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                                                                    EXHIBIT 10.1

                                  AVIALL, INC.
                 AMENDED AND RESTATED 1998 STOCK INCENTIVE PLAN

        1. PURPOSE. The purpose of the Aviall, Inc. Amended and Restated 1998
Stock Incentive Plan is to attract and retain officers and other key employees
for Aviall, Inc., a Delaware corporation and its Subsidiaries and to provide to
such persons incentives and rewards for superior performance.

        2. DEFINITIONS. As used in this Plan:

        "Appreciation Right" means a right granted pursuant to Section 5 of this
Plan, and shall include both Tandem Appreciation Rights and Free-Standing
Appreciation Rights.

        "Base Price" means the price to be used as the basis for determining the
Spread upon the exercise of a Free-Standing Appreciation Right and a Tandem
Appreciation Right.

        "Board" means the Board of Directors of the Company and, to the extent
of any delegation by the Board to a committee (or subcommittee thereof) pursuant
to Section 15 of this Plan, such committee (or subcommittee).

        "Change in Control" shall have the meaning provided in Section 11 of
this Plan.

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

        "Common Shares" means the shares of Common Stock, par value $.01 per
share, of the Company or any security into which such Common Shares may be
changed by reason of any transaction or event of the type referred to in Section
10 of this Plan.

        "Company" means Aviall, Inc., a Delaware corporation.

        "Covered Employee" means a Participant who is, or is determined by the
Board to be likely to become, a "covered employee" within the meaning of Section
162(m) of the Code (or any successor provision).

        "Date of Grant" means the date specified by the Board on which a grant
of Option Rights, Appreciation Rights, Performance Shares or Performance Units
or a grant or sale of Restricted Shares or Deferred Shares shall become
effective (which date shall not be earlier than the date on which the Board
takes action with respect thereto).

        "Deferral Period" means the period of time during which Deferred Shares
are subject to deferral limitations under Section 7 of this Plan.

        "Deferred Shares" means an award made pursuant to Section 7 of this Plan
of the right to receive Common Shares at the end of a specified Deferral Period.

        "Director" means a member of the Board of Directors of the Company.

        "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations thereunder, as such statute, rules and regulations
may be amended from time to time.

        "Free-Standing Appreciation Right" means an Appreciation Right granted
pursuant to Section 5 of this Plan that is not granted in tandem with an Option
Right.

        "Immediate Family" has the meaning ascribed thereto in Rule 16a-1(e)
under the Exchange Act (or any successor rule to the same effect) as in effect
from time to time.

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        "Incentive Stock Options" means Option Rights that are intended to
qualify as "incentive stock options" under Section 422 of the Code or any
successor provision.

        "Management Objectives" means the measurable performance objective or
objectives established pursuant to this Plan for Participants who have received
grants of Performance Shares or Performance Units or, when so determined by the
Board, Option Rights, Appreciation Rights, Restricted Shares and dividend
credits pursuant to this Plan. Management Objectives may be described in terms
of Company-wide objectives or objectives that are related to the performance of
the individual Participant or of the Subsidiary, division, department, region or
function within the Company or Subsidiary in which the Participant is employed.
The Management Objectives may be made relative to the performance of other
corporations. The Management Objectives applicable to any award to a Covered
Employee shall be based on specified levels of or growth in one or more of the
following criteria:

               1.     cash flow/net assets ratio;
               2.     debt/capital ratio;
               3.     return on total capital;
               4.     return on equity;
               5.     return on net assets
               6.     earnings per share;
               7.     revenue;
               8.     total return to stockholders;
               9.     earnings before interest and taxes; and
               10.    earnings before interest, taxes, depreciation
                      and amortization.

        If the Committee determines that a change in the business, operations,
corporate structure or capital structure of the Company, or the manner in which
it conducts its business, or other events or circumstances render the Management
Objectives unsuitable, the Committee may in its discretion modify such
Management Objectives or the related minimum acceptable level of achievement, in
whole or in part, as the Committee deems appropriate and equitable, except in
the case of a Covered Employee where such action would result in the loss of the
otherwise available exemption of the award under Section 162(m) of the Code. In
such case, the Committee shall not make any modification of the Management
Objectives or minimum acceptable level of achievement.

        "Market Value per Share" means, as of any particular date, (i) the
closing sale price per Common Share as reported on the principal exchange on
which Common Shares are then trading, if any, or, if applicable, the NASDAQ
National Market System, on the Date of Grant, or if there are no sales on such
day, on the next preceding trading day during which a sale occurred, or (ii) if
clause (i) does not apply, the fair market value of the Common Shares as
determined by the Board.

        "Non-Employee Director" means a Director who is not an employee of the
Company or any Subsidiary.

        "Optionee" means the optionee named in an agreement evidencing an
outstanding Option Right.

        "Option Price" means the purchase price payable on exercise of an Option
Right.

        "Option Right" means the right to purchase Common Shares upon exercise
of an option granted pursuant to Section 4 of this Plan.

        "Participant" means a person who is selected by the Board to receive
benefits under this Plan and who is at the time an officer, or other key
employee of the Company or any one or more of its Subsidiaries, or who has
agreed to commence serving in any of such capacities within 90 days of the Date
of Grant.

        "Performance Period" means, in respect of a Performance Share or
Performance Unit, a period of time established pursuant to Section 8 of this
Plan within which the Management Objectives relating to such Performance Share
or Performance Unit are to be achieved.

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        "Performance Share" means a bookkeeping entry that records the
equivalent of one Common Share awarded pursuant to Section 8 of this Plan.

        "Performance Unit" means a bookkeeping entry that records a unit
equivalent to $1.00 awarded pursuant to Section 8 of this Plan.

        "Plan" means this Aviall, Inc. Amended and Restated 1998 Stock Incentive
Plan.

        "Restricted Shares" means Common Shares granted or sold pursuant to
Section 6 of this Plan as to which neither the substantial risk of forfeiture
nor the prohibition on transfers referred to in such Section 6 has expired.

        "Rule 16b-3" means Rule 16b-3 under the Exchange Act (or any successor
rule to the same effect) as in effect from time to time.

        "Spread" means the excess of the Market Value per Share on the date when
an Appreciation Right is exercised, or on the date when Option Rights are
surrendered in payment of the Option Price of other Option Rights, over the
Option Price or Base Price provided for in the related Option Right or
Free-Standing Appreciation Right, respectively.

        "Subsidiary" means a corporation, company or other entity (i) more than
50 percent of whose outstanding shares or securities (representing the right to
vote generally in the election of directors or other managing authority) are, or
(ii) which does not have outstanding shares or securities (as may be the case in
a partnership, joint venture or unincorporated association), but more than 50
percent of whose ownership interest representing the right generally to make
decisions for such other entity is, now or hereafter, owned or controlled,
directly or indirectly, by the Company except that for purposes of determining
whether any person may be a Participant for purposes of any grant of Incentive
Stock Options, "Subsidiary" means any corporation in which at the time the
Company owns or controls, directly or indirectly, more than 50 percent of the
total combined voting power represented by all classes of stock issued by such
corporation.

        "Tandem Appreciation Right" means an Appreciation Right granted pursuant
to Section 5 of this Plan that is granted in tandem with an Option Right.

        "Voting Power" means at any time, the total votes relating to the
then-outstanding securities entitled to vote generally in the election of
Directors.

        3.     SHARES AVAILABLE UNDER THIS PLAN.

               (a) Subject to adjustment as provided in Section 3(b) and Section
        10 of this Plan, the number of Common Shares that may be issued or
        transferred (i) upon the exercise of Option Rights or Appreciation
        Rights, (ii) as Restricted Shares and released from substantial risks of
        forfeiture thereof, (iii) as Deferred Shares, (iv) in payment of
        Performance Shares or Performance Units that have been earned, or (v) in
        payment of dividend equivalents paid with respect to awards made under
        this Plan shall not exceed in the aggregate 2,240,000 Common Shares,
        plus any shares described in Section 3(b). Such shares may be shares of
        original issuance or treasury shares or a combination of the foregoing.

               (b) The number of Common Shares available in Section 3(a) above
        shall be adjusted to account for Common Shares relating to awards that
        expire, are forfeited or are transferred, surrendered or relinquished
        upon the payment of any Option Price by the transfer to the Company of
        Common Shares or upon satisfaction of any withholding amount. Upon
        payment in cash of the benefit provided by any award granted under this
        Plan, any shares that were covered by that award shall again be
        available for issue or transfer hereunder.

        (c) Notwithstanding any other provision of this Plan, to the contrary
        and subject to adjustment as provided in Section 10 of this Plan, (i)
        the aggregate number of Common Shares actually issued or transferred by
        the Company upon the exercise of Incentive Stock Options shall not
        exceed

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        2,240,000 Common Shares, and (ii) no Participant shall be granted
        Option Rights and Appreciation Rights, in the aggregate, for more than
        300,000 Common Shares during any year.

               (d) Notwithstanding any other provision of this Plan to the
        contrary, in no event shall any Participant in any calendar year receive
        an award of Performance Shares or Performance Units having an aggregate
        maximum value as of their respective Dates of Grant in excess of
        $400,000.

               (e) Notwithstanding any other provision of this Plan to the
        contrary and subject to adjustment as provided in Section 10 of this
        Plan, from and after June 7, 2001, the aggregate number of Common Shares
        actually issued or transferred under this Plan as Restricted Shares,
        Deferred Shares or Performance Shares shall not exceed 143,008 Common
        Shares.

        4. OPTION RIGHTS. The Board may, from time to time and upon such terms
and conditions as it may determine, authorize the granting to Participants of
options to purchase Common Shares. Each such grant may utilize any or all of the
authorizations, and shall be subject to all of the requirements contained in the
following provisions:

               (a) Each grant shall specify the number of Common Shares to which
        it pertains subject to the limitations set forth in Section 3 of this
        Plan.

               (b) Each grant shall specify an Option Price per share, which may
        not be less than the Market Value per Share on the Date of Grant.

               (c) Each grant shall specify whether the Option Price shall be
        payable (i) in cash or by check acceptable to the Company, (ii) by the
        actual or constructive transfer to the Company of Common Shares owned by
        the Optionee for at least 6 months (or other consideration authorized
        pursuant to Section 4(d)) having a value at the time of exercise equal
        to the total Option Price, or (iii) by a combination of such methods of
        payment.

               (d) The Board may determine, at or after the Date of Grant, that
        payment of the Option Price of any Option Right (other than an Incentive
        Stock Option) may also be made in whole or in part in the form of
        Restricted Shares or other Common Shares that are forfeitable or subject
        to restrictions on transfer, Deferred Shares, Performance Shares (based,
        in each case, on the Market Value per Share on the date of exercise),
        other Option Rights (based on the Spread on the date of exercise) or
        Performance Units. Unless otherwise determined by the Board at or after
        the Date of Grant, whenever any Option Price is paid in whole or in part
        by means of any of the forms of consideration specified in this Section
        4(d), the Common Shares received upon the exercise of the Option Rights
        shall be subject to such risks of forfeiture or restrictions on transfer
        as may correspond to any that apply to the consideration surrendered,
        but only to the extent, determined with respect to the consideration
        surrendered, of (i) the number of shares or Performance Shares, (ii) the
        Spread of any unexercisable portion of Option Rights, or (iii) the
        stated value of Performance Units.

               (e) Any grant may provide for deferred payment of the Option
        Price from the proceeds of sale through a bank or broker on a date
        satisfactory to the Company of some or all of the shares to which such
        exercise relates.

               (f) Successive grants may be made to the same Participant whether
        or not any Option Rights previously granted to such Participant remain
        unexercised.

               (g) Each grant shall specify the period or periods of continuous
        service by the Optionee with the Company or any Subsidiary that is
        necessary before the Option Rights or installments thereof will become
        exercisable and may provide for the earlier exercise of such Option
        Rights in the event of a Change in Control.

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               (h) Any grant of Option Rights may specify Management Objectives
        that must be achieved as a condition to the exercise of such rights.

               (i) Option Rights granted under this Plan may be (i) options,
        including, without limitation, Incentive Stock Options, that are
        intended to qualify under particular provisions of the Code, (ii)
        options that are not intended so to qualify, or (iii) combinations of
        the foregoing.

               (j) The Board may, at or after the Date of Grant of any Option
        Rights (other than Incentive Stock Options), provide for the payment of
        dividend equivalents to the Optionee on either a current or deferred or
        contingent basis or may provide that such equivalents shall be credited
        against the Option Price.

               (k) The exercise of an Option Right shall result in the
        cancellation on a share-for-share basis of any Tandem Appreciation Right
        authorized under Section 5 of this Plan.

               (l) No Option Right shall be exercisable more than 10 years from
        the Date of Grant.

               (m) Each grant of Option Rights shall be evidenced by an
        agreement executed on behalf of the Company by an officer and delivered
        to the Optionee and containing such terms and provisions, consistent
        with this Plan, as the Board may approve.

        5.     APPRECIATION RIGHTS.

               (a) The Board may authorize the granting (i) to any Optionee, of
        Tandem Appreciation Rights in respect of Option Rights granted
        hereunder, and (ii) to any Participant, of Free-Standing Appreciation
        Rights. A Tandem Appreciation Right shall be a right of the Optionee,
        exercisable by surrender of the related Option Right, to receive from
        the Company an amount determined by the Board, which shall be expressed
        as a percentage of the Spread (not exceeding 100 percent) at the time of
        exercise. Tandem Appreciation Rights may be granted at any time prior to
        the exercise or termination of the related Option Rights; provided,
        however, that a Tandem Appreciation Right awarded in relation to an
        Incentive Stock Option must be granted concurrently with such Incentive
        Stock Option. A Free-Standing Appreciation Right shall be a right of the
        Participant to receive from the Company an amount determined by the
        Board, which shall be expressed as a percentage of the Spread (not
        exceeding 100 percent) at the time of exercise.

               (b) Each grant of Appreciation Rights may utilize any or all of
        the authorizations, and shall be subject to all of the requirements,
        contained in the following provisions:

                      (i) Any grant may specify that the amount payable on
               exercise of an Appreciation Right may be paid by the Company in
               cash, in Common Shares or in any combination thereof and may
               either grant to the Participant or retain in the Board the right
               to elect among those alternatives.

                      (ii) Any grant may specify that the amount payable on
               exercise of an Appreciation Right may not exceed a maximum
               specified by the Board at the Date of Grant.

                      (iii) Any grant may specify waiting periods before
               exercise and permissible exercise dates or periods.

                      (iv) Any grant may specify that such Appreciation Right
               may be exercised only in the event of, or earlier in the event
               of, a Change in Control.

                      (v) Any grant may provide for the payment to the
               Participant of dividend equivalents thereon in cash or Common
               Shares on a current, deferred or contingent basis.

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                      (vi) Any grant of Appreciation Rights may specify
               Management Objectives that must be achieved as a condition of the
               exercise of such Rights.

                      (vii) Each grant of Appreciation Rights shall be evidenced
               by an agreement executed on behalf of the Company by an officer
               and delivered to and accepted by the Participant, which agreement
               shall describe such Appreciation Rights, identify the related
               Option Rights (if applicable), state that such Appreciation
               Rights are subject to all the terms and conditions of this Plan,
               and contain such other terms and provisions, consistent with this
               Plan, as the Board may approve.

               (c) Any grant of Tandem Appreciation Rights shall provide that
        such Rights may be exercised only at a time when the related Option
        Right is also exercisable and at a time when the Spread is positive, and
        by surrender of the related Option Right for cancellation.

               (d) Regarding Free-Standing Appreciation Rights only:

                      (i) Each grant shall specify in respect of each
               Free-Standing Appreciation Right a Base Price, which shall be
               equal to or greater or less than the Market Value per Share on
               the Date of Grant;

                      (ii) Successive grants may be made to the same Participant
               regardless of whether any Free-Standing Appreciation Rights
               previously granted to the Participant remain unexercised; and

                      (iii) No Free-Standing Appreciation Right granted under
               this Plan may be exercised more than 10 years from the Date of
               Grant.

        6. RESTRICTED SHARES. The Board may also authorize the grant or sale of
Restricted Shares to Participants. Each such grant or sale may utilize any or
all of the authorizations, and shall be subject to all of the requirements,
contained in the following provisions:

               (a) Each such grant or sale shall constitute an immediate
        transfer of the ownership of Common Shares to the Participant in
        consideration of the performance of services, entitling such Participant
        to voting, dividend and other ownership rights, but subject to the
        substantial risk of forfeiture and restrictions on transfer hereinafter
        referred.

               (b) Each such grant or sale may be made without additional
        consideration or in consideration of a payment by such Participant that
        is less than Market Value per Share at the Date of Grant.

               (c) Each such grant or sale shall provide that the Restricted
        Shares covered by such grant or sale shall be subject to a "substantial
        risk of forfeiture" within the meaning of Section 83 of the Code for a
        period of not less than one year to be determined by the Board at the
        Date of Grant, and may provide for the earlier lapse of such substantial
        risk of forfeiture in the event of a Change in Control.

               (d) Each such grant or sale shall provide that during the period
        for which such substantial risk of forfeiture is to continue, the
        transferability of the Restricted Shares shall be prohibited or
        restricted in the manner and to the extent prescribed by the Board at
        the Date of Grant (which restrictions may include, without limitation,
        rights of repurchase or first refusal in the Company or provisions
        subjecting the Restricted Shares to a continuing substantial risk of
        forfeiture in the hands of any transferee).

               (e) Any grant of Restricted Shares may specify Management
        Objectives that, if achieved, will result in termination or early
        termination of the restrictions applicable to such shares. Each grant
        may specify in respect of such Management Objectives a minimum
        acceptable level of achievement and may set forth a formula for
        determining the number of Restricted Shares on which restrictions will
        terminate if

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        performance is at or above the minimum level, but falls short of
        full achievement of the specified Management Objectives.

               (f) Any such grant or sale of Restricted Shares may require that
        any or all dividends or other distributions paid thereon during the
        period of such restrictions be automatically deferred and reinvested in
        additional Restricted Shares, which may be subject to the same
        restrictions as the underlying award.

               (g) Each grant or sale of Restricted Shares shall be evidenced by
        an agreement executed on behalf of the Company by any officer and
        delivered to and accepted by the Participant and shall contain such
        terms and provisions, consistent with this Plan, as the Board may
        approve. Unless otherwise directed by the Board, all certificates
        representing Restricted Shares shall be held in custody by the Company
        until all restrictions thereon shall have lapsed, together with a stock
        power or powers executed by the Participant in whose name such
        certificates are registered, endorsed in blank and covering such Shares.

        7. DEFERRED SHARES. The Board may also authorize the granting or sale of
Deferred Shares to Participants. Each such grant or sale may utilize any or all
of the authorizations, and shall be subject to all of the requirements contained
in the following provisions:

               (a) Each such grant or sale shall constitute the agreement by the
        Company to deliver Common Shares to the Participant in the future in
        consideration of the performance of services, but subject to the
        fulfillment of such conditions during the Deferral Period as the Board
        may specify.

               (b) Each such grant or sale may be made without additional
        consideration or in consideration of a payment by such Participant that
        is less than the Market Value per Share at the Date of Grant.

               (c) Each such grant or sale shall be subject to a Deferral Period
        of not less than one year, as determined by the Board at the Date of
        Grant, and may provide for the earlier lapse or other modification of
        such Deferral Period in the event of a Change in Control.

               (d) During the Deferral Period, the Participant shall have no
        right to transfer any rights under his or her award and shall have no
        rights of ownership in the Deferred Shares and shall have no right to
        vote them, but the Board may, at or after the Date of Grant, authorize
        the payment of dividend equivalents on such Shares on either a current
        or deferred or contingent basis, either in cash or in additional Common
        Shares.

               (e) Each grant or sale of Deferred Shares shall be evidenced by
        an agreement executed on behalf of the Company by any officer and
        delivered to and accepted by the Participant and shall contain such
        terms and provisions, consistent with this Plan, as the Board may
        approve.

        8. PERFORMANCE SHARES AND PERFORMANCE UNITS. The Board may also
authorize the granting of Performance Shares and Performance Units that will
become payable to a Participant upon achievement of specified Management
Objectives. Each such grant may utilize any or all of the authorizations, and
shall be subject to all of the requirements, contained in the following
provisions:

               (a) Each grant shall specify the number of Performance Shares or
        Performance Units to which it pertains, which number may be subject to
        adjustment to reflect changes in compensation or other factors;
        provided, however, that no such adjustment shall be made in the case of
        a Covered Employee where such action would result in the loss of the
        otherwise available exemption of the award under Section 162(m) of the
        Code.

               (b) The Performance Period with respect to each Performance Share
        or Performance Unit shall be such period of time (not less than one
        year), commencing with the Date of Grant, as shall be determined by the
        Board at the time of grant, which may be subject to earlier lapse or
        other modification in the event of a Change in Control as set forth in
        the agreement specified in Section 8(g).

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               (c) Any grant of Performance Shares or Performance Units shall
        specify Management Objectives which, if achieved, will result in payment
        or early payment of the award, and each grant may specify in respect of
        such specified Management Objectives a minimum acceptable level of
        achievement and shall set forth a formula for determining the number of
        Performance Shares or Performance Units that will be earned if
        performance is at or above the minimum level, but falls short of full
        achievement of the specified Management Objectives. The grant of
        Performance Shares or Performance Units shall specify that, before the
        Performance Shares or Performance Units shall be earned and paid, the
        Board must certify that the Management Objectives have been satisfied.

               (d) Each grant shall specify the time and manner of payment of
        Performance Shares or Performance Units that have been earned. Any grant
        may specify that the amount payable with respect thereto may be paid by
        the Company in cash, in Common Shares or in any combination thereof and
        may either grant to the Participant or retain in the Board the right to
        elect among those alternatives.

               (e) Any grant of Performance Shares may specify that the amount
        payable with respect thereto may not exceed a maximum specified by the
        Board at the Date of Grant. Any grant of Performance Units may specify
        that the amount payable or the number of Common Shares issued with
        respect thereto may not exceed maximums specified by the Board at the
        Date of Grant.

               (f) The Board may, at or after the Date of Grant of Performance
        Shares, provide for the payment of dividend equivalents to the holder
        thereof on either a current or deferred or contingent basis, either in
        cash or in additional Common Shares.

