator will hold the same for the benefit of the Purchaser.
No  Originator  will  execute  any  effective  financing  statement  (or similar
statement or instrument of registration  under the laws of any  jurisdiction) or
statements  relating to any Purchased  Assets,  except any financing  statements
filed or to be filed in respect of and covering  the  purchase of the  Purchased
Assets by the Purchaser  pursuant to this  Agreement  and the security  interest
created in favor of the Administrator pursuant to the Loan Agreement.

         (o) Proceeds of Purchased Receivables. In the event that any Originator
receives any amounts in respect of Receivables,  deposit or otherwise credit, or
cause to be deposited or otherwise credited, such amounts in accordance with the
procedures set forth in Section 11.2 of the Loan Agreement.

         (p) Further  Action  Evidencing  Purchases.  Provide such  cooperation,
information  and  assistance,  and prepare and supply the Purchaser,  the Master
Servicer and the  Administrator  with such data regarding the performance by the
Obligors of their  obligations under the Receivables and the performance by such
Originator  of  its  obligations  under  the  Transaction  Documents,  as may be
reasonably requested by the Purchaser, the Master Servicer and the Administrator
from time to time.

         (q) Trade Names. Promptly notify the Purchaser and the Administrator of
any new trade names of such Originator.

         Section 5.2       Negative Covenants of the Originator.

         So long as the Purchaser shall have any interest in any Receivables, no
Originator shall, unless the Purchaser otherwise consents in writing:

         (a) Liens. Sell, assign (by operation of law or otherwise) or otherwise
dispose  of, or create or suffer to exist any Lien upon or with  respect to, any
Purchased  Asset,  or assign any right to receive  proceeds  in respect  thereof
except as created or imposed by this Agreement or the Loan Agreement.

                                       16

<PAGE>

         (b) Change in Business.  Make any material  change in the nature of its
business as carried on at the date  hereof or engage in or conduct any  business
or activity that is materially inconsistent with such business.

         (c) Extension or Amendment of Purchased  Receivables.  Extend, amend or
otherwise modify,  or attempt or purport to extend,  amend or, otherwise modify,
the terms of any Receivables other than in accordance with the Collection Policy
and the terms of the Loan Agreement.

         (d) Change in Payment  Instructions to Obligors.  Instruct the Obligors
on any Receivables to make any payments with respect to such  Receivables to any
place other than the places specified in Section 6.1.

         (e) Sale of Receivables.  Sell  Receivables or transfer any interest in
the Receivables to any Person other than the Purchaser.

         (f) Cause a Default. Take any action which would cause the Purchaser to
be in default under the Loan  Agreement,  a copy of which has been  furnished to
such  Originator,  unless such action  shall have been  approved and the default
waived by prior written approval of the Administrator and the Purchaser.

         (g)  Mergers;  Sales of Assets.  Sell all or  substantially  all of its
property  and  assets  to,  or  consolidate   with  or  merge  into,  any  other
corporation, if the effect of such sale or merger would cause a "default" or "an
event of default" under this Agreement or the Loan Agreement.

         (h) No  Amendments.  (i) Amend,  supplement  or  otherwise  modify this
Agreement or (ii) otherwise take or fail to take any action under this Agreement
that  could  adversely  affect  the  Purchaser's   interests  hereunder  or  the
Administrator's interests under the Loan Agreement.

         (i)  Accounting  Changes.  Make any material  change (i) in  accounting
treatment and reporting  practices except as permitted or required by GAAP, (ii)
in tax reporting  treatment except as permitted or required by law, (iii) in the
calculation or presentation of financial and other information  contained in any
reports delivered  hereunder,  or (iv) in any financial policy of any Originator
if such change could have an adverse effect on the Receivables or the collection
thereof.

         (j)  Maintenance  of  Separate  Existence.  (i)  Fail to do all  things
necessary  to  maintain  its  corporate  existence  separate  and apart from the
Purchaser  including,  without  limitation,  holding  regular  meetings  of  its
shareholders and Board of Directors (or executing  unanimous written consents in
lieu thereof) and maintaining  appropriate books and records  (including current
minute books);  (ii) except as required by applicable law, suffer any limitation
on the  authority of its own  directors  and officers or partners to conduct its
business and affairs in accordance with their independent business judgment,  or
authorize or suffer any Person other than its own officers and  directors to act
on its behalf with respect to matters (other than matters customarily  delegated
to others under powers of attorney) for which a  corporation's  own officers

                                       17

<PAGE>

and directors would  customarily be  responsible;  (iii) fail to (A) maintain or
cause to be maintained by an agent of such  Originator  under such  Originator's
control  physical  possession  of  all  its  books  and  records,  (B)  maintain
capitalization  adequate  for the conduct of its  business,  (C) account for and
manage  all of its  liabilities  separately  from  those  of any  other  Person,
including,  without  limitation,   payment  by  it  of  all  payroll  and  other
administrative  expenses  and  taxes  from its own  assets,  (D)  segregate  and
identify  separately  all of its  assets  from  those of any other  Person,  (E)
maintain  employees,  or pay its  employees,  officers  and agents for  services
performed  for such  Originator  or (F)  allocate  shared  overhead  fairly  and
reasonably;  or (iv)  commingle its funds with those of the Purchaser or use the
Purchaser's funds for other than the uses permitted hereunder.

                                   ARTICLE VI

             ADMINISTRATION AND COLLECTION OF PURCHASED RECEIVABLES

         Section 6.1       Collection Procedures.

         (a) On or before the Closing Date,  each  Originator  and the Purchaser
shall have  established  and shall maintain  thereafter the system of collecting
and processing Collections of Receivables in accordance with Section 11.2 of the
Loan Agreement.

         (b)  Any  funds  held by any  Originator  representing  Collections  of
Receivables  shall,  until deposited in the Collection Account or applied to the
Purchase  Price of  Receivables in accordance  with this  Agreement,  be held in
trust by such Originator for and as the Administrator's property.

         (c) Each  Originator  hereby  irrevocably  waives  any right to set off
against, or otherwise deduct from, any Collections.

         (d) Each Originator  acknowledges  that such  Originator  shall have no
right,   title  or  interest  in  and  to  the  Collection  Account  and  hereby
subordinates its rights in each LockBox to the Administrator.

         Section 6.2       Purchase Information.

         (a) On each Reporting Date,  each Originator  shall prepare and deliver
to the Purchaser and the  Administrator  a duly completed  Purchase  Report with
respect to Receivables  created during the immediately  preceding Due Period and
with respect to activity in such Receivables.

