Document:

Exhibit 10.2

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                         RECEIVABLES PURCHASE AGREEMENT

                          Dated as of November 1, 2001

                                      Among

                         CONMED RECEIVABLES CORPORATION

                                    as Seller

                                       and

                               CONMED CORPORATION

                               as initial Servicer

                                       and

                             BLUE KEEL FUNDING, LLC

                              as Conduit Purchaser

                                       and

                               FLEET NATIONAL BANK

                             as Committed Purchaser

                                       and

                             FLEET SECURITIES, INC.

                                as Administrator

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                                TABLE OF CONTENTS

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                                                   ARTICLE I

                                          PURCHASES AND REINVESTMENTS

SECTION 1.01.                Commitment to Purchase; Limits on Purchasers' Obligations............................2
SECTION 1.02.                Purchase Procedures; Assignment of Purchaser's Interests.............................2
SECTION 1.03.                Reinvestments of Certain Collections; Payment of Remaining Collections...............2
SECTION 1.04.                Asset Interest.......................................................................3
SECTION 1.05.                Voluntary Termination of Purchase and Reinvestment Obligations or
                             Reduction of Purchase Limit..........................................................4

                                                    ARTICLE II

                                                COMPUTATIONAL RULES

SECTION 2.01.                Computation of Capital...............................................................5
SECTION 2.02.                Computation of Concentration Limit...................................................5
SECTION 2.03.                Computation of Earned Discount.......................................................5
SECTION 2.04.                Estimates of Earned Discount Rate, Fees, Etc.........................................5

                                                    ARTICLE III

                                                    SETTLEMENTS

SECTION 3.01.                Settlement Procedures................................................................6
SECTION 3.02.                Deemed Collections; Reduction of Capital, Etc........................................8
SECTION 3.03.                Payments and Computations, Etc.......................................................9

                                                    ARTICLE IV

                                             FEES AND YIELD PROTECTION

SECTION 4.01.                Fees................................................................................10
SECTION 4.02.                Yield Protection....................................................................10
SECTION 4.03.                Funding Losses......................................................................12

                                                     ARTICLE V

                                              CONDITIONS TO PURCHASES

SECTION 5.01.                Conditions Precedent to Initial Purchase............................................12
SECTION 5.02.                Conditions Precedent to All Purchases and Reinvestments.............................14

                                                    ARTICLE VI

                                          REPRESENTATIONS AND WARRANTIES

SECTION 6.01.                Representations and Warranties of Seller............................................15
SECTION 6.02.                Representations and Warranties of Parent............................................18

                                                    ARTICLE VII

                                                 GENERAL COVENANTS

SECTION 7.01.                Affirmative Covenants...............................................................20
SECTION 7.02.                Reporting Requirements..............................................................22
SECTION 7.03.                Negative Covenants..................................................................24
SECTION 7.04.                Separate Existence..................................................................25

                                                   ARTICLE VIII

                                           ADMINISTRATION AND COLLECTION

SECTION 8.01.                Designation of Servicer.............................................................27
SECTION 8.02.                Duties of Servicer..................................................................28
SECTION 8.03.                Rights of the Administrator.........................................................30
SECTION 8.04.                Responsibilities of Seller..........................................................31
SECTION 8.05.                Further Action Evidencing Purchases and Reinvestments...............................31
SECTION 8.06.                Application of Collections..........................................................32

                                                    ARTICLE IX

                                                 SECURITY INTEREST

SECTION 9.01.                Grant of Security Interest..........................................................32
SECTION 9.02.                Further Assurances..................................................................33
SECTION 9.03.                Remedies............................................................................33
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                                                     ARTICLE X

                                                LIQUIDATION EVENTS

SECTION 10.01.               Liquidation Events..................................................................33
SECTION 10.02.               Remedies............................................................................35

                                                    ARTICLE XI

                                                 THE ADMINISTRATOR

SECTION 11.01.               Authorization and Action............................................................35
SECTION 11.02.               Administrator's Reliance, Etc.......................................................35
SECTION 11.03.               Fleet and Affiliates................................................................36

                                                    ARTICLE XII

                                        ASSIGNMENT OF PURCHASER'S INTEREST

SECTION 12.01.               Restrictions on Assignments.........................................................36
SECTION 12.02.               Rights of Assignee..................................................................37

                                                   ARTICLE XIII

                                                  INDEMNIFICATION

SECTION 13.01.               Indemnities.........................................................................37

                                                    ARTICLE XIV

                                                   MISCELLANEOUS

SECTION 14.01.               Amendments, Etc.....................................................................39
SECTION 14.02.               Notices, Etc........................................................................39
SECTION 14.03.               No Waiver; Remedies.................................................................40
SECTION 14.04.               Binding Effect; Survival............................................................40
SECTION 14.05.               Costs, Expenses and Taxes...........................................................40
SECTION 14.06.               No Proceedings; Limitations on Recourse.............................................40
SECTION 14.07.               Confidentiality of Program Information..............................................41
SECTION 14.08.               Confidentiality of Parent Information...............................................42
SECTION 14.09.               Captions and Cross References.......................................................44
SECTION 14.10.               Integration.........................................................................44
SECTION 14.11.               Governing Law.......................................................................44
SECTION 14.12.               Waiver Of Jury Trial................................................................44
SECTION 14.13.               Consent To Jurisdiction; Waiver Of Immunities.......................................44
SECTION 14.14.               Execution in Counterparts...........................................................45
SECTION 14.15.               No Recourse Against Other Parties...................................................45
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                                   APPENDICES

APPENDIX A            Definitions

                                    SCHEDULES

SCHEDULE 6.01(m)      List of Offices of Seller where Records Are Kept

SCHEDULE 6.01(n)      List of Lock-Box Banks

SCHEDULE 7.01(g)      Description of Credit and Collection Policy

SCHEDULE 14.02        Notice Addresses

                                    EXHIBITS

EXHIBIT 1.02(a)            Form of Purchase Notice
EXHIBIT 3.01(a)            Form of Servicer Report
EXHIBIT 3.01(a)-W          Form of Weekly Report
EXHIBIT 5.01(f)            Form of Lock-Box Agreement
EXHIBIT 5.01(g)-1          Form of Enforceability/Perfection Opinion
EXHIBIT 5.01(g)-2          Form of True Sale/Substantive Consolidation Opinion

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                         RECEIVABLES PURCHASE AGREEMENT

                          Dated as of November 1, 2001

         THIS IS A RECEIVABLES PURCHASE AGREEMENT, among CONMED RECEIVABLES
CORPORATION, a New York corporation ("Seller"), CONMED CORPORATION, a New York
corporation ("Parent"), as initial Servicer, BLUE KEEL FUNDING, LLC, a Delaware
limited liability company (the "Conduit Purchaser"), FLEET NATIONAL BANK, a
national banking association (together with any other financial institution
hereafter party hereto, each a "Committed Purchaser", and collectively with the
Conduit Purchaser, the "Purchasers") and FLEET SECURITIES, INC., a New York
corporation ("Fleet Securities"), as administrator for Purchasers (in such
capacity, the "Administrator"). Unless otherwise indicated, capitalized terms
used in this Agreement are defined in Appendix A.

                                   Background

         1. The Originators are engaged in the business of distribution and sale
of medical devices, equipment and related products.

         2. Seller is a single purpose corporation formed for the purpose of
purchasing, and accepting contributions of, Receivables generated by the
Originators.

         3. Seller has, and expects to have, Pool Receivables in which Seller,
subject to the terms and conditions of this Agreement, intends to sell an
undivided interest. Seller has requested Purchasers, and Conduit Purchaser may
(and if Conduit Purchaser does not, Committed Purchasers shall), subject to the
terms and conditions contained in this Agreement, fund the purchase of such
undivided interest, referred to herein as the Asset Interest, from Seller from
time to time during the term of this Agreement.

         4. Seller and Purchasers also desire that, subject to the terms and
conditions of this Agreement, certain of the daily Collections in respect of the
Asset Interest be reinvested in Pool Receivables, which reinvestment shall
constitute part of the Asset Interest.

         5. Parent has been requested, and is willing, to act as initial
Servicer.

         6. Fleet Securities has been requested, and is willing, to act as the
Administrator.

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

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                                    ARTICLE I

                           PURCHASES AND REINVESTMENTS

         SECTION 1.01. Commitment to Purchase; Limits on Purchasers'
Obligations. Upon the terms and subject to the conditions of this Agreement,
from time to time prior to the Termination Date, Seller may request that
Administrator, for the benefit of Purchasers, purchase from Seller an undivided
ownership interest in the Pool Assets (each being a "Purchase") and Conduit
Purchaser may, in its sole discretion, fund each Purchase. If Conduit Purchaser
elects not to fund such Purchase, each Committed Purchaser shall fund its
Percentage of such Purchase, and the Administrator, for the benefit of
Purchasers, shall make such Purchase with the proceeds of such funding by the
Committed Purchasers; provided that no Purchase shall be funded by any Purchaser
if, after giving effect thereto, either (a) the Capital after giving effect to
such Purchase would exceed $50,000,000 (the "Purchase Limit"), as such Purchase
Limit may be decreased from time to time as provided in Section 1.05, or (b) the
Asset Interest would exceed 100% (the "Allocation Limit"); and provided further
that each Purchase made pursuant to this Section 1.01 shall have a purchase
price of at least $1,000,000.

         SECTION 1.02. Purchase Procedures; Assignment of Purchaser's Interests.

         (a) Notice of Purchase. Each Purchase from Seller shall be made on
notice from Seller to the Administrator received by the Administrator not later
than 11:00 a.m. (Boston, Massachusetts time) on the second Business Day next
preceding the date of such proposed Purchase. Each such notice of a proposed
Purchase shall be substantially in the form of Exhibit 1.02(a) (each a "Purchase
Notice"), and shall specify the desired amount and date of such Purchase, which
shall be a Settlement Date.

         (b) Funding of Purchase. On the date of each Purchase, Conduit
Purchaser (or, if Conduit Purchaser has elected not to fund such Purchase, each
Committed Purchaser) shall, upon satisfaction of the applicable conditions set
forth in Article V, make available to the Administrator at the Administrator's
Office the amount of its Purchase in immediately available funds, and after
receipt by the Administrator of such funds, the Administrator shall
wire-transfer immediately available funds to an account designated by Seller in
the related Purchase Notice.

         (c) Assignment of Asset Interest. Seller hereby sells, assigns and
transfers to Administrator, for the benefit of Purchasers, the Asset Interest.

         SECTION 1.03. Reinvestments of Certain Collections; Payment of
Remaining Collections. (a) As of the close of business on each day during the
period from the date hereof to the Termination Date, Servicer shall, out of all
Collections received on such day:

                  (i) determine the portion of Collections attributable on any
         day to the Asset Interest by multiplying (x) the amount of all
         Collections received on such day times (y) the Asset Interest;

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                  (ii) out of the portion of Collections allocated to the Asset
         Interest pursuant to clause (i), set aside and hold in trust for
         Purchasers an amount equal to the sum of the estimated amount of Earned
         Discount accrued in respect of the Capital (based on rate information
         provided by the Administrator pursuant to Section 2.04), the accrued
         Fees, all other amounts due to Purchasers, the Administrator, the
         Affected Parties or the Indemnified Parties hereunder (other than the
         Capital) and the Purchasers' Share of Servicer's Fee (in each case,
         accrued through such day) and not so previously set aside;

                  (iii) apply the Collections allocated to the Asset Interest
         pursuant to clause (i) and not set aside pursuant to clause (ii) to the
         purchase from Seller of ownership interests in Pool Assets (each such
         purchase being a "Reinvestment"); provided that (A) if there is an
         Excess Amount after giving effect to other Collections previously set
         aside pursuant to this clause (iii) and then so held, then Servicer
         shall not make a Reinvestment to such extent, but shall set aside and
         hold for the benefit of Purchasers, a portion of such Collections
         which, together with other Collections previously set aside and then so
         held, shall equal the Excess Amount; and (B) if the conditions
         precedent to Reinvestment in Section 5.02 are not satisfied, then
         Servicer shall not reinvest any of such Collections;

                  (iv) pay to Seller (A) the portion of Collections not
         allocated to the Asset Interest pursuant to clause (i), less Seller's
         Share of Servicer's Fee accrued through such day, and (B) the
         Collections applied to Reinvestment pursuant to clause (iii); and

                  (v) out of the portion of Collections not allocated to the
         Asset Interest pursuant to clause (i), pay to Servicer Seller's Share
         of Servicer's Fee accrued through such day.

         (b) Unreinvested Collections. Servicer shall set aside and hold in
trust for the benefit of Purchasers all Collections which pursuant to clause
(ii) or (iii) of Section 1.03(a) may not be reinvested in Pool Assets; provided
that unless the Administrator shall request it to do so in writing, Servicer
shall not be required to hold Collections that have been set aside in a separate
deposit account containing only such Collections. If, prior to the date when
such Collections are required to be paid to the Administrator pursuant to
Section 3.01, the amount of Collections set aside pursuant to clause (iii) of
Section 1.03(a) exceeds the Excess Amount, if any, and the conditions precedent
to Reinvestment set forth in Section 5.02 are satisfied, then Servicer shall
apply such Collections (or, if less, a portion of such Collections equal to the
amount of such excess) to the making of a Reinvestment.

         SECTION 1.04. Asset Interest. (a) Components of Asset Interest. On any
date the Asset Interest will represent Administrator's (for the benefit of
Purchasers) combined undivided percentage ownership interest in (i) all then
outstanding Pool Receivables, (ii) all Related Security with respect to such
Pool Receivables, (iii) all of Seller's right and claims under the Purchase
Agreement, (iv) all lock-boxes and lock-box or collection accounts into which
Collections of Pool Receivables are or may be deposited, and all funds and
investments therein, (v) all Collections with respect to, and other proceeds of,
the foregoing and (vi) all books and records (including computer disks, tapes
and software) evidencing or relating to any of the foregoing, in each case,
whether now

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owned by Seller or hereafter acquired or arising, and wherever located (all of
the foregoing, collectively referred to as "Pool Assets").

         (b) Computation of Asset Interest. On any date of computation, the
Asset Interest will be equal to a percentage, expressed as the following
fraction:

                                                         C
                                            --------------------------
                                                 NPB  x (1 - RRP)
where:

         C = the Capital on such date.

         RRP = the Required Reserve Percentage on such date.

         NPB  = the Net Pool Balance on such date;

provided, however, that from and after the Termination Date, the Asset Interest
will be 100%.

         (c) Frequency of Computation. The Asset Interest shall be computed as
of the Cut-Off Date for each Settlement Period. In addition, the Administrator
may require Servicer to provide a Servicer Report for purposes of computing the
Asset Interest as of any other date, and Servicer agrees to do so within two
Business Days of its receipt of the Administrator's request in writing.

         SECTION 1.05. Voluntary Termination of Purchase and Reinvestment
Obligations or Reduction of Purchase Limit. Seller may, upon at least 60 days'
prior written notice to the Administrator, either (a) terminate Conduit
Purchaser's option to fund, and each Committed Purchaser's commitment to make,
Purchases and Reinvestments hereunder, or (b) reduce the Purchase Limit to an
amount not less than $25,000,000; provided, however, that (i) each partial
reduction of the Purchase Limit shall be in an amount equal to $1,000,000 or an
integral multiple thereof, and (ii) after giving effect to such reduction, the
Capital will not exceed the Purchase Limit as so reduced. Any such reduction of
the Purchase Limit shall reduce each Committed Purchaser's Commitment on a pro
rata basis. The Purchase Limit may be increased upon the request of Seller and
the written consent of the Administrator and each Purchaser thereto, which
consent may be granted or withheld in their sole discretion and may be subject
to such conditions as they may require.