               (g) Each grant of Performance Shares or Performance Units shall
        be evidenced by an agreement executed on behalf of the Company by any
        officer and delivered to and accepted by the Participant, which
        agreement shall state that such Performance Shares or Performance Units
        are subject to all the terms and conditions of this Plan, and contain
        such other terms and provisions, consistent with this Plan, as the Board
        may approve.

        9.     TRANSFERABILITY.

               (a) No Option Right, Appreciation Right or other derivative
        security granted under this Plan shall be transferable by a Participant
        other than by will or the laws of descent and distribution. Except as
        otherwise determined by the Board, Option Rights and Appreciation Rights
        shall be exercisable during the Optionee's lifetime only by him or her
        or by his or her guardian or legal representative.

               (b) The Board may specify at the Date of Grant that part or all
        of the Common Shares that are (i) to be issued or transferred by the
        Company upon the exercise of Option Rights or Appreciation Rights, upon
        the termination of the Deferral Period applicable to Deferred Shares or
        upon payment under any grant of Performance Shares or Performance Units
        or (ii) no longer subject to the substantial risk of forfeiture and
        restrictions on transfer referred to in Section 6 of this Plan, shall be
        subject to further restrictions on transfer.

               (c) Notwithstanding the provisions of Section 9(a), Option Rights
        (other than Incentive Stock Options), Appreciation Rights, Restricted
        Shares, Deferred Shares, Performance Shares and Performance Units shall
        be transferable by a Participant, without payment of consideration
        therefor by the transferee, to any one or more members of the
        Participant's Immediate Family (or to one or more trusts established
        solely for the benefit of one or more members of the Participant's
        Immediate Family or to one or more partnerships in which the only
        partners are members of the Participant's Immediate Family); provided,
        however, that (i) no such transfer shall be effective unless reasonable
        prior notice thereof is delivered to the Company and such transfer is
        thereafter effected in accordance with any terms and conditions that
        shall have been made applicable thereto by the Company or the Board and
        (ii) any such transferee shall be subject to the same terms and
        conditions hereunder as the Participant.

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        10. ADJUSTMENTS. The Board may make or provide for such adjustments in
the numbers of Common Shares covered by outstanding Option Rights, Appreciation
Rights, Deferred Shares, and Performance Shares granted hereunder, in the Option
Price and Base Price provided in outstanding Appreciation Rights, and in the
kind of shares covered thereby, as the Board, in its sole discretion, exercised
in good faith, may determine is equitably required to prevent dilution or
enlargement of the rights of Participants or Optionees that otherwise would
result from (a) any stock dividend, stock split, combination of shares,
recapitalization or other change in the capital structure of the Company, or (b)
any merger, consolidation, spin-off, split-off, spin-out, split-up,
reorganization, partial or complete liquidation or other distribution of assets,
issuance of rights or warrants to purchase securities, or (c) any other
corporate transaction or event having an effect similar to any of the foregoing.
Moreover, in the event of any such transaction or event, the Board, in its
discretion, may provide in substitution for any or all outstanding awards under
this Plan such alternative consideration as it, in good faith, may determine to
be equitable in the circumstances and may require in connection therewith the
surrender of all awards so replaced. The Board may also make or provide for such
adjustments in the numbers of shares specified in Section 3 of this Plan as the
Board in its sole discretion, exercised in good faith, may determine is
appropriate to reflect any transaction or event described in this Section 10;
provided, however, that any such adjustment to the number specified in Section
3(c)(i) shall be made only if and to the extent that such adjustment would not
cause any Option intended to qualify as an Incentive Stock Option to fail so to
qualify.

        11. CHANGE IN CONTROL. For purposes of this Plan, except as may be
otherwise prescribed by the Board in an agreement evidencing a grant or award
made under this Plan, a "Change in Control" shall mean if at any time any of the
following events shall have occurred:

               (a) The Company is merged or consolidated or reorganized into or
        with another corporation or other legal person, and as a result of such
        merger, consolidation or reorganization less than a majority of the
        combined voting power of the then-outstanding securities of such
        corporation or person immediately after such transaction are held in the
        aggregate by the holders of securities entitled to vote generally in the
        election of Directors immediately prior to such transaction;

               (b) The Company sells or otherwise transfers all or substantially
        all of its assets to any other corporation or other legal person, and
        less than a majority of the combined voting power of the
        then-outstanding securities of such corporation or person immediately
        after such sale or transfer is held in the aggregate by the holders of
        Common Shares immediately prior to such sale or transfer;

               (c) There is a report filed on Schedule 13D or Schedule 14D-1 (or
        any successor schedule, form or report), each as promulgated pursuant to
        the Exchange Act, disclosing that any person (as the term "person" is
        used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has
        become the beneficial owner (as the term "beneficial owner" is defined
        under Rule 13d-3 or any successor rule or regulation promulgated under
        the Exchange Act) of securities representing 20% or more of the Voting
        Power; or

               (d) If during any period of two consecutive years, individuals
        who at the beginning of any such period constitute the Directors cease
        for any reason to constitute at least a majority thereof, unless the
        election, or the nomination for election by the Company's stockholders,
        of each Director first elected during such period was approved by a vote
        of at least two-thirds of the Directors then still in office who were
        Directors at the beginning of any such period.

        Notwithstanding the foregoing provisions of Section 11(b) and (c) above,
a "Change in Control" shall not be deemed to have occurred for purposes of this
Plan (i) solely because (A) the Company; (B) a Subsidiary; or (C) any
Company-sponsored employee stock ownership plan or other employee benefit plan
of the Company either files or becomes obligated to file a report under or in
response to Schedule 13D, Schedule 14D-1 or Form 8-K (or any successor schedule,
form or report or item therein) under the Exchange Act, disclosing beneficial
ownership by it of shares, whether in excess of 20% of the Voting Power or
otherwise, or because the Company reports that a change of control of the
Company has or may have occurred or will or may occur in the future by reason of
such beneficial ownership or (ii) solely because of a change in control of any
Subsidiary.

                                       9

<PAGE>   10

        12. FRACTIONAL SHARES. The Company shall not be required to issue any
fractional Common Shares pursuant to this Plan. The Board may provide for the
elimination of fractions or for the settlement of fractions in cash.

        13. WITHHOLDING TAXES. To the extent that the Company is required to
withhold federal, state, local or foreign taxes in connection with any payment
made or benefit realized by a Participant or other person under this Plan, and
the amounts available to the Company for such withholding are insufficient, it
shall be a condition to the receipt of such payment or the realization of such
benefit that the Participant or such other person make arrangements satisfactory
to the Company for payment of the balance of such taxes required to be withheld,
which arrangements (in the discretion of the Board) may include relinquishment
of a portion of such benefit. The Company and a Participant or such other person
may also make similar arrangements with respect to the payment of any taxes with
respect to which withholding is not required.

        14. FOREIGN EMPLOYEES. In order to facilitate the making of any grant or
combination of grants under this Plan, the Board may provide for such special
terms for awards to Participants who are foreign nationals or who are employed
by the Company or any Subsidiary outside of the United States of America as the
Board may consider necessary or appropriate to accommodate differences in local
law, tax policy or custom. Moreover, the Board may approve such supplements to
or amendments, restatements or alternative versions of this Plan as it may
consider necessary or appropriate for such purposes, without thereby affecting
the terms of this Plan as in effect for any other purpose, and the Secretary or
other appropriate officer of the Company may certify any such document as having
been approved and adopted in the same manner as this Plan. No such special
terms, supplements, amendments or restatements, however, shall include any
provisions that are inconsistent with the terms of this Plan as then in effect
unless this Plan could have been amended to eliminate such inconsistency without
further approval by the stockholders of the Company.

        15.    ADMINISTRATION OF THIS PLAN.

               (a) This Plan shall be administered by the Board, which may from
        time to time delegate all or any part of its authority under this Plan
        to a committee of the Board (or subcommittee thereof) consisting of not
        less than two Non-Employee Directors appointed by the Board. A majority
        of the committee (or subcommittee) shall constitute a quorum, and the
        action of the members of the committee (or subcommittee) present at any
        meeting at which a quorum is present, or acts unanimously approved in
        writing, shall be the acts of the committee (or subcommittee). To the
        extent of any such delegation, references in this Plan to the Board
        shall be deemed to be references to any such committee or subcommittee.

               (b) The interpretation and construction by the Board of any
        provision of this Plan or of any agreement, notification or document
        evidencing the grant of Option Rights, Appreciation Rights, Restricted
        Shares, Deferred Shares, Performance Shares or Performance Units and any
        determination by the Board pursuant to any provision of this Plan or of
        any such agreement, notification or document shall be final and
        conclusive. No member of the Board shall be liable for any such action
        or determination made in good faith.

        16. AMENDMENTS, ETC.

               (a) The Board may at any time and from time to time amend this
        Plan in whole or in part; provided, however, that any amendment which
        must be approved by the stockholders of the Company in order to comply
        with applicable law or the rules of the New York Stock Exchange or, if
        the Common Shares are not traded on New York Stock Exchange, the
        principal national securities exchange upon which the Common Shares are
        traded or quoted, shall not be effective unless and until such approval
        has been obtained. Presentation of this Plan or any amendment hereof for
        stockholder approval shall not be construed to limit the Company's
        authority to offer similar or dissimilar benefits under other plans
        without stockholder approval.

                (b) The Board also may permit Participants to elect to defer the
        issuance of Common Shares or the settlement of awards in cash under this
        Plan pursuant to such rules, procedures or programs as it may

                                       10

<PAGE>   11

        establish for purposes of this Plan. The Board also may provide
        that deferred issuances and settlements include the payment or crediting
        of dividend equivalents or interest on the deferral amounts.

               (c) The Board may condition the grant of any award or combination
        of awards authorized under this Plan on the surrender or deferral by the
        Participant of his or her right to receive a cash bonus or other
        compensation otherwise payable by the Company or a Subsidiary to the
        Participant.

               (d) In case of termination of employment by reason of death,
        disability or normal or early retirement, or in the case of hardship or
        other special circumstances, of a Participant who holds an Option Right
        or Appreciation Right not immediately exercisable in full, or any
        Restricted Shares as to which the substantial risk of forfeiture or the
        prohibition or restriction on transfer has not lapsed, or any Deferred
        Shares as to which the Deferral Period has not been completed, or any
        Performance Shares or Performance Units which have not been fully
        earned, or who holds Common Shares subject to any transfer restriction
        imposed pursuant to Section 9(b) of this Plan, the Board may, in its
        sole discretion, accelerate the time at which such Option Right or
        Appreciation Right may be exercised or the time at which such
        substantial risk of forfeiture or prohibition or restriction on transfer
        will lapse or the time when such Deferral Period will end or the time at
        which such Performance Shares or Performance Units will be deemed to
        have been fully earned or the time when such transfer restriction will
        terminate or may waive any other limitation or requirement under any
        such award.

               (e) This Plan shall not confer upon any Participant any right
        with respect to continuance of employment or other service with the
        Company or any Subsidiary, nor shall it interfere in any way with any
        right the Company or any Subsidiary would otherwise have to terminate
        such Participant's employment or other service at any time.

               (f) To the extent that any provision of this Plan would prevent
        any Option Right that was intended to qualify as an Incentive Stock
        Option from qualifying as such, that provision shall be null and void
        with respect to such Option Right. Such provision, however, shall remain
        in effect for other Option Rights and there shall be no further effect
        on any provision of this Plan.

        17. TERMINATION. No grant shall be made under this Plan more than 10
years after the date on which this Plan is first approved by the stockholders of
the Company, but all grants made on or prior to such date shall continue in
effect thereafter subject to the terms thereof and of this Plan.

                                       11<PAGE>   1
                                                                     EXHIBIT 4.1

                                                                  EXECUTION COPY

                         RECEIVABLES PURCHASE AGREEMENT

                            Dated as of June 29, 2001

                                      Among

                                CXP FUNDING, LLC

                                  as the Seller

                                       and

                       ATLANTIC ASSET SECURITIZATION CORP.

                                 as the Investor

                                       and

                         CREDIT LYONNAIS NEW YORK BRANCH

                                    as a Bank

                                       and

                         CREDIT LYONNAIS NEW YORK BRANCH

                                  as the Agent

                                       and

                       CENTEX CONSTRUCTION PRODUCTS, INC.

                        as Parent and as Collection Agent

<PAGE>   2

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                               Page
                                                                                                               ----
<S>                        <C>                                                                                 <C>
PRELIMINARY STATEMENT.............................................................................................1

ARTICLE I

     DEFINITIONS..................................................................................................1
                           SECTION 1.01.    Certain Defined Terms.................................................1
                           SECTION 1.02.    Other Terms..........................................................22

ARTICLE II

     AMOUNTS AND TERMS OF THE PURCHASES..........................................................................22
                           SECTION 2.01.    Purchase Facility....................................................22
                           SECTION 2.02.    Making Purchases.....................................................23
                           SECTION 2.03.    Receivable Interest Computation......................................24
                           SECTION 2.04.    Settlement Procedures................................................24
                           SECTION 2.05.    Fees.................................................................27
                           SECTION 2.06.    Payments and Computations, Etc.......................................27
                           SECTION 2.07.    Dividing or Combining Receivable Interests...........................28
                           SECTION 2.08.    Increased Costs......................................................28
                           SECTION 2.09.    Additional Yield on Receivable Interests Bearing
                                                     a Eurodollar Rate...........................................29
                           SECTION 2.10.    Taxes................................................................29
                           SECTION 2.11.    Security Interest....................................................30
                           SECTION 2.12.    Repurchase Option....................................................31

ARTICLE III

     CONDITIONS OF PURCHASES.....................................................................................32
                           SECTION 3.01.    Conditions Precedent to Initial Purchase.............................32
                           SECTION 3.02.    Conditions Precedent to All Purchases and Reinvestments..............34

ARTICLE IV

     REPRESENTATIONS AND WARRANTIES..............................................................................35
                           SECTION 4.01.    Representations and Warranties of the Seller.........................35
                           SECTION 4.02.    Representations and Warranties of the Collection Agent...............38

</Table>

                                       i
<PAGE>   3

<Table>
<S>                        <C>                                                                                 <C>
ARTICLE V

     COVENANTS...................................................................................................40
                           SECTION 5.01.    Covenants of the Seller..............................................40
                           SECTION 5.02.    Covenants of the Seller and Parent...................................48
                           SECTION 5.03.    Covenant of the Parent...............................................48

ARTICLE VI

     ADMINISTRATION AND COLLECTION OF POOL RECEIVABLES ..........................................................50
                           SECTION 6.01.    Designation of Collection Agent......................................50
                           SECTION 6.02.    Duties of Collection Agent...........................................51
                           SECTION 6.03.    Certain Rights of the Agent..........................................52
                           SECTION 6.04.    Rights and Remedies..................................................53
                           SECTION 6.05.    Further Actions Evidencing Purchases.................................53
                           SECTION 6.06.    Audits; Changes in Credit and Collection Policy......................54
                           SECTION 6.07.    Indemnities by the Collection Agent..................................55

ARTICLE VII

     EVENTS OF TERMINATION.......................................................................................56
                           SECTION 7.01.    Events of Termination................................................56
                           SECTION 7.02.    Stop Purchase Events.................................................60

ARTICLE VIII

     THE AGENT...................................................................................................60
                           SECTION 8.01.    Authorization and Action.............................................60
                           SECTION 8.02.    Agent's Reliance, Etc................................................60
                           SECTION 8.03.    Credit Lyonnais and Affiliates.......................................61
                           SECTION 8.04.    Bank's Purchase Decision.............................................61

ARTICLE IX

     INDEMNIFICATION.............................................................................................62
                           SECTION 9.01.    Indemnities by the Seller............................................62
</Table>

                                       ii
<PAGE>   4

<Table>
<S>                        <C>                                                                                 <C>
ARTICLE X

     MISCELLANEOUS...............................................................................................64
                           SECTION 10.01.   Amendments, Etc......................................................64
                           SECTION 10.02.   Notices, Etc.........................................................65
                           SECTION 10.03.   Assignability........................................................65
                           SECTION 10.04.   Costs, Expenses and Taxes............................................66
                           SECTION 10.05.   No Proceedings.......................................................66
                           SECTION 10.06.   Confidentiality......................................................67
                           SECTION 10.07.   GOVERNING LAW........................................................67
                           SECTION 10.08.   Execution in Counterparts............................................68
                           SECTION 10.09.   Survival of Termination..............................................68
                           SECTION 10.10.   Consent to Jurisdiction..............................................68
                           SECTION 10.11.   WAIVER OF JURY TRIAL.................................................68
</Table>

                                      iii
<PAGE>   5

                                    SCHEDULES

SCHEDULE I        -        Lock-Box Banks
SCHEDULE II       -        Credit and Collection Policy
SCHEDULE III      -        Normal Concentration Limits
SCHEDULE IV       -        Originators

                                     ANNEXES

ANNEX A           -        Form of Seller Report
ANNEX B           -        Form of Lock-Box Agreement
ANNEX C           -        Forms of Opinions of Counsel to the Seller

                                       iv
<PAGE>   6

                                   RECEIVABLES
                               PURCHASE AGREEMENT

                            Dated as of June 29, 2001

                  CXP FUNDING, LLC, a Delaware limited liability company (the
"Seller"),ATLANTIC ASSET SECURITIZATION CORP., a Delaware corporation, CREDIT
LYONNAIS NEW YORK BRANCH, as agent (the "Agent") for the Investors and the Banks
(as defined herein)and as a Bank, and CENTEX CONSTRUCTION PRODUCTS, INC., a
Delaware corporation, as Parent and Collection Agent, agree as follows:

                  PRELIMINARY STATEMENT. The Seller has acquired, and may
continue to acquire, Receivables (as hereinafter defined) from the Parent,
either by purchase or by contribution to the capital of the Seller, as
determined from time to time by the Seller and the Parent. The Seller is
prepared to sell undivided fractional ownership interests (referred to and
defined herein as "Receivable Interests") in the Receivables. Atlantic may, in
its sole discretion, purchase such Receivable Interests, and the Banks shall, if
Atlantic does not, purchase such Receivable Interests, in each case on the terms
set forth herein. Accordingly, the parties agree as follows:

                                   Article I

                                   DEFINITIONS

                  SECTION 1.01. Certain Defined Terms. 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):

                  "Adjusted Eurodollar Rate" means, for any Fixed Period, an
interest rate per annum equal to the rate per annum obtained by dividing (i) the
Eurodollar Rate for such Fixed Period by (ii) a percentage equal to 100% minus
the Eurodollar Rate Reserve Percentage for such Fixed Period.

                  "Administrative Services Agreement" means that Administrative
Services and Lease Agreement dated as of June 29, 2001 by and between the Parent
and the Seller pursuant to which the Parent will provide certain personnel and
equipment and lease office space to the Seller.

                  "Adverse Claim" means a lien, security interest or other
charge or encumbrance, or any other type of preferential arrangement.

<PAGE>   7

                  "Affiliate" means, as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by or is under common
control with such Person or, as used in Sections 6.07, 8.03 (other than the
first sentence of Section 8.03), 8.04, 9.01 and 10.04, is a director or officer
of such Person.

                  "Affiliated Obligor" means any Obligor that is an Affiliate of
another Obligor.

                  "Agent's Account" means the special account (account number
01-25680-0001-00-001) of the Agent maintained at the office of Credit Lyonnais
at 1301 Avenue of the Americas, New York, New York.

                  "Alternate Base Rate" means, as of any date, a fluctuating
interest rate per annum, which rate shall be equal to the higher of:

                           (a) the rate of interest announced by Credit Lyonnais
                  from time to time as its base rate (it being understood that
                  such rate is not necessarily intended to be the lowest rate of
                  interest determined by Credit Lyonnais in connection with
                  extensions of credit); and

                           (b) 1.40% per annum above the Federal Funds Rate for
                  such date.

                  "Asset Purchase Agreement" means, in the case of any Bank, the
liquidity asset purchase agreement entered into by such Bank concurrently with
its execution of this Agreement or of the Assignment and Acceptance pursuant to
which it became party to this Agreement.

                  "Assignee Rate" for any Fixed Period for any Receivable
Interest means an interest rate per annum equal to 2.40% per annum above the
Eurodollar Rate for such Fixed Period; provided, however, that in case of:

                           (i)any Fixed Period on or prior to the first day of
                  which an Investor or Bank shall have notified the Agent that
                  the introduction of or any change in or in the interpretation
                  of any law or regulation makes it unlawful, or any central
                  bank or other governmental authority asserts that it is
                  unlawful, for such Investor or Bank to fund such Receivable
                  Interest at the Assignee Rate set forth above (and such
                  Investor or Bank shall not have subsequently notified the
                  Agent that such circumstances no longer exist),

                                       2
<PAGE>   8

                           (ii) any Fixed Period of one to (and including) 29
                  days (it being understood and agreed that this clause (ii)
                  shall not be applicable to a Fixed Period for which Yield is
                  to be computed by reference to the Eurodollar Rate that is
                  intended to have a one-month duration but due solely to LIBOR
                  interest period convention the duration thereof will be less
                  than 30 days),

                           (iii) any Fixed Period as to which the Agent does not
                  receive notice, by no later than 12:00 noon (New York City
                  time) on the third Business Day preceding the first day of
                  such Fixed Period, that the related Receivable Interest will
                  not be funded by issuance of commercial paper, or

                           (iv) any Fixed Period for a Receivable Interest the
                  Capital of which allocated to the Investors or the Banks is
                  less than $500,000,

the "Assignee Rate" for such Fixed Period shall be an interest rate per annum
equal to the Alternate Base Rate in effect from time to time during such Fixed
Period; provided further that the Agent and the Seller may agree in writing from
time to time upon a different "Assignee Rate."

                  "Atlantic" means Atlantic Asset Securitization Corp. and any
successor or permitted assign of Atlantic that is a receivables investment
company which in the ordinary course of its business issues commercial paper or
other securities to fund its acquisition and maintenance of receivables.