         (b) The Purchaser and each  Originator  agree that, upon request of the
Purchaser,  each  Originator  shall provide the Purchaser  with all  information
required to prepare periodic reports that may be required to be furnished to the
Administrator  pursuant to the Loan  Agreement,  as promptly as possible on each
Business Day on the basis of the sales and collections  figures  transmitted the
previous day to such Originator's central computer processing center.

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<PAGE>

         (c) Upon discovery of any error in any report furnished to Purchaser or
the Administrator,  the  Administrator,  the Purchaser and such Originator shall
confer  and shall  agree upon any  necessary  adjustments  to  correct  any such
errors.  Until correction of such error, all Collections relating to such errors
shall be retained in the Collection Account, to the extent such Collections have
been deposited in the Collection  Account  pursuant to the terms hereof.  Unless
the   Administrator   has  received  actual  notice  of  any  discrepancy,   the
Administrator  and the  Purchaser  may  rely on such  reports  for all  purposes
hereunder.

         Section 6.3       Compliance Statements.

         Each  Originator  shall  deliver,  or  cause  to be  delivered,  to the
Purchaser and the Administrator, on or before the date that is 95 days after the
end of each Fiscal Year, an officer's  certificate signed by the Chief Executive
Officer, the President or any Vice President of such Originator, dated as of the
last  day of the  preceding  Fiscal  Year,  stating  that  (a) a  review  of the
activities of such Originator during the preceding Fiscal Year period and of its
performance under this Agreement has been made under such officer's  supervision
and (b) to the best of such  officer's  knowledge,  based on such  review,  such
Originator has fulfilled its  obligations  under this Agreement  throughout such
Fiscal Year and has complied in all respects with the Collection  Policy, or, if
there has been a default in the fulfillment of any such  obligation,  specifying
each such default known to such officer and the nature and status thereof.

         Section 6.4       Allocations and Applications of Collections.

         Collections  shall be allocated and distributed by the Administrator in
accordance with the provisions of the Loan Agreement and Section 2.7.

         Section 6.5       Termination.

         Each  Originator's  obligation to sell Receivables under this Agreement
shall  terminate on the  Purchase  Termination  Date;  provided,  however,  that
finance  charges,  late  charges  and other fees,  charges and similar  items in
respect of the Receivables sold or contributed prior to the Purchase Termination
Date shall  continue to be the  property  of the  Purchaser  after the  Purchase
Termination Date notwithstanding that such amounts may arise or accrue after the
Purchase Termination Date.

         Section 6.6       Responsibilities of the Originator.

         Notwithstanding  anything  herein to the contrary  (a) each  Originator
shall perform all its  obligations  under the  Collection  Policy related to the
Receivables to the same extent as if such  Receivables had not been  transferred
to the  Purchaser  hereunder,  (b) the  exercise by the  Purchaser of any of its
rights  hereunder  shall not relieve any Originator  from its  obligations  with
respect to the  Receivables  and (c) except as  provided by law,  the  Purchaser
shall not have any  obligation or liability  with respect to any  Receivables or
the underlying Contracts, nor shall the Purchaser be obligated to perform any of
the obligations or duties of any Originator thereunder.

                                       19

<PAGE>

         Each Originator hereby agrees to act as subservicer with respect to all
Receivables  conveyed by such  Originator to the Purchaser  hereunder  and, with
respect thereto shall be a "subservicer" under the Loan Agreement.  Accordingly,
in connection with such Receivables conveyed by such Originator to the Purchaser
hereunder,  each  Originator  hereby  assumes  all of the  responsibilities  and
obligations  under the Loan Agreement of the Master Servicer with respect to the
servicing of all Receivables conveyed by it to the Purchaser hereunder.

                                   ARTICLE VII

                           PURCHASE TERMINATION EVENTS

         Section 7.1       Purchase Termination Events.

         If any of the following events (each, a "Purchase  Termination  Event")
shall occur and be continuing:

         (a) any  representation or warranty made or deemed made by or on behalf
of any  Originator  under or in connection  with this  Agreement or any Purchase
Report or other  information  or report  delivered  by any  Originator  pursuant
hereto shall prove to have been false or incorrect in any material  respect when
made or deemed made; provided, however, that the falsity or incorrectness of any
representation  made pursuant to Section  4.2(a) with respect to any  Receivable
shall not constitute a Purchase Termination Event so long as such Originator has
complied with its obligations in respect of such Receivable  pursuant to Section
2.4;

         (b) any  Originator  shall fail to (i)  perform  or  observe  any term,
covenant or  agreement  contained in Section  5.1(c),  5.1(d),  5.1(g),  5.1(h),
5.1(i),  5.1(j), 5.1(k), 5.1(l), 5.1 (m) or 5.1 (n), or (ii) make any payment or
deposit to be made by it  hereunder  within three  Business  Days after the same
became due and payable;

         (c) any  Originator  shall fail to perform or observe  any other  term,
covenant or agreement contained in this Agreement on its part to be performed or
observed and any such failure shall remain unremedied for ten days;

         (d) any  Originator  shall  generally  not pay its debts as such  debts
become due, or shall admit in writing its inability to pay its debts  generally,
shall make a general assignment for the benefit of creditors,  or shall take any
corporate  action  to  authorize  any of the  actions  set  forth  above in this
subsection (d) or any Originator shall be the subject of an Event of Bankruptcy;

         (e) any Originator  transfers,  sells or otherwise disposes of (whether
in one transaction or a series of transactions)  all or substantially all of its
assets; or

         (f) the Loan  Agreement  shall cease to be in full force and effect,  a
Significant  Event shall have occurred  under the Loan Agreement or the Lender's
Commitment under the Loan Agreement shall be terminated;

                                       20

<PAGE>

then, and in any such event,  the Purchaser  may, by notice to such  Originator,
declare  its  obligation  to purchase  Receivables  from such  Originator  to be
terminated,  whereupon such obligation shall forthwith be terminated;  provided,
however,  that in the case of any event described in subsection (d) above,  such
termination  shall  automatically  occur upon the  happening  of such event.  No
termination  under this Section 7.1 of the  Purchaser's  obligation  to purchase
Receivables  shall  affect  the  then-existing  obligations  of such  Originator
hereunder (other than such  Originator's  obligations to sell Receivables to the
Purchaser pursuant hereto).

         Section 7.2       Remedies.

         If a Purchase Termination Event has occurred and is continuing:

         (a) The Purchaser (and its assignees)  shall have all of the rights and
remedies  provided to a secured  creditor or a purchaser  of accounts or chattel
paper under the UCC by applicable law in respect thereto.