                                   ARTICLE II

                               COMPUTATIONAL RULES

         SECTION 2.01. Computation of Capital. In making any determination of
Capital, the following rules shall apply:

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                  (a) Capital shall not be considered reduced by any allocation,
         setting aside or distribution of any portion of Collections unless such
         Collections shall have been actually delivered to the Administrator
         pursuant hereto for application to the Capital; and

                  (b) Capital shall not be considered reduced by any
         distribution of any portion of Collections if at any time such
         distribution is rescinded or must otherwise be returned for any reason.

         SECTION 2.02. Computation of Concentration Limit. In the case of any
Obligor that is (a) a Subsidiary of any other Obligor, (b) a parent of any other
Obligor, or (c) a Subsidiary of the same parent as any other Obligor, the
Concentration Limit and the aggregate Unpaid Balance of Pool Receivables of such
Obligors shall be calculated as if such Obligors were one Obligor.

         SECTION 2.03. Computation of Earned Discount. In making any
determination of Earned Discount, the following rules shall apply:

                  (a) no provision of this Agreement shall require the payment
         or permit the collection of Earned Discount in excess of the maximum
         permitted by Applicable Law; and

                  (b) Earned Discount for any period shall not be considered
         paid by any distribution if at any time such distribution is rescinded
         or must otherwise be returned for any reason.

         SECTION 2.04. Estimates of Earned Discount Rate, Fees, Etc. For
purposes of determining the amounts required to be set aside by Servicer
pursuant to Section 1.03, the Administrator shall notify Servicer from time to
time of the Earned Discount Rate applicable to the Capital and the rates at
which fees and other amounts are accruing hereunder. It is understood and agreed
that (i) the Earned Discount Rate may change from time to time, (ii) certain
rate information provided by the Administrator to Servicer shall be based upon
the Administrator's good faith estimate, (iii) the amount of Earned Discount
actually accrued with respect to the Capital during any Settlement Period may
exceed, or be less than, the amount set aside with respect thereto by Servicer,
and (iv) the amount of fees or other payables accrued hereunder with respect to
any Settlement Period may exceed, or be less than, the amount set aside with
respect thereto by Servicer. Failure to set aside any amount so accrued shall
not relieve Servicer of its obligation to remit Collections to the Administrator
with respect to such accrued amount, as and to the extent provided in Section
3.01.

                                   ARTICLE III

                                   SETTLEMENTS

         SECTION 3.01.     Settlement Procedures.

         The parties hereto will take the following actions with respect to each
Settlement Period:

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                  (a) Servicer Report; Weekly Report. On or before the tenth
         (10th) calendar day (or if such day is not a Business Day, the next
         succeeding Business Day) of each month prior to the Final Payout Date
         (each, a "Reporting Date"), Servicer shall deliver to the Administrator
         a report containing the information described in Exhibit 3.01(a) (each,
         a "Servicer Report"). On or before the close of business on each
         Tuesday (or if such day is not a Business Day, the next succeeding
         Business Day) prior to the Final Payment Date, Servicer shall deliver
         to the Administrator a report for the immediately preceding calendar
         week containing the information described in Exhibit 3.01(a)-W (each, a
         "Weekly Report").

                  (b) Earned Discount; Other Amounts Due. Two Business Days
         prior to each Reporting Date, the Administrator shall notify Servicer
         of (i) the amount of Earned Discount that will have accrued in respect
         of the Capital as of the next Settlement Date and (ii) all Fees and
         other amounts that will have accrued and be payable by Seller under
         this Agreement on the next Settlement Date (other than Capital).

                  (c) Settlement Date Procedure - Reinvestment Period. On the
         second Business Day after each Reporting Date (each, a "Settlement
         Date") prior to the Termination Date, Servicer shall distribute from
         Collections set aside pursuant to Sections 1.03(a)(ii) and (iii) during
         the immediately preceding Settlement Period the following amounts in
         the following order:

                           (1) to the Administrator, an amount equal to the
                  Earned Discount accrued during such Settlement Period, plus
                  any previously accrued Earned Discount not paid on a prior
                  Settlement Date, which amount shall be distributed by the
                  Administrator to each Purchaser for application to the accrued
                  Earned Discount with respect to such Purchaser's Capital;

                           (2) to the Administrator, an amount equal to the
                  Program Fee and Commitment Fee accrued during such Settlement
                  Period, plus any previously accrued Program Fee and Commitment
                  Fee not paid on a prior Settlement Date;

                           (3) to Servicer, if Servicer is not Parent, an amount
                  equal to the Purchasers' Share of Servicer's Fee accrued
                  during such Settlement Period, plus any previously accrued
                  Purchasers' Share of Servicer's Fee not paid on a prior
                  Settlement Date (it being understood that so long as Servicer
                  is Parent, no amount shall be distributed pursuant to this
                  clause (3));

                           (4) to the Administrator, an amount equal to the
                  Excess Amount, if any, which amount shall be distributed by
                  the Administrator to each Purchaser, based upon such
                  Purchaser's Funded Percentage, for application to such
                  Purchaser's outstanding Capital;

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                           (5) to the Administrator, all other amounts (other
                  than Capital) then due under this Agreement to the
                  Administrator, the Purchasers, the Affected Parties or the
                  Indemnified Parties;

                           (6) to Servicer, if Servicer is Parent, an amount
                  equal to the Purchasers' Share of Servicer's Fee accrued
                  during such Settlement Period, plus any previously accrued
                  Purchasers' Share of Servicer's Fee not paid on a prior
                  Settlement Day (it being understood that so long as Servicer
                  is not the Parent, no amount shall be distributed pursuant to
                  clause (6)); and

                           (7) to Seller, any remaining amounts.

                  (d) Settlement Date Procedure - Liquidation Period. On each
         Settlement Date occurring after the Termination Date, Servicer shall
         distribute from Purchasers' Share of Collections received, or deemed
         received pursuant to Section 3.02, during the immediately preceding
         Settlement Period the following amounts in the following order:

                           (1) to the Administrator, an amount equal to the
                  Earned Discount accrued during such Settlement Period, plus
                  any previously accrued Earned Discount not paid on a prior
                  Settlement Date, which amount shall be distributed by the
                  Administrator to each Purchaser for application to the accrued
                  Earned Discount with respect to such Purchaser's Capital;

                           (2) to the Administrator, an amount equal to the
                  Program Fee and Commitment Fee accrued during such Settlement
                  Period, plus any previously accrued Program Fee and Commitment
                  Fee not paid on a prior Settlement Date;

                           (3) to Servicer, if Servicer is not Parent, an amount
                  equal to the Purchasers' Share of Servicer's Fee accrued
                  during such Settlement Period, plus any previously accrued
                  Purchasers' Share of Servicer's Fee not paid on a prior
                  Settlement Date (it being understood that so long as Servicer
                  is Parent, no amount shall be distributed pursuant to this
                  clause (3));

                           (4) to the Administrator, an amount equal to the
                  remaining Purchasers' Share of Collections until the Capital
                  is reduced to zero, which amount shall be distributed by the
                  Administrator to each Purchaser, based upon such Purchaser's
                  Funded Percentage, for application to such Purchaser's
                  outstanding Capital;

                           (5) to the Administrator, all other amounts (other
                  than Capital) then due under this Agreement to the
                  Administrator, the Purchasers, the Affected Parties or the
                  Indemnified Parties;

                           (6) to Servicer, if Servicer is Parent, an amount
                  equal to the Purchasers' Share of Servicer's Fee accrued
                  during such Settlement Period, plus any previously

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                  accrued Purchasers' Share of Servicer's Fee not paid on a
                  prior Settlement Date (it being understood that so long as
                  Servicer is not the Parent, no amount shall be distributed
                  pursuant to clause (6)); and

                           (7) to Seller, any remaining amounts.

                  (e) Delayed Payment. If on any day described in this Section
         3.01, because Collections during the relevant Settlement Period were
         less than the aggregate amounts payable, Servicer does not make any
         payment described in clauses (1) through (6) of Section 3.01(c) or (d),
         as applicable, the next available Collections in respect of the Asset
         Interest shall be applied to such payment, and no Reinvestment shall be
         permitted hereunder until such amount payable has been paid in full.

         SECTION 3.02.     Deemed Collections; Reduction of Capital, Etc.

         (a)      Deemed Collections.  If

                  (i) a Dilution occurs or the Unpaid Balance of any Pool
         Receivable is less than the amount included in calculating the Net Pool
         Balance for purposes of any Servicer Report for any other reason, or

                  (ii) any of the representations or warranties of Seller set
         forth in Section 6.01(k) or (o) with respect to any Pool Receivable
         were not true when made with respect to any Pool Receivable, or any of
         the representations or warranties of Seller set forth in Section
         6.01(k) are no longer true with respect to any Pool Receivable, or

                  (iii) without duplication, Seller receives a Deemed Collection
         pursuant to the Purchase Agreement,

then, on the next succeeding Settlement Date (or, if earlier, on the date an
Originator pays a Deemed Collection pursuant to the Purchase Agreement), Seller
shall be deemed to have received a Collection of such Pool Receivable

                  (I) in the case of clause (i) above, in the amount of such
         Dilution or the difference between the actual Unpaid Balance and the
         amount included in calculating such Net Pool Balance, as applicable;
         and

                  (II) in the case of clause (ii) above, in the amount of the
         Unpaid Balance of such Pool Receivable; and

                  (III) in the case of clause (iii) above, in the amount of such
         Deemed Collection.

         (b) Seller's Optional Reduction of Capital. Seller may at any time
elect to reduce the Capital as follows:

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                  (i) Seller shall give the Administrator at least five (5)
         Business Days' prior written notice of such reduction (including the
         amount of such proposed reduction and the proposed date on which such
         reduction will commence),

                  (ii) on the proposed date of commencement of such reduction
         and on each day thereafter, Servicer shall refrain from reinvesting
         Collections pursuant to Section 1.03 until the amount thereof not so
         reinvested shall equal the desired amount of reduction, and

                  (iii) Servicer shall hold such Collections in trust for
         Purchasers, pending payment to the Administrator on the next Settlement
         Date, as provided in Section 1.03;

provided that,

                  (A) the amount of any such reduction shall be not less than
         $1,000,000, and the Capital after giving effect to such reduction shall
         be not less than $25,000,000 (unless Capital shall thereby be reduced
         to zero), and

                  (B) Seller shall use reasonable efforts to attempt to choose a
         reduction amount, and the date of commencement thereof, so that such
         reduction shall commence and conclude in the same Settlement Period.

         SECTION 3.03.     Payments and Computations, Etc.

         (a) Payments. All amounts to be paid or deposited by Seller or Servicer
to the Administrator hereunder shall be paid or deposited in accordance with the
terms hereof no later than 10:00 a.m. (Boston, Massachusetts time) on the day
when due in lawful money of the United States of America in immediately
available funds to the Administrator at ABA# 011 000 138, account # 940 518
9033; attention: Blue Keel.

         (b) Late Payments. Seller or Servicer, as applicable, shall, to the
extent permitted by law, pay to the Administrator, interest on all amounts not
paid or deposited when such amount is due hereunder at 2% per annum above the
Alternate Base Rate, payable on demand, provided, however, that such interest
rate shall not at any time exceed the maximum rate permitted by Applicable Law.

         (c) Method of Computation. All computations of interest, Earned
Discount and any fees payable hereunder shall be made on the basis of a year of
360 days for the actual number of days (including the first day but excluding
the last day) elapsed.

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                                  ARTICLE IV

                            FEES AND YIELD PROTECTION

         SECTION 4.01. Fees. Seller shall pay to the Administrator and
Purchasers the fees in the amounts and at the times set forth in the fee letter,
dated as of the date hereof, among the Administrator, Parent and Seller (as
amended or supplemented from time to time, the "Fee Letter").

         SECTION 4.02.     Yield Protection.

         (a) If (i) Regulation D or (ii) any Regulatory Change occurring after
             the date hereof

                  (A) shall subject an Affected Party to any tax, duty or other
         charge with respect to any Asset Interest owned by or funded by it, or
         any obligations or right to make Purchases or Reinvestments or to
         provide funding therefor, or shall change the basis of taxation of
         payments to the Affected Party of any Capital or Earned Discount owned
         by, owed to or funded in whole or in part by it or any other amounts
         due under this Agreement in respect of the Asset Interest owned by or
         funded by it or its obligations or rights, if any, to make Purchases or
         Reinvestments or to provide funding therefor (except for franchise
         taxes or changes in the rate of tax on the net income of such Affected
         Party imposed by any jurisdiction); or

                  (B) shall impose, modify or deem applicable any reserve
         (including, without limitation, any reserve imposed by the Federal
         Reserve Board), special deposit, compulsory loan or similar requirement
         against assets of any Affected Party, deposits or obligations with or
         for the account of any Affected Party or with or for the account of any
         affiliate (or entity deemed by the Federal Reserve Board to be an
         affiliate) of any Affected Party, or credit extended by any Affected
         Party, but excluding any reserve, special deposit or similar
         requirement included in the determination of Earned Discount; or

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

                  (D) shall impose any other condition affecting any Asset
         Interest owned or funded in whole or in part by any Affected Party, or
         its obligations or rights, if any, to make Purchases or Reinvestments
         or to provide funding therefor; or

                  (E) shall change the rate for, or the manner in which the
         Federal Deposit Insurance Corporation (or a successor thereto)
         assesses, deposit insurance premiums or similar charges;

and the result of any of the foregoing is

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<PAGE>

                  (x) to increase the cost to or to impose a cost on an Affected
         Party funding or making or maintaining any Purchases or Reinvestments,
         any purchases, reinvestments, or loans or other extensions of credit
         under any Program Agreement, or any commitment of such Affected Party
         with respect to any of the foregoing,

                  (y) to reduce the amount of any sum received or receivable by
         an Affected Party under this Agreement, or under any Program Agreement
         with respect thereto, or

                  (z) to reduce the rate of return on the capital of an Affected
         Party as a consequence of its obligations hereunder or under any
         Program Agreement or arising in connection herewith to a level below
         that which such Affected Party could otherwise have achieved,

then within thirty days after demand by such Affected Party (which demand shall
be accompanied by a statement setting forth the basis for, calculation of, and
amount of such additional costs or reduced amount receivable; provided, however,
that no Affected Party shall be required to disclose any confidential or tax
planning information in any such statement), Seller shall pay directly to such
Affected Party such additional amount or amounts as will compensate such
Affected Party for such additional or increased cost or such reduction, but
without duplication of any other similar additional amounts due under any other
Program Agreement.

         (b) Seller shall not be required to compensate an Affected Party
pursuant to this Section 4.02 for any amounts incurred more than twelve (12)
months prior to the date such Affected Party notifies Seller of such Affected
Party's intention to claim compensation therefor, provided that, if the
circumstances giving rise to such claim have a retroactive effect, then such
twelve (12) month period shall be extended to include the period of such
retroactive effect.