                  "Bank Commitment" of any Bank means, (a) with respect to
Credit Lyonnais, $50,000,000 or such amount as reduced by any assignment entered
into between Credit Lyonnais and other Banks; or (b) with respect to a Bank that
has entered into an assignment, the amount set forth therein as such Bank's Bank
Commitment, in each case as such amount may be reduced by an assignment entered
into between such Bank and an Eligible Assignee, and as may be further reduced
(or terminated) pursuant to the next sentence. Any reduction (or termination) of
the Purchase Limit pursuant to the terms of this Agreement shall reduce ratably
(or terminate) each Bank's Bank Commitment.

                  "Banks" means Credit Lyonnais and each Eligible Assignee that
shall become a party to this Agreement pursuant to Section 10.03.

                  "Business Day" means any day on which (i) banks are not
authorized or required to close in New York City or Dallas,

                                       3
<PAGE>   9

Texas, and (ii) if this definition of "Business Day" is utilized in connection
with the Eurodollar Rate, dealings are carried out in the London interbank
market.

                  "Capital" of any Receivable Interest means the original amount
paid to the Seller for such Receivable Interest at the time of its purchase by
Atlantic or a Bank pursuant to this Agreement, or such amount divided or
combined in accordance with Section 2.07, in each case reduced from time to time
by Collections distributed on account of such Capital pursuant to Section
2.04(d); provided that if such Capital shall have been reduced by any
distribution and thereafter all or a portion of such distribution is rescinded
or must otherwise be returned for any reason, such Capital shall be increased by
the amount of such rescinded or returned distribution, as though it had not been
made.

                  "Centex" means Centex Corporation, a Nevada corporation.

                  "Collection Agent" means at any time the Person then
authorized pursuant to Section 6.01 to administer and collect Pool Receivables,
in its capacity as Collection Agent, which initially will be the Parent.

                  "Collection Agent Fee" has the meaning specified in Section
2.05(a).

                  "Collections" means, with respect to any Receivable, all cash
collections and other cash proceeds of such Receivable, including, without
limitation, all cash proceeds of Related Security with respect to such
Receivable, and any Collection of such Receivable deemed to have been received
pursuant to Section 2.04.

                  "Commitment Termination Date" means the earliest of (a) June
28, 2002, unless, prior to such date (or the date so extended pursuant to this
clause), upon the Seller's request, made not more than 90 nor less than 45 days
prior to the then Commitment Termination Date, one or more Banks having Bank
Commitments equal to 100% of the Purchase Limit shall in their sole discretion
consent, which consent shall be given not more than 30 days nor less than 15
days prior to the then Commitment Termination Date, to the extension of the
Commitment Termination Date to the date occurring 364 days after the then
Commitment Termination Date; provided, however, that any failure of any Bank to
respond to the Seller's request for such extension shall be deemed a denial of
such request by such Bank, (b) the date determined pursuant to Section 7.01, and
(c) the date the Purchase Limit reduces to zero pursuant to Section 2.01(b).

                                       4
<PAGE>   10

                  "Concentration Limit" means (i) at any time for any Obligor
(other than an Obligor referred to in clause (ii) below), the "Normal
Concentration Limit" set forth on Schedule III hereto corresponding to such
Obligor's Debt Rating at such time, and (ii) at any time that Paperboard shall
be an Originator hereunder, for James Hardie N.V. together with any of its
Affiliates, 5%, and for Lafarge Corporation, together with any of its
Affiliates, 8% or such other percentage ("Special Concentration Limit") for such
Obligor designated by the Agent in a writing delivered to the Seller;
provided,that if the Debt Rating of Lafarge Corporation is withdrawn at any time
by either Moody's or S&P or reduced at any time by either Moody's or S&P below
the Debt Rating for Lafarge Corporation on the date hereof, then the Special
Concentration Limit described above in respect of Lafarge Corporation and any of
its Affiliates shall be canceled; and provided, further, that in the case of an
Obligor with any Affiliated Obligor, the Concentration Limit shall be calculated
as if such Obligor and all such Affiliated Obligors are one Obligor; provided,
however, that if the "Normal Concentration Limit" set forth on Schedule III
hereto corresponding to the Debt Rating of such Obligor and Affiliated Obligors
are different, then the lowest such Normal Concentration Limit shall apply to
such Obligor and Affiliated Obligors; and provided further that the Agent may
cancel any Special Concentration Limit upon three Business Days' notice to the
Seller.

                  "Contract" means an agreement between an Originator and an
Obligor, in the form of a written contract or (in the case of any open account
agreement) an invoice conforming to the applicable Originator's Credit and
Collection Policy, pursuant to or under which such Obligor shall be obligated to
pay for merchandise or services from time to time.

                  "Credit Agreement" means the Credit Agreement dated as of
November 10, 2000 (as amended by the amendment dated December 20, 2000) among
the Parent, Republic Holding Corporation, the lenders listed therein, Bank of
America, N.A., as syndication agent, PNC Bank, N.A., as documentation agent and
Bank One, Texas, N.A., as letter of credit issuer and as administrative agent.

                  "Credit and Collection Policy" means, for each Originator,
those receivables credit and collection policies and practices of such
Originator in effect on the date of this Agreement and described in Schedule II
hereto, as modified in compliance with this Agreement.

                  "Credit Lyonnais" means Credit Lyonnais New York Branch, a
branch licensed under the laws of the State of New York of a banking corporation
organized under the laws of the Republic of France.

                                       5
<PAGE>   11

                  "Days Sales Outstanding" means, on any date, an amount equal
to

                      OBPR x 30
                      ----
                        S

where:

                  OBPR =   the aggregate Outstanding Balance of all Pool
                           Receivables at the end of the most recently ended
                           month.

                  S    =   the aggregate Outstanding Balance (in each case at
                           the time of creation) of all Pool Receivables created
                           during the most recently ended month.

                  "Debt" means (i) indebtedness for borrowed money, (ii)
obligations evidenced by bonds, debentures, notes or other similar instruments,
(iii) obligations to pay the deferred purchase price of property or services,
(iv) obligations as lessee under leases which shall have been or should be, in
accordance with generally accepted accounting principles, recorded as capital
leases, and (v) obligations under direct or indirect guaranties in respect of,
and obligations (contingent or otherwise) to purchase or otherwise acquire, or
otherwise to assure a creditor against loss in respect of, indebtedness or
obligations of others of the kinds referred to in clauses (i) through (iv)
above.

                  "Debt Rating" means, for any Person, the rating by S&P or
Moody's of such Person's short-term senior unsecured non-credit-enhanced debt.

                  "Default Ratio" means the ratio (expressed as a percentage)
computed as of the last day of each calendar month by dividing (i) the aggregate
Outstanding Balance of all Originator Receivables that were Defaulted
Receivables on such day or that would have been Defaulted Receivables on such
day had they not been written off the books of an Originator or the Seller
during such month by (ii) the aggregate Outstanding Balance of all Originator
Receivables on such day.

                                       6
<PAGE>   12

                  "Defaulted Receivable" means an Originator Receivable:

                           (i) as to which any payment, or part thereof, remains
                  unpaid for 91 or more days from the original due date for such
                  payment;

                           (ii) as to which the Obligor thereof or any other
                  Person obligated thereon or owning any Related Security in
                  respect thereof has taken any action, or suffered any event to
                  occur, of the type described in Section 7.01(g); or

                           (iii) which, consistent with the applicable
                  Originator's Credit and Collection Policy, would be written
                  off the applicable Originator's or the Seller's books as
                  uncollectible.

                  "Delinquency Ratio" means the ratio (expressed as a
percentage) computed as of the last day of each calendar month by dividing (i)
the aggregate Outstanding Balance of all Originator Receivables that were
Delinquent Receivables on such day by (ii) the aggregate Outstanding Balance (in
each case, at the time of creation) of all Originator Receivables created during
the fourth preceding month.

                  "Delinquent Receivable" means an Originator Receivable that is
not a Defaulted Receivable and:

                           (i) as to which any payment, or part thereof, remains
                  unpaid for 61 or more days from the original due date for such
                  payment; or

                           (ii) which, consistent with the applicable
                  Originator's Credit and Collection Policy, would be classified
                  as delinquent by the applicable Originator or the Seller.

                  "Diluted Receivable" means that portion (and only that
portion) of any Originator Receivable which is either (a) reduced or canceled as
a result of (i) any defective, rejected or returned merchandise or services or
any failure by an Originator to deliver any merchandise or provide any services
or otherwise to perform under the underlying Contract, (ii) any change in the
terms of or cancellation of a Contract or any cash discount, discount for quick
payment or other adjustment by an Originator or any other Person which reduces
the amount payable by the Obligor on the related Originator Receivable (except
any such change or cancellation resulting from or relating to the financial
inability to pay or insolvency of the Obligor of such Originator Receivable) or
(iii) any set-off by an Obligor in

                                       7
<PAGE>   13

respect of any claim by such Obligor as to amounts owed by it on the related
Originator Receivable (whether such claim arises out of the same or a related
transaction or an unrelated transaction) or (b) subject to any specific dispute,
offset, counterclaim or defense whatsoever (except the discharge in bankruptcy
of the Obligor thereof), including, without limitation, any non-payment by the
Obligor due to failure by an Originator to deliver any merchandise or provide
any services; provided that Diluted Receivables are calculated assuming that all
chargebacks are resolved in the Obligor's favor and do not include contractual
adjustments to the amount payable by an Obligor that are eliminated from an
Originator Receivables balance sold to the Seller through a reduction in the
purchase price paid by the Seller for the related Originator Receivable.

                  "Dilution Horizon Factor" means, as of any date, a ratio
(expressed as a percentage) computed by dividing (i) the aggregate Outstanding
Balance (in each case, at the time of creation) of all Originator Receivables
created by the Originators during the most recently ended calendar month by (ii)
the Outstanding Balance of Eligible Receivables in the Receivables Pool as at
the last day of the most recently ended calendar month.

                  "Dilution Percentage" means, as of any date, the greater of
(a) the product of (i) the sum of (A) the product of (1) two multiplied by (2)
the average of the Dilution Ratios for each of the twelve most recently ended
calendar months, plus (B) the Dilution Volatility Ratio as at the last day of
the most recently ended calendar month, multiplied by (ii) the Dilution Horizon
Factor as of such date and (b) 10%.

                  "Dilution Ratio" means, as of any date, the ratio (expressed
as a percentage) computed for the most recently ended calendar month by dividing
(i) the aggregate amount of Originator Receivables which became Diluted
Receivables during such calendar month by (ii) the aggregate Outstanding Balance
(in each case, at the time of creation) of all Originator Receivables created
during the calendar month immediately preceding such calendar month.

                  "Dilution Reserve" means, for any Receivable Interest on any
date, an amount equal to:

                                     DP x C

where:

                  DP    =       the Dilution Percentage on such date.

                                       8
<PAGE>   14

                  C     =       the Capital of such Receivable Interest on such
                                date.

                  "Dilution Volatility Ratio" means, as of any date, a ratio
(expressed as a percentage) equal to the product of (a) the highest of the
Dilution Ratios calculated for each of the twelve most recently ended calendar
months minus the average of the Dilution Ratios for each of the twelve most
recently ended calendar months, and (b) a ratio calculated by dividing the
highest of the Dilution Ratios calculated for each of the twelve most recently
ended calendar months by the average of the Dilution Ratios for each of the
twelve most recently ended calendar months.

                  "Eligible Assignee" means (i) Credit Lyonnais or any of its
Affiliates, (ii) any Person managed by Credit Lyonnais or any of its Affiliates
that is approved in writing by the Seller (such approval not to be unreasonably
withheld or delayed), or (iii) any financial or other institution acceptable to
the Agent that is approved in writing by the Seller (such approval not to be
unreasonably withheld or delayed); provided that if an Event of Termination or
Incipient Event of Termination has occurred and is continuing at the time of
such assignment, no approval by the Seller shall be required under clause (ii)
or (iii).

                  "Eligible Receivable" means, at any time, a Receivable:

                           (i) the Obligor of which (A) is a United States
                  resident, (B) is not an Affiliate of the Parent or any
                  Originator, (C) is not a government or a governmental
                  subdivision or agency and (D) is not USG Corporation or any of
                  its Subsidiaries, including, without limitation, L&W Supply
                  Corporation;

                           (ii) the Obligor of which, at the Origination Date,
                  is not the Obligor of any Defaulted Receivables which in the
                  aggregate constitute 30% or more of the aggregate Outstanding
                  Balance of all Receivables of such Obligor;

                           (iii) which is not a Defaulted or Delinquent
                  Receivable;

                           (iv) which, according to the Contract related
                  thereto, is required to be paid in full within 60 days of the
                  original billing date therefor;

                           (v) which is an "account" within the meaning of
                  Article 9 of the UCC of the applicable jurisdictions

                                       9
<PAGE>   15

                  governing the perfection of the interest created by a
                  Receivable Interest;

                           (vi) which is denominated and payable only in United
                  States dollars in the United States;

                           (vii) which arises under a Contract which, together
                  with such Receivable, is in full force and effect and
                  constitutes the legal, valid and binding obligation of the
                  Obligor of such Receivable and is not subject to any Adverse
                  Claim or, at the Origination Date, any dispute, offset,
                  counterclaim or defense whatsoever (except the potential
                  discharge in bankruptcy of such Obligor);

                           (viii) which, together with the Contract related
                  thereto, does not contravene in any material respect any laws,
                  rules or regulations applicable thereto (including, without
                  limitation, laws, rules and regulations relating to usury,
                  consumer protection, truth in lending, fair credit billing,
                  fair credit reporting, equal credit opportunity, fair debt
                  collection practices and privacy) and with respect to which
                  none of the Seller, the applicable Originator or the Obligor
                  is in violation of any such law, rule or regulation in any
                  material respect;

                           (ix) which arises under a Contract which (A) does not
                  require the Obligor thereunder to consent to the transfer,
                  sale or assignment of the rights and duties of the Seller or
                  the applicable Originator thereunder and (B) does not contain
                  a confidentiality provision that purports to restrict the
                  ability of the Agent, the Investors or the Banks to exercise
                  their rights under this Agreement, including, without
                  limitation, their right to review the Contract;

                           (x) which was generated in the ordinary course of the
                  applicable Originator's business;

                           (xi) which, at the Origination Date, has not been
                  extended, rewritten or otherwise modified from the original
                  terms thereof for credit-related reasons;

                           (xii) the transfer, sale or assignment of which does
                  not contravene any applicable law, rule or regulation;

                                       10
<PAGE>   16

                           (xiii) which satisfies all applicable requirements of
                  the applicable Originator's Credit and Collection Policy; and

                           (xiv) as to which, prior to the Origination Date, the
                  Agent has not notified the Seller that such Receivable (or the
                  Obligor of such Receivable) is, in the reasonable good faith
                  judgment of Atlantic and the Banks, no longer acceptable for
                  purchase by Atlantic and the Banks hereunder.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, and the regulations promulgated and rulings
issued thereunder.

                  "Eurocurrency Liabilities" has the meaning assigned to that
term in Regulation D of the Board of Governors of the Federal Reserve System, as
in effect from time to time.

                  "Eurodollar Rate" means, for any Fixed Period, an interest
rate per annum determined by the Agent equal to the offered rate per annum for
deposits in U.S. dollars in an amount substantially equal to the Capital
associated with such Fixed Period on the first day of such Fixed Period and for
a period equal to such Fixed Period, as of 11:00 A.M., London time, two Business
Days prior to the first day of the applicable Fixed Period, that appears on the
display designated as "Page 3750" on the Telerate Service (or such other page as
may replace "Page 3750" on that service for the purpose of displaying London
interbank offered rates of major banks); provided, that if such rate is not
available on any date when the Eurodollar Rate is to be determined, then the
rate shall be an interest rate per annum determined by the Agent equal to the
rate at which it would offer deposits in U.S. dollars to prime banks in the
London interbank market for a period equal to such Fixed Period and in an amount
substantially equal to the Capital associated with such Fixed Period at or about
11:00 A.M. (London Time) on the second Business Day before (and for value on)
the first day of such Fixed Period.

                  "Eurodollar Rate Reserve Percentage" of any Investor or Bank
for any Fixed Period in respect of which Yield is computed by reference to the
Eurodollar Rate means the reserve percentage applicable two Business Days before
the first day of such Fixed Period under regulations issued from time to time by
the Board of Governors of the Federal Reserve System (or any successor) (or if
more than one such percentage shall be applicable, the daily average of such
percentages for those days in such Fixed Period during which any such percentage
shall be so applicable) for determining the maximum reserve requirement
(including, without

                                       11
<PAGE>   17

limitation, any emergency, supplemental or other marginal reserve requirement)
for such Investor or Bank with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the interest rate on
Eurocurrency Liabilities is determined) having a term equal to such Fixed
Period.

                  "Event of Termination" has the meaning specified in Section
7.01.

                  "Facility Termination Date" means the earliest of (a) June 10,
2004 or (b) the date determined pursuant to Section 7.01 or (c) the date the
Purchase Limit reduces to zero pursuant to Section 2.01(b) or (d) the Commitment
Termination Date.

                  "Federal Funds Rate" means, for any period, a fluctuating
interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published
for any day which is a Business Day, the average of the quotations for such day
on such transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.

                  "Fee Agreement" has the meaning specified in Section 2.05(b).

                  "Fees" has the meaning specified in Section 2.05(b).

                  "Fixed Period" means with respect to any Receivable Interest:

                           (a) initially the period commencing on the date of
                  purchase of such Receivable Interest and ending such number of
                  days as the Seller shall select and the Agent shall approve
                  pursuant to Section 2.02, up to three months from such date;
                  and

                           (b) thereafter each period commencing on the last day
                  of the immediately preceding Fixed Period for such Receivable
                  Interest and ending such number of days (not to exceed three
                  months) as the Seller shall select and the Agent shall approve
                  on notice by the Seller received by the Agent (including
                  notice by telephone, confirmed in writing) not later than
                  11:00 A.M. (New

                                       12
<PAGE>   18

                  York City time) on such last day, except that if the Agent
                  shall not have received such notice or approved such period on
                  or before 11:00 A.M. (New York City time) on such last day,
                  such period shall be one day;

provided that (i) any Fixed Period in respect of which Yield is computed by
reference to the Assignee Rate shall be a period from one to and including 29
days, or a period of one, two or three months, as the Seller may select as
provided above; (ii) any Fixed Period (other than of one day) which would
otherwise end on a day which is not a Business Day shall be extended to the next
succeeding Business Day (provided, however, if Yield in respect of such Fixed
Period is computed by reference to the Eurodollar Rate, and such Fixed Period
would otherwise end on a day which is not a Business Day, and there is no
subsequent Business Day in the same calendar month as such day, such Fixed
Period shall end on the next preceding Business Day); (iii) in the case of any
Fixed Period of one day, (A) if such Fixed Period is the initial Fixed Period
for a Receivable Interest, such Fixed Period shall be the day of purchase of
such Receivable Interest; (B) any subsequently occurring Fixed Period which is
one day shall, if the immediately preceding Fixed Period is more than one day,
be the last day of such immediately preceding Fixed Period, and, if the
immediately preceding Fixed Period is one day, be the day next following such
immediately preceding Fixed Period; and (C) if such Fixed Period occurs on a day
immediately preceding a day which is not a Business Day, such Fixed Period shall
be extended to the next succeeding Business Day; and (iv) in the case of any
Fixed Period for any Receivable Interest which commences before the Termination
Date for such Receivable Interest and would otherwise end on a date occurring
after such Termination Date, such Fixed Period shall end on such Termination
Date and the duration of each Fixed Period which commences on or after the
Termination Date for such Receivable Interest shall be of such duration as shall
be selected by the Agent or, in the absence of any such selection, each period
of thirty days from the last day of the immediately preceding Fixed Period.

                  "Incipient Event of Termination" means an event that but for
notice or lapse of time or both would constitute an Event of Termination.

                  "Investor" means Atlantic and all other owners by permitted
assignment of a Receivable Interest originally purchased by Atlantic and, to the
extent of the undivided interests so purchased, shall include any participants.

                  "Investor Rate" for any Fixed Period for any Receivable
Interest means to the extent Atlantic funds such Receivable Interest for such
Fixed Period by issuing commercial paper, the

                                       13
<PAGE>   19

rate per annum (or if more than one rate, the weighted average of the rates) at
which commercial paper notes of Atlantic having a term equal to such Fixed
Period and to be issued to fund such Receivable Interest may be sold by any
placement agent or commercial paper dealer selected by the Agent on behalf of
Atlantic, as agreed between each such agent or dealer and the Agent and notice
of which has been given by the Agent to the Collection Agent; provided if the
rate (or rates) as agreed between any such agent or dealer and the Agent for any
Fixed Period for any Receivable Interest is a discount rate (or rates), then
such rate shall be the rate (or if more than one rate, the weighted average of
the rates) resulting from converting such discount rate (or rates) to an
interest-bearing equivalent rate per annum.

                  "Liquidation Day" means, for any Receivable Interest, (i) each
day during a Fixed Period for such Receivable Interest on which the conditions
set forth in Section 3.02 are not satisfied, and (ii) each day which occurs on
or after the Termination Date for such Receivable Interest.

                  "Liquidation Fee" means, for (i) any Fixed Period during which
a Liquidation Day occurs or (ii) any Fixed Period for which Yield is computed by
reference to the Investor Rate or the Eurodollar Rate and a reduction of Capital
is made for any reason on any day other than the last day of such Fixed Period,
the amount, if any, by which (A) the additional Yield (calculated without taking
into account any Liquidation Fee or any shortened duration of such Fixed Period
pursuant to clause (iv) of the definition thereof) which would have accrued
during such Fixed Period on the reductions of Capital of the Receivable Interest
relating to such Fixed Period had such reductions remained as Capital, exceeds
(B) the income, if any, received by the Investors or the Banks which hold such
Receivable Interest from the investment of the proceeds of such reductions of
Capital.

                  "Lock-Box Account" means a post office box administered by a
Lock-Box Bank or an account maintained at a Lock-Box Bank, in each case for the
purpose of receiving Collections.

                  "Lock-Box Agreement" means an agreement, in substantially the
form of Annex B.

                  "Lock-Box Bank" means any of the banks holding one or more
Lock-Box Accounts.