         (b) The Purchaser  (and its  assignees)  may at any time (i) notify the
respective  Obligors of the  Purchaser's  ownership of the  Receivables  and may
direct that payment of all amounts due or to become due under the Receivables be
made directly to the  Purchaser or its designee or (ii) give notice,  or require
that  each  Originator,  at  such  Originator's  expense,  give  notice  of such
ownership to each such Obligor and direct that all payments be made  directly to
the Purchaser or its designee.

         (c)  The  Purchaser  (and  its  assignees)  may  elect  to (i)  sue for
collection on any  Receivables or (ii) sell any  Receivables to any Person for a
price that is acceptable to the Purchaser (or its assignees). In connection with
any such sale, the Purchaser or its assignees shall have the right to assign its
rights under this Agreement to a third party. Any such Receivable shall cease to
be a Receivable  for all purposes  under this Agreement as of the effective date
of such sale.

         (d) Each  Originator  shall,  upon the  Purchaser's (or its assignee's)
request and at such  Originator's  expense (i) assemble all of such Originator's
documents,  instruments and other records (including, without limitation, credit
files and computer  tapes or disks) that (A) evidence or will evidence or record
Receivables sold or contributed by such Originator,  (B) evidence the underlying
Contracts  relating  to such  Receivables  and (C) are  otherwise  necessary  or
desirable  to effect  Collections  of such  Receivables  and (ii)  deliver  such
documents  to the  Purchaser  or  its  designee  at a  place  designated  by the
Purchaser or, at the Purchaser's  option,  provide the Purchaser or its designee
with access thereto.

         (e) Each Originator hereby irrevocably  authorizes the Purchaser or its
designee or assignees to take any and all steps in such Originator's name and on
such Originator's  behalf necessary or desirable,  in the reasonable  opinion of
the  Purchaser,  designee  or  assignee,  to collect  all  amounts due under the
Receivables  and the other  Purchased  Assets,  including,  without

                                       21

<PAGE>

limitation,  endorsing such  Originator's  name on checks and other  instruments
representing  Collections,  enforcing the  Receivables  and the other  Purchased
Assets and exercising all rights and remedies in respect thereof.

         (f) Each Originator will (i) deliver to the Purchaser, its designees or
assignees all computer  programs,  material and data  necessary to the immediate
collection of the  Receivables  by the Purchaser,  or a party  designated by the
Purchaser,  with or without the  participation  of such Originator and (ii) make
such  arrangements  with respect to the collection of the  Receivables as may be
reasonably required by the Administrator.

                                  ARTICLE VIII

                                 INDEMNIFICATION

         Section 8.1       Indemnities by the Originators.

         Without limiting any other rights that the Purchaser may have hereunder
or under  applicable  law,  each  Originator  hereby  agrees  to  indemnify  the
Purchaser (and its assignees) and each Indemnified Party, on an after-tax basis,
from  and  against  any  and  all  claims,  losses  and  liabilities  (including
reasonable attorneys' fees) (all the foregoing being collectively referred to as
"Indemnified  Amounts")  arising out of or resulting  from this  Agreement or in
respect of any Receivable,  any related  Contract or any other Purchased  Asset,
excluding,  however,  Indemnified  Amounts  to the extent  resulting  from gross
negligence  or  willful  misconduct  on  the  part  of  the  Purchaser  or  such
Indemnified  Party, as the case may be. Without limiting or being limited by the
foregoing,  each  Originator  shall  pay  on  demand  to  the  Purchaser  or any
Indemnified  Party any and all amounts  necessary to indemnify  such Person from
and against any and all Indemnified Amounts relating to or resulting from:

         (a) reliance on any  representation  or warranty or  statement  made or
deemed made by any Originator (or any of their respective  officers) under or in
connection  with  this  Agreement  or in any  certificate,  report  or  document
delivered  pursuant  hereto  that,  in any such  case,  shall have been false or
incorrect when made or deemed made;

         (b) the failure by any  Originator to comply with any  applicable  law,
rule or regulation  with respect to any Receivable or the related  Contract,  or
the  nonconformity  of any  Receivable  or the  related  Contract  with any such
applicable law, rule or regulation;

         (c) the failure to have filed or pay any recording or other similar tax
with  respect  to, or any delay in filing or payment of any  recording  or other
similar tax with respect to, financing  statements or other similar  instruments
or documents under the Uniform Commercial Code of any applicable jurisdiction or
other applicable laws with respect to the Purchaser's or any assignee's interest
in any Purchased Asset;

                                       22

<PAGE>

         (d) any  dispute,  claim,  offset or defense  (other than  discharge in
bankruptcy  of the  Obligor)  of the  Obligor to the  payment of any  Receivable
(including,  without  limitation,  a  defense  based on such  Receivable  or the
related Contract not being a legal, valid and binding obligation of such Obligor
enforceable  against  it in  accordance  with its  terms),  or any  other  claim
resulting  from the sale of the  merchandise  or  services  related  to any such
Receivable or the furnishing or failure to furnish such merchandise or services;

         (e) any failure of any  Originator to perform its duties or obligations
under this Agreement or the applicable Contract;

         (f) any  products  liability  or  warranty  claim  arising out of or in
connection with  merchandise,  insurance or services that are the subject of any
Receivable;

         (g) the  commingling  of  Collections  of  Receivables at any time with
other funds of any Originator,  regardless or whether such commingling  shall be
permitted by the Transaction Documents;

         (h)  any  investigation,  litigation  or  proceeding  related  to  this
Agreement or in respect of any Receivable or any Contract;

         (i) the payment by the  Purchaser of any taxes owed by any  Originator,
including,  but not limited to,  federal,  state or local income  taxes,  excise
taxes or business taxes; or

         (j) the failure to vest, and maintain vested,  in the Purchaser a valid
and  enforceable  (i)  ownership  interest  or (ii) a first  priority  perfected
security interest in the items described in Section 2.1(a) (except to the extent
such  first   priority   perfected   security   interest  was  assigned  to  the
Administrator pursuant to the Loan Agreement).

         Notwithstanding   the   foregoing,   no  Originator   shall  under  any
circumstances  indemnify the Purchaser (or its  assignees)  for any  Indemnified
Amounts  that  result  solely  from a default  by an Obligor  with  respect to a
Receivable  other than as described  in clause (d) above or  resulting  from the
circumstances described in clause (b) or (e) above.

                                   ARTICLE IX

                               THE ORIGINATOR NOTE

         Section 9.1       Originator Note.