         (c) In determining any amount provided for or referred to in this
Section 4.02, an Affected Party may use any reasonable averaging and attribution
methods that it shall deem applicable. Any Affected Party when making a claim
under this Section 4.02 shall submit to Seller a statement as to such increased
cost or reduced return (including reasonable calculations and an explanation in
connection therewith), which statement shall, in the absence of manifest error,
be conclusive and binding upon Seller.

         SECTION 4.03. Funding Losses. In the event that any Affected Party
shall incur any loss or expense (including any loss or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by
such Affected Party to make or maintain any funding with respect to the Asset
Interest) as a result of (i) any settlement with respect to any portion of
Capital funded by such Affected Party being made on any day other than the
scheduled last day of an applicable Settlement Period with respect thereto, (ii)
any Purchase not being made in accordance with a request therefor under Section
1.02, or (iii) any reduction in the Capital that was funded on the date of the
initial Purchase prior to the Settlement Date occurring in January of 2002,
then, upon demand by the Administrator to Seller, Seller shall pay to the
Administrator for the account of such Affected Party, the amount of such loss or
expense. Such written notice (which

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shall include calculations in reasonable detail) shall, in the absence of
manifest error, be conclusive and binding upon Seller.

                                    ARTICLE V

                             CONDITIONS TO PURCHASES

         SECTION 5.01. Conditions Precedent to Initial Purchase. The initial
Purchase hereunder is subject to the condition precedent that the Administrator
shall have received, on or before the date of such Purchase, the following, each
(unless otherwise indicated) dated such date and in form and substance
reasonably satisfactory to the Administrator:

                  (a) Good standing certificates for each of Parent, each
         Originator and Seller issued by the Secretaries of State of the
         jurisdiction of its incorporation and its principal place of business;

                  (b) A certificate of the Secretary or Assistant Secretary of
         each of Seller, each Originator and Parent certifying (i) a copy of the
         resolutions of its Board of Directors approving the Transaction
         Documents to be delivered by it hereunder and the transactions
         contemplated hereby; (ii) the names and true signatures of the officers
         authorized on its behalf to sign the Transaction Documents to be
         delivered by it hereunder (on which certificate the Administrator and
         each Purchaser may conclusively rely until such time as the
         Administrator shall receive from Seller, such Originator or Parent, as
         the case may be, a revised certificate meeting the requirements of this
         subsection (b)); (iii) a copy of its by- laws; and (iv) all documents
         evidencing other necessary corporate action and governmental approvals,
         if any, with respect to the Transaction Documents to which such Person
         is a party;

                  (c) The Certificate of Incorporation or Articles of
         Incorporation, as applicable, of each of Seller, each Originator and
         Parent, duly certified by the Secretary of State of the jurisdiction of
         its incorporation, as of a recent date;

                  (d) Acknowledgment copies, or time stamped receipt copies, of
         proper financing statements (Form UCC-1), filed on or prior to the date
         of the initial Purchase, naming (i) each Originator as a debtor and
         seller of Receivables, Seller as the secured party and purchaser and
         Administrator, for the benefit of Purchasers, as the assignee and (ii)
         Seller as the debtor and seller of Receivables or an undivided interest
         therein and Administrator, for the benefit of Purchasers, as the
         secured party and purchaser, or other, similar instruments or
         documents, as may be necessary or, in the opinion of the Administrator,
         desirable under the UCC or any comparable law of all appropriate
         jurisdictions to perfect Seller's and Purchasers' interests in the Pool
         Assets;

                  (e) A search report provided in writing to and approved by the
         Administrator listing all effective financing statements that name any
         Originator as debtor or assignor and

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<PAGE>

         that are filed in the jurisdictions in which filings were made pursuant
         to subsection (d) above and in such other jurisdictions that
         Administrator shall reasonably request, together with copies of such
         financing statements (none of which shall cover any Pool Assets, unless
         executed termination statements and/or partial releases with respect
         thereto have been delivered to the Administrator), and tax and judgment
         lien search reports from a Person satisfactory to Servicer and the
         Administrator showing no evidence of such liens filed against any
         Originator;

                  (f) Duly executed copies of the Lock-Box Agreements with the
         Lock-Box Banks (other than a Lock-Box Agreement with Royal Bank of
         Canada);

                  (g) Opinions of (i) Sullivan & Cromwell, counsel to Parent,
         the Originator and Seller, in substantially the forms of Exhibits
         5.01(g)-1 and 5.01(g)-2, respectively and (ii) special Florida and
         Canadian counsel reasonably satisfactory to the Administrator covering
         such matters as the Administrator may request;

                  (h) Such powers of attorney as the Administrator shall
         reasonably request to enable the Administrator to collect all amounts
         due under any and all Pool Assets;

                  (i) A pro forma Servicer Report, prepared in respect of the
         proposed initial Purchase, assuming a Cut-Off Date of September 30,
         2001;

                  (j) Satisfactory results of a review and audit, conducted by
         Fleet Securities, of Parent's collection, operating and reporting
         systems, Credit and Collection Policy, historical receivables data and
         accounts, including satisfactory results of a review of the Parent's
         operating location(s) and satisfactory review and approval of the
         Eligible Receivables in existence on the date of the initial Purchase;

                  (k) Evidence of payment of Seller by all accrued and unpaid
         fees (including those contemplated by the Fee Letter), costs and
         expenses to the extent then due and payable on the date thereof,
         together with attorneys' fees of the Administrator to the extent
         invoiced at least two Business Days prior to such date, including any
         such costs, fees and expenses arising under or referenced in Section
         14.05;

                  (l) The Liquidity Agreement, duly executed by Purchaser, the
         Liquidity Agent and each Liquidity Bank; and

                  (m) The Purchase Agreement, duly executed by each Originator
         and Seller, and a copy of all documents required to be delivered
         thereunder.

         SECTION 5.02. Conditions Precedent to All Purchases and Reinvestments.
Each Purchase (including the initial Purchase) and each Reinvestment hereunder,
shall be subject to the further conditions precedent that:

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<PAGE>

                  (a) in the case of each Purchase, Servicer shall have
         delivered to the Administrator on or prior to such Purchase, in form
         and substance reasonably satisfactory to the Administrator, a completed
         Servicer Report with respect to the immediately preceding calendar
         month, dated within two (2) Business Days prior to the date of such
         Purchase, together with such additional information as may be
         reasonably requested by the Administrator; and

                  (b) on the date of such Purchase or Reinvestment the following
         statements shall be true (and Seller by accepting the amount of such
         Purchase or by receiving the proceeds of such Reinvestment shall be
         deemed to have certified that):

                           (i) the representations and warranties contained in
                  Article VI are correct on and as of such day in all material
                  respects as though made on and as of such day and shall be
                  deemed to have been made on such day (except that any such
                  representation or warranty that is expressly stated as being
                  made only as of a specified earlier date shall be true and
                  correct in all material respects as of such earlier date),

                           (ii) no event has occurred and is continuing, or
                  would result from such Purchase or Reinvestment, that
                  constitutes a Liquidation Event or Unmatured Liquidation
                  Event,

                           (iii) after giving effect to each proposed Purchase
                  or Reinvestment, Capital will not exceed the Purchase Limit
                  and the Asset Interest will not exceed the Allocation Limit,
                  and

                           (iv) the Termination Date shall not have occurred;

provided, however, the absence of the occurrence and continuance of an Unmatured
Liquidation Event shall not be a condition precedent to any Reinvestment.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

         SECTION 6.01. Representations and Warranties of Seller. Seller
represents and warrants as follows:

                  (a) Organization and Good Standing. Seller has been duly
         organized and is validly existing as a corporation in good standing
         under the laws of the State of New York, with power and authority to
         own its properties as such properties are presently owned and to
         conduct its business as such business is presently conducted, and had
         at all relevant times, and now has, all necessary power, authority, and
         legal right to acquire and own the Pool Assets.

                                       14

<PAGE>

                  (b) Due Qualification. Seller is duly qualified to do business
         as a foreign corporation in good standing, and has obtained all
         necessary licenses and approvals, in all other jurisdictions in which
         the ownership or lease of property or the conduct of its business
         requires such qualification, licenses or approvals, except where the
         failure to so qualify or have such licenses or approvals has not had,
         and could not reasonably be expected to have, a Material Adverse
         Effect.

                  (c) Power and Authority; Due Authorization. Seller (i) has all
         necessary corporate power, authority and legal right to (A) execute and
         deliver this Agreement and the other Transaction Documents to which it
         is a party, (B) carry out the terms of the Transaction Documents to
         which it is a party, and (C) sell and assign the Asset Interest on the
         terms and conditions herein provided and (ii) has duly authorized by
         all necessary corporate action the execution, delivery and performance
         of this Agreement and the other Transaction Documents to which it is a
         party and the sale and assignment of the Asset Interest on the terms
         and conditions herein provided.

                  (d) Valid Transfer; Binding Obligations. This Agreement
         constitutes a valid transfer and assignment of the Asset Interest to
         the Administrator, for the benefit of Purchasers; and this Agreement
         constitutes, and each other Transaction Document to be signed by Seller
         when duly executed and delivered will constitute, a legal, valid and
         binding obligation of Seller enforceable in accordance with its terms,
         except as enforceability may be limited by bankruptcy, insolvency,
         reorganization or other similar laws affecting the enforcement of
         creditors' rights generally and by general principles of equity,
         regardless of whether such enforceability is considered in a proceeding
         in equity or at law.

                  (e) No Violation. The consummation of the transactions
         contemplated by this Agreement and the other Transaction Documents to
         which Seller is a party and the fulfillment of the terms hereof and
         thereof will not (i) conflict with, result in any breach of any of the
         terms and provisions of, or constitute (with or without notice or lapse
         of time or both) a default under, Seller's certificate of incorporation
         or by-laws, (ii) conflict with, result in any breach of any of the
         terms and provisions of, or constitute (with or without notice or lapse
         of time or both) a default under any Contractual Obligation of Seller
         that could reasonably be expected to have a Material Adverse Effect,
         (iii) result in the creation or imposition of any Lien upon any of
         Seller's properties pursuant to the terms of any such Contractual
         Obligation, other than any Lien created pursuant to this Agreement or
         any other Transaction Document, or (iv) violate any Applicable Law, the
         violation of which could reasonably be expected to have Material
         Adverse Effect.

                  (f) No Proceedings. There is no litigation, proceeding or
         investigation pending, or to the best of Seller's knowledge,
         threatened, before any Governmental Authority or arbitrator (i)
         asserting the invalidity of this Agreement or any other Transaction
         Document to which Seller is a party, (ii) seeking to prevent the sale
         and assignment of the Asset Interest or the consummation of any of the
         other transactions contemplated by this Agreement or any

                                       15

<PAGE>

         other Transaction Document, or (iii) seeking any determination or
         ruling that could reasonably be expected to have a Material Adverse
         Effect.

                  (g) Bulk Sales Act. No transaction contemplated hereby
         requires compliance with any bulk sales act or similar law.

                  (h) Government Approvals. No Governmental Action is required
         for the due execution, delivery and performance by Seller of this
         Agreement or any other Transaction Document to which Seller is a party,
         except for the filing of the UCC financing statements referred to in
         Article V, all of which, at the time required in Article V, shall have
         been duly made and shall be in full force and effect.

                  (i) Financial Condition. Since the date of Seller's formation,
         there has been no material adverse change in Seller's results of
         operations, financial condition or assets.

                  (j) Margin Regulations. The use of all funds obtained by
         Seller under this Agreement will not conflict with or contravene any of
         Regulations T, U and X promulgated by the Board of Governors of the
         Federal Reserve System from time to time.

                  (k) Quality of Title. Each Pool Asset is legally and
         beneficially owned by Seller free and clear of any Lien (other than any
         Lien created hereby or arising solely as the result of any action taken
         by a Purchaser or the Administrator); when the Administrator, for the
         benefit of Purchasers, makes a Purchase or Reinvestment, it shall
         acquire a valid and enforceable perfected first priority undivided
         percentage interest to the extent of the Asset Interest in each Pool
         Asset, free and clear of any Lien (other than any Lien created hereby
         or arising solely as the result of any action taken by a Purchaser or
         the Administrator), enforceable against any creditor of, or purchaser
         from, Seller or any Originator; and no financing statement or other
         instrument similar in effect covering any Pool Asset is on file in any
         recording office except such as may be filed (i) in favor of an
         Originator in accordance with the Contracts, (ii) in favor of Seller in
         accordance with the Purchase Agreement, or (iii) in favor of a
         Purchaser or the Administrator in accordance with this Agreement or in
         connection with any Lien arising solely as the result of any action
         taken by a Purchaser or the Administrator.

                  (l) Accurate Reports. No information included in any Servicer
         Report or Weekly Report to the extent supplied by Seller, or other
         information, exhibit, financial statement, document, book, record or
         report furnished by or on behalf of Seller to the Administrator or any
         Purchaser in connection with this Agreement was inaccurate in any
         material respect as of the date it was dated or (except as otherwise
         disclosed in writing to the Administrator at such time) as of the date
         so furnished, or contained any untrue statement of a material fact or
         omitted to state a material fact necessary to make the statements
         contained therein, in light of the circumstances under which they were
         made, not misleading.

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<PAGE>

                  (m) Offices. The principal place of business and chief
         executive office of Seller are located at the address of Seller
         referred to in Section 14.02, and the offices where Seller keeps all
         its books, records and documents evidencing or relating to Pool
         Receivables are located at the addresses specified in Schedule 6.01(m)
         (or at such other locations, notified to the Administrator in
         accordance with Section 7.01(f), in jurisdictions where all action
         required by Section 8.05 has been taken and completed).

                  (n) Lock-Box Accounts. The names and addresses of all the
         Lock-Box Banks, together with the account numbers of the lock-box
         accounts of Seller at such Lock-Box Banks, are specified in Schedule
         6.01(n) (or have been notified to the Administrator in accordance with
         Section 7.03(d)).

                  (o) Eligible Receivables. Each Receivable included in the Net
         Pool Balance as an Eligible Receivable on the date of any Purchase,
         Reinvestment or other calculation of Net Pool Balance was an Eligible
         Receivable on such date.

                  (p) Accounting Sale. Seller has accounted for each sale of
         undivided percentage ownership interests in Receivables in its books
         and financial statements as sales, consistent with GAAP.

                  (q) Credit and Collection Policy. Seller has complied in all
         material respects with the Credit and Collection Policy with regard to
         each Receivable.

                  (r) Corporate Name. Seller's complete corporate name is set
         forth in the preamble to this Agreement, and Seller does not use and
         has not during the last six years used any other corporate name, trade
         name, doing business name or fictitious name.

         SECTION 6.02. Representations and Warranties of Parent. Parent
represents and warrants as follows:

                  (a) Organization and Good Standing. Parent has been duly
         organized and is validly existing as a corporation in good standing
         under the laws of the State of New York, with power and authority to
         own its properties as such properties are presently owned and to
         conduct its business as such business is presently conducted.

                  (b) Due Qualification. Parent is duly qualified to do business
         as a foreign corporation in good standing, and has obtained all
         necessary licenses and approvals, in all jurisdictions in which the
         ownership or lease of property or the conduct of its business requires
         such qualification, licenses or approvals, except where the failure to
         so qualify or have such licenses or approvals has not had, and could
         not reasonably be expected to have, a Material Adverse Effect.