                  "Loss Horizon Factor" means, as of any date, a ratio
(expressed as a percentage) computed by dividing (i) the aggregate Outstanding
Balance (in each case, at the time of creation) of all Originator Receivables
created by the

                                       14
<PAGE>   20

Originators during the three most recently ended calendar months by (ii) the Net
Receivables Pool Balance as at the last day of the most recently ended calendar
month.

                  "Loss Percentage" means, as of any date, the greater of (a)
the product of (i) two multiplied by (ii) the Loss Horizon Factor as of the last
day of the most recently ended calendar month multiplied by (iii) the highest of
the Loss Ratios for the twelve most recently ended calendar months and (b) (i)
if Paperboard is then an Originator and the Special Concentration Limit for
either James Hardie N.V. or Lafarge Corporation exceeds the Normal Concentration
Limit, 20% and (ii) otherwise, 12%.

                  "Loss Ratio" means, as of any date, the average of the ratios
(each expressed as a percentage) for each of the three most recently ended
calendar months computed for each such month by dividing (a) the sum of the
aggregate Outstanding Balance of Originator Receivables which were 61-90 days
past due as at the last day of such month plus (without duplication) 1/12 of the
aggregate write-offs during such month and the preceding 11 months, by (b) the
aggregate Outstanding Balance (in each case, at the time of creation) of
Originator Receivables created during the fourth preceding month.

                  "Loss Reserve" means, for any Receivable Interest on any date,
an amount equal to:

                           LP x NRPB x  C
                                       ---
                                       AC

where:

                  LP      =   the Loss Percentage on such date.

                  NRPB    =   the Net Receivables Pool Balance on such date.

                  C       =   the Capital of such Receivable Interest on such
                              date.

                  AC      =   the aggregate Capital of all Receivable Interests
                              on such date.

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

                  "Net Receivables Pool Balance" means at any time the
Outstanding Balance of Eligible Receivables then in the Receivables Pool reduced
by the sum of (i) the aggregate amount by which the Outstanding Balance of
Eligible Receivables of each Obligor then in the Receivables Pool exceeds the
product of

                                       15
<PAGE>   21

(A) the Concentration Limit for such Obligor multiplied by (B) the Outstanding
Balance of Eligible Receivables of such Obligor, (ii) the aggregate amount of
Collections on hand at such time for payment on account of any Eligible
Receivables, the Obligor of which has not been identified and (iii) the
aggregate Outstanding Balance of all Eligible Receivables in respect of which
any credit memo issued by an Originator or the Seller is outstanding at such
time to the extent deemed Collections have not been paid pursuant to Section
2.04(e).

                  "Non-Significant Originator" means at any time an Originator,
where the Outstanding Balance of Receivables acquired from such Originator
pursuant to the Originator Purchase Agreement is less than 10% of the
Outstanding Balance of all Receivables at such time.

                  "Obligor" means a Person obligated to make payments pursuant
to a Contract.

                  "Origination Date" means (i) the date of this Agreement, with
respect to Receivables existing on such date and (ii) the date on which such
Receivable is created, with respect to all other Receivables.

                  "Originator" means each Person listed on Schedule IV hereto as
such Schedule shall be amended from time to time; provided that none of Illinois
Cement Company, Joint Venture, Paperboard or Texas Lehigh Cement Company, LP
shall be an Originator hereunder until (i) such Person is designated as such by
the Seller in a written notice to the Agent, (ii) the Agent shall have completed
its due diligence and obtained credit approval for such Person, (iii) the Agent
shall have received all agreements, documents and opinions as it may have
reasonably requested with respect to such Person (which shall be comparable to
the agreements, documents and opinions obtained by the Agent with respect to
each Originator pursuant to Section 3.01), and (iv) the Agent shall have
received a confirmation by each of S&P and Moody's similar to that obtained
pursuant to Section 3.01(m).

                  "Originator Purchase Agreement" means the Originator Purchase
Agreement dated as of the date of this Agreement among the Originators, as
sellers, and the Parent, as purchaser, as the same may be amended, modified or
restated from time to time.

                  "Originator Receivable" means the indebtedness of any Obligor
(other than an Obligor that does not meet the requirements of clause (i) of the
definition of "Eligible Receivable") resulting from the provision or sale of
merchandise or services by an Originator under a Contract, and includes the

                                       16
<PAGE>   22

right to payment of any interest or finance charges and other obligations of
such Obligor with respect thereto.

                  "Other Companies" means the Parent, the Originators and all of
their respective Subsidiaries except the Seller.

                  "Outstanding Balance" of any Receivable or an Originator
Receivable, as the case may be, at any time means the then outstanding principal
balance thereof.

                  "Paperboard" means Republic Paperboard Company, LLC, a
Delaware limited liability company.

                  "Parent" means Centex Construction Products, Inc., a Delaware
corporation.

                  "Parent/Seller Purchase Agreement" means the Purchase and
Contribution Agreement dated as of the date of this Agreement between the
Parent, as seller, and the Seller, as purchaser, as the same may be amended,
modified or restated from time to time.

                  "Percentage" of any Bank means, (a) with respect to Credit
Lyonnais, the percentage set forth on the signature page to this Agreement, or
such amount as reduced by any Assignment and Acceptance entered into with an
Eligible Assignee, or (b) with respect to a Bank that has entered into an
Assignment and Acceptance, the amount set forth therein as such Bank's
Percentage, or such amount as reduced by an Assignment and Acceptance entered
into between such Bank and an Eligible Assignee.

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

                  "Pool Receivable" means a Receivable in the Receivables Pool.

                  "Purchase Limit" means $50,000,000, as such amount may be
reduced pursuant to Section 2.01(b). References to the unused portion of the
Purchase Limit shall mean, at any time, the Purchase Limit, as then reduced
pursuant to Section 2.01(b), minus the then outstanding Capital of Receivable
Interests under this Agreement.

                  "Purchase Price Note" has the meaning specified in the
Parent/Seller Purchase Agreement.

                                       17
<PAGE>   23

                  "Receivable" means any Originator Receivable which has been
acquired by the Parent from an Originator pursuant to the Originator Purchase
Agreement and acquired by the Seller from the Parent by purchase or by capital
contribution pursuant to the Parent/Seller Purchase Agreement.

                  "Receivable Interest" means, at any time, an undivided
percentage ownership interest in (i) all then outstanding Pool Receivables
arising prior to the time of the most recent computation or recomputation of
such undivided percentage interest pursuant to Section 2.03, (ii) all Related
Security with respect to such Pool Receivables, and (iii) all Collections with
respect to, and other proceeds of, such Pool Receivables. Such undivided
percentage interest shall be computed as

                                C + YFR + LR + DR
                                -----------------
                                      NRPB

where:

                  C    =   the Capital of such Receivable Interest at the time
                           of computation.

                  YFR  =   the Yield and Fee Reserve of such Receivable Interest
                           at the time of computation.

                  LR   =   the Loss Reserve of such Receivable Interest at the
                           time of computation.

                  DR   =   the Dilution Reserve of such Receivable Interest at
                           the time of computation.

                  NRPB =   the Net Receivables Pool Balance at the time of
                           computation.

Each Receivable Interest shall be determined from time to time pursuant to the
provisions of Section 2.03.

                  "Receivables Pool" means at any time the aggregation of all
then outstanding Receivables.

                  "Related Security" means with respect to any Receivable

                           (i) all of the Seller's interest in any merchandise
                  (including returned merchandise) relating to any sale giving
                  rise to such Receivable;

                           (ii) all security interests or liens and property
                  subject thereto from time to time purporting to secure payment
                  of such Receivable, whether pursuant to the

                                       18
<PAGE>   24

                  Contract related to such Receivable or otherwise, together
                  with all financing statements signed by an Obligor describing
                  any collateral securing such Receivable;

                           (iii) all guaranties, insurance and other agreements
                  or arrangements of whatever character from time to time
                  supporting or securing payment of such Receivable whether
                  pursuant to the Contract related to such Receivable or
                  otherwise; and

                           (iv) the Contract and all other books, records and
                  other information (including, without limitation, computer
                  programs, tapes, discs, punch cards, data processing software
                  and similar property and rights) relating to such Receivable
                  and the related Obligor.

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

                  "SEC" means the Securities and Exchange Commission.

                  "Seller Report" means a report in substantially the form of
Annex A hereto and containing such additional information as the Agent may
reasonably request from time to time, furnished by the Collection Agent to the
Agent pursuant to Section 6.02(g).

                  "Settlement Date" for any Receivable Interest means the last
day of each Fixed Period for such Receivable Interest.

                  "Subsidiary" of a specified Person means any corporation or
other entity of which securities having ordinary voting power to elect a
majority of the board of directors or other persons performing similar functions
are at the time directly or indirectly owned by such Person, or one or more of
such Person's Subsidiaries, or by such Person and one or more of such Person's
Subsidiaries.

                  "Tangible Net Worth" means at any time the excess of (i) the
sum of (a) the product of (x) 100% minus the Discount (as such term is defined
in the Parent/Seller Purchase Agreement) multiplied by (y) the Outstanding
Balance of all Receivables plus (b) cash and cash equivalents of the Seller plus
(c) the outstanding principal amount of Purchaser Loans (as such term is defined
in the Parent/Seller Purchase Agreement), minus (ii) the sum of (a) Capital plus
(b) the outstanding principal amount of the Purchase Price Note.

                  "Termination Date" for any Receivable Interest means (i) in
the case of a Receivable Interest owned by an Investor,

                                       19
<PAGE>   25

the earlier of (a) the Business Day which the Seller or the Agent so designates
by notice to the other at least one Business Day in advance for such Receivable
Interest and (b) the Facility Termination Date and (ii) in the case of a
Receivable Interest owned by a Bank, the earlier of (a) the Business Day which
the Seller so designates by notice to the Agent at least one Business Day in
advance for such Receivable Interest and (b) the Commitment Termination Date.

                  "Transaction Document" means any of this Agreement, the
Originator Purchase Agreement, the Parent/Seller Purchase Agreement, the
Lock-Box Agreements, the Fee Agreement, the Administrative Services Agreement
and all other agreements and documents designated by the mutual agreement of the
parties hereto as "Transaction Documents" from time to time, and all amendments
and supplements hereto or thereto.

                  "UCC" means the Uniform Commercial Code as from time to time
in effect in the specified jurisdiction.

                  "Yield" means:

                           (i) for each Receivable Interest for any Fixed Period
                  to the extent Atlantic will be funding such Receivable
                  Interest through the issuance of commercial paper notes,

                                    IR x C x ED  + LF
                                             ---
                                             360

                           (ii) for each Receivable Interest for any Fixed
                  Period to the extent (x) Atlantic will not be funding such
                  Receivable Interest through the issuance of commercial paper
                  notes, or (y) the Banks will be funding such Receivable
                  Interest,

                                    AR x C x ED  + LF
                                             ---
                                             360

where:

                  AR    =  the Assignee Rate for such Receivable Interest for
                           such Fixed Period

                  C     =  the Capital of such Receivable Interest during such
                           Fixed Period

                  IR    =  the Investor Rate for such Receivable Interest for
                           such Fixed Period

                                       20

<PAGE>   26

                  ED    =  the actual number of days elapsed during such Fixed
                           Period

                  LF    =  the Liquidation Fee, if any, for such Receivable
                           Interest for such Fixed Period

provided that no provision of this Agreement shall require the payment or permit
the collection of Yield in excess of the maximum permitted by applicable law;
and provided further that Yield for any Receivable Interest shall not be
considered paid by any distribution to the extent that at any time all or a
portion of such distribution is rescinded or must otherwise be returned for any
reason.

                  "Yield and Fee Reserve" means, for any Receivable Interest on
any date, an amount equal to

                                (C x YFRP) + AUYF

where:

                  C    =   the Capital of such Receivable Interest at the close
                           of business of the Collection Agent on such date.

                  YFRP =   the Yield and Fee Reserve Percentage on such date.

                  AUYF =   accrued and unpaid Yield, Collection Agent Fee and
                           Fees on such date, in each case for such Receivable
                           Interest.

                  "Yield and Fee Reserve Percentage" means, on any date, a
percentage equal to

                              (AER + CAF) x 2 x DSO
                              ---------------------
                                       360

where:

                  AER =    the one-month Adjusted Eurodollar Rate in effect on
                           such date.

                  CAF =    the percentage per annum used in the calculation of
                           the Collection Agent Fee in effect on such date.

                  DSO =    the Days Sales Outstanding on such date.

                                       21
<PAGE>   27

                  SECTION 1.02. Other Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles. All terms used in Article 9 of the UCC in the
State of New York, and not specifically defined herein, are used herein as
defined in such Article 9.

                                   ARTICLE II

                       AMOUNTS AND TERMS OF THE PURCHASES

                  SECTION 2.01. Purchase Facility. (a) On the terms and
conditions hereinafter set forth, Atlantic may, in its sole discretion, and the
Banks shall, ratably in accordance with their respective Bank Commitments,
purchase Receivable Interests from the Seller from time to time during the
period from the date hereof to the Facility Termination Date (in the case of
Atlantic) and to the Commitment Termination Date (in the case of the Banks).
Under no circumstances shall Atlantic make any such purchase, or the Banks be
obligated to make any such purchase, if after giving effect to such purchase the
aggregate outstanding Capital of Receivable Interests (after giving effect to
any reduction of Capital of Receivable Interests held by any Investor to be made
on the date of such purchase from the proceeds of any purchases by the Banks)
would exceed the Purchase Limit.

                  (b) The Seller may at any time, upon at least 30 days' notice
to the Agent, terminate the facility provided for in this Agreement in whole or,
from time to time, reduce in part the unused portion of the Purchase Limit;
provided that each partial reduction shall be in the amount of at least
$10,000,000 or an integral multiple of $1,000,000 in excess thereof; provided,
however, that one partial reduction in an amount less than $10,000,000 shall be
permitted in each calendar quarter.

                  (c) Until the Agent gives the Seller the notice provided in
Section 3.02(c)(iii), the Agent, on behalf of the Investors which own Receivable
Interests, shall have the Collections attributable to such Receivable Interests
automatically reinvested pursuant to Section 2.04 in additional undivided
percentage interests in the Pool Receivables by making an appropriate
readjustment of such Receivable Interests. The Agent, on behalf of the Banks
which own Receivable Interests, shall have the Collections attributable to such
Receivable Interests automatically reinvested pursuant to Section 2.04 in
additional undivided percentage interests in the Pool Receivables by making an
appropriate readjustment of such Receivable Interests.

                                       22
<PAGE>   28

                  SECTION 2.02. Making Purchases. (a) Each purchase by Atlantic
or the Banks shall be made on at least three Business Days' notice from the
Seller to the Agent. Each such notice of a purchase shall specify (i) the amount
requested to be paid to the Seller (such amount, which shall not be less than
$1,000,000, being referred to herein as the initial "Capital" of the Receivable
Interest then being purchased), (ii) the date of such purchase (which shall be a
Business Day), and (iii) the requested duration of the initial Fixed Period for
such Receivable Interest. The Agent shall promptly thereafter notify the Seller
whether Atlantic has determined to make a purchase and, if so, whether all of
the terms specified by the Seller are acceptable to Atlantic.

                  If Atlantic has determined not to make a proposed purchase,
the Agent shall promptly send notice of the proposed purchase to all of the
Banks concurrently by telecopier, telex or cable specifying the date of such
purchase, each Bank's Percentage multiplied by the aggregate amount of Capital
of Receivable Interest being purchased, whether the Yield for the Fixed Period
for such Receivable Interest is calculated based on the Eurodollar Rate (which
may be selected by the Seller only if the notice referred to in the first
sentence of this Section is given at least three Business Days prior to the
purchase date) or the Alternate Base Rate, and the duration of the Fixed Period
for such Receivable Interest (which shall be one day if the Seller has not
selected another period).

                  (b) On the date of each such purchase of a Receivable
Interest, Atlantic or the Banks, as the case may be, shall, upon satisfaction of
the applicable conditions set forth in Article III, make available to the Seller
in same day funds an amount equal to the initial Capital of such Receivable
Interest, to the Seller's account no. 1013639238 at PNC Bank, 5th and Wood
Streets, Pittsburgh, Pennsylvania 15265, ABA No. 043000096 or such other account
of the Seller as the Seller may hereafter direct the Agent in writing; provided,
however, if such purchase is being made by the Banks following the designation
by the Agent of a Termination Date for a Receivable Interest owned by an
Investor pursuant to clause (i)(a) of the definition of Termination Date and any
Capital of such Receivable Interest is outstanding on such date of purchase, the
Seller hereby directs the Banks to pay the proceeds of such purchase (to the
extent of the outstanding Capital and accrued Yield on such Receivable Interest
of the Investor) to the Agent's Account, for application to the reduction of the
outstanding Capital and accrued Yield on such Receivable Interest of the
Investor.

                  (c) Effective on the date of each purchase pursuant to this
Section 2.02 and each reinvestment pursuant to Section 2.04,

                                       23
<PAGE>   29

the Seller hereby sells and assigns to the Agent, for the benefit of the parties
making such purchase, an undivided percentage ownership interest, to the extent
of the Receivable Interest then being purchased, in each Pool Receivable then
existing and in the Related Security and Collections with respect thereto.

                  (d) Notwithstanding the foregoing, a Bank shall not be
obligated to make purchases under this Section 2.02 at any time in an amount
which would exceed such Bank's Bank Commitment less such Bank's ratable share of
the aggregate outstanding Capital held by Atlantic (whether or not any portion
thereof has been assigned by Atlantic pursuant to the Asset Purchase Agreement),
after giving effect to any reductions of the Capital held by Atlantic to be made
on the date of such purchase from the proceeds of purchases by the Banks. Each
Bank's obligation shall be several, such that the failure of any Bank to make
available to the Seller any funds in connection with any purchase shall not
relieve any other Bank of its obligation, if any, hereunder to make funds
available on the date of such purchase, but no Bank shall be responsible for the
failure of any other Bank to make funds available in connection with any
purchase.

                  SECTION 2.03. Receivable Interest Computation. Each Receivable
Interest shall be initially computed on its date of purchase. Thereafter until
the Termination Date for such Receivable Interest, such Receivable Interest
shall be automatically recomputed (or deemed to be recomputed) on each day other
than a Liquidation Day. Any Receivable Interest, as computed (or deemed
recomputed) as of the day immediately preceding the Termination Date for such
Receivable Interest, shall thereafter remain constant. Such Receivable Interest
shall become zero when Capital thereof and Yield thereon shall have been paid in
full, and all Fees and other amounts owed by the Seller hereunder to the
Investors, the Banks or the Agent are paid and the Collection Agent shall have
received the accrued Collection Agent Fee thereon.

                  SECTION 2.04. Settlement Procedures. (a) Collection of the
Pool Receivables shall be administered by a Collection Agent, in accordance with
the terms of Article VI of this Agreement. The Seller shall provide to the
Collection Agent (if other than the Seller) on a timely basis all information
needed for such administration, including notice of the occurrence of any
Liquidation Day.

                  (b) The Collection Agent shall, on each day on which
Collections of Pool Receivables are received by it:

                             (i) with respect to each Receivable Interest, set
                  aside and hold in trust (and, at the request of the

                                       24
<PAGE>   30

                  Agent, segregate) for the Investors or the Banks that hold
                  such Receivable Interest, out of the percentage of such
                  Collections represented by such Receivable Interest, an amount
                  equal to the Yield, Fees and Collection Agent Fee accrued
                  through such day for such Receivable Interest and not
                  previously set aside;

                            (ii) with respect to each Receivable Interest, if
                  such day is not a Liquidation Day for such Receivable
                  Interest, reinvest with the Seller on behalf of the Investors
                  or the Banks that hold such Receivable Interest the percentage
                  of such Collections represented by such Receivable Interest,
                  to the extent representing a return of Capital, by
                  recomputation of such Receivable Interest pursuant to Section
                  2.03;

                           (iii) if such day is a Liquidation Day for any one or
                  more Receivable Interests, set aside and hold in trust (and,
                  at the request of the Agent, segregate) for the Investors or
                  the Banks that hold such Receivable Interests (x) if such day
                  is a Liquidation Day for less than all of the Receivable
                  Interests, the percentage of such Collections represented by
                  such Receivable Interests, and (y) if such day is a
                  Liquidation Day for all of the Receivable Interests, all of
                  the remaining Collections (but not in excess of the Capital of
                  such Receivable Interests); provided that if amounts are set
                  aside and held in trust on any Liquidation Day occurring prior
                  to the Termination Date, and thereafter prior to the
                  Settlement Date for such Fixed Period the conditions set forth
                  in Section 3.02 are satisfied or waived by the Agent, such
                  previously set aside amounts shall, to the extent representing
                  a return of Capital, be reinvested in accordance with the
                  preceding subsection (ii) on the day of such subsequent
                  satisfaction or waiver of conditions; and

                           (iv) release to the Seller for its own account any
                  remaining Collections.

                  (c) The Collection Agent shall deposit into the Agent's
Account, on the Settlement Date for each Receivable Interest, Collections held
for the Investors or the Banks that relate to such Receivable Interest pursuant
to Section 2.04(b).

                  (d) Upon receipt of funds deposited into the Agent's Account,
the Agent shall distribute them as follows:

                             (i) if such distribution occurs on a day that is
                  not a Liquidation Day, first to the Investors or the

                                       25
<PAGE>   31

                  Banks that hold the relevant Receivable Interest and to the
                  Agent in payment in full of all accrued Yield and Fees and
                  then to the Collection Agent in payment in full of all accrued
                  Collection Agent Fee.

                            (ii) if such distribution occurs on a Liquidation
                  Day, first to the Investors or the Banks that hold the
                  relevant Receivable Interest and to the Agent in payment in
                  full of all accrued Yield and Fees, second to such Investors
                  or Banks in reduction to zero of all Capital, third to such
                  Investors, Banks or the Agent in payment of any other amounts
                  owed by the Seller hereunder, and fourth to the Collection
                  Agent in payment in full of all accrued Collection Agent Fee.

                  After the Capital, Yield, Fees and Collection Agent Fee with
respect to a Receivable Interest, and any other amounts payable by the Seller to
the Investors, the Banks or the Agent hereunder, have been paid in full, all
additional Collections with respect to such Receivable Interest shall be paid to
the Seller for its own account.