         (a) On the Closing Date, the Purchaser shall issue to each Originator a
revolving  subordinated  note in the form  attached  hereto  as  Exhibit  A (the
"Originator Note"). The principal amount of the Originator Note outstanding from
time to time shall be determined in accordance  with Sections 2.3, 2.4, and 2.5.
It is  understood  and agreed  that no cash shall be paid to any  Originator  in
respect  of the  Originator  Note as a result  of the  principal  amount  of the
Originator Note decreasing pursuant to the calculations in Sections 2.4 and 2.5.
Anything to the

                                       23

<PAGE>

contrary  notwithstanding,  the  Purchaser  shall  have the  right  (but not the
obligation) to offset or adjust the  Originator  Note by any amounts owed by any
Originator to the Purchaser under this Agreement.

         (b) Until the Obligations have been  indefeasibly paid in full in cash,
no  payments  (whether  for  principal  or  interest)  may be made,  directly or
indirectly, by the Purchaser on the Originator Note except from amounts received
by the Purchaser  under the Loan Agreement.  Each Originator  agrees not to ask,
demand,  sue for or take or receive from the Purchaser in cash or other property
by  set-off  (including,  without  limitation,  from  or by way of  collateral),
payment of all or any part of the  Originator  Note,  except as permitted by the
Loan Agreement.  Each Originator agrees that upon any distribution of all or any
of  the  assets  of  the  Purchaser  to  creditors  of the  Purchaser  upon  the
dissolution,   winding   up,   total  or   partial   liquidation,   arrangement,
reorganization,  adjustment, protection, relief, or composition of the Purchaser
or its  debts,  any  payment  or  distribution  of any  kind in  respect  of the
Originator  Note that  otherwise  would be payable or  deliverable  upon or with
respect to the Originator  Note,  directly or  indirectly,  by set-off or in any
other manner, including, without limitation, from or by way of collateral, shall
be paid or delivered  directly to the Administrator for application (in the case
of cash) to or as collateral  (in the case of non-cash  property or  securities)
for the payment or prepayment in full of, the Obligations  until the Obligations
shall have been indefeasibly paid in full in cash. All payments or distributions
upon or with respect to the Originator  Note that are received by any Originator
contrary to the provisions of the Loan Agreement or the Originator Note shall be
received in trust for the benefit of the Secured  Parties,  shall be  segregated
from other funds and  property  held by such  Originator  and shall be forthwith
paid  over to the  Administrator  in the  same  form as so  received  (with  any
necessary  endorsement)  to be  applied  (in the  case of cash)  to,  or held as
collateral (in the case of non-cash  property or securities)  for the payment or
prepayment in full of, the  Obligations  until the  Obligations  shall have been
indefeasibly  paid in full in cash.  Each  Originator  agrees that no payment or
distribution to the Secured Parties pursuant to the provisions of the Originator
Note shall  entitle such  Originator  to exercise any rights or  subrogation  in
respect thereof until the Obligations  shall have been indefeasibly paid in full
in cash.  Each  Originator  and the  Purchaser  each hereby  waives  promptness,
diligence,  notice of acceptance and any other notice with respect to any of the
Obligations and the Originator  Note and any requirement  that any Secured Party
protect, secure, perfect or insure any security interest or lien on any property
subject thereto or exhaust any right or take any action against the Purchaser or
any other Person or any Collateral.

         (c) Each  Originator  agrees  and  confirms  that the  Originator  Note
represents  solely the right to receive  certain amounts from funds available to
the Purchaser  under the Loan  Agreement and that the  Originator  Note does not
represent a security interest in the Receivables or their proceeds.  No payments
may be received,  directly or indirectly,  by any  Originator  (and if received,
such  Originator  agrees  to  return  such  payments  to the  Purchaser)  on the
Originator Note unless all amounts required pursuant to the Loan Agreement to be
paid have been paid.

         (d) Each Originator  agrees and confirms that the  Administrator  shall
not have any duty whatsoever to such Originator as holder of the Originator Note
and that the Administrator

                                       24

<PAGE>

shall not be liable to such  Originator  for any  action  taken or omitted to be
taken with respect to the Originator Note.

         Section 9.2       Restrictions on Transfer of Originator Note.

         Neither the Originator Note, nor any right of any Originator to receive
payments  thereunder,  shall  be  assigned,  transferred,   exchanged,  pledged,
hypothecated, participated or otherwise conveyed.

                                    ARTICLE X

                                  MISCELLANEOUS

         Section 10.1      Amendments, Etc.

         No  amendment,   modification  or  waiver  of  any  provision  of  this
Agreement, or consent to any departure by any Originator therefrom, shall in any
event be  effective  unless  the same  shall be in  writing  and  signed  by the
Purchaser  and the  Administrator  and then  such  waiver  or  consent  shall be
effective only in the specific  instance and for the specific  purpose for which
given.

         Section 10.2      Notices, Etc.

         All notices and other communications provided for hereunder shall be in
writing (including  telegraphic,  facsimile or cable  communication) and mailed,
telegraphed,  transmitted,  cabled or  delivered,  at its  address  set forth on
Schedule IV; or, as to each party,  at such other address as shall be designated
by such party in a written  notice to the other  parties.  All such  notices and
communications  shall when mailed or telecopied be effective  when  deposited in
the mails, or transmitted by facsimile, respectively, except that notices to the
Purchaser  pursuant to Article II shall not be effective  until  received by the
Purchaser.

         Section 10.3      No Waiver; Remedies.

         No failure on the part of the  Purchaser to  exercise,  and no delay in
exercising,  any right under this Agreement  shall operate as a waiver  thereof,
nor shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

         Section 10.4      Binding Effect; Governing Law.

         This  Agreement  shall be binding upon and inure to the benefit of each
Originator and the Purchaser and their respective successors and assigns, except
that no  Originator  shall have the right to assign its rights  hereunder or any
interest  herein  without the prior  written  consent of the  Purchaser  and the
Administrator.  This  Agreement  shall  create  and  constitute  the  continuing
obligations of the parties hereto in accordance with its terms, and shall remain
in full force and

                                       25

<PAGE>

effect until such time, after the Purchase Termination Date, until the Purchaser
shall not have any interest in any Purchased  Asset and all  obligations of each
Originator hereunder shall have been paid in full; provided,  however,  that the
indemnification provisions of Article VIII shall be continuing and shall survive
any termination of this Agreement.  This Agreement and the Originator Note shall
be governed by, and construed in accordance  with,  the laws of the State of New
York  without  regard to the  conflict of laws  principles  thereof  (other than
Section 5-1401 of the New York General Obligations Law).

         Section 10.5      Costs, Expenses and Taxes.