                  (c) Power and Authority; Due Authorization. Parent (i) has all
         necessary corporate power, authority and legal right to (A) execute and
         deliver this Agreement and the

                                       17

<PAGE>

         other Transaction Documents to which it is a party and (B) carry out
         the terms of the Transaction Documents to which it is a party and (ii)
         has duly authorized by all necessary corporate action the execution,
         delivery and performance of this Agreement and the other Transaction
         Documents to which it is a party.

                  (d) Binding Obligations. This Agreement constitutes, and each
         other Transaction Document to be signed by Parent when duly executed
         and delivered will constitute, a legal, valid and binding obligation of
         Parent enforceable in accordance with its terms, except as
         enforceability may be limited by bankruptcy, insolvency, reorganization
         or other similar laws affecting the enforcement of creditors' rights
         generally and by general principles of equity, regardless of whether
         such enforceability is considered in a proceeding in equity or at law.

                  (e) No Violation. The consummation of the transactions
         contemplated by this Agreement and the other Transaction Documents to
         which Parent is a party and the fulfillment of the terms hereof and
         thereof will not (i) conflict with, result in any breach of any of the
         terms and provisions of, or constitute (with or without notice or lapse
         of time or both) a default under the Parent's articles of incorporation
         or by-laws, (ii) conflict with, result in any breach of any of the
         terms and provisions of, or constitute (with or without notice or lapse
         of time or both) a default under any Contractual Obligation of Parent
         that could reasonably be expected to have a Material Adverse Effect,
         (iii) result in the creation or imposition of any Lien upon any of
         Parent's properties pursuant to the terms of any such Contractual
         Obligation (other than any Lien created pursuant to the Transaction
         Documents), or (iv) violate any Applicable Law, the violation of which
         could reasonably be expected to have a Material Adverse Effect.

                  (f) No Proceedings. Except as set forth on Schedule 6.02(f),
         there is no litigation, proceeding or investigation pending or, to the
         best of Parent's knowledge, threatened, before any Governmental
         Authority or arbitrator (i) asserting the invalidity of this Agreement
         or any other Transaction Document to which Parent is a party, (ii)
         seeking to prevent the sale and assignment of the Asset Interest or the
         consummation of any of the other transactions contemplated by this
         Agreement or any other Transaction Document, or (iii) seeking any
         determination or ruling that could reasonably be expected to have a
         Material Adverse Effect.

                  (g) Government Approvals. No Governmental Action is required
         for the due execution, delivery and performance by Parent of this
         Agreement or any other Transaction Document to which it is a party,
         other than the filing of the UCC financing statements referred to in
         Article V, all of which, at the time required in Article V, shall have
         been duly made and shall be in full force and effect.

                  (h) Financial Condition. The audited consolidated balance
         sheets of Parent as at December 31, 1988, December 31, 1999 and
         December 31, 2000, and the related consolidated statements of income
         and cash flows for the fiscal years ended on such dates

                                       18

<PAGE>

         reported on by and accompanied by an unqualified report from
         PricewaterhouseCoopers LLP, present fairly the consolidated financial
         position of Parent as at such dates and the consolidated results of its
         operations and its consolidated cash flows for the respective fiscal
         years then ended. The unaudited consolidated balance sheet of Parent as
         at March 31, 2001 and June 31, 2001, and the related unaudited
         consolidated statements of income and cash flows for the three-month
         and six-month, respectively, periods ended on such dates, present
         fairly the consolidated financial position of Parent as at such dates,
         and the consolidated results of its operations and its consolidated
         cash flows for the three-month and six-month, respectively, periods
         then ended (subject to normal year- end audit adjustments). All such
         financial statements, including the related schedules and any notes
         thereto (except in the case of any notes to the financial statements
         dated as of March 31, 2001 or June 30, 2001), have been prepared in
         accordance with GAAP applied consistently throughout the periods
         involved (except as approved by the aforementioned firm of accountants
         and disclosed therein). Since December 31, 2001 there has been no
         material adverse change in any such business, results of operations,
         assets or financial position.

                  (i) Accurate Reports. No information included in any Servicer
         Report or Weekly Report to the extent supplied by Parent, or other
         information, exhibit, financial statement, document, book, record or
         report furnished by or on behalf of Parent to the Administrator or any
         Purchaser, in connection with this Agreement was inaccurate in any
         material respect as of the date it was dated or (except as otherwise
         disclosed in writing to the Administrator at such time) as of the date
         so furnished, or contained any untrue statement of a material fact or
         omitted to state a material fact necessary to make the statements
         contained therein, in light of the circumstances under which they were
         made, not misleading.

                                   ARTICLE VII

                                GENERAL COVENANTS

         SECTION 7.01. Affirmative Covenants. From the date hereof until the
Final Payout Date:

                  (a) Compliance with Laws, Etc. Each of Seller and Parent will
         comply in all material respects with all Applicable Laws, including
         those with respect to the Pool Receivables and the related Contracts,
         except where noncompliance could not reasonably be expected to have a
         Material Adverse Effect.

                  (b) Preservation of Corporate Existence. Each of Seller and
         Parent will preserve and maintain its corporate existence in the
         jurisdiction of its formation, and qualify and remain qualified in good
         standing as a foreign corporation in each jurisdiction where the
         failure to preserve and maintain such existence and qualification could
         reasonably be expected to have a Material Adverse Effect.

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<PAGE>

                  (c) Audits. (i) Each of Parent and Seller will from time to
         time during regular business hours and, unless a Liquidation Event has
         occurred and is continuing, on reasonable prior written notice, permit
         the Administrator or any of its agents or representatives, (A) to
         examine and make copies of and abstracts from all books, records and
         documents (including, without limitation, computer tapes and disks) in
         its possession or under its control relating to Pool Assets, (B) to
         visit its offices and properties for the purpose of examining such
         materials described in clause (i)(A) above, and to discuss matters
         relating to Pool Assets or its performance hereunder with any of its
         officers or employees having knowledge of such matters, and (C) to
         verify the existence and amount of the Receivables; and (ii) without
         limiting the provisions of clause (i) above, from time to time on the
         written request of Administrator during regular business hours, permit
         certified public accountants or other auditors acceptable to the
         Administrator and, unless a Liquidation Event has occurred and is
         continuing, reasonably acceptable to Parent to conduct, at Seller's or
         Parent's, as the case may be, expense, a review of its books and
         records with respect to the Pool Receivables; provided, however that
         unless a Liquidation Event has occurred and is continuing, Seller and
         Parent shall not be obligated to pay for more than one such review in
         each calendar year. Any such certified public accountants or other
         auditors shall be obligated to enter into a customary confidentiality
         agreement with Parent.

                  (d) Keeping of Records and Books of Account. Each of Seller
         and Parent will maintain and implement administrative and operating
         procedures (including, without limitation, an ability to recreate
         records evidencing Pool Receivables in the event of the destruction of
         the originals thereof) and keep and maintain all documents, books,
         records and other information reasonably necessary or advisable for the
         collection of all Pool Assets (including, without limitation, records
         adequate to permit the daily identification of each new Pool Receivable
         and all Collections of and adjustments to each existing Pool
         Receivable).

                  (e) Performance and Compliance with Receivables and Contracts.
         Seller will timely and fully perform and comply (or cause an Originator
         to perform and comply pursuant to the Purchase Agreement) with all
         provisions, covenants and other promises required to be observed by it
         under the Contracts related to the Pool Receivables and all other
         agreements related to such Pool Receivables, except where failure to do
         so would not materially adversely affect the validity, enforceability
         or collectibility of the related Pool Receivable.

                  (f) Location of Records. Each of Seller and Parent will keep
         its principal place of business and chief executive office, and the
         offices where it keeps its records concerning the Pool Receivables and
         all related Contracts and all other agreements related to such Pool
         Receivables (and all original documents relating thereto), at its
         address(es) referred to in Section 14.02 or, upon 30 days' prior
         written notice to the Administrator, at such other locations in
         jurisdictions where all action required by Section 8.05 shall have been
         taken and completed.

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<PAGE>

                  (g) Credit and Collection Policies. Each of Seller and Parent,
         at its own expense, will timely and fully perform and comply in all
         material respects with the Credit and Collection Policy in regard to
         each Pool Receivable and the related Contracts.

                  (h) Collections. Each of Seller and Parent will instruct (i)
         all Obligors to cause all Collections to be sent to a Lock-Box that is
         the subject of a Lock-Box Agreement and (ii) each Lock-Box Bank to
         deposit all such Collections directly into a Lock-Box Account that is
         the subject of a Lock-Box Agreement. In the event that Parent or Seller
         receives Collections directly from any Obligor, Parent or Seller, as
         the case may be, shall deposit such Collections into a Lock-Box Account
         within two Business Days of receipt thereof.

                  (i) Net Worth. Seller will maintain a Tangible Net Worth of at
         least $2,000,000.

                  (j) Quality of Title. Each of Seller and Parent will take all
         action reasonably necessary or advisable to establish and maintain a
         valid and enforceable perfected first priority undivided percentage
         interest in favor of the Administrator, for the benefit of the
         Purchasers, to the extent of the Asset Interest in each Pool Asset,
         free and clear of any Lien (other than any Lien created by this
         Agreement or any other Transaction Document or arising solely as a
         result of any action taken by a Purchaser or the Administrator),
         enforceable against any creditor of, or purchaser from, Seller or
         Parent.

                  (k) Financial Covenants. Parent will not permit Consolidated
         Net Worth as of the end of any fiscal quarter during any fiscal year of
         Parent to be less than the sum of (i) $223,406,000 plus (ii) 75% of
         Consolidated Net Income since June 30, 2001 plus (iii) Net Cash
         Proceeds from the sale of Capital Stock of Parent on a cumulative basis
         since June 30, 2001.

                  (l) Availability. Parent will at all times maintain undrawn
         commitments under the Credit Agreement that are available to Parent in
         an amount not less than an amount equal to (A) the greater of (i)
         $5,000,000 and (ii) the aggregate Dilutions for the most recently ended
         month, minus (B) the amount of cash and cash equivalents (as determined
         pursuant to GAAP) of Parent and its Subsidiaries as of the date of
         determination..

         SECTION 7.02. Reporting Requirements. From the date hereof until the
Final Payout Date:

                  (a) Quarterly Financial Statements. As soon as available and
         in any event within 45 days after the end of each of the first three
         quarterly periods of each fiscal year (i) Seller will furnish to the
         Administrator copies of its unaudited financial statements, consisting
         of at least a balance sheet of Seller as at the close of such quarter
         and the related unaudited statements of income and of cash flows for
         such quarter and for the portion of the fiscal year through the end of
         such quarter, setting forth in each case in comparative form the
         figures for the previous year, certified by the chief financial officer
         of Seller as being fairly stated in all material respects (subject to
         normal year-end audit adjustments) and (ii) Parent will

                                       21

<PAGE>

         furnish to the Administrator copies of the unaudited consolidated
         financial statements of Parent, consisting of at least an unaudited
         consolidated balance sheet of Parent and its Subsidiaries as at the end
         of such quarter and the related unaudited statements of income and cash
         flows for such quarter and for the portion of the fiscal year through
         the end of such quarter, setting forth in each case in comparative form
         the figures for the previous year, certified by the principal financial
         officer of Parent as being fairly stated in all material respects
         (subject to normal year-end audit adjustments); all of the foregoing
         financial statements shall be complete and correct in all material
         respects and shall be prepared in reasonable detail and in accordance
         with GAAP applied consistently throughout the periods reflected therein
         and with prior periods (except as approved by such officer and
         disclosed therein, provided that such financial statements need not
         contain footnotes);

                  (b) Annual Financial Statements. As soon as available and in
         any event within 90 days after the end of each fiscal year (i) Seller
         will furnish to the Administrator copies of its audited financial
         statements, consisting of at least a balance sheet of Seller as at the
         end of such year and the related audited consolidated statements of
         income and cash flows for such year, setting forth in each case in
         comparative form the figures for the previous year reported on without
         a "going-concern" or like qualification or exception, or qualification
         arising out of the scope of the audit, by PricewaterhouseCoopers LLP or
         other independent certified public accountants of nationally recognized
         standing; and (ii) Parent will furnish to the Administrator copies of
         its audited financial statements, consisting of at least the audited
         consolidated balance sheet of Parent and its Subsidiaries as at the end
         of such year and a related audited consolidated statements of income
         and of cash flow for such year, setting forth in each case in
         comparative form the figures for the previous year, reported on without
         a "going-concern" or like qualification or exception, or qualification
         arising out of the scope of the audit, by PricewaterhouseCoopers LLP or
         other independent certified public accountants of national recognized
         standing; all of the foregoing financial statements shall be complete
         and correct in all material respects and shall be prepared in
         reasonable detail and in accordance with GAAP applied consistently
         throughout the periods reflected therein and with prior periods (except
         as approved by such accountants and disclosed therein);

                  (c) Compliance Certificate. Together with each quarterly and
         annual financial statement delivered in accordance with the preceding
         paragraphs, Parent will furnish to the Administrator a compliance
         certificate showing a calculation of the financial covenant set forth
         in Section 7.01(k) certified by the principal financial officer of
         Parent;

                  (d) Liquidation Events. Each of Seller and Parent will furnish
         to the Administrator, as soon as possible and in any event within two
         Business Days after an officer of Seller or Parent obtains actual
         knowledge of the occurrence of each Liquidation Event and each
         Unmatured Liquidation Event, a written statement of the chief financial
         officer or chief accounting officer of Seller or Parent, as the case
         may be, setting forth details of such event and the action that Seller
         or Parent, as the case may be, proposes to take with respect thereto;

                                       22

<PAGE>

                  (e) Litigation. Each of Seller and Parent will furnish to the
         Administrator, as soon as possible and in any event within three
         Business Days of Seller's or Parent's actual knowledge thereof, notice
         of (i) any litigation, investigation or proceeding which may exist at
         any time which is not fully covered by insurance and which could be
         reasonably expected to have a Material Adverse Effect and (ii) any
         material adverse development in previously disclosed litigation;

                  (f) Change in Credit and Collection Policy. Each of Seller and
         Parent will furnish to the Administrator, prior to its effective date,
         notice of any material change in the Credit and Collection Policy;

                  (g) Change in Name. Seller will furnish to the Administrator,
         at least thirty days prior to any change in Seller's name, principal
         business, location, jurisdiction of organization or any other change
         requiring the amendment of UCC financing statements, a notice setting
         forth such changes and the effective date thereof; and

                  (h) Other Information. Each of Seller and Parent will furnish
         to the Administrator such other information respecting the Receivables
         or the condition or operations, financial or otherwise, of the Parent
         or Seller or any of Parent's Subsidiaries as the Administrator may from
         time to time reasonably request.

         SECTION 7.03. Negative Covenants. From the date hereof until the Final
Payout Date:

                  (a) Sales, Liens, Etc. Seller will not, except as otherwise
         provided herein or in the other Transaction Documents, sell, assign (by
         operation of law or otherwise) or otherwise dispose of, or create or
         suffer to exist any Lien upon or with respect to, any Pool Asset or any
         interest therein.

                  (b) Extension or Amendment of Receivables. Neither Parent nor
         Seller will, except as otherwise permitted in Section 8.02, extend,
         amend or otherwise modify, or permit Servicer to extend, amend or
         otherwise modify, the terms of any Pool Receivable; or amend, modify or
         waive, or permit Servicer to amend, modify or waive, any term or
         condition of any Contract related to a Pool Receivable.