                  (e) For the purposes of this Section 2.04:

                             (i) if on any day any Pool Receivable becomes (in
                  whole or in part) a Diluted Receivable, the Seller shall be
                  deemed to have received on such day a Collection of such Pool
                  Receivable in the amount of such Diluted Receivable;

                            (ii) if on any day any of the representations or
                  warranties contained in Section 4.01(h) is no longer true with
                  respect to any Pool Receivable, the Seller shall be deemed to
                  have received on such day a Collection of such Pool Receivable
                  in full;

                           (iii) except as provided in subsection (i) or (ii) of
                  this Section 2.04(e), or as otherwise required by applicable
                  law or the relevant Contract, all Collections received from an
                  Obligor of any Receivables shall be applied to the Receivables
                  of such Obligor in the order of the age of such Receivables,
                  starting with the oldest such Receivable, unless such Obligor
                  designates its payment for application to specific
                  Receivables; and

                            (iv) if and to the extent the Agent, the Investors
                  or the Banks shall be required for any reason to pay over to
                  an Obligor any amount received on its behalf hereunder, such
                  amount shall be deemed not to have been

                                       26
<PAGE>   32

                  so received but rather to have been retained by the Seller
                  and, accordingly, the Agent, the Investors or the Banks, as
                  the case may be, shall have a claim against the Seller for
                  such amount, payable when and to the extent that any
                  distribution from or on behalf of such Obligor is made in
                  respect thereof.

                  SECTION 2.05. Fees. (a) Each Investor and Bank shall pay to
the Collection Agent a fee (the "Collection Agent Fee") of 1% per annum on the
average daily Capital of each Receivable Interest owned by such Investor or
Bank, from the date of purchase of such Receivable Interest until the later of
the Termination Date for such Receivable Interest or the date on which such
Capital is reduced to zero, payable on the Settlement Date for such Receivable
Interest. Upon three Business Days' notice to the Agent, the Collection Agent
(if not the Parent, the Seller or its designee or an Affiliate of the Seller)
may elect to be paid, as such fee, another percentage per annum on the average
daily Capital of such Receivable Interest, but in no event in excess for all
Receivable Interests relating to the Receivables Pool of 110% of the reasonable
costs and expenses of the Collection Agent in administering and collecting the
Receivables in the Receivables Pool. The Collection Agent Fee shall be payable
only from Collections pursuant to, and subject to the priority of payment set
forth in, Section 2.04.

                  (b) The Seller shall pay to the Agent certain fees
(collectively, the "Fees") in the amounts and on the dates set forth in a
separate fee agreement of even date between the Seller and the Agent, as the
same may be amended or restated from time to time (the "Fee Agreement").

                  SECTION 2.06. Payments and Computations, Etc. (a) All amounts
to be paid or deposited by the Seller or the Collection Agent hereunder shall be
paid or deposited no later than 12:00 noon (New York City time) on the day when
due in same day funds to the Agent's Account.

                  (b) Each of the Seller and the Collection Agent shall, to the
extent permitted by law, pay interest on any amount not paid or deposited by it
when due hereunder, at an interest rate per annum equal to 2% per annum above
the Alternate Base Rate, payable on demand.

                  (c) All computations of interest under subsection (b) above
and all computations of Yield, fees, and other amounts hereunder shall be made
on the basis of a year of 360 days for the actual number of days (including the
first but excluding the last day) elapsed. Whenever any payment or deposit to be
made hereunder shall be due on a day other than a Business Day, such

                                       27
<PAGE>   33

payment or deposit shall be made on the next succeeding Business Day and such
extension of time shall be included in the computation of such payment or
deposit.

                  SECTION 2.07. Dividing or Combining Receivable Interests.
Either the Seller or the Agent may, upon notice to the other party received at
least three Business Days prior to the last day of any Fixed Period in the case
of the Seller giving notice, or up to the last day of such Fixed Period in the
case of the Agent giving notice, either (i) divide any Receivable Interest into
two or more Receivable Interests having aggregate Capital equal to the Capital
of such divided Receivable Interest, or (ii) combine any two or more Receivable
Interests originating on such last day or having Fixed Periods ending on such
last day into a single Receivable Interest having Capital equal to the aggregate
of the Capital of such Receivable Interests; provided, however, that no
Receivable Interest owned by Atlantic may be combined with a Receivable Interest
owned by any Bank.

                  SECTION 2.08. Increased Costs. (a) If Credit Lyonnais, any
Investor, any Bank, any entity which enters into a commitment to purchase
Receivable Interests or interests therein, or any of their respective Affiliates
(each an "Affected Person") determines that compliance with any law or
regulation or any guideline or request from any central bank or other
governmental authority (whether or not having the force of law) affects or would
affect the amount of the capital required or expected to be maintained by such
Affected Person and such Affected Person determines that the amount of such
capital is increased by or based upon the existence of any commitment to make
purchases of or otherwise to maintain the investment in Pool Receivables or
interests therein related to this Agreement or to the funding thereof and other
commitments of the same type, then, upon demand by such Affected Person (with a
copy to the Agent), the Seller shall immediately pay to the Agent for the
account of such Affected Person (as a third-party beneficiary), from time to
time as specified by such Affected Person, additional amounts sufficient to
compensate such Affected Person in the light of such circumstances, to the
extent that such Affected Person reasonably determines such increase in capital
to be allocable to the existence of any of such commitments. A certificate as to
such amounts (which shall include calculations in reasonable detail) submitted
to the Seller and the Agent by such Affected Person shall be conclusive and
binding for all purposes, absent manifest error.

                  (b) If, due to either (i) the introduction of or any change
(other than any change by way of imposition or increase of reserve requirements
referred to in Section 2.09) in or in the interpretation of any law or
regulation or (ii) compliance with

                                       28
<PAGE>   34

any guideline or request from any central bank or other governmental authority
(whether or not having the force of law), there shall be any increase in the
cost to any Investor or Bank of agreeing to purchase or purchasing, or
maintaining the ownership of, Receivable Interests in respect of which Yield is
computed by reference to the Eurodollar Rate, then, upon demand by such Investor
or Bank (with a copy to the Agent), the Seller shall immediately pay to the
Agent, for the account of such Investor or Bank (as a third-party beneficiary),
from time to time as specified by such Investor or Bank, additional amounts
sufficient to compensate such Investor or Bank for such increased costs. A
certificate as to such amounts (which shall include calculations in reasonable
detail) submitted to the Seller and the Agent by such Investor or Bank shall be
conclusive and binding for all purposes, absent manifest error.

                  SECTION 2.09. Additional Yield on Receivable Interests Bearing
a Eurodollar Rate. The Seller shall pay to any Investor or Bank, so long as such
Investor or Bank shall be required under regulations of the Board of Governors
of the Federal Reserve System to maintain reserves with respect to liabilities
or assets consisting of or including Eurocurrency Liabilities, additional Yield
on the unpaid Capital of each Receivable Interest of such Investor or Bank
during each Fixed Period in respect of which Yield is computed by reference to
the Eurodollar Rate, for such Fixed Period, at a rate per annum equal at all
times during such Fixed Period to the remainder obtained by subtracting (i) the
Eurodollar Rate for such Fixed Period from (ii) the rate obtained by dividing
such Eurodollar Rate referred to in clause (i) above by that percentage equal to
100% minus the Eurodollar Rate Reserve Percentage of such Investor or Bank for
such Fixed Period, payable on each date on which Yield is payable on such
Receivable Interest. Such additional Yield shall be determined by such Investor
or Bank and notice thereof given to the Seller through the Agent within 30 days
after any Yield payment is made with respect to which such additional Yield is
requested. A certificate as to such additional Yield (which shall include
calculations in reasonable detail) submitted to the Seller and the Agent by such
Investor or Bank shall be conclusive and binding for all purposes, absent
manifest error.

                  SECTION 2.10. Taxes. (a) Any and all payments and deposits
required to be made hereunder or under any other Transaction Document by the
Collection Agent or the Seller shall be made free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions,
charges or withholdings, and all liabilities with respect thereto, excluding net
income taxes that are imposed by the United States and franchise taxes and net
income taxes that are imposed on an Affected Person by the state or foreign
jurisdiction under the

                                       29
<PAGE>   35

laws of which such Affected Person is organized or any political subdivision
thereof (all such non-excluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as "Taxes"). If the
Seller or the Collection Agent shall be required by law to deduct any Taxes from
or in respect of any sum payable hereunder to any Affected Person, (i) the
Seller shall make an additional payment to such Affected Person, in an amount
sufficient so that, after making all required deductions (including deductions
applicable to additional sums payable under this Section 2.10), such Affected
Person receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Seller or the Collection Agent, as the case may
be, shall make such deductions and (iii) the Seller or the Collection Agent, as
the case may be, shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law.

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

                  (c) The Seller will indemnify each Affected Party for the full
amount of Taxes or Other Taxes (including, without limitation, any Taxes or
Other Taxes imposed by any jurisdiction on amounts payable under this Section
2.10) paid by such Affected Person and any liability (including penalties,
interest and expenses) arising therefrom or with respect thereto whether or not
such Taxes or Other Taxes were correctly or legally asserted. This
indemnification shall be made within thirty days from the date the Affected
Person makes written demand therefor (and a copy of such demand shall be
delivered to the Agent). A certificate as to the amount of such indemnification
submitted to the Seller and the Agent by such Affected Person, setting forth, in
reasonable detail, the basis for and the calculation thereof, shall be
conclusive and binding for all purposes absent manifest error.

                  SECTION 2.11. Security Interest. As collateral security for
the performance by the Seller of all the terms, covenants and agreements on the
part of the Seller (whether as Seller or otherwise) to be performed under this
Agreement or any document delivered in connection with this Agreement in
accordance with the terms thereof, including the punctual payment when due of
all obligations of the Seller hereunder or thereunder, whether for
indemnification payments, fees, expenses or otherwise, the Seller hereby assigns
to the Agent for its benefit and the ratable benefit of the Investors and the
Banks, and hereby grants to the Agent for its

                                       30
<PAGE>   36

benefit and the ratable benefit of the Investors and the Banks, a security
interest in, all of the Seller's right, title and interest in and to (A) the
Parent/Seller Purchase Agreement and the Originator Purchase Agreement,
including, without limitation, (i) all rights of the Seller to receive moneys
due or to become due under or pursuant to the Parent/Seller Purchase Agreement
or the Originator Purchase Agreement, (ii) all security interests and property
subject thereto from time to time purporting to secure payment of monies due or
to become due under or pursuant to the Parent/Seller Purchase Agreement or the
Originator Purchase Agreement, (iii) all rights of the Seller to receive
proceeds of any insurance, indemnity, warranty or guaranty with respect to the
Parent/Seller Purchase Agreement or the Originator Purchase Agreement, (iv)
claims of the Seller for damages arising out of or for breach of or default
under the Parent/Seller Purchase Agreement or the Originator Purchase Agreement,
and (v) the right of the Seller to compel performance and otherwise exercise all
remedies thereunder,(B) all Receivables, whether now owned and existing or
hereafter acquired or arising, the Related Security with respect thereto and the
Collections and all other assets, including, without limitation, accounts,
chattel paper, instruments and general intangibles (as those terms are defined
in the UCC), including undivided interests in any of the foregoing, owned by the
Seller and not otherwise purchased under this Agreement, and (C) to the extent
not included in the foregoing, all proceeds of any and all of the foregoing.

                  SECTION 2.12. Repurchase Option. So long as no Event of
Termination or Incipient Event of Termination would occur or be continuing after
giving effect thereto, the Seller shall have the right (the "Call Right") to
repurchase all, but not less than all, of the Receivable Interests held by the
Investors and the Banks upon not less than thirty Business Days' prior written
notice to the Agent. Such notice shall specify the date that the Seller desires
that such repurchase occur (such date, the "Repurchase Date"). On the Repurchase
Date, the Seller shall transfer to the Agent's Account in immediately available
funds an amount equal to (i) the Capital of the Receivable Interests held by the
Investors and the Banks, (ii) all accrued and unpaid Yield thereon to the
Repurchase Date, (iii) all accrued and unpaid Fees owing to the Investors and
the Banks, (iv) the Liquidation Fee owing to the Investors and the Banks in
respect of such repurchase and (v) all expenses and other amounts payable
hereunder to any of the Agent, the Investors and the Banks (including, without
limitation, attorneys' fees and disbursements). Any repurchase pursuant to this
Section 2.12 shall be made without recourse to or warranty by the Agent, the
Investors or the Banks. Further, on the Repurchase Date the Bank

                                       31
<PAGE>   37

Commitments for all the Banks shall terminate, each of the Commitment
Termination Date and Facility Termination Date shall have occurred, the
Termination Date for all Banks and the Investors shall have occurred and no
further purchases or reinvestments of Collections shall be made hereunder.

                                   ARTICLE III

                             CONDITIONS OF PURCHASES

                  SECTION 3.01. Conditions Precedent to Initial Purchase. The
initial purchase of a Receivable Interest under this Agreement is subject to the
conditions precedent that the Agent shall have received on or before the date of
such purchase the following, each (unless otherwise indicated) dated as of such
date of purchase, in form and substance satisfactory to the Agent:

                  (a) Certified copies of the resolutions (or similar
authorization, if not a corporation) of the Board of Directors (or similar
governing body or Persons, if not a corporation) of the Seller and the Parent
approving this Agreement and the Parent/Seller Purchase Agreement and certified
copies of all documents evidencing other necessary corporate action or limited
liability company action, as the case may be, and governmental approvals, if
any, with respect to this Agreement and the Parent/Seller Purchase Agreement.

                  (b) A certificate of the Secretary or Assistant Secretary of
the Seller and of the Parent certifying the names and true signatures of the
officers of the Seller and of the Parent authorized to sign the Parent/Seller
Purchase Agreement and this Agreement and the other documents to be delivered by
it hereunder and thereunder.

                  (c) Acknowledgment copies or time stamped receipt copies of
proper financing statements, duly filed on or before the date of such initial
purchase under the UCC of all jurisdictions that the Agent may deem necessary or
desirable in order to perfect the ownership and security interests contemplated
by this Agreement, the Parent/Seller Purchase Agreement and the Originator
Purchase Agreement.

                  (d) Acknowledgment copies or time stamped receipt copies of
proper financing statements, if any, necessary to release all security interests
and other rights of any Person (other than the interests evidenced by the
financing statement filings referred to in the second sentence of Section
4.01(h)) in (i) the Receivables, Contracts or Related Security previously

                                       32
<PAGE>   38

granted by the Seller, the Parent or any Originator and (ii) the collateral
security referred to in Section 2.11 previously granted by the Seller.

                  (e) Completed requests for information, dated on or before the
date of such initial purchase, listing all effective financing statements filed
in the jurisdictions referred to in subsection (c) above that name the Seller,
the Parent or any Originator as debtor, together with copies of such financing
statements (none of which shall cover any Receivables, Contracts, Related
Security or the collateral security referred to in Section 2.11).

                  (f) Executed copies of Lock-Box Agreements with each Lock-Box
Bank.

                  (g) A favorable opinion of (i) Andrews & Kurth, L.L.P.,
counsel for the Seller and the Parent, (ii) in house counsel to the Seller, the
Parent and the Originators and (iii) Delaware counsel to the Seller,
substantially in the forms of Annex C hereto and as to such other matters as the
Agent may reasonably request.

                  (h) The Fee Agreement.

                  (i) An executed copy of the Parent/Seller Purchase Agreement
and the Originator Purchase Agreement.

                  (j) A copy of the limited liability company agreement of the
Seller, certified by the Parent, as member of the Seller, and of the by-laws of
the Parent, certified by the Secretary or Assistant Secretary of the Parent.

                  (k) A copy of the certificate of formation of the Seller and
of the certificate of incorporation of the Parent, certified as of a recent date
by the Secretary of State or other appropriate official of the state of its
organization, and a certificate as to the good standing of each of the Seller
and the Parent from such Secretary of State or other official, dated as of a
recent date.

                  (l) The opening pro forma balance sheet of the Seller referred
to in Section 4.01(e).

                  (m) Confirmation (informally but to the reasonable
satisfaction of the Agent) by each of S&P and Moody's that the commercial paper
notes of Atlantic issued in connection with this Agreement will be, or will
continue to be, rated at least A-1 and P-1, respectively.

                                       33
<PAGE>   39

                  (n) Certified copies of the resolutions (or similar
authorization, if not a corporation) of the Board of Directors (or similar
governing body or Persons, if not a corporation) of the Parent and the
Originators approving the Originator Purchase Agreement and certified copies of
all documents evidencing other necessary corporate, partnership or limited
liability company action, as the case may be, and governmental approvals, if
any, with respect to the Originator Purchase Agreement.

                  (o) A certificate of a Secretary or Assistant Secretary (or,
in the case of the Originators, other equivalent office) of the Parent and the
Originators certifying the names and true signatures of the officers of the
Parent and the Originators authorized to sign the Originator Purchase Agreement
and the other documents to be delivered by it thereunder.

                  (p) A copy of the limited liability company agreement, by-laws
or other governance document of each of the Originators, certified by the
respective Secretary or Assistant Secretary or manager thereof.

                  (q) A copy of the certificate of formation or certificate or
articles of incorporation or other governance document of each of the
Originators, certified as of a recent date by the Secretary of State or other
appropriate official of the state of its organization, and a certificate as to
the good standing of each of the Originators from such Secretary of State or
other official, dated as of a recent date.

                  SECTION 3.02. Conditions Precedent to All Purchases and
Reinvestments. Each purchase (including the initial purchase) and each
reinvestment shall be subject to the further conditions precedent that (a) in
the case of each purchase, the Collection Agent shall have delivered to the
Agent at least one Business Day prior to such purchase, in form and substance
reasonably satisfactory to the Agent, a completed Seller Report (or, in the case
of the initial purchase, a pro forma Seller Report for the period ending May 31,
2001) containing information covering the most recently ended reporting period
for which information is required pursuant to Section 6.02(g) and demonstrating
that after giving effect to such purchase no Event of Termination or Incipient
Event of Termination under Section 7.01(i) would occur, (b) in the case of each
reinvestment, the Collection Agent shall have delivered to the Agent on or prior
to the date of such reinvestment, in form and substance reasonably satisfactory
to the Agent, a completed Seller Report containing information covering the most
recently ended reporting period for which information is required pursuant to
Section 6.02(g), (c) on the date of such purchase or reinvestment the following
statements shall be true, except that

                                       34
<PAGE>   40

the statement in clause (iii) below is required to be true only if such purchase
or reinvestment is by an Investor (and acceptance of the proceeds of such
purchase or reinvestment shall be deemed a representation and warranty by the
Seller and the Collection Agent (each as to itself) that such statements are
then true):

                             (i) The representations and warranties contained in
                  Section 4.01 (in the case of the Seller) and 4.02 (in the case
                  of the Collection Agent) are correct on and as of the date of
                  such purchase or reinvestment as though made on and as of such
                  date,

                            (ii) No event has occurred and is continuing, or
                  would result from such purchase or reinvestment, that
                  constitutes an Event of Termination or an Incipient Event of
                  Termination,

                           (iii) The Agent shall not have given the Seller at
                  least one Business Day's notice that the Investors have
                  terminated the reinvestment of Collections attributable to
                  their Receivable Interests in Receivable Interests, and

                            (iv) The Originators shall have sold to the Parent,
                  pursuant to the Originator Purchase Agreement, and the Parent
                  shall have sold or contributed to the Seller, pursuant to the
                  Parent/Seller Purchase Agreement, all Originator Receivables
                  outstanding on the date the applicable Originator first became
                  an Originator hereunder and thereafter arising through and
                  including such purchase or reinvestment date, and

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

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

                  SECTION 4.01. Representations and Warranties of the Seller.
The Seller hereby represents and warrants as follows:

                  (a) The Seller is a limited liability company duly formed,
validly existing and in good standing under the laws of Delaware, and is duly
qualified to do business, and is in good standing, in every jurisdiction where
the nature of its business requires it to be so qualified.

                                       35
<PAGE>   41

                  (b) The execution, delivery and performance by the Seller of
the Transaction Documents to which it is a party and the other documents to be
delivered by it hereunder, including the Seller's use of the proceeds of
purchases and reinvestments, (i) are within the Seller's limited liability
company powers, (ii) have been duly authorized by all necessary limited
liability company action, (iii) do not contravene (1) the Seller's certificate
of formation or limited liability company agreement, (2) any law, rule or
regulation applicable to the Seller, (3) any contractual restriction binding on
or affecting the Seller or its property or (4) any order, writ, judgment, award,
injunction or decree binding on or affecting the Seller or its property, and
(iv) do not result in or require the creation of any lien, security interest or
other charge or encumbrance upon or with respect to any of its properties
(except for the interest created pursuant to this Agreement). Each of the
Transaction Documents to which the Seller is a party has been duly executed and
delivered by the Seller.

                  (c) No authorization or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body is
required for the due execution, delivery and performance by the Seller of the
Transaction Documents to which the Seller is a party or any other document to be
delivered thereunder, except for the filing of UCC financing statements which
are referred to therein.

                  (d) Each of the Transaction Documents to which the Seller is a
party constitutes the legal, valid and binding obligation of the Seller
enforceable against the Seller in accordance with its terms, subject to
bankruptcy, insolvency or other similar laws affecting creditors' rights
generally and to general principles of equity (whether considered in a
proceeding in equity or at law).

                  (e) The opening pro forma balance sheet of the Seller as at
June 29, 2001, giving effect to the initial purchase to be made under this
Agreement, a copy of which has been furnished to the Agent, fairly presents the
financial condition of the Seller as at such date, in accordance with generally
accepted accounting principles, and since May 1, 2001 there has been no material
adverse change in the business, operations, property or financial or other
condition of the Seller.

                  (f) There is no pending or, to the knowledge of the Seller,
threatened action or proceeding against the Seller before any court,
governmental agency or arbitrator which may materially adversely affect the
financial condition or operations of the Seller or the ability of the Seller to
perform its obligations under the Transaction Documents, or which purports to
affect the legality, validity or enforceability of the Transaction Documents.