         In addition to the rights of  indemnification  granted to the Purchaser
under  Article  VIII,  each  Originator  agrees to pay on  demand  all costs and
expenses  of  the  Purchaser  and  the  Administrator  in  connection  with  the
preparation,  execution and delivery of this  Agreement,  the Loan Agreement and
the other  agreements  and documents to be delivered  hereunder and  thereunder,
including, without limitation, the reasonable fees and out-of-pocket expenses of
counsel for the Purchaser and the  Administrator  with respect  thereto and with
respect to advising the Purchaser and the  Administrator  as to their rights and
remedies under this Agreement,  and all costs and expenses  (including,  without
limitation,  reasonable  counsel  fees and  expenses),  in  connection  with the
enforcement  (whether through  negotiations,  legal proceedings or otherwise) of
this Agreement and the documents to be delivered  hereunder.  In addition,  each
Originator  agrees to pay any and all stamp and other taxes and fees  payable or
determined to be payable in connection with the execution,  delivery, filing and
recording of this  Agreement or the other  documents to be delivered  hereunder,
and  agrees  to  hold  the  Purchaser  harmless  from  and  against  any and all
liabilities with respect to or resulting from any delay in paying or omitting to
pay such taxes and fees.

         Section 10.6      No Bankruptcy Petition.

         Each  Originator  covenants  and agrees that prior to the date which is
one year and one day after the  payment in full of all Senior  Indebtedness  (as
defined in the Originator Note) it will not institute against, or join any other
Person in  instituting  against,  the  Purchaser  or the Lender any  bankruptcy,
reorganization,  arrangement,  insolvency or liquidation  proceedings,  or other
proceedings  under any federal or state  bankruptcy or similar law. This Section
10.6 shall survive the termination of this Agreement.

         Section 10.7      Acknowledgment of Assignments.

         Each Originator  hereby  acknowledges and consents to the assignment by
the Purchaser of the Purchased Assets and the rights of the Purchaser under this
Agreement to the Administrator  pursuant to the Loan Agreement.  Each Originator
further  acknowledges  that, in accordance with the terms of the Loan Agreement,
the Administrator may, under certain circumstances,  exercise some or all of the
rights of the Purchaser hereunder.

         Section 10.8      Waiver of Setoff.

                                       26

<PAGE>

         Except as expressly set forth in this Agreement, all payments hereunder
by each Originator to the Purchaser or by the Purchaser to each Originator shall
be made without setoff,  counterclaim or other defense and each of the Purchaser
and each Originator  hereby waives any and all of its rights to assert any right
of  setoff,  counterclaim  or other  defense  to the  making  of a  payment  due
hereunder to such  Originator or the  Purchaser,  as the case may be;  provided,
however; that,  notwithstanding the foregoing, the Purchaser hereby reserves any
and all of its rights to assert any such right of setoff,  counterclaim or other
defense   against  each  Originator  with  respect  to  the  Purchase  Price  of
Receivables purchased from such Originator.

         Section 10.9      Severability.

         Wherever   possible,   each  provision  of  this  Agreement   shall  be
interpreted  in such manner as to be effective and valid under  applicable  law,
but if any provision of this  Agreement  shall be prohibited by or invalid under
such  law,  such  provision  shall be  ineffective  only to the  extent  of such
prohibition or invalidity,  without invalidating the remainder of such provision
or the remaining provisions of this Agreement.

         Section 10.10     Counterparts.

         This  Agreement and any  amendment or  supplement  hereto or any waiver
granted in connection herewith may be executed in any number of counterparts and
by the  different  parties on separate  counterparts  and each such  counterpart
shall be deemed to be an  original,  but all such  counterparts  shall  together
constitute but one and the same agreement.  Delivery of an executed  counterpart
of a  signature  page to this  Agreement  by  facsimile  shall be  effective  as
delivery of a manually executed counterpart of this Agreement.

         Section 10.11     Grant of License to Use Trademarks.

         For the sole purpose of enabling the  Purchaser  (or its  assignees) to
perform the  functions  of  servicing  and  collecting  the  Receivables  upon a
Purchase  Termination  Event, each Originator hereby grants to the Purchaser (or
its  assignees)  an  irrevocable,  non-exclusive  license  (exercisable  without
payment of royalty or other compensation to such Originator) to use, license, or
sublicense any copyright,  trade name, trademark or similar rights or properties
now owned or hereafter acquired by such Originator, and wherever the same may be
located,  and including in such license  reasonable access to all media in which
any of the  licensed  items may be  recorded or stored and to all  computer  and
automatic  machinery  software and programs used for the compilation or printout
thereof.  The  aforementioned   servicing  and  collecting  functions  shall  be
performed in accordance with customary  business practices and in a manner which
will not  materially  adversely  affect any of such licenses or licensed  items.
Purchaser  acknowledges  that each of the  Originators  has granted a collateral
assignment  or a lien on all of its  respective  rights  and  interests  in such
intellectual  property as security with respect to that certain Credit Agreement
by and among Covenant Asset Management,  Inc., Covenant Transport, Inc., Bank of
America, N.A., and lenders identified therein, dated December 13, 2000.

                                       27

<PAGE>

         Section 10.12     Jurisdiction; Consent to Service of Process.

         (a) Each Originator and the Purchaser hereby submit to the nonexclusive
jurisdiction  of any United States  District Court for the Southern  District of
New York and of any New York  state  court  sitting  in New  York,  New York for
purposes  of  all  legal  proceedings  arising  out  of,  or  relating  to,  the
Transaction Documents or the transactions  contemplated thereby. Each Originator
and the Purchaser hereby irrevocably waive, to the fullest extent possible,  any
objection it may now or hereafter  have to the venue of any such  proceeding and
any claim that any such  proceeding has been brought in an  inconvenient  forum.
Nothing in this  Section  10.12 shall affect the right of the  Administrator  or
Lender  to bring  any  action  or  proceeding  against  any  Originator  and the
Purchaser or its property in the courts of other jurisdictions.

         (b) TO THE EXTENT  PERMITTED  BY  APPLICABLE  LAW,  EACH  PARTY  HERETO
IRREVOCABLY  WAIVES  ALL  RIGHT OF TRIAL BY JURY IN ANY  ACTION,  PROCEEDING  OR
COUNTERCLAIM  ARISING OUT OF, OR IN CONNECTION WITH, ANY TRANSACTION DOCUMENT OR
ANY MATTER ARISING THEREUNDER.

         Section 10.13     Third Party Beneficiaries.

         Each of the Secured Parties shall be third-party  beneficiaries of this
Agreement.

         Section 10.14     Confirmation of Intent.