                  (c) Change in Business or Credit and Collection Policy.
         Neither Parent nor Seller will make any change in the character of its
         business or in the Credit and Collection Policy, which change could
         materially impair the collectibility of any Pool Receivable or
         otherwise materially adversely affect the interests or remedies of the
         Administrator or any Purchaser under this Agreement or any other
         Transaction Document.

                  (d) Change in Payment Instructions to Obligors. Neither Parent
         nor Seller will add or terminate any bank as a Lock-Box Bank or any
         Lock-Box Account from those listed in Schedule 6.01(n) or make any
         change, or permit Servicer to make any change, in its

                                       23

<PAGE>

         instructions to Obligors regarding payments to be made to Seller or
         Servicer or payments to be made to any Lock-Box Bank, unless the
         Administrator shall have received prior notice of such addition,
         termination or change and duly executed copies of Lock-Box Agreements
         with each new Lock-Box Bank or with respect to each new Lock-Box
         Account, as the case may be.

                  (e) Mergers, Acquisitions, Sales, etc. Neither Parent nor
         Seller will (i) be a party to any merger with or acquisition of any
         other Person without the consent of the Administrator, unless, in the
         case of Parent, Parent is the surviving corporation and no Liquidation
         Event has occurred and is continuing or would result therefrom, or (ii)
         sell, transfer, convey or lease all or substantially all of its assets,
         or sell or assign with or without recourse any Receivables or any
         interest therein (other than pursuant hereto or to the Purchase
         Agreement). Parent will not sell any of the capital stock of Seller, or
         permit any Lien to exist thereon.

                  (f) Deposits to Special Accounts. Neither Parent nor Seller
         will 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 Pool Receivables.

                  (g) Other Business. Seller will not (i) engage in any business
         other than the transactions contemplated by the Transaction Documents;
         (ii) incur any indebtedness, obligation, liability or contingent
         obligation of any kind other than pursuant to this Agreement or the
         Purchase Agreement; or (iii) form any Subsidiary or make any
         investments in any other Person.

                  (h) Certificate of Incorporation; Purchase Agreement. Seller
         will not amend, modify, terminate, revoke or waive any provision of its
         certificate of incorporation, any Initial Purchaser Note or the
         Purchase Agreement.

                  (i) Restricted Payments. Seller will not declare or make any
         dividend or other distributions to any of its shareholders, redeem or
         purchase any of its capital stock or make any loan or other payments to
         any of its shareholders (other than (1) payments of the purchase price
         of Receivables as set forth in the Purchase Agreement, (2) the
         turn-over of Collections of Reconveyed Receivables to an Originator as
         set forth in the Purchase Agreement, (3) payment of Servicer's Fee so
         long as Parent is Servicer and (4) payment of reasonable management
         fees and reimbursement of reasonable expenses of Parent incurred in
         connection with managing Seller) unless, in each case, no Liquidation
         Event or Unmatured Liquidation Event has occurred and is continuing or
         would result therefrom.

                  (j) Change of Name or Location. Seller will not change its
         name or the location of its principal place of business or chief
         executive office or its corporate structure or its jurisdiction or
         organization, unless Seller has given the Administrator at least thirty
         (30) days prior notice thereof, and has taken all steps necessary or
         advisable under the UCC to

                                       24

<PAGE>

         continue the perfection and priority of the Administrator's and each
         Purchaser's interest in the Pool Assets.

         SECTION 7.04. Separate Existence. Each of Seller and Parent hereby
acknowledges that each Purchaser, the Program Support Providers and the
Administrator are entering into the transactions contemplated by this Agreement
and the other Transaction Documents in reliance upon Seller's identity as a
legal entity separate from Parent. Therefore, from and after the date hereof,
each of Seller and Parent shall take all steps specifically required by this
Agreement or by any Purchaser or the Administrator to continue Seller's identity
as a separate legal entity and to make it apparent to third Persons that Seller
is an entity with assets and liabilities distinct from those of Parent and any
other Person, and is not a division of Parent or any other Person. Without
limiting the generality of the foregoing and in addition to and consistent with
the other covenants set forth herein, each of Seller and Parent shall take such
actions as shall be required in order that:

                  (a) Seller will be a limited purpose corporation whose primary
         activities are restricted in its certificate of incorporation to
         purchasing or otherwise acquiring from the Originators, owning,
         holding, granting security interests, or selling interests, in Pool
         Assets, entering into agreements for the selling and servicing of the
         Receivables Pool, and conducting such other activities as it deems
         necessary or appropriate to carry out its primary activities;

                  (b) Seller shall not engage in any business or activity, or
         incur any indebtedness or liability other than as expressly permitted
         by the Transaction Documents;

                  (c) Not less than one member of Seller's Board of Directors
         shall be an Independent Director. The certificate of incorporation of
         Seller shall provide that (i) Seller's Board of Directors shall not
         approve, or take any other action to cause the filing of, a voluntary
         bankruptcy or insolvency petition or similar proceeding or a merger or
         dissolution with respect to Seller unless the Independent Director
         shall approve the taking of such action in writing prior to the taking
         of such action and (ii) such provision cannot be amended without the
         prior written consent of the Independent Director;

                  (d) The Independent Director shall not at any time serve as a
         trustee in bankruptcy for Seller, Parent or any Affiliate thereof;

                  (e) Any employee, consultant or agent of Seller will be
         compensated from Seller's funds for services provided to Seller. Seller
         will not engage any agents other than its attorneys, auditors and other
         professionals, and a Servicer as contemplated by the Transaction
         Documents for the Receivables Pool, which Servicer will be fully
         compensated for its services by payment of Servicer's Fee and a
         manager, which manager will be fully compensated from Seller's funds;

                  (f) Seller will not incur any material indirect or overhead
         expenses for items shared with Parent (or any other Affiliate thereof)
         which are not reflected in Servicer's Fee

                                       25

<PAGE>

         or the fee to Parent in its role as manager for Seller. To the extent,
         if any, that Seller (or any other Affiliate thereof) share items of
         expenses not reflected in Servicer's Fee or the manager's fee, such as
         legal, auditing and other professional services, such expenses will be
         allocated to the extent practical on the basis of actual use or the
         value of services rendered, and otherwise on a basis reasonably related
         to the actual use or the value of services rendered, it being
         understood that Parent shall pay all expenses relating to the
         preparation, negotiation, execution and delivery of the Transaction
         Documents, including, without limitation, legal and other fees;

                  (g) Seller's operating expenses will not be paid by Parent or
         any other Affiliate thereof;

                  (h) Seller will have its own stationery;

                  (i) Seller's books and records will be maintained separately
         from those of Parent and any other Affiliate thereof;

                  (j) All financial statements of Parent or any Affiliate
         thereof that are consolidated to include Seller will contain detailed
         notes clearly stating that (A) all of Seller's assets are owned by
         Seller, and (B) Seller is a separate entity with creditors who have
         received security interests in Seller's assets;

                  (k) Seller's assets will be maintained in a manner that
         facilitates their identification and segregation from those of Parent
         or any Affiliate thereof;

                  (l) Seller will strictly observe corporate formalities in its
         dealings with Parent or any Affiliate thereof, and funds or other
         assets of Seller will not be commingled with those of Parent or any
         Affiliate thereof except as permitted by this Agreement in connection
         with servicing the Pool Receivables. Seller shall not maintain joint
         bank accounts or other depository accounts to which Parent or any
         Affiliate thereof (other than Parent in its capacity as Servicer) has
         independent access;

                  (m) Seller will maintain arms'-length relationships with
         Parent (and any Affiliate thereof). Any Person that renders or
         otherwise furnishes services to Seller will be compensated by Seller at
         market rates for such services it renders or otherwise furnishes to
         Seller. Neither Seller nor Parent will be or will hold itself out to be
         responsible for the debts of the other or the decisions or actions
         respecting the daily business and affairs of the other. Seller and
         Parent will immediately correct any known misrepresentation with
         respect to the foregoing, and they will not operate or purport to
         operate as an integrated single economic unit with respect to each
         other or in their dealing with any other entity; and

                  (n) Seller and Parent will take such other actions as may be
         necessary to ensure that the facts and assumptions set forth in the
         opinion issued by Sullivan & Cromwell in

                                       26

<PAGE>

         connection with the initial Purchase and in the certificate
         accompanying such opinion remain true and correct.

                                  ARTICLE VIII

                          ADMINISTRATION AND COLLECTION

         SECTION 8.01.     Designation of Servicer.

         (a) Parent as Initial Servicer. The servicing, administering and
collection of the Pool Receivables shall be conducted by the Person designated
as servicer hereunder ("Servicer") from time to time in accordance with this
Section 8.01. Until the Administrator gives to Parent a Successor Notice, Parent
is hereby designated as, and hereby agrees to perform the duties and obligations
of, Servicer pursuant to the terms hereof.

         (b) Successor Notice; Servicer Transfer Events. Upon Parent's receipt
of notice from the Administrator of the Administrator's designation of a new
Servicer (a "Successor Notice"), Parent agrees that it will terminate its
activities as Servicer hereunder in a manner that the Administrator reasonably
believes will facilitate the transition of the performance of such activities to
the new Servicer, and the new Servicer shall assume each and all of Parent's
obligations to service and administer such Pool Receivables, on the terms and
subject to the conditions herein set forth, and Parent shall use its reasonable
best efforts to assist the new Servicer in assuming such obligations. The
Administrator agrees not to give Parent a Successor Notice until after the
occurrence of a Liquidation Event (any such Liquidation Event being herein
called a "Servicer Transfer Event"), in which case such Successor Notice may be
given at any time in the Administrator's discretion.

         (c) Resignation. The Parent acknowledges that the Administrator and
each Purchaser have relied on the Parent's agreement to act as Servicer
hereunder in making their decision to execute and deliver this Agreement.
Accordingly, the Parent agrees that it will not voluntarily resign as Servicer.

         (d) Subcontracts. Servicer may, with the prior consent of the
Administrator, subcontract with any other Person for servicing, administering or
collecting the Pool Receivables, provided that (i) such sub-servicer shall agree
in writing to perform its duties and obligations in a manner not inconsistent
with the duties and obligations of Servicer pursuant to the terms hereof; (ii)
Servicer shall remain primarily liable for the performance of the duties and
obligations of Servicer pursuant to the terms hereof, (iii) Seller, the
Administrator and each Purchaser shall have the right to look solely to Servicer
for performance, and (iv) any such subcontract may be terminated at the option
of the Administrator upon the occurrence of a Servicer Transfer Event. The
Administrator and each Purchaser acknowledges that Servicer has appointed each
Originator as a sub-servicer with respect to the Receivables generated by such
Originator, and each of the Administrator and each Purchaser hereby consents
thereto. Servicer may, in its sole and absolute discretion, remove any
subservicer at any time.

                                       27

<PAGE>

         (e) Servicing Programs. In the event that Servicer uses any software
program in servicing the Pool Receivables that it licenses from a third party,
upon the occurrence of a Servicer Transfer Event, Servicer shall use its
reasonable best efforts to obtain whatever licenses or approvals are necessary
to allow the Administrator or the new Servicer to use such program.

         SECTION 8.02.     Duties of Servicer.

         (a) Appointment; Duties in General. Each of Seller, each Purchaser and
the Administrator hereby appoints Servicer as its agent, as from time to time
designated pursuant to Section 8.01, to enforce its rights and interests in and
under the Pool Assets. Servicer 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 Law and the Credit and Collection
Policy.

         (b) Allocation of Collections; Segregation. Servicer shall set aside
for the account of Seller and Purchasers their respective allocable shares of
the Collections of Pool Receivables in accordance with Section 1.03 but shall
not be required (unless otherwise instructed by the Administrator) to segregate
the funds constituting such portions of such Collections prior to the remittance
thereof in accordance with Section 3.01. If instructed by the Administrator,
Servicer shall segregate and deposit with a bank designated by the
Administrator, Purchasers' Share of Collections, on the second Business Day
following receipt by Servicer of such Collections in immediately available
funds.

         (c) Modification of Receivables. So long as no Liquidation Event or
Unmatured Liquidation Event shall have occurred and be continuing, Servicer may
(i) in accordance with the Credit and Collection Policy, adjust the Unpaid
Balance of any Defaulted Receivable or extend the time for payment of any
Defaulted Receivable (but in no event to a date later than 120 days from the
date of the original invoice), provided that (A) such extension or adjustment
shall not alter the status of such Pool Receivable as an Overdue Receivable or a
Defaulted Receivable or limit the rights of any Purchaser or the Administrator
under this Agreement, and (B) the aggregate amount of all such adjustments made
in any Settlement Period, plus the aggregate Unpaid Balance of all Pool
Receivables that have been extended during such Settlement Period, shall not
exceed 2% of the aggregate Unpaid Balance of all Pool Receivables as at the
Cut-Off Date for such Settlement Period and (ii) adjust the Unpaid Balance of
any Receivable to reflect the reductions or cancellations described in the first
sentence of Section 3.02(a).

         (d) Documents and Records. Seller shall deliver to Servicer, and
Servicer shall hold in trust for Seller and Purchasers in accordance with their
respective interests, all documents, instruments and records (including, without
limitation, computer tapes or disks) that evidence Pool Receivables.

         (e) Certain Duties to Seller. Servicer shall, as soon as practicable
following receipt, turn over to Seller that portion of Collections of Pool
Receivables representing Seller's undivided interest therein, less Seller's
Share of Servicer's Fee. Seller hereby directs Servicer to pay any Collections
of any Reconveyed Receivable directly to the related Originator to be applied
pursuant to the

                                       28

<PAGE>

Purchase Agreement. Servicer shall, as soon as practicable upon demand, deliver
to Seller copies of documents, instruments and records in its possession that
evidence Pool Receivables.

         (f) Termination. Servicer's authorization under this Agreement shall
terminate upon the Final Payout Date.

         (g) Power of Attorney. Seller hereby grants to Servicer an irrevocable
power of attorney, with full power of substitution, coupled with an interest, to
take in the name of Seller all steps which are necessary or advisable to
endorse, negotiate or otherwise realize on any writing or other right of any
kind held or transmitted by Seller or transmitted or received by a Purchaser
(whether or not from Seller) in connection with any Receivable. Notwithstanding
anything to the contrary contained herein, the Administrator may direct Servicer
to commence or settle any legal action to enforce collection of any Pool
Receivable or to foreclose upon or repossess any Related Security; provided,
however, that no such direction may be given unless either (i) a Liquidation
Event has occurred or (ii) the Administrator believes in good faith that failure
to commence, settle, or effect such legal action, foreclosure or repossession,
could adversely affect Receivables constituting a material portion of the Pool
Receivables, provided that the Administrator has given Servicer at least two
Business Days' notice of its intention to give such direction.

         SECTION 8.03.     Rights of the Administrator.

         (a) Notice to Obligors. At any time after the occurrence of a
Liquidation Event, the Administrator may notify the Obligors of Pool
Receivables, or any of them, of the ownership of the Asset Interest by the
Administrator, for the benefit of Purchasers.