                                       36
<PAGE>   42

                  (g) No proceeds of any purchase or reinvestment will be used
to acquire any equity security of a class which is registered pursuant to
Section 12 of the Securities Exchange Act of 1934.

                  (h) Immediately prior to the purchase by the Investor or the
Banks, as the case may be, the Seller is the legal and beneficial owner of the
Pool Receivables and Related Security free and clear of any Adverse Claim; upon
each purchase or reinvestment, the Investors or the Banks, as the case may be,
shall acquire a valid and perfected first priority undivided percentage
ownership interest to the extent of the pertinent Receivable Interest in each
Pool Receivable then existing or thereafter arising and in the Related Security
and Collections with respect thereto. No effective financing statement or other
instrument similar in effect covering any Contract or any Pool Receivable or the
Related Security or Collections with respect thereto is on file in any recording
office, except those filed in favor of the Agent relating to this Agreement and
those filed against the Parent pursuant to the Parent/Seller Purchase Agreement
or against the Originators pursuant to the Originator Purchase Agreement.

                  (i) Each Seller Report (if prepared by the Seller or one of
its Affiliates, or to the extent that information contained therein is supplied
by the Seller or an Affiliate), information, exhibit, financial statement,
document, book, record or report furnished or to be furnished at any time by or
on behalf of the Seller to the Agent, the Investors or the Banks in connection
with this Agreement is or will be accurate in all material respects as of its
date or (except as otherwise disclosed to the Agent, Investors or the Banks, as
the case may be, at such time) as of the date so furnished, and no such document
contains or will contain any untrue statement of a material fact or omits or
will omit to state a material fact necessary in order to make the statements
contained therein, in the light of the circumstances under which they were made,
not misleading.

                  (j) The principal place of business and chief executive office
of the Seller and the office where the Seller keeps its records concerning the
Pool Receivables are located at the address or addresses referred to in Section
5.01(b).

                  (k) The names and addresses of all the Lock-Box Banks,
together with the account numbers of the Lock-Box Accounts of the Seller at such
Lock-Box Banks, are as specified in Schedule I

                                       37
<PAGE>   43

hereto, as such Schedule I may be updated from time to time pursuant to Section
5.01(g).

                  (l) The Seller is not known by and does not use any tradename
or doing-business-as name.

                  (m) The Seller was formed on May 1, 2001, and the Seller did
not engage in any business activities prior to the date of this Agreement. The
Seller has no Subsidiaries.

                  (n) (i) The fair value of the property of the Seller is
greater than the total amount of liabilities, including contingent liabilities,
of the Seller, (ii) the present fair salable value of the assets of the Seller
is not less than the amount that will be required to pay all probable
liabilities of the Seller on its debts as they become absolute and matured,
(iii) the Seller does not intend to, and does not believe that it will, incur
debts or liabilities beyond the Seller's abilities to pay such debts and
liabilities as they mature and (iv) the Seller is not engaged in a business or a
transaction, and is not about to engage in a business or a transaction, for
which the Seller's property would constitute unreasonably small capital.

                  (o) With respect to each Pool Receivable, the Seller (i) shall
have received such Pool Receivable as a contribution to the capital of the
Seller by the Parent or (ii) shall have purchased such Pool Receivable from the
Parent in exchange for payment (made by the Seller to the Parent in accordance
with the provisions of the Parent/Seller Purchase Agreement) of cash, an
increase in the principal balance of the Purchase Price Note, or a combination
thereof in an amount which constitutes fair consideration and reasonably
equivalent value. Each such sale referred to in clause (ii) of the preceding
sentence shall not have been made for or on account of an antecedent debt owed
by the Parent to the Seller and no such sale is or may be voidable or subject to
avoidance under any section of the Federal Bankruptcy Code.

                  (p) The Outstanding Balance at any time of Originator
Receivables the Contracts in respect of which permit the payment of the amount
due thereunder more than 40 days from the original respective billing dates
therefor does not exceed 60% of the Outstanding Balance at such time of all
Originator Receivables.

                  SECTION 4.02. Representations and Warranties of the Collection
Agent. The Collection Agent hereby represents and warrants as follows:

                  (a) The Collection Agent is a corporation duly incorporated,
validly existing and in good standing under the

                                       38
<PAGE>   44

laws of the State of Delaware, and is duly qualified to do business, and is in
good standing, in every jurisdiction where the nature of its business requires
it to be so qualified.

                  (b) The execution, delivery and performance by the Collection
Agent of this Agreement and any other documents to be delivered by it hereunder
(i) are within the Collection Agent's corporate powers, (ii) have been duly
authorized by all necessary corporate action, (iii) do not contravene (1) the
Collection Agent's charter or by-laws, (2) any law, rule or regulation
applicable to the Collection Agent, (3) any contractual restriction binding on
or affecting the Collection Agent or its property or (4) any order, writ,
judgment, award, injunction or decree binding on or affecting the Collection
Agent or its property, and (iv) do not result in or require the creation of any
lien, security interest or other charge or encumbrance upon or with respect to
any of its properties. This Agreement has been duly executed and delivered by
the Collection Agent.

                  (c) No authorization or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body is
required for the due execution, delivery and performance by the Collection Agent
of this Agreement or any other document to be delivered by it hereunder.

                  (d) This Agreement constitutes the legal, valid and binding
obligation of the Collection Agent enforceable against the Collection Agent in
accordance with its terms, subject to bankruptcy, insolvency or other similar
laws affecting creditors' rights generally and to general principles of equity
(whether considered in a proceeding in equity or at law).

                  (e) The consolidated balance sheet of the Collection Agent and
its consolidated Subsidiaries as at March 31, 2001, and the related consolidated
statements of income and retained earnings of the Collection Agent and its
consolidated Subsidiaries for the fiscal year then ended, copies of which have
been furnished to the Agent, fairly present the financial condition of the
Collection Agent and its consolidated Subsidiaries as at such date and the
results of the operations of the Collection Agent and its consolidated
Subsidiaries for the period ended on such date, all in accordance with generally
accepted accounting principles consistently applied, and since March 31, 2001
there has been no material adverse change in the business, operations, property
or financial condition of the Collection Agent and its consolidated Subsidiaries
taken as a whole.

                  (f) There is no pending or, to the knowledge of the Collection
Agent, threatened action or proceeding against the

                                       39
<PAGE>   45

Collection Agent or any of its Subsidiaries before any court, governmental
agency or arbitrator which may materially adversely affect the financial
condition or operations of the Collection Agent and its consolidated
Subsidiaries taken as a whole or the ability of the Collection Agent to perform
its obligations under this Agreement, or which purports to affect the legality,
validity or enforceability of this Agreement.

                  (g) On the date of each purchase and reinvestment, the sum of
the Receivable Interests is not greater than 100%.

                                    ARTICLE V

                                    COVENANTS

                  SECTION 5.01. Covenants of the Seller. Until the latest of the
Facility Termination Date or the date on which no Capital of or Yield on any
Receivable Interest shall be outstanding or the date all other amounts owed by
the Seller hereunder to the Investors, the Banks or the Agent are paid in full:

                  (a) Compliance with Laws, Etc. The Seller will comply in all
material respects with all applicable laws, rules, regulations and orders and
preserve and maintain its limited liability company existence, rights,
franchises, qualifications, and privileges except to the extent that the failure
so to comply with such laws, rules and regulations or the failure so to preserve
and maintain such rights, franchises, qualifications, and privileges would not
materially adversely affect the collectibility of the Receivables Pool or the
ability of the Seller to perform its obligations under the Transaction
Documents.

                  (b) Offices, Records and Books of Account. The Seller will
keep its principal place of business and chief executive office and the office
where it keeps its records concerning the Pool Receivables at the address of the
Seller set forth under its name on the signature pages to this Agreement or,
upon 30 days' prior written notice to the Agent, at any other locations in
jurisdictions where all actions reasonably requested by the Agent to protect and
perfect the interest in the Pool Receivables have been taken and completed. The
Seller will not change its state of formation from that of the State of
Delaware. The Seller also will maintain and implement administrative and
operating procedures (including, without limitation, an ability to recreate
records evidencing Pool Receivables and related Contracts in the event of the
destruction of the originals thereof), and keep and maintain all documents,
books, records and other information

                                       40
<PAGE>   46

reasonably necessary or advisable for the collection of all Pool Receivables
(including, without limitation, records adequate to permit the daily
identification of each Pool Receivable and all Collections of and adjustments to
each existing Pool Receivable).

                  (c) Performance and Compliance with Contracts and Credit and
Collection Policy. The Seller will, at its expense, timely and fully perform and
comply with all material provisions, covenants and other promises required to be
observed by it under the Contracts related to the Pool Receivables, and timely
and fully comply in all material respects with the applicable Credit and
Collection Policy in regard to each Pool Receivable and the related Contract.

                  (d) Sales, Liens, Etc. The Seller will not sell, assign (by
operation of law or otherwise) or otherwise dispose of, or create or suffer to
exist any Adverse Claim upon or with respect to, the Seller's undivided interest
in any Pool Receivable, Related Security, related Contract or Collections, or
upon or with respect to any account to which any Collections of any Pool
Receivable are sent, or assign any right to receive income in respect thereof,
other than as contemplated by the Transaction Documents.

                  (e) Extension or Amendment of Receivables. Except as provided
in Section 6.02(c), the Seller will not (and will not permit the Collection
Agent, the Parent or any Originator to) extend, amend or otherwise modify the
terms of any Pool Receivable, or amend, modify or waive any term or condition of
any Contract related thereto.

                  (f) Change in Business or Credit and Collection Policy. The
Seller will not make any change in the character of its business or in the
applicable Credit and Collection Policy that would, in either case, materially
adversely affect the collectibility of the Receivables Pool or the ability of
the Seller to perform its obligations under this Agreement.

                  (g) Change in Payment Instructions to Obligors. The Seller
will not add or terminate any bank as a Lock-Box Bank from those listed in
Schedule I to this Agreement, or make any change in its instructions to Obligors
regarding payments to be made to the Seller or payments to be made to any
Lock-Box Bank, unless the Agent shall have received notice of such addition,
termination or change (including an updated Schedule I) and a fully executed
Lock-Box Agreement with each new Lock-Box Bank.

                  (h) Deposits to Lock-Box Accounts. The Seller will instruct or
cause the Collection Agent to instruct all Obligors to remit all their payments
in respect of Receivables to Lock-Box

                                       41
<PAGE>   47

Accounts. If the Seller shall receive any Collections directly, it shall
immediately (and in any event within two Business Days) deposit the same to a
Lock-Box Account. The Seller will not deposit or otherwise credit, or cause or
permit to be so deposited or credited, to any Lock-Box Account cash or cash
proceeds other than Collections of Receivables.

                  (i) Marking of Records. At its expense, the Seller will cause
the master data processing records evidencing Pool Receivables to be marked to
indicate that Receivable Interests related to such Pool Receivables have been
sold in accordance with this Agreement.

                  (j) Further Assurances. (i) The Seller agrees from time to
time, at its expense, upon the request of the Agent, promptly to execute and
deliver all further instruments and documents, and to take all further actions,
that may be reasonably necessary or desirable, or that the Agent may reasonably
request, to perfect, protect or more fully evidence the Receivable Interests
purchased under this Agreement, or to enable the Investors, the Banks or the
Agent to exercise and enforce their respective rights and remedies under this
Agreement. Without limiting the foregoing, the Seller will, upon the request of
the Agent, execute and file such financing or continuation statements, or
amendments thereto, and such other instruments and documents, that may be
reasonably necessary or desirable, or that the Agent may reasonably request, to
perfect, protect or evidence such Receivable Interests.

                           (ii) The Seller authorizes the Agent to file
                  financing or continuation statements, and amendments thereto
                  and assignments thereof, relating to the Pool Receivables and
                  the Related Security, the related Contracts and the
                  Collections with respect thereto without the signature of the
                  Seller where permitted by law. A photocopy or other
                  reproduction of this Agreement shall be sufficient as a
                  financing statement where permitted by law.

                  (k) Reporting Requirements. The Seller will provide to the
Agent (in multiple copies, if requested by the Agent) the following:

                           (i) as soon as available and in any event within 60
                  days after the end of the first three quarters of each fiscal
                  year of the Parent and Centex, a consolidated balance sheet of
                  the Parent and its consolidated Subsidiaries and of Centex and
                  its consolidated Subsidiaries as of the end of such quarter
                  and consolidated statements of income and retained

                                       42
<PAGE>   48

                  earnings of the Parent and its consolidated Subsidiaries and
                  of Centex and its consolidated Subsidiaries for the period
                  commencing at the end of the previous fiscal year and ending
                  with the end of such quarter, certified by the chief financial
                  officer or treasurer of the Parent and Centex, respectively
                  (provided that the Seller may satisfy this delivery obligation
                  through the delivery of the SEC quarterly report for the
                  Parent and Centex for such quarter referred to in clause (v)
                  below);

                           (ii) as soon as available and in any event within 120
                  days after the end of each fiscal year of the Parent and
                  Centex, a copy of the annual report for such year of the
                  Parent and its consolidated Subsidiaries and of Centex and its
                  consolidated Subsidiaries, containing financial statements for
                  such year audited by a "Big Five" accounting firm or other
                  independent public accountants of recognized national
                  standing;

                           (iii) as soon as available and in any event within 60
                  days after the end of the first three quarters and within 120
                  days after the end of the fourth fiscal quarter of each fiscal
                  year of the Seller, a balance sheet of the Seller as of the
                  end of such quarter and a statement of income and retained
                  earnings of the Seller for the period commencing at the end of
                  the previous fiscal year and ending with the end of such
                  quarter, certified by the chief financial officer of the
                  Seller;

                           (iv) as soon as possible and in any event within
                  three Business Days after the occurrence of each Event of
                  Termination or obtaining knowledge of any Incipient Event of
                  Termination, a statement of the chief financial officer of the
                  Seller setting forth details of such Event of Termination or
                  Incipient Event of Termination and the action that the Seller
                  has taken and proposes to take with respect thereto;

                           (v) promptly after the sending or filing thereof,
                  copies of all reports that Centex or the Parent sends to any
                  of its security holders generally, and copies of all Form
                  10-K, Form 10-Q and Form 8-K reports that Centex or the Parent
                  files with the SEC;

                           (vi) promptly after the filing or receiving thereof,
                  copies of all reports and notices that the Seller or any
                  Affiliate files under ERISA with the Internal Revenue Service
                  or the Pension Benefit Guaranty Corporation or the U.S.
                  Department of Labor or

                                       43
<PAGE>   49

                  that the Seller or any Affiliate receives from any of the
                  foregoing or from any multiemployer plan (within the meaning
                  of Section 4001(a)(3) of ERISA) to which the Seller or any
                  Affiliate is or was, within the preceding five years, a
                  contributing employer, in each case in respect of the
                  assessment of withdrawal liability or an event or condition
                  which could, in the aggregate, result in the imposition of
                  liability on the Seller and/or any such Affiliate in excess of
                  $2,500,000;

                           (vii) at least ten Business Days prior to any change
                  in the name of the Parent, any Originator or the Seller, a
                  notice setting forth the new name and the effective date
                  thereof;

                           (viii) as soon as possible and in any event within
                  three Business Days after the Seller obtains knowledge
                  thereof, notice of any "Event of Termination" or "Facility
                  Termination Date" under the Originator Purchase Agreement or
                  the Parent/Seller Purchase Agreement;

                           (ix) so long as any Capital shall be outstanding, as
                  soon as possible and in any event no later than the day of
                  occurrence thereof, notice that any Originator has stopped
                  selling to the Parent, pursuant to the Originator Purchase
                  Agreement, or that the Parent has stopped selling or
                  contributing to the Seller, pursuant to the Parent/Seller
                  Purchase Agreement, all newly arising Originator Receivables;

                           (x) at the time of the delivery of the financial
                  statements provided for in clauses (i) and (ii) of this
                  paragraph, a certificate of the chief financial officer of the
                  Seller, to the effect that, to the best of such officer's
                  knowledge, no Event of Termination has occurred and is
                  continuing or, if any Event of Termination has occurred and is
                  continuing, specifying the nature and extent thereof;

                           (xi) promptly after receipt thereof, copies of all
                  notices received by the Seller from the Parent under the
                  Parent/Seller Purchase Agreement; and

                           (xii) such other information respecting the
                  Receivables or the condition or operations, financial or
                  otherwise, of the Seller, the Parent or any Originator as the
                  Agent may from time to time reasonably request, provided that,
                  if requested by the

                                       44
<PAGE>   50

                  Seller, the Parent or any Originator, the Agent shall execute
                  a confidentiality agreement in respect of such information.

                  (l) Separateness. (i) The Seller shall at all times maintain
at least one independent manager who (x) is not currently and has not been
during the five years preceding the date of this Agreement an officer, director
or employee of the Parent or an Affiliate of the Parent, other than an
independent member, director or manager of any bankruptcy remote, special
purpose Affiliate of the Parent, (y) is not a current or former officer or
employee of the Seller and (z) otherwise meets the requirements of an
independent manager under the Seller's limited liability company agreement.

                           (ii) The Seller shall not direct or participate in
                  the management of any of the Other Companies' operations.

                           (iii) The Seller shall conduct its business from an
                  office separate from that of the Other Companies (but which
                  may be located in the same facility as one or more of the
                  Other Companies). The Seller shall have stationery and other
                  business forms and a mailing address and a telephone number
                  separate from that of the Other Companies.

                           (iv) The Seller shall at all times be adequately
                  capitalized in light of its contemplated business.

                           (v) The Seller shall at all times provide for its own
                  operating expenses and liabilities from its own funds.

                           (vi) The Seller shall maintain its assets and
                  transactions separately from those of the Other Companies and
                  reflect such assets and transactions in financial statements
                  separate and distinct from those of the Other Companies and
                  evidence such assets and transactions by appropriate entries
                  in books and records separate and distinct from those of the
                  Other Companies. The Seller shall hold itself out to the
                  public under the Seller's own name as a legal entity separate
                  and distinct from the Other Companies. The Seller shall not
                  hold itself out as having agreed to pay, or as being liable,
                  primarily or secondarily, for, any obligations of the Other
                  Companies.

                           (vii) The Seller shall not maintain any joint account
                  with any Other Company or become liable as a

                                       45
<PAGE>   51

                  guarantor or otherwise with respect to any Debt or contractual
                  obligation of any Other Company.

                           (viii) The Seller shall not make any payment or
                  distribution of assets with respect to any obligation of any
                  Other Company or grant an Adverse Claim on any of its assets
                  to secure any obligation of any Other Company.

                           (ix) The Seller shall not make loans, advances or
                  otherwise extend credit to any of the Other Companies other
                  than Purchaser Loans (as defined in the Parent/Seller Purchase
                  Agreement) on the terms and conditions set forth in the
                  Parent/Seller Purchase Agreement.

                           (x) The Seller shall hold regular duly noticed
                  meetings of its members and make and retain minutes of such
                  meetings (or otherwise duly effect the same by means of
                  written consents).

                           (xi) The Seller shall have bills of sale (or similar
                  instruments of assignment) and, if appropriate, UCC-1
                  financing statements, with respect to all assets purchased
                  from any of the Other Companies.

                           (xii) The Seller shall not engage in any transaction
                  with any of the Other Companies, except as permitted by this
                  Agreement and as contemplated by the Parent/Seller Purchase
                  Agreement and the other Transaction Documents.

                           (xiii) The Seller shall comply with (and cause to be
                  true and correct) each of the agreements contained in Section
                  9(b)(v) of its limited liability company agreement.

                  (m) Parent/Seller Purchase Agreement. The Seller will not
amend, waive or modify any provision of the Parent/Seller Purchase Agreement
(provided that the Seller may extend the "Facility Termination Date" thereunder)
or waive the occurrence of any "Event of Termination" under the Parent/Seller
Purchase Agreement, without in each case the prior written consent of the Agent.
The Seller will perform all of its obligations under the Parent/Seller Purchase
Agreement in all material respects and will enforce the Parent/Seller Purchase
Agreement in accordance with its terms in all material respects.

                  (n) Nature of Business. The Seller will not engage in any
business other than the purchase of Originator Receivables,

                                       46
<PAGE>   52

Related Security and Collections from the Parent and the transactions
contemplated by this Agreement and the other Transaction Documents. The Seller
will not create or form any Subsidiary.

                  (o) Mergers, Etc. The Seller will not merge with or into or
consolidate with or into, or convey, transfer, lease or otherwise dispose of
(whether in one transaction or in a series of transactions), all or
substantially all of its assets (whether now owned or hereafter acquired) to, or
acquire all or substantially all of the assets or capital stock or other
ownership interest of, or enter into any joint venture or partnership agreement
with, any Person, other than as contemplated by this Agreement, the
Parent/Seller Purchase Agreement and the Originator Purchase Agreement.

                  (p) Distributions, Etc. The Seller will not declare or make
any dividend payment or other distribution of assets, properties, cash, rights,
obligations or securities on account of any membership interests of the Seller,
or return any capital to its members as such, or purchase, retire, defease,
redeem or otherwise acquire for value or make any payment in respect of any
membership interests of the Seller or any warrants, rights or options to acquire
any such membership interests, now or hereafter outstanding; provided, however,
that the Seller may declare and pay cash distributions on its membership
interests to its members so long as (i) no Event of Termination shall then exist
or would occur as a result thereof, (ii) such distributions are in compliance
with all applicable law including the limited liability company law of the state
of Seller's formation, and (iii) such distributions have been approved by all
necessary and appropriate limited liability company action of the Seller.

                  (q) Debt. The Seller will not incur any Debt, other than any
Debt incurred pursuant to this Agreement, the other Transaction Documents and
the Purchase Price Note.

                  (r) Limited Liability Company Agreement. The Seller will not
amend or delete (or permit any amendment or deletion of) the definition of
"Independent Manager" or any of Sections 7, 9, 10, 21, 22, 24, 29 or 31 of its
limited liability company agreement.

                  (s) Tangible Net Worth. The Seller will maintain Tangible Net
Worth at all times equal to at least 3% of the Outstanding Balance of the
Receivables at such time.