         It is the  express  intent  of the  parties  hereto  that  the sale and
contribution  to the  Purchaser  pursuant  to Section  2.1 hereof of all of each
Originator's  right,  title and interest,  in, to and under all Purchased Assets
and the Contributed  Receivables shall be treated under applicable state law and
Federal  bankruptcy law as a sale or  contribution,  as the case may be, by such
Originator  to the  Purchaser.  However,  if it is  determined  contrary  to the
express  intent of the parties that the transfer is not a sale or  contribution,
as the case may be,  and that all or any  portion  of the  assets  described  in
Section 2.1  continue to be property of such  Originator,  then such  Originator
hereby grants to the Purchaser a security  interest in all of such  Originator's
right,  title and interest  in, to and under all such assets and this  Agreement
shall constitute a security agreement under applicable law. Each Originator, the
Purchaser and the  Administrator  shall, to the extent  consistent with the Loan
Agreement  and this  Agreement,  take such action as may be  necessary to ensure
that, if this Agreement were deemed to create a security  interest in the assets
described  in  Section  2.1,  such  interest  would be deemed to be a  perfected
security  interest of first priority under applicable law and will be maintained
as such throughout the terms of this Agreement and the Loan Agreement.

         Section 10.15     Confidentiality of Agreement.

         Unless  otherwise  consented to by the  Administrator,  each Originator
hereby  agrees  that  it will  not  disclose  the  contents  of any  Transaction
Document, or any other confidential or proprietary  information furnished by the
Administrator,  the  Lender  or the  Purchaser,  to any

                                       28

<PAGE>

Person  other than its  Affiliates  (which  Affiliates  shall have  executed  an
agreement satisfactory in form and in substance to the Administrator to be bound
by the provisions of this Section 10.15),  auditors and attorneys or as required
by applicable law.

         Section 10.16     Section and Paragraph Headings.

         Section and  paragraph  headings  used in this  Agreement  are provided
solely  for  convenience  of  reference  and shall not  affect  the  meaning  or
interpretation of any provision of this Agreement.

                  [Remainder of Page Intentionally Left Blank]

                                       29

<PAGE>

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

                                          CVTI RECEIVABLES CORP.,
                                          as Purchaser

                                          By:    /s/ Joey B. Hogan
                                          Name:  Joey B. Hogan
                                          Title: CFO

                                          COVENANT TRANSPORT, INC.,
                                          a Tennessee corporation, as Originator

                                          By:    /s/ Joey B. Hogan
                                          Name:  Joey B. Hogan
                                          Title: CFO

                                          SOUTHERN REFRIGERATED
                                          TRANSPORT, INC.,
                                          an Arkansas corporation, as Originator

                                          By:    /s/ Joey B. Hogan
                                          Name:  Joey B. Hogan
                                          Title: CFO

<PAGE>

                                    Exhibit A

                                 ORIGINATOR NOTE

New York, New York

_______, 2000

         FOR  VALUE  RECEIVED,  CVTI  Receivables  Corp,  a  Nevada  corporation
("CVTI")    promises    to   pay   to    [ORIGINATOR]    at   the    office   of
[_________________________________],  the  principal  sum equal to the aggregate
amount due and owing to [Originator]  pursuant to Section 2.3 of the Receivables
Purchase  Agreement as adjusted  from time to time  pursuant to Sections 2.4 and
2.5 of the  Receivables  Purchase  Agreement  (as the same may be  increased  or
decreased from time to time),  on the date which is twelve months  following the
Purchase Termination Date under the Receivables Purchase Agreement.

         Section  1.01.   Receivables  Purchase  Agreement.   This  Note  is  an
"Originator  Note"  described in, and is subject to the terms and conditions set
forth in, the Receivables Purchase Agreement,  dated as of December 12, 2000 (as
amended, supplemented, or otherwise modified from time to time, the "Receivables
Purchase  Agreement"),  between CVTI, as the Purchaser,  Covenant Tennessee,  as
Originator, and Southern Refrigerated,  as Originator.  Reference is hereby made
to the  Receivables  Purchase  Agreement for a statement of certain other rights
and obligations of CVTI and each Originator. In the case of any conflict between
the terms of this Note and the terms of the Receivables Purchase Agreement,  the
terms of the Receivables Purchase Agreement shall control.

         Section  1.02.  Definitions.  Capitalized  terms used (but not defined)
herein have the meanings ascribed thereto in the Receivables  Purchase Agreement
or in the Loan Agreement (as defined in the Receivables Purchase Agreement).  In
addition, as used herein, the following terms have the following meanings:

         "Final  Maturity  Date"  means the date that falls one year and one day
after the later of (x) the Purchase  Termination  Date and (y) the date on which
the principal  amount of the Loans shall have been reduced to zero and all other
amounts payable by CVTI to Lender, the  Administrator,  the Affected Parties and
Indemnified  Parties  under the  Transaction  Documents  shall have been paid in
full.

         "Junior  Liabilities"  means all  obligations  of CVTI to  [Originator]
under this Note.

         "Senior Agent" means the Administrator.

                                       31

<PAGE>

         "Senior  Indebtedness" means all (a) obligations of CVTI under the Loan
Agreement  dated as of December  12,  2000 (as in effect from time to time,  the
"Loan Agreement") among CVTI, Covenant Transport, Inc. ("Covenant Nevada" or the
"Master Servicer") Three Pillars Funding Corporation (the "Lender") and SunTrust
Equitable Securities Corporation, as Administrator (the "Administrator") and any
renewal, extension,  restatement or refunding thereof and (b) all obligations of
CVTI to the Senior Interest Holders,  howsoever  created,  arising or evidenced,
whether direct or indirect,  absolute or contingent,  now or hereafter existing,
or due or to become due on or before the Final Maturity Date.

         "Senior Interest Holders" means, collectively, the Senior Agent and the
Indemnified Parties.

         "Subordination Provisions" means, collectively, clauses (a) through (k)
of Section 1.07 hereof.

         Section 1.03. Interest.  Subject to the Subordination Provisions,  CVTI
promises to pay interest on the aggregate  unpaid  principal amount of this Note
outstanding on each day at a variable rate per annum equal to ________________.

         Section 1.04.  Interest  Payment  Dates.  Subject to the  Subordination
Provisions,  CVTI shall pay accrued  interest on this Note on each  Distribution
Date and on the Final  Maturity Date (or, if any such day is not a Business Day,
the next succeeding  Business Day). CVTI also shall pay accrued  interest on the
principal amount of each prepayment hereof on the date of each such prepayment.

         Section 1.05. Basis of Computation. Interest accrued hereunder shall be
computed for the actual number of days elapsed on the basis of a 360-day year.