         (b) Notice to Lock-Box Banks. At any time following the earlier to
occur of (i) the occurrence of a Liquidation Event, and (ii) the commencement of
the Liquidation Period, the Administrator is hereby authorized to give notice to
the Lock-Box Banks, as provided in the Lock-Box Agreements, of the transfer to
the Administrator of dominion and control over the lock-boxes and Lock-Box
Accounts. Each of Servicer and Seller hereby transfers to the Administrator,
effective when the Administrator shall give notice to the Lock-Box Banks as
provided in the Lock-Box Agreements, the exclusive dominion and control over
such lock-boxes and accounts, and shall take any further action that the
Administrator may reasonably request to effect such transfer. Any proceeds of
Pool Receivables received by Seller or Parent, as Servicer or otherwise,
thereafter shall be sent immediately to the Administrator.

         (c) Rights on Servicer Transfer Event. At any time following the
designation of a Servicer other than Parent pursuant to Section 8.01:

                  (i) The Administrator may direct the Obligors of Pool
         Receivables, or any of them, to pay all amounts payable under any Pool
         Receivable directly to the Administrator or its designee.

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<PAGE>

                  (ii) Parent shall, at the Administrator's request and at
         Parent's expense, give notice of such ownership to each said Obligor
         and direct that payments be made directly to the Administrator or its
         designee.

                  (iii) Parent and Seller shall, at the Administrator's request,
         (A) assemble all of the documents, instruments and other records
         (including, without limitation, computer programs, tapes and disks)
         which evidence the Pool Receivables and the related Contracts and
         Related Security, or which are otherwise necessary or desirable to
         collect such Pool Receivables and make the same available to the
         Administrator at a place selected by the Administrator, and (B)
         segregate all cash, checks and other instruments received by it from
         time to time constituting Collections in a manner acceptable to the
         Administrator and promptly upon receipt, remit all such cash, checks
         and instruments, duly endorsed or with duly executed instruments of
         transfer, to the Administrator.

                  (iv) Each of Seller and each Purchaser hereby authorizes the
         Administrator, and grants to the Administrator an irrevocable power of
         attorney, to take any and all steps in Seller's name and on behalf of
         Seller and any Purchaser which are necessary or desirable, in the
         reasonable determination of the Administrator, to collect all amounts
         due under any and all Pool Receivables including, without limitation,
         endorsing Seller's name on checks and other instruments representing
         Collections and enforcing such Pool Receivables and the related
         Contracts, provided that, notwithstanding anything to the contrary set
         forth herein, in the Purchase and Sale Agreement or in any separate
         power of attorney granted by Seller or any Originator in connection
         herewith, the Administrator shall not exercise such power of attorney
         unless and until a Servicer other than Parent has been appointed
         pursuant to Section 8.01.

         SECTION 8.04. Responsibilities of Seller. Anything herein to the
contrary notwithstanding:

                  (a) Contracts. Seller shall perform, or cause an Originator to
         perform under the Purchase Agreement, all of its material obligations
         under the Contracts related to the Pool Receivables and under the other
         agreements related thereto to the same extent as if the Asset Interest
         had not been sold hereunder, and the exercise by the Administrator or
         its designee of its rights hereunder shall not relieve Seller from any
         obligations under such Contracts and other agreements.

                  (b) Limitation of Liability. Neither the Administrator nor any
         Purchaser shall have any obligation or liability with respect to any
         Pool Receivables, the related Contracts or any other related
         agreements, nor shall any of them be obligated to perform any of the
         obligations of Seller or any Originator thereunder.

         SECTION 8.05. Further Action Evidencing Purchases and Reinvestments.

                                       30

<PAGE>

         (a) Further Assurances. Seller shall, at its expense, take all action
necessary or advisable to establish and maintain a valid and enforceable first
priority perfected undivided ownership interest, to the extent of the Asset
Interest, in the Pool Assets, free and clear of any Lien, in favor of the
Administrator, for the benefit of Purchasers. Without limiting the generality of
the foregoing, Seller will upon the request of the Administrator or its designee
execute and file such financing or continuation statements, or amendments
thereto or assignments thereof, and such other instruments or notices, as may be
necessary or appropriate to evidence or perfect the interest described in the
previous sentence.

         (b) Data Processing Records. Each of Parent and Seller will mark its
master data processing records evidencing the Pool Receivables with the legend
set forth below evidencing that the Asset Interest has been sold in accordance
with this Agreement.

                  AN OWNERSHIP AND SECURITY INTEREST IN THE RECEIVABLES
                  DESCRIBED HEREIN HAS BEEN GRANTED AND ASSIGNED TO FLEET
                  SECURITIES, INC., AS ADMINISTRATOR, PURSUANT TO A RECEIVABLES
                  PURCHASE AGREEMENT, DATED AS OF NOVEMBER 1, 2001, AMONG CONMED
                  CORPORATION, CONMED RECEIVABLES CORPORATION, BLUE KEEL
                  FUNDING, LLC, FLEET NATIONAL BANK AND FLEET SECURITIES, INC.,
                  AS THE ADMINISTRATOR.

         (c) Additional Financing Statements; Performance by Administrator.
Seller hereby authorizes the Administrator or its designee to file one or more
financing or continuation statements, and amendments thereto and assignments
thereof, relative to all or any portion of the Asset Interest now existing or
hereafter arising in the name of Seller. If Seller or Parent fails to perform
any of its agreements or obligations under this Agreement, the Administrator or
its designee may (but shall not be required to), after notice to Seller or
Parent (unless immediate action is reasonably required to protect the interests
of the Administrator or Purchasers), itself perform, or cause performance of,
such agreement or obligation, and the expenses of the Administrator or its
designee incurred in connection therewith shall be payable by Seller or Parent,
as the case may be.

         (d) Continuation Statements; Opinion. Without limiting the generality
of subsection (a), Seller will, not earlier than six (6) months and not later
than three (3) months prior to the fifth anniversary of the date of filing of
the financing statement referred to in Section 5.01(d) or any other financing
statement filed pursuant to this Agreement or in connection with any Purchase
hereunder, unless the Final Payout Date shall have occurred, execute, if
required, and deliver and file or cause to be filed an appropriate continuation
statement with respect to such financing statement.

         (e) Lock-Box Agreement. On or before December 26, 2001, Servicer shall
cause a Lock-Box Agreement in form and substance reasonably satisfactory to the
Administrator to be executed by Servicer, Seller and Royal Bank of Canada and
delivered to the Administrator.

                                       31

<PAGE>

         SECTION 8.06. Application of Collections. Any payment by an Obligor in
respect of any indebtedness owed by it to Seller shall, (i) except as otherwise
specified by such Obligor, (ii) except as otherwise required by the underlying
Contract or law or (iii) unless the Administrator instructs otherwise, be
applied, first, as a Collection of any Pool Receivable or Receivables then
outstanding of such Obligor in the order of the age of such Pool Receivables,
starting with the oldest of such Pool Receivable and, second, to any other
indebtedness of such Obligor.

                                   ARTICLE IX

                                SECURITY INTEREST

         SECTION 9.01. Grant of Security Interest. To secure all obligations of
Seller arising in connection with this Agreement and each other Transaction
Document, whether now or hereafter existing, due or to become due, direct or
indirect, or absolute or contingent, including, without limitation, all
Indemnified Amounts, payments on account of Collections of Pool Receivables
received or deemed to be received and fees, Seller hereby assigns and grants to
Administrator, for the benefit of the Secured Parties, a security interest in
all of Seller's right, title and interest (including specifically any undivided
interest retained by Seller hereunder) now or hereafter existing in, to and
under all of the Pool Assets.

         SECTION 9.02. Further Assurances. The provisions of Section 8.05 shall
apply to the security interest granted under Section 9.01 as well as to the
Purchases, Reinvestments and the Asset Interest hereunder.

         SECTION 9.03. Remedies. Upon the occurrence of a Liquidation Event, the
Administrator and Purchaser shall have, with respect to the collateral granted
pursuant to Section 9.01, and in addition to all other rights and remedies
available to Purchaser or the Administrator under this Agreement or other
applicable law, all the rights and remedies of a secured party upon default
under the UCC.

                                    ARTICLE X

                               LIQUIDATION EVENTS

         SECTION 10.01. Liquidation Events. The following events shall be
"Liquidation Events" hereunder:

                  (a) (i) Servicer (if Parent or an Affiliate of Parent is
         Servicer) shall fail to perform or observe any obligation of Servicer
         to provide any Servicer Report or Weekly Report when due hereunder or
         any obligation of Servicer pursuant to Section 8.02 and such failure
         shall remain unremedied for more than three Business Days after written
         notice thereof shall have been given by the Administrator to Servicer
         (provided that no notice shall

                                       32

<PAGE>

         be required in the case of the failure to provide any Servicer Report
         when due) or (ii) Seller or Servicer (if Parent or its Affiliate is
         Servicer) shall fail to make any payment or deposit to be made by it
         hereunder within two (2) Business Days of when due; or

                  (b) Any representation or warranty made or deemed to be made
         by Seller, Parent or any Originator under or in connection with this
         Agreement, any other Transaction Document, any Weekly Report or any
         Servicer Report or other information or report delivered pursuant
         hereto shall prove to have been inaccurate in any material respect when
         made; or

                  (c) Seller, Parent or any Originator shall fail to perform or
         observe any other term, covenant or agreement contained in this
         Agreement (other than the covenant set forth in Section 8.05(e)) or any
         of the other Transaction Documents on its part to be performed or
         observed and any such failure shall continue unremedied for ten (10)
         Business Days after written notice thereof shall have been given by the
         Administrator to Seller or Parent, as the case may be; or

                  (d) A default shall have occurred and be continuing under any
         instrument or agreement evidencing, securing or relating to
         Indebtedness in excess of $20,000,000 of, or guaranteed by, Parent or
         any Subsidiary thereof, which default is a payment default or if
         unremedied, uncured, or unwaived (with or without the passage of time
         or the giving of notice or both) would permit acceleration of the
         maturity of such indebtedness and such default shall have continued
         unremedied, uncured or unwaived for a period long enough to permit such
         acceleration; or

                  (e) This Agreement or any Purchase or any Reinvestment
         pursuant to this Agreement shall for any reason (other than pursuant to
         the terms hereof) (i) cease to create, or the Asset Interest shall for
         any reason cease to be, a valid and enforceable perfected undivided
         percentage interest to the extent of the Asset Interest in each Pool
         Asset, free and clear of any other Lien (other than a Lien arising
         solely as the result of any action taken by a Purchaser or the
         Administrator) or (ii) cease to create with respect to the items
         described in Section 9.01, or the interest of the Administrator (for
         the benefit of Purchasers) with respect to such items shall cease to
         be, a valid and enforceable first priority perfected security interest,
         free and clear of any other Lien (other than a Lien arising solely as
         the result of any action taken by a Purchaser or the Administrator); or

                  (f) An Event of Bankruptcy shall have occurred and remain
         continuing with respect to Seller, Parent or any Originator; or

                  (g) The average of the Sales-Based Dilution Ratios for any
         three successive Cut-Off Dates exceeds 20%; or

                  (h) The average of the Default Ratios for any three successive
         Cut-Off Dates exceeds 5%; or

                                       33

<PAGE>

                  (i) On any Settlement Date, after giving effect to the
         payments made under Section 3.01(c), the Asset Interest exceeds the
         Allocation Limit; or

                  (j) The average of the Delinquency Ratios for any three
         successive Cut-Off Dates is greater than 10%; or

                  (k) There shall exist any event or occurrence that has caused
         a Material Adverse Effect; or

                  (l) Seller or Parent is subject to a Change-in-Control; or

                  (m) The Internal Revenue Service shall file notice of a lien
         pursuant to Section 6323 of the Internal Revenue Code with regard to
         any of the assets of Seller or Parent and such lien shall not have been
         released within 5 Business Days, or the Pension Benefit Guaranty
         Corporation shall file notice of a lien pursuant to Section 4068 of the
         Employee Retirement Income Security Act of 1974 with regard to any of
         the assets of Seller or Parent and such lien shall not have been
         released within 5 Business Days.

         SECTION 10.02. Remedies.

         (a) Optional Liquidation. Upon the occurrence of a Liquidation Event
(other than a Liquidation Event described in subsection (f) of Section 10.01),
the Administrator shall, at the request, or may with the consent, of Purchasers,
by notice to Seller declare the Purchase Termination Date to have occurred and
the Liquidation Period to have commenced.

         (b) Automatic Liquidation. Upon the occurrence of a Liquidation Event
described in subsection (f) of Section 10.01 with respect to Parent or Seller,
the Purchase Termination Date shall occur and the Liquidation Period shall
commence automatically.

         (c) Additional Remedies. Upon any Purchase Termination Date occurring
pursuant to this Section 10.02, no Purchases or Reinvestments thereafter will be
made, and the Administrator and each Purchaser shall have, in addition to all
other rights and remedies under this Agreement or otherwise, all other rights
and remedies provided under the UCC of each applicable jurisdiction and other
Applicable Law, which rights shall be cumulative.

                                   ARTICLE XI

                                THE ADMINISTRATOR

         SECTION 11.01. Authorization and Action. Pursuant to the Program
Agreements, each Purchaser has appointed and authorized the Administrator (or
its designees) to take such action as agent on its behalf and to exercise such
powers under this Agreement as are delegated to the Administrator by the terms
hereof, together with such powers as are reasonably incidental thereto.

                                       34

<PAGE>

         SECTION 11.02. Administrator's Reliance, Etc. The Administrator and its
directors, officers, agents or employees shall not be liable for any action
taken or omitted to be taken by it or them under or in connection with the
Transaction Documents (including, without limitation, the servicing,
administering or collecting of Pool Receivables as Servicer pursuant to Section
8.01), except for its or their own gross negligence, bad faith or willful
misconduct. Without limiting the generality of the foregoing, the Administrator:
(a) may consult with legal counsel, 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
Purchaser or any other holder of any interest in Pool Receivables and shall not
be responsible to any Purchaser or any such other holder for any statements,
warranties or representations made in or in connection with any Transaction
Document; (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 any
Transaction Document on the part of Seller or Parent or to inspect the property
(including the books and records) of Seller, any Originator or Parent; (d) shall
not be responsible to Purchaser or any other holder of any interest in Pool
Receivables for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of any Transaction Document or any Receivable;
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 facsimile) believed by it in good faith
to be genuine and signed or sent by the proper party or parties.

         SECTION 11.03. Fleet and Affiliates. Fleet and any of its Affiliates
may generally engage in any kind of business with Seller, Parent, any Originator
or any Obligor, any of their respective Affiliates and any Person who may do
business with or own securities of Seller, Parent, any Originator or any Obligor
or any of their respective Affiliates, all as if Fleet were not the
Administrator, and without any duty to account therefor to Purchaser or any
other holder of an interest in Pool Receivables.

                                   ARTICLE XII

                       ASSIGNMENT OF PURCHASER'S INTEREST

         SECTION 12.01. Restrictions on Assignments.

         (a) Neither Seller nor Parent may assign its rights, or delegate its
duties, hereunder or any interest herein without the prior written consent of
the Administrator. No Purchaser may assign its rights hereunder (although it may
delegate its duties hereunder as expressly indicated herein) or the Asset
Interest (or any portion thereof) to any Person without the prior written
consent of Seller, which consent shall not be unreasonably withheld; provided,
however, that, without such consent, Conduit Purchaser may assign all of its
rights and interests in the Transaction Documents, together with all its
interest in the Asset Interest, to (i) Fleet or any Subsidiary thereof, or (ii)
to any "bankruptcy remote" special purpose entity the business of which is
administered by Fleet or any Subsidiary thereof, so long as such entity has the
ability to issue commercial paper notes, or to cause

                                       35

<PAGE>

the issuance of commercial paper notes, to fund the Asset Interest or (iii) to
any Liquidity Bank (or agent on behalf of the Liquidity Banks). If Conduit
Purchaser notifies Seller and Parent that it has decided to assign its rights
and delegate its duties hereunder to the Liquidity Banks (or an agent therefor)
and the Liquidity Banks agree to assume the obligations of the Conduit Purchaser
hereunder, Seller and Parent agree to enter into such amendments hereto and to
the other Transaction Documents as the Administrator may reasonably request to
reflect such assignment and delegation.