                  (t) Taxes. The Seller will file all tax returns and reports
required by law to be filed by it and will promptly pay all taxes and
governmental charges at any time owing, except such

                                       47
<PAGE>   53

as are being contested in good faith by appropriate proceedings and for which
appropriate reserves have been established. The Seller will pay when due any
taxes payable in connection with the Receivables, exclusive of taxes on or
measured by income or gross receipts of the Agent, the Investors and the Banks.

                  SECTION 5.02. Covenants of the Seller and Parent. Until the
latest of the Facility Termination Date or the date on which no Capital of or
Yield on any Receivable Interest shall be outstanding or the date all other
amounts owed by the Seller hereunder to the Investors, the Banks or the Agent
are paid in full, each of the Seller and the Parent will, at their respective
expense, from time to time during regular business hours as reasonably requested
by the Agent, permit the Agent or its agents or representatives (including
independent public accountants, which may be the Seller's, the Parent's or any
Originator's independent public accountants), (i) to conduct periodic audits of
the Receivables, the Related Security and the related books and records and
collections systems of the Seller, the Parent or any Originator, as the case may
be, (ii) to examine and make copies of and abstracts from all books, records and
documents (including, without limitation, computer tapes and disks) in the
possession or under the control of the Seller, the Parent or any Originator, as
the case may be, relating to Pool Receivables and the Related Security,
including, without limitation, the Contracts, and (iii) to visit the offices and
properties of the Seller, the Parent or any Originator, as the case may be, for
the purpose of examining such materials described in clause (ii) above, and to
discuss matters relating to Pool Receivables and the Related Security or the
Seller's, the Parent's or any Originator's performance under the Transaction
Documents or under the Contracts with any of the officers or employees of the
Seller, the Parent or any Originator, as the case may be, having knowledge of
such matters.

                  SECTION 5.03. Covenant of the Parent. Until the latest of the
Facility Termination Date or the date on which no Capital of or Yield on any
Receivable Interest shall be outstanding or the date all other amounts owed by
the Seller hereunder to the Investors, the Banks or the Agent are paid in full:

                  (a) Interest Coverage Ratio. The Parent will not permit the
ratio, determined as of the end of each of its fiscal quarters for the then
most-recently ended four fiscal quarters, of (i) Consolidated EBIT (as defined
in the Credit Agreement) to (ii) Consolidated Interest Expense (as defined in
the Credit Agreement) to be less than 3.00 to 1.00 or such other ratio as may be
agreed to in an amendment to the Credit Agreement entered

                                       48
<PAGE>   54

into within 60 days from the date hereof. The Parent shall promptly provide the
Agent with a copy of any such amendment.

                  (b) Leverage Ratio. The Parent will not permit the ratio,
determined as of the end of each of its fiscal quarters, of (i) Consolidated
Funded Indebtedness (as defined in the Credit Agreement) to (ii) Consolidated
EBITDA (as defined in the Credit Agreement) for the then most-recently ended
four fiscal quarters to be greater than: (A) 3.50 to 1.00 as of the end of any
fiscal quarter through and including the fiscal quarter ending March 31, 2002;
(B) 3.25 to 1.00 as of the end of any subsequent fiscal quarter through and
including the fiscal quarter ending September 30, 2002; and (C) 3.00 to 1.00 as
of the end of any subsequent fiscal quarter.

                  (c) Dividends. The Parent will not, nor will it permit any
Subsidiary (as defined in the Credit Agreement) to, declare or pay any dividends
or make any distributions on its capital stock or other equity interests (other
than dividends payable in its own capital stock or other equity interests) or
redeem, repurchase or otherwise acquire or retire any of its capital stock or
other equity interests at any time outstanding, except that (i) any Subsidiary
(as defined in the Credit Agreement) may declare and pay dividends or make
distributions to the Parent or to a Wholly-Owned Subsidiary (as defined in the
Credit Agreement) and (ii) when no Default (as defined in the Credit Agreement)
exists or will result therefrom, the Parent may pay dividends on its capital
stock during each fiscal year in an amount not to exceed in the aggregate
$5,000,000; provided that this Section 5.03(c) shall be deemed modified to give
effect to any amendments to Section 6.10 of the Credit Agreement entered into
within 60 days of the date hereof. The Parent shall promptly provide the Agent
with a copy of any such amendment. The foregoing shall not permit the Seller to
declare or pay any dividends or make any distributions, which declarations and
payments by the Seller shall be governed by Section 5.01(p) hereof.

                  (d) Minimum Tangible Net Worth. As of March 31, 2001, the
Parent will at all times maintain Consolidated Tangible Net Worth (as defined in
the Credit Agreement) of not less than $326,826,000 and for the last day of each
fiscal quarter thereafter, not less than the sum of (i) the minimum Consolidated
Tangible Net Worth (as defined in the Credit Agreement) required for the prior
fiscal quarter, plus (ii) 50% of the Consolidated Net Income (as defined in the
Credit Agreement) (not less than $0.00) for the fiscal quarter then ended, plus
(iii) 100% of the Net Cash Proceeds (as defined in the Credit Agreement) of any
equity issuances (excluding issuances described in clause (a) of the first
sentence of Section 2.25 of the Credit Agreement as in

                                       49
<PAGE>   55

effect on the date hereof and issuances solely to finance Permitted Acquisitions
(as defined in the Credit Agreement)) by the Parent or any Subsidiary (as
defined in the Credit Agreement) for the fiscal quarter then ended; provided
that this Section 5.03(d) shall be deemed modified to give effect to any
amendments to Section 6.22.3 of the Credit Agreement entered into within 60 days
of the date hereof. The Parent shall promptly provide the Agent with a copy of
any such amendment.

                  All terms used in this Section 5.03 as defined in the Credit
Agreement (as well as any defined terms used in such terms) shall have the
respective meanings as set forth in the Credit Agreement as in effect on the
date hereof.

                                   ARTICLE VI

                          ADMINISTRATION AND COLLECTION
                               OF POOL RECEIVABLES

                  SECTION 6.01. Designation of Collection Agent. The servicing,
administration and collection of the Pool Receivables shall be conducted by the
Collection Agent so designated hereunder from time to time. Until the Agent
gives notice to the Seller of the designation of a new Collection Agent (which
notice may only be given following the occurrence and during the continuation of
an Event of Termination), the Parent is hereby designated as, and hereby agrees
to perform the duties and obligations of, the Collection Agent pursuant to the
terms hereof. The Agent at any time during the existence of an Event of
Termination may designate as Collection Agent any Person (including itself) to
succeed the Parent or any successor Collection Agent, if such Person shall
consent and agree to the terms hereof. The Collection Agent may, with the prior
consent of the Agent, subcontract with any other Person or Persons for the
servicing, administration or collection of all or any portion of the Pool
Receivables; provided that the Agent's consent shall not be required for any
such subcontract with an Originator in respect of the Pool Receivables
originated by such Originator. Any such subcontract shall not affect the
Collection Agent's liability for performance of its duties and obligations
pursuant to the terms hereof.

                                       50
<PAGE>   56

                  SECTION 6.02. Duties of Collection Agent. (a) The Collection
Agent shall take or cause to be taken all such actions as may be necessary or
advisable to collect each Pool Receivable from time to time, all in accordance
with applicable laws, rules and regulations, with reasonable care and diligence,
and in accordance with the applicable Credit and Collection Policy. The Seller
and the Agent hereby appoint the Collection Agent, from time to time designated
pursuant to Section 6.01, as agent for themselves and for the Investors and the
Banks to enforce their respective rights and interests in the Pool Receivables,
the Related Security and the related Contracts. In performing its duties as
Collection Agent, the Collection Agent shall exercise the same care and apply
the same policies as it would exercise and apply if it owned such Receivables
and shall act in the best interests of the Seller, the Investors and the Banks.

                  (b) The Collection Agent shall administer the Collections in
accordance with the procedures described in Section 2.04.

                  (c) If no Event of Termination or Incipient Event of
Termination shall have occurred and be continuing, the Parent or any Affiliate
thereof, while it is the Collection Agent, may, in accordance with the Credit
and Collection Policy of the applicable Originator, extend the maturity or
adjust the Outstanding Balance of any Receivable as the Parent or such Affiliate
deems appropriate to maximize Collections thereof, or otherwise amend, modify or
waive the terms of any Receivable, provided that the classification of any such
Receivable as a Delinquent Receivable or Defaulted Receivable shall not be
affected by any such extension.

                  (d) The Collection Agent shall hold in trust for the Seller
and each Investor and Bank, in accordance with their respective interests, all
documents, instruments and records (including, without limitation, computer
tapes or disks) which evidence or relate to Pool Receivables. The Collection
Agent shall cause the master data processing records evidencing the Pool
Receivables to be marked to indicate that Receivable Interests therein have been
sold in accordance with this Agreement.

                  (e) The Collection Agent shall, as soon as practicable
following receipt, turn over to the Seller any cash collections or other cash
proceeds received with respect to Receivables not constituting Pool Receivables.

                  (f) The Collection Agent shall, from time to time at the
request of the Agent during the continuance of an Event of Termination or
Incipient Event of Termination, furnish to the

                                       51
<PAGE>   57

Agent (promptly after any such request) a calculation of the amounts set aside
for the Investors and the Banks pursuant to Section 2.04.

                  (g) Prior to the 10th Business Day of each month, the
Collection Agent shall prepare and forward to the Agent a Seller Report relating
to the Receivable Interests outstanding on the last day of the immediately
preceding month.

                  SECTION 6.03. Certain Rights of the Agent. (a) The Agent is
authorized at any time during the existence of an Event of Termination or an
Incipient Event of Termination, to date, and to deliver to the Lock-Box Banks,
the notices of effectiveness attached to the Lock-Box Agreements. The Seller
hereby transfers to the Agent the exclusive control and, upon the occurrence of
an Event of Termination or an Incipient Event of Termination, ownership of the
Lock-Box Accounts to which the Obligors of Pool Receivables shall make payments.
The Agent may notify the Obligors of Pool Receivables, at any time and at the
Seller's expense, of the ownership of Receivable Interests under this Agreement;
provided that any such notice shall be subject to the Seller's prior written
approval, which shall not be unreasonably withheld.

                  (b) At any time during the existence of an Event of
Termination or Incipient Event of Termination:

                             (i) The Agent may direct the Obligors of Pool
                  Receivables that all payments thereunder be made directly to
                  the Agent or its designee.

                            (ii) At the Agent's request and at the Seller's
                  expense, the Seller shall notify each Obligor of Pool
                  Receivables of the ownership of Receivable Interests under
                  this Agreement and direct that payments be made directly to
                  the Agent or its designee.

                           (iii) At the Agent's request and at the Seller's
                  expense, the Seller and the Collection Agent shall (A)
                  assemble all of the documents, instruments and other records
                  (including, without limitation, computer tapes and disks) that
                  evidence or relate to the Pool Receivables and the related
                  Contracts and Related Security, or that are otherwise
                  necessary or desirable to collect the Pool Receivables, and
                  shall make the same available to the Agent at a place selected
                  by the Agent or its designee, and (B) segregate all cash,
                  checks and other instruments received by it from time to time
                  constituting Collections of Pool Receivables in a manner
                  acceptable to the Agent and, promptly upon

                                       52
<PAGE>   58

                  receipt, remit all such cash, checks and instruments, duly
                  indorsed or with duly executed instruments of transfer, to the
                  Agent or its designee.

                            (iv) The Seller authorizes the Agent to take any and
                  all steps in the Seller's name and on behalf of the Seller
                  that are necessary or desirable, in the determination of the
                  Agent, to collect amounts due under the Pool Receivables,
                  including, without limitation, endorsing the Seller's name on
                  checks and other instruments representing Collections of Pool
                  Receivables and enforcing the Pool Receivables and the Related
                  Security and related Contracts.

                  SECTION 6.04. Rights and Remedies. (a) If the Collection Agent
fails to perform any of its obligations under this Agreement, the Agent may (but
shall not be required to) itself perform, or cause performance of, such
obligation; and the Agent's reasonable costs and expenses incurred in connection
therewith shall be payable by the Collection Agent.

                  (b) The Seller and the Parent shall perform their respective
obligations under the Contracts related to the Pool Receivables to the same
extent as if Receivable Interests had not been sold and the exercise by the
Agent on behalf of the Investors and the Banks of their rights under this
Agreement shall not release the Collection Agent or the Seller from any of their
duties or obligations with respect to any Pool Receivables or related Contracts.
Neither the Agent, the Investors nor the Banks shall have any obligation or
liability with respect to any Pool Receivables or related Contracts, nor shall
any of them be obligated to perform the obligations of the Seller thereunder.

                  (c) In the event of any conflict between the provisions of
Article VI of this Agreement and Article VI of the Parent/Seller Purchase
Agreement, the provisions of this Agreement shall control.

                  SECTION 6.05. Further Actions Evidencing Purchases. The Parent
agrees from time to time, at its expense, upon the request of the Agent, to
promptly execute and deliver all further instruments and documents, and to take
all further actions, that may be reasonably necessary or desirable, or that the
Agent may reasonably request, to perfect, protect or more fully evidence the
Receivable Interests purchased hereunder, or to enable the Investors, the Banks
or the Agent to exercise and enforce their respective rights and remedies
hereunder. Without limiting the foregoing, the Parent will (i) upon the request
of the Agent, execute and file, or cause to be executed and filed, such
financing or continuation statements, or amendments thereto, and

                                       53
<PAGE>   59

such other instruments and documents, that may be reasonably necessary or
desirable, or that the Agent may reasonably request, to perfect, protect or
evidence such Receivable Interests; and (ii) cause the master data processing
records evidencing the Pool Receivables to be marked to indicate that Receivable
Interests therein have been sold in accordance with this Agreement.

                  SECTION 6.06. Audits; Changes in Credit and Collection Policy.
(a) The Collection Agent (if other than the Parent) will, from time to time
during regular business hours as requested by the Agent, permit the Agent, or
its agents or representatives (including independent public accountants, which
may be the Collection Agent's independent public accountants), (i) to conduct
periodic audits of the Receivables, the Related Security and the related books
and records and collections systems of the Collection Agent, (ii) to examine and
make copies of and abstracts from all books, records and documents (including,
without limitation, computer tapes and disks) in the possession or under the
control of the Collection Agent relating to Pool Receivables and the Related
Security, including, without limitation, the Contracts, and (iii) to visit the
offices and properties of the Collection Agent for the purpose of examining such
materials described in clause (ii) above, and to discuss matters relating to
Pool Receivables and the Related Security or the Collection Agent's performance
hereunder with any of the officers or employees of the Collection Agent having
knowledge of such matters.

                  (b) The Seller and the Parent agree that none of the
Originators will make any change in their Credit and Collection Policies that
would impair the collectibility of any Pool Receivable or the ability of the
Parent (if it is acting as Collection Agent) to perform its obligations under
this Agreement. In the event that any Originator makes any material change to
the Credit and Collection Policy, the Collection Agent shall, contemporaneously
with such change, provide the Agent with an updated Credit and Collection Policy
and a summary of all material changes.

                  (c) The Parent will not amend, waive or modify any provision
of the Originator Purchase Agreement (provided that the Parent may extend the
"Facility Termination Date" thereunder) or waive the occurrence of any "Event of
Termination" under the Originator Purchase Agreement, without in each case the
prior written consent of the Agent. The Parent will perform all of its
obligations under the Originator Purchase Agreement in all material respects and
will enforce the Originator Purchase Agreement in accordance with its terms in
all material respects.

                                       54
<PAGE>   60

                  SECTION 6.07. Indemnities by the Collection Agent. Without
limiting any other rights that the Agent, any Investor, any Bank or any of their
respective Affiliates (each, a "Special Indemnified Party") may have hereunder
or under applicable law, and in consideration of its appointment as Collection
Agent, the Collection Agent hereby agrees to indemnify each Special Indemnified
Party from and against any and all claims, losses and liabilities (including
reasonable attorneys' fees) (all of the foregoing being collectively referred to
as "Special Indemnified Amounts") arising out of or resulting from any of the
following (excluding, however, (a) Special Indemnified Amounts to the extent
resulting from gross negligence, bad faith or willful misconduct on the part of
such Special Indemnified Party or of any affiliated Special Indemnified Party
acting in connection with the Transaction Documents, (b) recourse for
uncollectible Receivables or (c) any income taxes or any other tax or fee
measured by income incurred by such Special Indemnified Party arising out of or
as a result of this Agreement or the ownership of Receivable Interests or in
respect of any Receivable or any Contract):

                           (i) any representation or warranty or statement made
                  or deemed made by the Collection Agent under or in connection
                  with this Agreement (other than that contained in Section
                  4.02(g) hereof) which shall have been incorrect in any
                  material respect when made;

                           (ii) the failure by the Collection Agent to comply
                  with any applicable law, rule or regulation with respect to
                  any Pool Receivable or Contract;

                           (iii) the failure to have filed, or any delay in
                  filing, financing statements or other similar instruments or
                  documents under the UCC of any applicable jurisdiction or
                  other applicable laws with respect to any Receivables in, or
                  purporting to be in, the Receivables Pool, the Contracts and
                  the Related Security and Collections in respect thereof,
                  whether at the time of any purchase or reinvestment or at any
                  subsequent time;

                           (iv) any failure of the Collection Agent to perform
                  its duties or obligations in accordance with the provisions of
                  this Agreement;

                           (v) the commingling of Collections of Pool
                  Receivables at any time by the Collection Agent with other
                  funds;

                                       55
<PAGE>   61

                           (vi) any action or omission by the Collection Agent
                  reducing or impairing the rights of the Investors or the Banks
                  with respect to any Pool Receivable or the value of any Pool
                  Receivable;

                           (vii) any Collection Agent Fees or other costs and
                  expenses payable to any replacement Collection Agent, to the
                  extent a current market rate fee and to the extent in excess
                  of the Collection Agent Fees payable to the Collection Agent
                  hereunder;

                           (viii) any claim brought by any Person other than a
                  Special Indemnified Party arising from any activity by the
                  Collection Agent or its Affiliates in servicing, administering
                  or collecting any Receivable;

                           (ix) the representation made or deemed made by the
                  Collection Agent in Section 4.02(g) hereof shall have been
                  incorrect in any respect when made; or

                           (x) the creation hereunder of an undivided percentage
                  ownership interest in any Receivable which purports to be part
                  of the Net Receivables Pool Balance but which is not at the
                  date of the creation hereunder of such interest an Eligible
                  Receivable or which thereafter ceases to be an Eligible
                  Receivable other than by such Receivable becoming a Delinquent
                  Receivable or a Defaulted Receivable subsequent to the
                  purchase of a Receivable Interest therein hereunder.

                                   ARTICLE VII

                              EVENTS OF TERMINATION

                  SECTION 7.01. Events of Termination. If any of the following
events ("Events of Termination", except as otherwise provided in Section 7.02)
shall occur and be continuing:

                  (a) The Collection Agent (if the Parent, an Originator or an
Affiliate of the Parent or an Originator) (i) shall fail to perform or observe
any term, covenant or agreement under this Agreement (other than as referred to
in clause (ii) of this subsection (a)) and such failure shall remain unremedied
for three Business Days or (ii) shall fail to make when due any payment or
deposit to be made by it under this Agreement, provided that an Event of
Termination shall not occur under this clause (ii) if such failure is caused not
by the unavailability of funds but is caused solely by a technical or
administrative error which is remedied within one Business Day after notice of

                                       56
<PAGE>   62

such failure is given to the Collection Agent or the Collection Agent first
becomes aware of such error; provided, further, that the preceding proviso may
not be utilized more than once in any three month period; or

                  (b) The Seller shall fail to make any payment required under
Section 2.04(e)(i) or (ii) and such failure shall remain unremedied for one
Business Day after the earlier of (x) written notice thereof delivered to the
Seller or (y) the Seller or the Parent otherwise obtains knowledge thereof; or

                  (c) Any representation or warranty made or deemed made by the
Seller, the Parent, any Originator or the Collection Agent (or any of their
respective officers) under or in connection with this Agreement or any other
Transaction Document or any information or report delivered by the Seller, the
Parent, any Originator or the Collection Agent pursuant to this Agreement or any
other Transaction Document shall prove to have been incorrect or untrue in any
material respect when made or deemed made or delivered; or

                  (d) The Seller, the Parent or any Originator shall fail to
perform or observe any other term, covenant or agreement contained in any
Transaction Document on its part to be performed or observed and any such
failure shall remain unremedied for 15 days (provided, however, that no grace
period shall be permitted for any failure by the Seller, the Parent (as
Collection Agent or otherwise) or any Originator under any of Sections 5.01(a),
(d), (e), (f), (g), (h), (k)(iv), (k)(viii), (l), (m), (n), (o), (p), (q), (r)
or (t) or 5.03); or

                  (e) The Seller, the Parent or any Originator shall fail to pay
any principal of or premium or interest on any of its Debt which is outstanding
in a principal amount of at least $2,500,000 in the aggregate when the same
becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument
relating to such Debt; or any other event shall occur or condition shall exist
under any agreement or instrument relating to any such Debt and shall continue
after the applicable grace period, if any, specified in such agreement or
instrument, if the effect of such event or condition is to accelerate, or to
permit the acceleration of, the maturity of such Debt; or any such Debt shall be
declared to be due and payable, or required to be prepaid (other than by a
regularly scheduled required prepayment), redeemed, purchased or defeased, or an
offer to repay, redeem, purchase or defease such Debt shall be required to be
made, in each case prior to the stated maturity thereof; or

                                       57
<PAGE>   63

                  (f) Any purchase or any reinvestment pursuant to this
Agreement shall for any reason (other than pursuant to the terms hereof) cease
to create, or any Receivable Interest shall for any reason cease to be, a valid
and perfected first priority undivided percentage ownership interest to the
extent of the pertinent Receivable Interest in each applicable Pool Receivable
and the Related Security and Collections with respect thereto; or the security
interest created pursuant to Section 2.11 shall for any reason cease to be a
valid and perfected first priority security interest in the collateral security
referred to in that section; or