         Section 1.06.  Principal  Payment Dates.  Subject to the  Subordination
Provisions,  any  unpaid  principal  of this  Note  shall  be paid on the  Final
Maturity  Date (or,  if such date is not a  Business  Day,  the next  succeeding
Business Day). Subject to the Subordination Provisions,  the principal amount of
and  accrued  interest on this Note may be prepaid on any  Business  Day without
premium or penalty.

         Section 1.07. Subordination Provisions.  CVTI covenants and agrees, and
[Originator],  by its  acceptance of this Note,  likewise  covenants and agrees,
that the payment of all Junior  Liabilities is hereby expressly  subordinated in
right of payment to the payment and  performance of the Senior  Indebtedness  to
the extent and in the manner set forth in the following  clauses of this Section
1.07.  To the extent  this  Section  1.07  conflicts  with the terms of the Loan
Agreement, the terms of the Loan Agreement shall control.

         (a) No payment or other  distribution  of CVTI's  assets of any kind or
character,  whether in cash, securities,  or other rights or property,  shall be
made on  account  of this  Note  except  to the  extent  such  payment  or other
distribution is (i) permitted under the Loan Agreement and (ii) made pursuant to
Section 1.04 or 1.06 of this Note;

                                       32

<PAGE>

         (b) If an Event of Bankruptcy  has occurred with respect to CVTI or the
Purchase Termination Date has occurred, then the Senior Indebtedness shall first
be paid and performed in full and in cash before  [Originator] shall be entitled
to receive  and to retain any payment or  distribution  in respect of the Junior
Liabilities.  In  order  to  implement  the  foregoing:  (i)  all  payments  and
distributions  of any kind or character in respect of the Junior  Liabilities to
which [Originator]  would be entitled except for this subsection  1.07.(b) shall
be made  directly to the Senior  Agent (for the  benefit of the Senior  Interest
Holders); and (ii) [Originator] hereby irrevocably agrees that the Senior Agent,
in the name of [Originator] or otherwise,  may demand, sue for, collect, receive
and receipt for any and all such payments or distributions,  and file, prove and
vote or consent  in any such  proceeding  with  respect to any and all claims of
[Originator]  relating to the Junior Liabilities,  in each case until the Senior
Indebtedness shall have been paid and performed in full and in cash.

         (c) In the  event  that  [Originator]  receives  any  payment  or other
distribution  of any  kind or  character  from  CVTI or from  any  other  source
whatsoever,  in  respect  of the Junior  Liabilities,  other  than as  expressly
permitted by the terms of this Note, such payment or other distribution shall be
received  in trust for the Senior  Interest  Holders and shall be turned over by
[Originator]  to the  Senior  Agent  (for the  benefit  of the  Senior  Interest
Holders) forthwith.  All payments and distributions received by the Senior Agent
in respect of this Note, to the extent  received in or converted  into cash, may
be applied by the Senior Agent (for the benefit of the Senior Interest  Holders)
first to the  payment of any and all  reasonable  expenses  (including,  without
limitation,  reasonable  attorneys'  fees  and  other  legal  expenses)  paid or
incurred by the Senior Agent or the Senior  Interest  Holders in enforcing these
Subordination  Provisions,  or in  endeavoring  to collect  or realize  upon the
Junior   Liabilities,   and  any  balance  thereof  shall,   solely  as  between
[Originator]  and the Senior  Interest  Holders,  be applied by the Senior Agent
toward the  payment of the Senior  Indebtedness  in a manner  determined  by the
Senior Agent to be in  accordance  with the Loan  Agreement;  but as between the
Purchaser and its creditors,  no such payments or  distributions  of any kind or
character  shall be deemed to be  payments  or  distributions  in respect of the
Senior Indebtedness.

         (d)  Upon  the  final  payment  in  full  and in  cash  of  all  Senior
Indebtedness,  [Originator]  shall be  subrogated  to the  rights of the  Senior
Interest  Holders  to  receive  payments  or  distributions  from  CVTI that are
applicable to the Senior  Indebtedness  until the Junior Liabilities are paid in
full.

         (e) These Subordination  Provisions are intended solely for the purpose
of defining the relative rights of [Originator], on the one hand, and the Senior
Interest  Holders,  on the other hand.  Nothing  contained in the  Subordination
Provisions or elsewhere in this Note is intended to or shall impair,  as between
CVTI, its creditors (other than the Senior Interest  Holders) and  [Originator],
CVTI's  obligation,  which is  unconditional  and  absolute,  to pay the  Junior
Liabilities as and when the same shall become due and payable in accordance with
the terms  hereof and of the  Receivables  Purchase  Agreement  or to affect the
relative  rights of  [Originator]  and  creditors of CVTI (other than the Senior
Interest Holders).

                                       33

<PAGE>

         (f)  [Originator]  shall not, until the Senior  Indebtedness  have been
finally paid and  performed  in full and in cash,  (i) cancel,  waive,  forgive,
transfer or assign,  or commence  legal  proceedings  to enforce or collect,  or
subordinate to any obligation of CVTI, howsoever created,  arising or evidenced,
whether  direct  or  indirect,  absolute  or  contingent,  or now  or  hereafter
existing,  or due or to become  due,  other  than the Senior  Indebtedness,  the
Junior Liabilities,  or any rights in respect thereof or (ii) convert the Junior
Liabilities  into an equity  interest in the Purchaser,  unless,  in the case of
each of clauses (i) and (ii) above,  [Originator]  shall have received the prior
written consent of the Senior Agent in each case.

         (g) [Originator]  shall not, without the advance written consent of the
Senior  Agent,  commence,  or join with any  other  Person  in  commencing,  any
bankruptcy, reorganization,  arrangement, insolvency or liquidation proceedings,
or other  proceedings under any federal or state bankruptcy or similar law, with
respect to CVTI until at least one year and one day shall have passed  since the
Senior  Indebtedness  shall have been finally paid and  performed in full and in
cash.

         (h) If,  at any  time,  any  payment  (in  whole or in part)  made with
respect to any Senior  Indebtedness is rescinded or must be restored or returned
by a Senior  Interest Holder (whether in connection with any Event of Bankruptcy
or otherwise),  these Subordination Provisions shall continue to be effective or
shall be  reinstated,  as the case may be, as though  such  payment had not been
made.