         (b) Seller agrees to advise the Administrator within ten (10) Business
Days after notice to Seller of any proposed assignment by a Purchaser of the
Asset Interest (or any portion thereof), not otherwise permitted under
subsection (a), of Seller's consent or non-consent to such assignment. All of
the aforementioned assignments shall be upon such terms and conditions as the
assigning Purchaser and the assignee may mutually agree.

         SECTION 12.02. Rights of Assignee. Upon the assignment by a Purchaser
in accordance with this Article XII, the assignee receiving such assignment
shall have all of the rights and shall assume in writing all of the obligations
of the assigning Purchaser with respect to the Transaction Documents and the
Asset Interest (or such portion thereof as has been assigned), and the assigning
Purchaser shall be released from such obligations.

                                  ARTICLE XIII

                                 INDEMNIFICATION

         SECTION 13.01. Indemnities.

         (a) General Indemnity by Seller. Without limiting any other rights
which any such Person may have hereunder or under Applicable Law, Seller hereby
agrees to indemnify each of the Administrator, each Purchaser, each Program
Support Provider, each of their respective Affiliates, and all successors,
permitted transferees, participants and permitted assigns and all officers,
directors, shareholders, members, controlling persons, employees and agents of
any of the foregoing (each an "Indemnified Party"), within ten (10) Business
Days of demand, from and against any and all damages, losses, claims,
liabilities and related costs and expenses, including reasonable attorneys' fees
and disbursements (all of the foregoing being collectively referred to as
"Indemnified Amounts") awarded against or incurred by any of them arising out of
or relating to the Transaction Documents or the ownership or funding of the
Asset Interest 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 (b)
Indemnified Amounts which have the effect of recourse for non-payment of the
Pool Receivables due to credit problems of the Obligors (except as otherwise
specifically provided in this Agreement). Without limiting the foregoing, Seller
shall indemnify each Indemnified Party for Indemnified Amounts arising out of or
relating to:

                                       36

<PAGE>

                  (i) the transfer by Seller of any interest in any Pool
         Receivable other than the transfer of an Asset Interest to the
         Administrator, for the benefit of Purchasers, pursuant to this
         Agreement and the grant of a security interest to the Administrator
         pursuant to Section 9.01;

                  (ii) any representation or warranty made by Seller under or in
         connection with any Transaction Document, any Servicer Report, any
         Weekly Report or any other information or report delivered by or on
         behalf of Seller pursuant hereto, which shall have been false,
         incorrect or misleading in any respect when made;

                  (iii) the failure by Seller to comply with any Applicable Law,
         or the nonconformity of any Pool Receivable or the related Contract
         with any Applicable Law;

                  (iv) the failure to vest and maintain vested in the
         Administrator, for the benefit of Purchasers, an undivided percentage
         ownership interest, to the extent of the Asset Interest, in the Pool
         Assets, free and clear of any Lien, other than a Lien created pursuant
         to this Agreement or any other Transaction Document or arising solely
         as a result of an act of a Purchaser or the Administrator, whether
         existing at the time of any Purchase or Reinvestment of such Asset
         Interest or at any time thereafter;

                  (v) the failure to file, 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 Pool Assets, whether at the time of any Purchase or Reinvestment or
         at any time thereafter;

                  (vi) any dispute, claim, offset or defense (other than
         discharge in bankruptcy or payment) of the Obligor to the payment of
         any Receivable included in the Net Pool Balance (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;

                  (vii) any breach by Seller of any of its covenants or
         agreements under this Agreement or any other Transaction Document;

                  (viii) any products liability claim arising out of or in
         connection with merchandise or services that are the subject of any
         Pool Receivable;

                  (ix) any litigation, proceeding or investigation against
         Seller; or

                  (x) any tax or governmental fee or charge (but not including
         taxes upon or measured by net income or representing a franchise or
         unincorporated business tax of such Person), all interest and penalties
         thereon or with respect thereto, and all out-of-pocket costs

                                       37

<PAGE>

         and expenses, including the reasonable fees and expenses of counsel in
         defending against the same, which may arise by reason of the purchase
         or ownership of any Asset Interest, or any other interest in the Pool
         Receivables or in any goods which secure any such Pool Receivables.

         (b) Indemnity by Servicer. Without limiting any other rights which any
such Person may have hereunder or under applicable law, Servicer hereby agrees
to indemnify each Indemnified Party, within five (5) Business Days of demand,
from and against any and all Indemnified Amounts awarded against or incurred by
any of them arising out of or relating to (i) any representation or warranty
made by Servicer under or in connection with any Transaction Document, any
Servicer Report, any Weekly Report or any other information or report delivered
by or on behalf of Servicer pursuant hereto, which shall have been false,
incorrect or misleading when made, (ii) the failure by Servicer to comply with
any Applicable Law, (iii) any breach by Servicer of any of its covenants or
agreements under this Agreement or any other Transaction Document or (iv) the
commingling of any Collections with other funds.

         (c) After-Tax Basis. Indemnification hereunder shall be in an amount
necessary to make the Indemnified Party whole after taking into account any tax
consequences to the Indemnified Party of the receipt of the indemnity provided
hereunder, including the effect of such tax or refund on the amount of tax
measured by net income or profits which is or was payable by the Indemnified
Party.

                                   ARTICLE XIV

                                  MISCELLANEOUS

         SECTION 14.01. Amendments, Etc. No amendment or waiver of any provision
of this Agreement nor consent to any departure by any party therefrom shall in
any event be effective unless the same shall be in writing and signed by (a)
Seller, the Administrator, Parent and each Purchaser (with respect to an
amendment) or (b) the Administrator and each Purchaser (with respect to a waiver
or consent by them) or Seller or Parent (with respect to a waiver or consent by
it), as the case may be, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given. The
parties acknowledge that, before entering into such an amendment or granting
such a waiver or consent, Conduit Purchaser may also be required to obtain the
approval of some or all of the Program Support Providers or to obtain
confirmation from certain rating agencies that such amendment, waiver or consent
will not result in a withdrawal or reduction of the ratings of the Commercial
Paper Notes.

         SECTION 14.02. Notices, Etc. All notices and other communications
provided for hereunder shall, unless otherwise stated herein, be in writing
(including facsimile communication) and shall be personally delivered or sent by
express mail or courier or by certified mail, postage prepaid, or by facsimile,
to the intended party at the address or facsimile number of such party set forth
under its name on Schedule 14.02 or at such other address or facsimile number as
shall be designated by such party in a written notice to the other parties
hereto. All such notices and communications shall be effective, (a) if
personally delivered or sent by express mail or courier or

                                       38

<PAGE>

if sent by certified mail, when received, and (b) if transmitted by facsimile,
when sent, receipt confirmed by telephone or electronic means, if sent during
business hours on a Business Day or on the next Business Day in all other cases.

         SECTION 14.03. No Waiver; Remedies. No failure on the part of the
Administrator, any Affected Party, any Indemnified Party, any Purchaser or any
other holder of the Asset Interest (or any portion thereof) 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. The remedies
herein provided are cumulative and not exclusive of any remedies provided by
law.

         SECTION 14.04. Binding Effect; Survival. This Agreement shall be
binding upon and inure to the benefit of Seller, Parent, the Administrator, each
Purchaser and their respective successors and assigns, and the provisions of
Section 4.02 and Article XIII shall inure to the benefit of the Affected Parties
and the Indemnified Parties, respectively, and their respective successors and
assigns; provided, however, nothing in the foregoing shall be deemed to
authorize any assignment not permitted by Section 12.01. This Agreement shall
create and constitute the continuing obligations of the parties hereto in
accordance with its terms, and shall remain in full force and effect until the
Final Payout Date. The rights and remedies with respect to any breach of any
representation and warranty made by Seller or Parent pursuant to Article VI and
the provisions of Article XIII and Sections 4.02, 14.05, 14.06, 14.07, 14.08 and
14.15 shall be continuing and shall survive any termination of this Agreement.

         SECTION 14.05. Costs, Expenses and Taxes. In addition to its
obligations under Article XIII, Seller or Parent, as the case may be, agrees to
pay within five Business Days of demand;

                  (a) all costs and expenses incurred by the Administrator, any
         Program Support Provider and any Purchaser and their respective
         Affiliates, in connection with the enforcement after the occurrence of
         a Liquidation Event against Seller or Parent, as the case may be, of,
         or any actual or claimed breach by Seller or Parent, as the case may
         be, of, this Agreement and the other Transaction Documents, including,
         without limitation (A) the reasonable fees and expenses of counsel to
         any of such Persons incurred in connection with any of the foregoing or
         in advising such Persons as to their respective rights and remedies
         under any of the Transaction Documents, and (B) all reasonable
         out-of-pocket expenses (including reasonable fees and expenses of
         independent accountants incurred in connection with any review of
         Seller's or Parent's, as the case may be, books and records either
         prior to the execution and delivery hereof or pursuant to Section
         7.01(c) or otherwise); and

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

                                       39

<PAGE>

         SECTION 14.06. No Proceedings; Limitations on Recourse. Seller, Parent,
Servicer and Fleet Securities (individually and as Administrator) each hereby
agrees that it will not institute against Conduit Purchaser, or join any other
Person in instituting against Conduit Purchaser, any insolvency proceeding
(namely, any proceeding of the type referred to in the definition of Event of
Bankruptcy) so long as any Commercial Paper Notes shall be outstanding or there
shall not have elapsed one year plus one day since the last day on which any
such Commercial Paper Notes shall have been outstanding. The parties hereto
agree that Conduit Purchaser shall have no obligations to make any payments
hereunder (collectively, "Purchaser Payments"), and that such Purchaser Payments
shall not constitute a claim against Conduit Purchaser as defined in ss.101 of
the Bankruptcy Code, unless and until Conduit Purchaser has amounts sufficient
to pay such Purchaser Payments from the Asset Interest or pursuant to the
Liquidity Agreement and such amounts are not required to repay Commercial Paper
Notes of Conduit Purchaser or loans to Conduit Purchaser funded by Commercial
Paper Notes. Conduit Purchaser shall not have any obligation to pay any amounts
owing hereunder unless and until Conduit Purchaser has received such amounts.

         SECTION 14.07. Confidentiality of Program Information.

         (a) Confidential Information. Each party hereto acknowledges that Fleet
Securities regards the structure of the transactions contemplated by this
Agreement to be proprietary, and each such party severally agrees that:

                  (i) it will not disclose without the prior consent of Fleet
         Securities or as is required or authorized by the Transaction Documents
         (other than to the directors, employees, agents, auditors, counsel or
         affiliates (collectively, "representatives") of such party, each of
         whom shall be informed by such party of the confidential nature of the
         Program Information (as defined below) and of the terms of this Section
         14.07), (A) any information regarding the pricing in, or copies of,
         this Agreement or any transaction contemplated hereby, (B) any
         information regarding the organization, business or operations of
         Purchaser generally or the services performed by the Administrator for
         Purchaser, or (C) any information which is furnished by Fleet
         Securities to such party and which is designated by Fleet Securities to
         such party in writing as confidential or not otherwise available to the
         general public (the information referred to in clauses (A), (B) and (C)
         is collectively referred to as the "Program Information"); provided,
         however, that such party may disclose any such Program Information (I)
         to any other party to this Agreement for the purposes contemplated
         hereby, (II) as may be required by any Governmental Authority having or
         claiming to have jurisdiction over such party, (III) in order to comply
         with Applicable Law, including, without limitation, by filing the
         Transaction Documents with the Securities and Exchange Commission
         (provided that neither Seller nor Parent shall file the Fee Letter, or,
         if required by Applicable Law to file the Fee Letter, Parent or Seller,
         as the case may be, shall request confidential treatment therefor) or
         (IV) subject to subsection (c), in the event such party is legally
         compelled (by interrogatories, requests for information or copies,
         subpoena, civil investigative demand or similar process) to disclose
         any such Program Information, unless legally compelled not to do so;

                                       40

<PAGE>

                  (ii) it will use the Program Information solely for the
         purposes of evaluating, administering and enforcing the transactions
         contemplated by this Agreement and making any necessary business
         judgments with respect thereto; and

                  (iii) it will, upon demand, return (and cause each of its
         representatives to return) to Fleet Securities, all documents or other
         written material (other than documents executed by such party) received
         from Fleet Securities, as the case may be, in connection with (a)(i)(B)
         or (C) above and all copies thereof made by such party which contain
         the Program Information.

         (b) Availability of Confidential Information. This Section 14.07 shall
be inoperative as to such portions of the Program Information which are or
become generally available to the public or such party on a nonconfidential
basis from a source other than Fleet Securities or were known to such party on a
nonconfidential basis prior to its disclosure by Fleet Securities.

         (c) Legal Compulsion to Disclose. In the event that any party or anyone
to whom such party or its representatives transmits the Program Information is
requested or becomes legally compelled (by interrogatories, requests for
information or documents, subpoena, civil investigative demand or similar
process) to disclose any of the Program Information, such party will, to the
extent that it may legally do so,

                  (i) provide Fleet Securities with prompt written notice so
         that Fleet Securities may seek a protective order or other appropriate
         remedy and/or waive compliance with the provisions of this Section
         14.07; and

                  (ii) unless Fleet Securities waives compliance by such party
         with the provisions of this Section 14.07, make a timely objection to
         the request or confirmation to provide such Program Information on the
         basis that such Program Information is confidential and subject to the
         agreements contained in this Section 14.07.

In the event that such protective order or other remedy is not obtained, or
Fleet Securities waives compliance with the provisions of this Section 14.07,
such party will furnish only that portion of the Program Information which (in
such party's good faith judgment) is legally required to be furnished and will
exercise reasonable efforts to obtain reliable assurance that confidential
treatment will be accorded the Program Information.

         (d) Survival. This Section 14.07 shall survive termination of this
Agreement.

         SECTION 14.08. Confidentiality of Parent Information.

         (a) Confidential Information. Each party hereto acknowledges that each
of Seller and Parent regards certain information to be proprietary, and each
such party severally agrees that:

                                       41

<PAGE>

                  (i) it will not disclose without the prior consent of Parent
         or as is required or authorized by the Transaction Documents (other
         than to the directors, employees, agents, auditors, counsel or
         affiliates (collectively, "representatives") of such party, each of
         whom shall be informed by such party of the confidential nature of the
         Parent Information (as defined below) and of the terms of this Section
         14.08), any information which is furnished by Parent to such party and
         which is designated by Parent or Seller to such party in writing as
         confidential or not otherwise available to the general public ("Parent
         Information"); provided, however, that such party may disclose any such
         Parent Information (I) to any other party to this Agreement for the
         purposes contemplated hereby, (II) as may be required by any
         Governmental Authority having or claiming to have jurisdiction over
         such party, (III) in order to comply with any Applicable Law, (IV)
         subject to subsection (c), in the event such party is legally compelled
         (by interrogatories, requests for information or copies, subpoena,
         civil investigative demand or similar process) to disclose any such
         Parent Information, (V) to any Affected Party (provided such Person has
         agreed to be bound by the terms of this Section 14.08), (VI) to the
         Rating Agencies, or (VII) to any potential Liquidity Bank or any
         potential assignee or participant of any Liquidity Bank (provided such
         Person has agreed to be bound by the terms of this Section 14.08), and
         any placement agent for, or investor or potential investor in, the
         Commercial Paper Notes; and

                  (ii) it will use the Parent Information solely for the
         purposes of evaluating, administering and enforcing the transactions
         contemplated by this Agreement and making any necessary business
         judgments with respect thereto.