                  (g) The Seller, the Parent or 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, or shall make a general assignment for the
benefit of creditors; or any proceeding shall be instituted by or against the
Seller, the Parent or any Originator seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part
of its property and, in the case of any such proceeding instituted against the
Seller, the Parent or any Originator (but not instituted by the Seller, the
Parent or such Originator), either such proceeding shall remain undismissed or
unstayed for a period of 45 days, or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief
against, or the appointment of a receiver, trustee, custodian or other similar
official for, the Seller, the Parent or such Originator or for any substantial
part of the Seller's, the Parent's or such Originator's property) shall occur;
or the Seller, the Parent or any Originator shall take any corporate or other
action to authorize any of the actions set forth above in this subsection (g);
or

                  (h) As of the last day of any calendar month, (i) the Default
Ratio for such calendar month shall exceed 7.5%; (ii) the average of the Default
Ratio for each of such calendar month and the two prior calendar months shall
exceed 6.0%; (iii) the Delinquency Ratio for such calendar month shall exceed
7.5%; or (iv) the average of the Delinquency Ratio for each of such calendar
month and the two prior calendar months shall exceed 6.5%; or

                  (i) The sum of the Receivable Interests shall be greater than
100% for any two consecutive Business Days; or

                                       58
<PAGE>   64

                  (j) There shall have occurred any material adverse change in
the financial condition or operations of the Parent and its consolidated
Subsidiaries taken as a whole since March 31, 2001; or there shall have occurred
any event which may materially adversely affect the collectibility of the
Receivables Pool or the ability of the Seller, the Parent, any Originator or the
Collection Agent to collect Pool Receivables or otherwise perform its
obligations under this Agreement or the other Transaction Documents; or

                  (k) An "Event of Termination" or "Facility Termination Date"
shall occur under the Parent/Seller Purchase Agreement or the Originator
Purchase Agreement, or the Parent/Seller Purchase Agreement or the Originator
Purchase Agreement shall cease to be in full force and effect; or

                  (l) All of the membership interests of the Seller (other than
any non-equity interest held by a Special Member (as defined and described in
the Amended and Restated Limited Liability Company Agreement of the Seller dated
as of June 29, 2001)) shall cease to be owned, of record and beneficially,
directly or indirectly, by the Parent or by the Parent and one or more of its
Subsidiaries; or

                  (m) At least 51% of the capital stock of the Parent shall
cease to be owned, of record and beneficially, directly or indirectly, by
Centex;

then, and in any such event (but subject to Section 7.02), any or all of the
following actions may be taken by notice to the Seller: (x) the Investor or the
Agent may declare the Facility Termination Date to have occurred (in which case
the Facility Termination Date shall be deemed to have occurred), (y) the Agent
may declare the Commitment Termination Date to have occurred (in which case the
Commitment Termination Date shall be deemed to have occurred), and (z) without
limiting any right under this Agreement to replace the Collection Agent, the
Agent may designate another Person to succeed the Parent as the Collection
Agent; provided, that, automatically upon the occurrence of any event (without
any requirement for the passage of time or the giving of notice) described in
paragraph (g) of this Section 7.01, the Facility Termination Date and the
Commitment Termination Date shall occur, the Parent (if it is then serving as
the Collection Agent) shall cease to be the Collection Agent, and the Agent or
its designee shall become the Collection Agent; and provided, further, that,
automatically upon the occurrence of any event described in paragraph (i) of
this Section 7.01 which continues for 5 Business Days, the Facility Termination
Date and the Commitment Termination Date shall occur. Upon any such

                                       59
<PAGE>   65

declaration or designation or upon such automatic termination, the Investors,
the Banks and the Agent shall have, in addition to the rights and remedies which
they may have under this Agreement, all other rights and remedies provided after
default under the UCC and under other applicable law, which rights and remedies
shall be cumulative.

                  SECTION 7.02. Stop Purchase Events. Upon the occurrence of an
event described in Section 7.01(e), (g) or (j) in respect of a Non-Significant
Originator, and if and so long as all of the following conditions are satisfied,
no Event of Termination or Incipient Event of Termination shall be deemed to
exist as a result of the occurrence of such event, but Atlantic and the Banks
shall, at their option, be permitted to stop purchasing additional Receivables
originated by such Non- Significant Originator: (i) such event does not
adversely affect the collectibility of the Receivables of such Non-Significant
Originator then in the Receivables Pool, (ii) not purchasing additional
Receivables of such Non-Significant Originator would not, as determined by the
Agent in its reasonable discretion, have a material adverse effect on the
composition of the Receivables Pool, (iii) the Seller, the Parent and the
Originators shall otherwise be in compliance with the terms of this Agreement
and of the other Transaction Documents and no other Event of Termination or
Incipient Event of Termination shall then exist, (iv) no event described in
Section 7.01 (e), (g) or (j) has occurred with respect to any other
Non-Significant Originator within the preceding three months and (v) no Person
challenges the "true sale" nature of the transfer of any Receivables under the
Originator Purchase Agreement or the Parent/Seller Purchase Agreement.

                                  ARTICLE VIII

                                    THE AGENT

                  SECTION 8.01. Authorization and Action. Each Investor and each
Bank hereby appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement as are delegated to
the Agent by the terms hereof, together with such powers as are reasonably
incidental thereto.

                  SECTION 8.02. Agent's Reliance, Etc. Neither the Agent nor any
of its directors, officers, agents or employees shall be liable for any action
taken or omitted to be taken by it or them as Agent under or in connection with
this Agreement (including, without limitation, the Agent's servicing,
administering or collecting Pool Receivables as Collection

                                       60
<PAGE>   66

Agent), except for its or their own gross negligence, bad faith or willful
misconduct. Without limiting the generality of the foregoing, the Agent: (a) may
consult with legal counsel (including counsel for the Seller, the Parent any
Originator and the Collection Agent), independent certified public accountants
and other experts selected by it and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (b) makes no warranty or representation to any
Investor or Bank (whether written or oral) and shall not be responsible to any
Investor or Bank for any statements, warranties or representations (whether
written or oral) made in or in connection with this Agreement; (c) shall not
have any duty to ascertain or to inquire as to the performance or observance of
any of the terms, covenants or conditions of this Agreement on the part of the
Seller, the Parent, any Originator or the Collection Agent or to inspect the
property (including the books and records) of the Seller, the Parent, any
Originator or the Collection Agent; (d) shall not be responsible to any Investor
or Bank for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; and (e) shall incur no liability under or in respect
of this Agreement by acting upon any notice (including notice by telephone),
consent, certificate or other instrument or writing (which may be by telecopier
or telex) believed by it to be genuine and signed or sent by the proper party or
parties.

                  SECTION 8.03. Credit Lyonnais and Affiliates. The obligation
of Credit Lyonnais to purchase Receivable Interests under this Agreement may be
satisfied by Credit Lyonnais or any of its Affiliates. With respect to any
Receivable Interest or interest therein owned by it, Credit Lyonnais shall have
the same rights and powers under this Agreement as any Bank and may exercise the
same as though it were not the Agent. Credit Lyonnais and any of its Affiliates
may generally engage in any kind of business with the Seller, the Parent, any
Originator, the Collection Agent or any Obligor, any of their respective
Affiliates and any Person who may do business with or own securities of the
Seller, the Parent, any Originator, the Collection Agent or any Obligor or any
of their respective Affiliates, all as if Credit Lyonnais were not the Agent and
without any duty to account therefor to the Investors or the Banks.

                  SECTION 8.04. Bank's Purchase Decision. Each Bank acknowledges
that it has, independently and without reliance upon the Agent, any of its
Affiliates or any other Bank and based on such documents and information as it
has deemed appropriate, made its own evaluation and decision to enter into this
Agreement.

                                       61
<PAGE>   67

Each Bank also acknowledges that it will, independently and without reliance
upon the Agent, any of its Affiliates or any other Bank and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own decisions in taking or not taking action under this Agreement.

                                   ARTICLE IX

                                 INDEMNIFICATION

                  SECTION 9.01. Indemnities by the Seller. Without limiting any
other rights that the Agent, the Investors, the Banks or any of their respective
Affiliates (each, an "Indemnified Party") may have hereunder or under applicable
law, the Seller hereby agrees to indemnify each Indemnified Party from and
against any and all claims, losses and liabilities (including reasonable
attorneys' fees) (all of the foregoing being collectively referred to as
"Indemnified Amounts") arising out of or resulting from this Agreement or the
other Transaction Documents or the use of proceeds of purchases or reinvestments
or the ownership of Receivable Interests or in respect of any Receivable or any
Contract, excluding, however, (a) Indemnified Amounts to the extent resulting
from gross negligence, bad faith or willful misconduct on the part of such
Indemnified Party or any affiliated Indemnified Party acting in connection with
the Transaction Documents, (b) recourse (except as otherwise specifically
provided in this Agreement) for uncollectible Receivables or (c) any income
taxes or any other tax or fee measured by income incurred by such Indemnified
Party arising out of or as a result of this Agreement or the ownership of
Receivable Interests or in respect of any Receivable or any Contract. Without
limiting or being limited by the foregoing, the Seller shall pay on demand to
each Indemnified Party any and all amounts necessary to indemnify such
Indemnified Party from and against any and all Indemnified Amounts arising out
of or resulting from any of the following (but excluding Indemnified Amounts and
taxes described in clauses (a) and (c) above):

                           (i) the creation hereunder of an undivided percentage
                  ownership interest in any Receivable which purports to be part
                  of the Net Receivables Pool Balance but which is not at the
                  date of the creation hereunder of such interest an Eligible
                  Receivable or which thereafter ceases to be an Eligible
                  Receivable other than by such Receivable becoming a Delinquent
                  Receivable or a Defaulted Receivable subsequent to the
                  purchase of a Receivable Interest therein hereunder;

                                       62
<PAGE>   68

                           (ii) any representation or warranty or statement made
                  or deemed made by the Seller (or any of its officers) under or
                  in connection with this Agreement or any of the other
                  Transaction Documents which shall have been incorrect in any
                  material respect when made;

                           (iii) the failure by the Seller or any Originator to
                  comply with any applicable law, rule or regulation with
                  respect to any Pool Receivable or the related Contract; or the
                  failure of any Pool Receivable or the related Contract to
                  conform to any such applicable law, rule or regulation;

                           (iv) the failure to vest in the Investors or the
                  Banks, as the case may be, (a) a perfected undivided
                  percentage ownership interest, to the extent of each
                  Receivable Interest, in the Receivables in, or purporting to
                  be in, the Receivables Pool and the Related Security and
                  Collections in respect thereof, or (b) a perfected security
                  interest as provided in Section 2.11, in each case free and
                  clear of any Adverse Claim;

                           (v) the failure to have filed, or any delay in
                  filing, financing statements or other similar instruments or
                  documents under the UCC of any applicable jurisdiction or
                  other applicable laws with respect to any Receivables in, or
                  purporting to be in, the Receivables Pool and the Related
                  Security and Collections in respect thereof, whether at the
                  time of any purchase or reinvestment or at any subsequent
                  time;

                           (vi) any dispute, claim, offset or defense (other
                  than discharge in bankruptcy of the Obligor) of the Obligor to
                  the payment of any Receivable in, or purporting to be in, the
                  Receivables Pool (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 such Receivable or the furnishing or
                  failure to furnish such merchandise or services or relating to
                  collection activities with respect to such Receivable (if such
                  collection activities were performed by the Seller or any of
                  its Affiliates acting as Collection Agent);

                           (vii) any failure of the Seller to perform its duties
                  or obligations in accordance with the provisions

                                       63
<PAGE>   69

                  hereof or to perform its duties or obligations under the
                  Contracts;

                          (viii) any products liability or other claim arising
                  out of or in connection with merchandise, insurance or
                  services which are the subject of any Contract;

                           (ix) the commingling of Collections of Pool
                  Receivables at any time with other funds;

                           (x) any investigation, litigation or proceeding
                  related to this Agreement or the use of proceeds of purchases
                  or reinvestments or the ownership of Receivable Interests or
                  in respect of any Receivable or Related Security or Contract;

                           (xi) any failure of the Seller to comply with its
                  covenants contained in this Agreement or any other Transaction
                  Document; or

                           (xii) any claim brought by any Person other than an
                  Indemnified Party arising from any activity by the Seller or
                  any Affiliate of the Seller in servicing, administering or
                  collecting any Receivable.

                                    ARTICLE X

                                  MISCELLANEOUS

                  SECTION 10.01. Amendments, Etc. No amendment or waiver of any
provision of this Agreement or consent to any departure by the Seller or the
Parent therefrom shall be effective unless in a writing signed by the Agent, as
agent for the Investors and the Banks (and, in the case of any amendment or any
waiver by the Seller or the Parent, also signed by the Seller and the Parent),
and then such amendment, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and
signed by the Collection Agent in addition to the Agent, affect the rights or
duties of the Collection Agent under this Agreement. Notwithstanding the
foregoing (but only to the extent required by the relevant rating agencies then
rating the commercial paper of each Investor), no material amendment to or
material waiver of any provision of this Agreement, nor consent to any material
departure by the Seller or Collection Agent therefrom, shall be effective unless
a written statement is obtained from such relevant rating agencies that the
rating of the commercial paper of such Investor will not be downgraded or
withdrawn solely as a result of such amendment,

                                       64
<PAGE>   70

waiver or consent (provided that no such statement shall be required in
connection with an amendment the sole purpose of which is to extend the
Commitment Termination Date or the Facility Termination Date or to cure any
ambiguity). No failure on the part of the Investors, the Banks or the Agent to
exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right.

                  SECTION 10.02. Notices, Etc. All notices and other
communications hereunder shall, unless otherwise stated herein, be in writing
(which shall include facsimile communication) and faxed or delivered, to each
party hereto, at its address set forth under its name on the signature pages
hereof or at such other address as shall be designated by such party in a
written notice to the other parties hereto. Notices and communications by
facsimile shall be effective when sent (and shall be followed by hard copy sent
by regular mail), and notices and communications sent by other means shall be
effective when received.

                  SECTION 10.03. Assignability. (a) This Agreement and the
Investors' rights and obligations herein (including ownership of each Receivable
Interest) shall not be assignable by the Investors or their successors and
assigns except by operation of law or to an Eligible Assignee. Each assignor of
a Receivable Interest or any interest therein shall notify the Agent and the
Seller of any such permitted assignment. Each assignor of a Receivable Interest
or any interest therein may, in connection with the permitted assignment or
participation, disclose to the assignee or participant any information relating
to the Seller, the Parent or any Originator, including the Receivables,
furnished to such assignor by or on behalf of the Seller or by the Agent.

                  (b) Each Bank may assign to any Eligible Assignee or to any
other Bank all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Bank Commitment and any
Receivable Interests or interests therein owned by it). The parties to each such
assignment shall execute and deliver to the Agent an assignment agreement in
form and substance satisfactory to the Agent.

                  (c) This Agreement and the rights and obligations of the Agent
herein shall not be assignable by the Agent or its successors and assigns except
by operation of law or to an Eligible Assignee.

                                       65
<PAGE>   71

                  (d) The Seller may not assign its rights or obligations
hereunder or any interest herein without the prior written consent of the Agent.

                  SECTION 10.04. Costs, Expenses and Taxes. (a) In addition to
the rights of indemnification granted under Section 9.01 hereof, the Seller
agrees to pay on demand all reasonable costs and expenses in connection with the
preparation, execution, delivery and administration (including periodic auditing
and the other activities contemplated in Section 5.02) of this Agreement, any
Asset Purchase Agreement and the other documents and agreements to be delivered
hereunder, including, without limitation, the reasonable fees and out-of-pocket
expenses of counsel for the Agent, Credit Lyonnais, Atlantic, and their
respective Affiliates with respect thereto and with respect to advising the
Agent, Credit Lyonnais, Atlantic, and their respective Affiliates as to their
rights and remedies under this Agreement, and all costs and expenses, if any
(including reasonable counsel fees and expenses), of the Agent, Credit Lyonnais,
the Investors, the Banks and their respective Affiliates, in connection with the
enforcement of this Agreement and the other documents and agreements to be
delivered hereunder; provided that any such fees and expenses in respect of
counsel for the Agent, Credit Lyonnais, Atlantic, and their respective
Affiliates shall be limited to such fees and expenses of one firm of attorneys.

                  (b) In addition, the Seller shall pay, to the extent not
included in the calculation of Yield, (i) any and all commissions of placement
agents and dealers in respect of commercial paper notes issued by Atlantic to
fund the purchase or maintenance of any Receivable Interest, and (ii) any and
all costs and expenses of any issuing and paying agent or other Person
responsible for the administration of Atlantic's commercial paper program in
connection with the preparation, completion, issuance, delivery or payment of
commercial paper notes issued to fund the purchase or maintenance of any
Receivable Interest.

                  SECTION 10.05. No Proceedings. Each of the Seller, the Parent,
the Agent, the Collection Agent, each Investor, each Bank, each assignee of a
Receivable Interest or any interest therein and each entity which enters into a
commitment to purchase Receivable Interests or interests therein hereby agrees
that it will not institute or join any other person in instituting against
Atlantic any proceeding of the type referred to in Section 7.01(g) for one year
and a day after the latest maturing commercial paper note issued by Atlantic is
paid.

                                       66
<PAGE>   72

                  SECTION 10.06. Confidentiality. (a) Each of the Seller, the
Parent and the Collection Agent agrees to maintain the confidentiality of this
Agreement and the other Transaction Documents in communications with third
parties and otherwise; provided that this Agreement and the other Transaction
Documents may be disclosed (i) to the Originators and their Affiliates if they
agree to hold such documents confidential, (ii) to the legal counsel and
auditors of the Seller, the Parent, the Originators and the Collection Agent if
they agree to hold such documents confidential, (iii) to the extent required by
applicable law or regulation or by any court, regulatory body or agency having
jurisdiction over such party and (iv) to other Persons to the extent such
disclosure is made pursuant to a written agreement of confidentiality in form
and substance reasonably satisfactory to the Agent; and provided, further, that
such party shall have no obligation of confidentiality in respect of any
information which may be generally available to the public or becomes available
to the public through no fault of such party.

                  (b) Each Investor, each Bank and the Agent agrees to maintain
the confidentiality of all information with respect to the Seller, the Parent,
the Originators or the Receivables Pool (including the Seller Reports) furnished
or delivered to it pursuant to this Agreement; provided, that such information
may be disclosed (i) to such party's legal counsel and auditors and to such
party's assignees and participants and potential assignees and participants and
their respective counsel if they agree to hold it confidential on the same terms
as the disclosing party, (ii) to the rating agencies and the providers of
liquidity or credit enhancement for each Investor, and (iii) to the extent
required by applicable law or regulation or by any court, regulatory body or
agency having jurisdiction over such party; and provided, further, that such
party shall have no obligation of confidentiality in respect of any information
which may be generally available to the public or becomes available to the
public through no fault of such party.

                  SECTION 10.07. GOVERNING LAW. THIS AGREEMENT SHALL, IN
ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK, BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD
CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, EXCEPT TO THE
EXTENT THAT, PURSUANT TO THE UCC OF THE STATE OF NEW YORK, THE PERFECTION AND
THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE INTERESTS OF THE INVESTORS AND
THE BANKS IN THE RECEIVABLES AND THE ORIGINATOR PURCHASE AGREEMENT ARE GOVERNED
BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

                                       67
<PAGE>   73

                  SECTION 10.08. Execution in Counterparts. This Agreement may
be executed in any number of counterparts, each of which when so executed shall
be deemed to be an original and all of which when taken together shall
constitute one and the same agreement.

                  SECTION 10.09. Survival of Termination. The provisions of
Sections 2.08, 2.09, 6.07, 9.01, 10.04, 10.05 and 10.06 shall survive any
termination of this Agreement.

                  SECTION 10.10. Consent to Jurisdiction. (a) Each party hereto
hereby irrevocably submits to the non-exclusive jurisdiction of any New York
State or Federal court sitting in New York City in any action or proceeding
arising out of or relating to this Agreement, and each party hereto hereby
irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in such New York State court or, to the extent permitted
by law, in such Federal court. The parties hereto hereby irrevocably waive, to
the fullest extent they may effectively do so, the defense of an inconvenient
forum to the maintenance of such action or proceeding. The parties hereto agree
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.

                  (b) Each of the parties hereto consents to the service of any
and all process in any such action or proceeding by the mailing of copies of
such process to it at its address specified in Section 10.02. Nothing in this
Section 10.10 shall affect the right of the parties hereto to serve legal
process in any other manner permitted by law.

                  SECTION 10.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER
SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO,
OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED OR DELIVERED PURSUANT
HERETO.

                                       68
<PAGE>   74

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

         SELLER               CXP FUNDING, LLC

                              By:
                                  ---------------------------
                                       Title:
                                       2728 N. Harwood
                                       Dallas, Texas  75201
                                       Attention: Arthur Zunker
                                       Facsimile Number: (214) 981-6559

         INVESTOR:            ATLANTIC ASSET SECURITIZATION CORP.

                              By:      Credit Lyonnais New York
                                       Branch, as Attorney-in-Fact

                                       By
                                          -----------------------
                                                Vice President

                                                c/o Lord Securities Corporation
                                                2 Wall Street, 19th Floor
                                                New York, N.Y.  10006
                                                Attention: Dwight Jenkins
                                                Facsimile No. (212)346-9012

         AGENT:               CREDIT LYONNAIS NEW YORK BRANCH,
                                                          as Agent

                              By
                                  -------------------------------
                                                Vice President

                                                1301 Avenue of the Americas
                                                New York, N.Y.  10019
                                                Attention:  Gary Miller
                                                Facsimile No. (212)459-3258

                                       69
<PAGE>   75

         BANK:                CREDIT LYONNAIS NEW YORK BRANCH

                              By:
                                   ----------------------------

                                                Percentage Interest:  100%

                                                1301 Avenue of the Americas
                                                New York, N.Y.  10019
                                                Attention: Gary Miller
                                                Facsimile No. (212)459-3258

         PARENT AND           CENTEX CONSTRUCTION PRODUCTS, INC.
         COLLECTION AGENT:

                                       By:
                                           --------------------------
                                                Title:
                                                2728 N. Harwood
                                                Dallas, Texas  75201
                                                Attention: Paul Johnston
                                                Facsimile Number: (214) 981-6858

                                       70

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