         (i) Each of the Senior Interest  Holders may, from time to time, to the
extent  consistent  with the  Transaction  Documents,  at its  sole  discretion,
without  notice to  [Originator],  and without  waiving any of its rights  under
these Subordination  Provisions,  take any or all of the following actions:  (i)
retain  or obtain an  interest  in any  property  to  secure  any of the  Senior
Indebtedness;  (ii) retain or obtain the primary or secondary obligations of any
other obligor or obligors with respect to any of the Senior Indebtedness;  (iii)
extend or renew for one or more periods (whether or not longer than the original
period),  alter or  exchange  any of the  Senior  Indebtedness,  or  release  or
compromise  any  obligation  of any  nature  with  respect  to any of the Senior
Indebtedness;  (iv)  amend,  supplement,  or  otherwise  modify any  Transaction
Document;  and (v) release its security  interest in, or  surrender,  release or
permit  any  substitution  or  exchange  for all or any  part of any  rights  or
property securing any of the Senior Indebtedness,  or extend or renew for one or
more  periods  (whether or not longer  than the  original  period),  or release,
compromise,  alter or exchange any obligations of any nature of any obligor with
respect to any such rights or property.

         (j)  [Originator]  hereby  waives:  (i) notice of  acceptance  of these
Subordination  Provisions by any of the Senior Interest Holders;  (ii) notice of
the existence,  creation,  non-payment or  non-performance  of all or any of the
Senior  Indebtedness;  and (iii) all  diligence in  enforcement,  collection  or
protection of, or realization upon the Senior  Indebtedness,  or any thereof, or
any security therefor.

                                       34

<PAGE>

         (k) These Subordination  Provisions  constitute a continuing offer from
CVTI to all Persons who become the holders of, or who  continue to hold,  Senior
Indebtedness; and these Subordination Provisions are made for the benefit of the
Senior  Interest  Holders,  and the Senior  Agent may  proceed  to enforce  such
provisions on behalf of each of such Persons.

         Section  1.08.  Amendments,  Etc.  No  failure  or delay on the part of
[Originator]  in  exercising  any power or right  hereunder  shall  operate as a
waiver  thereof,  nor shall any single or partial  exercise of any such power or
right  preclude  any other or further  exercise  thereof or the  exercise of any
other power or right.  No amendment,  modification or waiver of, or consent with
respect to, any  provision of this Note shall in any event be  effective  unless
(a) the  same  shall  be in  writing  and  signed  and  delivered  by  CVTI  and
[Originator],  and  (b)  all  consents  required  for  such  actions  under  the
Transaction Documents shall have been received by the appropriate Persons.

         Section 1.09. Limitation on Interest.  Notwithstanding anything in this
Note to the contrary,  CVTI shall never be required to pay unearned  interest on
any amount outstanding hereunder, and shall never be required to pay interest on
the principal amount outstanding  hereunder,  at a rate in excess of the maximum
interest rate that may be contracted for, charged or received without  violating
applicable federal or state law.

         Section 1.10. No Negotiation.  This Note is not negotiable.

         Section  1.11.  Governing  Law.  THIS NOTE  SHALL BE  GOVERNED  BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICT OF LAWS  PRINCIPLES  (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

         Section  1.12.  Captions.  Paragraph  captions  used in this  Note  are
provided solely for convenience of reference and shall not affect the meaning or
interpretation of any provision of this Note.

         IN WITNESS WHEREOF, the undersigned has caused this Note to be executed
by its officer thereunto duly authorized on the date first above written.

                                          CVTI RECEIVABLES CORP.

                                          By:___________________________________
                                          Name:_________________________________
                                          Title:________________________________

                                       35

<PAGE>

                                    EXHIBIT B
                             FORM OF PURCHASE REPORT

                              [NAME OF ORIGINATOR]
                             CVTI RECEIVABLES CORP.
                                  As of (DATE)

                                                                    Cut-Off Date
Total Receivables                                   $               Input
Aggregate Unpaid Balance of Receivables     AUB     $               Calculated
LIBOR                                                               Input
12 Month Losses                                     $               Input
12 Month Collections                                $               Input
Current Month Collections                           $               Input

Cost Rate (LIBOR + 2.00%/360)               CR                      Calculated

Cost Discount (Days Sale Outstanding        CD                      Calculated
Ratio * CR)

Loss Discount (12 Month Losses/Current      LD                      Calculated
Collections)

Fair Market Value Discount (Aggregate       FMVD                    Calculated
Unpaid Balance * LD + CD)

Purchase Price (AUB - FMVD)                 PP      $               Calculated

Eligible Receivables                                $               Input

Ineligible Receivables                              $               Input

Contributed Receivables                             $               Input

IN WITNESS  WHEREOF,  the  undersigned has duly executed this Purchase Report on
_______, 200_

[NAME OF ORIGINATOR]

By:  _________________________

                                       36

<PAGE>

Name:
Title:

                                   SCHEDULE I

                       OFFICES WHERE BOOKS, RECORDS, ETC.
                         EVIDENCING RECEIVABLES ARE KEPT

Covenant Transport, Inc., a Tennessee Corporation
-------------------------------------------------
400 Birmingham Highway
Chattanooga, Tennessee 37419

Southern Refrigerated Transport, Inc.
-------------------------------------
Highway 51 North
Ashdown, Arkansas 71822.

                                       37

<PAGE>

                                   SCHEDULE II

                               LIST OF TRADE NAMES

Trade Names of the Originators and their  Subsidiaries  During the Last Six Year
Period:
1.  Covenant Transport, Inc.
2.  Southern Refrigerated Transport, Inc.
3.  Harold Ives Trucking Co.
4.  Terminal Truck Broker, Inc.
5.  Covenant.com, Inc.
6.  CIP, Inc.
7.  Abbreviations and modifications of the names listed in 1 through 6.

                                       38

<PAGE>

                                  SCHEDULE III

                       AUTHORIZED OFFICERS OF ORIGINATORS

Authorized Officers for Covenant Tennessee:
------------------------------------------

David R. Parker
Michael W. Miller
R.H. Lovin, Jr.
Joey B. Hogan
Ronald B. Pope

Authorized Officers for Southern Refrigerated:
---------------------------------------------

David R. Parker
Tony Smith
R.H. Lovin, Jr.
Joey B. Hogan

                                       39

<PAGE>

                                   SCHEDULE IV

                           NOTICE ADDRESSES OF PARTIES

If to Covenant Transport, Inc. (Tennessee):

        David Hughes,
        Covenant Transport, Inc.
        400 Birmingham Highway
        Chattanooga, TN  37419
        Ph. (423) 821-1212
        Fax (423) 821-5442

If to Southern Refrigerated Transport, Inc.:

        David Hughes,
        Covenant Transport, Inc.
        400 Birmingham Highway
        Chattanooga, TN  37419
        Ph. (423) 821-1212
        Fax (423) 821-5442

If to CVTI Receivables Corp.:

        David Hughes,
        Covenant Transport, Inc.
        400 Birmingham Highway
        Chattanooga, TN  37419
        Ph. (423) 821-1212
        Fax (423) 821-5442

                                       40

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