         (b) Availability of Confidential Information. This Section 14.08 shall
be inoperative as to such portions of the Parent Information which are or become
generally available to the public or such party on a nonconfidential basis from
a source other than Parent or were known to such party on a nonconfidential
basis prior to its disclosure by Parent.

         (c) Legal Compulsion to Disclose. In the event that any party or anyone
to whom such party or its representatives transmits the Parent Information is
requested or becomes legally compelled (by interrogatories, requests for
information or documents, subpoena, civil investigative demand or similar
process) to disclose any of the Parent Information, such party will, to the
extent that it may legally do so,

                  (i) provide Parent with prompt written notice so that Parent
         may seek a protective order or other appropriate remedy and/or waive
         compliance with the provisions of this Section 14.08; and

                  (ii) unless Parent waives compliance by such party with the
         provisions of this Section 14.08, make a timely objection to the
         request or confirmation to provide such Parent Information on the basis
         that such Parent Information is confidential and subject to the
         agreements contained in this Section 14.08.

                                       42

<PAGE>

In the event that such protective order or other remedy is not obtained, or
Parent waives compliance with the provisions of this Section 14.08, such party
will furnish only that portion of the Parent Information which (in such party's
good faith judgment) is legally required to be furnished and will exercise
reasonable efforts to obtain reliable assurance that confidential treatment will
be accorded the Parent Information.

         (d) Survival. This Section 14.08 shall survive termination of this
Agreement.

         SECTION 14.09. Captions and Cross References. The various captions
(including, without limitation, the table of contents) in this Agreement are
provided solely for convenience of reference and shall not affect the meaning or
interpretation of any provision of this Agreement. Unless otherwise indicated,
references in this Agreement to any Section, Appendix, Schedule or Exhibit are
to such Section of or Appendix, Schedule or Exhibit to this Agreement, as the
case may be, and references in any Section, subsection, or clause to any
subsection, clause or subclause are to such subsection, clause or subclause of
such Section, subsection or clause.

         SECTION 14.10. Integration. This Agreement and the other Transaction
Documents contain a final and complete integration of all prior expressions by
the parties hereto with respect to the subject matter hereof and shall
constitute the entire understanding among the parties hereto with respect to the
subject matter hereof, superseding all prior oral or written understandings.

         SECTION 14.11. Governing Law. THIS AGREEMENT, INCLUDING THE RIGHTS AND
DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE
PERFECTION OF THE INTERESTS OF THE ADMINISTRATOR IN THE POOL ASSETS IS GOVERNED
BY THE LAWS OF THE JURISDICTION OTHER THAN THE STATE OF NEW YORK.

         SECTION 14.12. Waiver Of Jury Trial. EACH OF THE PARTIES HERETO HEREBY
EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO
ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER TRANSACTION
DOCUMENT OR UNDER ANY AMENDMENT, INSTRUMENT OR DOCUMENT DELIVERED OR WHICH MAY
BE IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER TRANSACTION
DOCUMENT AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A
COURT AND NOT A JURY TRIAL.

         SECTION 14.13. Consent To Jurisdiction; Waiver Of Immunities. EACH
PARTY HEREBY ACKNOWLEDGES AND AGREES THAT:

                  (a)      IT HEREBY IRREVOCABLY (i) SUBMITS TO THE
         NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR UNITED
         STATES FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN,

                                       43

<PAGE>

         STATE OF NEW YORK, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR
         RELATING TO ANY TRANSACTION DOCUMENT; (ii) AGREES THAT ALL CLAIMS IN
         RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
         SUCH STATE OR UNITED STATES FEDERAL COURT; (iii) WAIVES, TO THE FULLEST
         EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, THE DEFENSE OF AN
         INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING;
         (iv) CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH ACTION
         OR PROCEEDING BY THE MAILING OF COPIES OF SUCH PROCESS TO SUCH PERSON
         AT ITS ADDRESS SPECIFIED IN SECTION 14.02; AND (v) TO THE EXTENT
         ALLOWED BY LAW, AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
         PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
         JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED
         BY LAW. NOTHING IN THIS SECTION 14.13 SHALL AFFECT THE ADMINISTRATOR'S
         OR ANY PURCHASER'S RIGHT TO SERVE LEGAL PROCESS IN ANY OTHER MANNER
         PERMITTED BY LAW OR TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OF
         SELLER OR PARENT OR ITS PROPERTY IN THE COURTS OF ANY OTHER
         JURISDICTIONS.

                  (b) TO THE EXTENT THAT IT HAS OR HEREAFTER MAY ACQUIRE ANY
         IMMUNITY FROM THE JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS
         (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
         ATTACHMENT IN AID TO EXECUTION, EXECUTION OR OTHERWISE) WITH RESPECT TO
         ITSELF OR ITS PROPERTY, IT HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN
         RESPECT OF ITS OBLIGATIONS UNDER OR IN CONNECTION WITH THIS AGREEMENT.

         SECTION 14.14. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by the different parties hereto in
separate 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 14.15. No Recourse Against Other Parties. No recourse under any
obligation, covenant or agreement of Conduit Purchaser contained in this
Agreement shall be had against any stockholder (solely in its capacity as
stockholder), employee, officer, director, member or incorporator of Conduit
Purchaser, provided, however, that nothing in this Section 14.15 shall relieve
any of the foregoing Persons from any liability which such Person may otherwise
have for his/her or its gross negligence, bad faith or willful misconduct.

                                       44

<PAGE>

         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.

                                  CONMED RECEIVABLES CORPORATION,
                                  as Seller

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

                                  CONMED CORPORATION, as initial Servicer

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

                                  BLUE KEEL FUNDING, LLC,
                                  as Conduit Purchaser

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

                                  FLEET NATIONAL BANK,
                                  as Committed Purchaser
Commitment: $50,000,000

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

                                  FLEET SECURITIES, INC., as Administrator

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

                                       S-1

<PAGE>

                                                                SCHEDULE 6.01(m)
                                LIST OF OFFICES OF SELLER WHERE RECORDS ARE KEPT

1.  Parent and Seller currently have the following business locations, and no
    others:

                  Parent:      525 French Road
                               Utica, NY  13502

                               11311 Concept Blvd.
                               Largo, FL  33773
                                  (for Linvatec Corporation)

                               6335 Millcreek Drive
                               Unit 4
                               Mississauga, Ontario L5N 2M2
                               Canada
                                  (for Linvatec Canada ULC)

                  Seller:      525 French Road
                               Utica, NY  13502

2.  Parent and Seller maintain their books and records relating to Accounts
    and General Intangibles at:

                  The addresses set forth above.

<PAGE>

                                                                SCHEDULE 6.01(n)
                                                     LIST OF LOCK-BOX AGREEMENTS

The Chase Manhattan Bank

         Account No.:  550123571 (Linvatec Corporation)
         Account No.:  550129383 (CONMED Corporation)

Fleet National Bank

         Account No.:  7015046907

<PAGE>

                                                                SCHEDULE 7.01(g)
                                     DESCRIPTION OF CREDIT AND COLLECTION POLICY

                                 (see attached)

<PAGE>

                                 SCHEDULE 14.02
                                NOTICE ADDRESSES

Conduit Purchaser:

Blue Keel Funding, LLC
c/o Global Securitization Services, LLC
25 West 43rd Street, Suite 704
New York, New York 10036

Telephone: 212/302-5157
Facsimile: 212/302-8767

with a copy to the Administrator

Administrator:

Fleet Securities, Inc.
100 Federal Street
11th Floor
Boston, Massachusetts  02110

Attention:  Paul M. Schmieder

Telephone: 617/434-3064
Facsimile:  617/434-5719

Committed Purchaser:

Fleet National Bank
Mail Stop: NY-UT-36105C
One Clinton Square
P.  O.  Box 4821
Syracuse, New York 13202

Attention: David Kavney

Telephone: 315/426-4343
Facsimile:  315/426-4374

Seller:

<PAGE>

CONMED Receivables Corporation
525 French Road
Utica, New York  13502-5994

Attention:      President, with copies to
                Chief Financial Officer and
                General Counsel

Telephone:  315/624-3000
Facsimile:  315/793-8929

Parent:

CONMED Corporation
525 French Road
Utica, New York  13502-5994

Attention:      President, with copies to
                Chief Financial Officer and
                General Counsel

Telephone:  315/624-3000
Facsimile:  315/793-8929

<PAGE>

                                                                 EXHIBIT 5.01(f)
                                                      FORM OF LOCK-BOX AGREEMENT

                             [Letterhead of Seller]

                               LOCK-BOX AGREEMENT

                               ___________, 20___

[Name and Address of
  Lock-Box Bank]

Ladies and Gentlemen:

                                        1

<PAGE>

         Reference is made to our [lock-box]*/ account[s] no[s]. maintained with
you (the "Account[s]"). Pursuant to a Receivables Purchase Agreement dated as of
November 1, 2001 among us, as Seller, Blue Keel Funding, LLC ("Blue Keel"), as
Conduit Purchaser, CONMED Corporation, as Servicer, Fleet National Bank, as
Committed Purchaser, and Fleet Securities, Inc., as administrator (the
"Administrator"), we have assigned and/or may hereafter assign to the
Administrator, for the benefit of Blue Keel and its assigns, one or more
undivided percentage interests in accounts, chattel paper, instruments or
general intangibles (collectively, "Receivables") with respect to which payments
are or may hereafter be made to the Account[s], and have granted to the
Administrator, for the benefit of Blue Keel and its assigns, a security interest
in such Receivables, the Account[s], amounts on deposit therein and related
property. Your execution of this letter agreement is a condition precedent to
our continued maintenance of the Account[s] with you.

         We hereby transfer exclusive ownership and control of the Account[s] to
the Administrator on behalf of Blue Keel and its assigns, subject only to the
condition subsequent that the Administrator shall have given you notice of its
election to assume such ownership and control, which notice may be in the form
attached hereto as Exhibit A or in any other form that gives you reasonable
notice of such election. Prior to the giving of such notice, you shall continue
to act on our instructions.
         We hereby irrevocably instruct you, at all times from and after the
date of your receipt of notice from the Administrator as described above, to
make all payments to be made by you out of or in connection with the Account[s]
directly to the Administrator, at its address set forth below its signature
hereto or as the Administrator otherwise notifies you, for the account of Blue
Keel (account #__________, ABA #_________), or otherwise in accordance with the
instructions of the Administrator.

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

         Notice from the Administrator may be personally served or sent by
facsimile or U.S. mail, certified return receipt requested, to the address or
facsimile number set forth under your signature to this letter agreement (or to
such other address or facsimile number as to which you shall notify the
Administrator in writing). If notice is given by facsimile, it will be deemed to
have been received when the notice is sent and the receipt is confirmed by
telephone or other electronic means. All other notices will be deemed to have
been received when actually received or, in the case of personal delivery,
delivered.
--------
*/ Delete in the case of direct wire transfer accounts.

                                        2

<PAGE>

         By executing this letter agreement, you acknowledge and consent to the
existence of the Administrator's right to ownership and control of the
Account[s] and the Administrator's security interest in the Account[s] and
amounts from time to time on deposit therein and agree that from the date hereof
the Account[s] shall be maintained by you for the benefit of, and amounts from
time to time therein held by you as agent for, the Administrator on the terms
provided herein. The Account[s] [is/are] to be titled "CONMED Receivables
Corporation and Fleet Securities, Inc. as the Administrator for Blue Keel, Fleet
National Bank and their respective assigns, as their interests may appear".
Except as otherwise provided in this letter agreement, payments to the
Account[s] are to be processed in accordance with the standard procedures
currently in effect. All service charges and fees with respect to the Account[s]
shall continue to be payable by us as under the arrangements currently in
effect.

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

         You may terminate this letter agreement by canceling the Account[s]
maintained with you, which cancellation and termination shall become effective
only upon thirty days' prior written notice thereof from you to the
Administrator. Incoming [mail addressed to] [wire transfers to] the Account[s]
received after such cancellation shall be forwarded in accordance with the
Administrator's instructions. This letter agreement may also be terminated upon
written notice to you by the Administrator stating that the Receivables Purchase
Agreement pursuant to which this letter agreement was obtained is no longer in
effect. Except as otherwise provided in this paragraph, this letter agreement
may not be terminated or amended without the prior written consent of the
Administrator. This letter agreement may be executed in any number of
counterparts, and by the parties hereto on separate 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.

                                        3

<PAGE>

         Please acknowledge your agreement to the terms set forth in this letter
agreement by signing the two copies of this letter agreement enclosed herewith
in the space provided below, sending one such signed copy to the Administrator
at its address provided above and returning the other signed copy to us.

                                                     Very truly yours,

                              CONMED RECEIVABLES CORPORATION

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

                              Acknowledged and agreed to
                              as of the date first
                              written above:

                              BLUE KEEL FUNDING, LLC

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

                              FLEET SECURITIES, INC., as Administrator

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

                              Address for notice:

                              Fleet Corporate Finance
                              Mail Stop MA-DE-100-11F
                              100 Federal Street, Eleventh Floor
                              Boston, Massachusetts 02110

                              Tel. No. 617/434-1522
                              Facsimile No. 617/434-5719

                                        4

<PAGE>

                              [NAME OF LOCK-BOX BANK]

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

                              Address for notice:

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

                                        5

<PAGE>

                                                                    EXHIBIT A to
                                                              Lock-Box Agreement

                       [Letterhead of Fleet National Bank]

[Name and Address
  of Lock-Box Bank]

         Re:      CONMED Receivables Corporation
                  [Lock-Box]**/ Account No[s].       [and      ]
                  ------------ ---------------------------------

Ladies and Gentlemen:

         Reference is made to the letter agreement dated , 20___(the "Letter
Agreement") among CONMED Receivables Corporation, Blue Keel Funding, LLC ("Blue
Keel"), the undersigned, as Administrator and you concerning the above described
[lock-box]* account[s] (the "Account[s]"). We hereby give you notice of our
assumption of ownership and control of the Account[s] as provided in the Letter
Agreement.

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

     [other instructions]

                                     Very truly yours,

                                     FLEET SECURITIES, INC., as Administrator

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

cc: CONMED Receivables Corporation

--------
**/ Delete in the case of direct wire transfer accounts.

<PAGE>

                                   APPENDIX A

                                   DEFINITIONS

         This is Appendix A to the Receivables Purchase Agreement dated as of
November 1, 2001 among CONMED Receivables Corporation, as Seller, Blue Keel
Funding, LLC, as Conduit Purchaser, CONMED Corporation, as initial Servicer,
Fleet National Bank, as Committed Purchaser, and Fleet Securities, Inc., as
Administrator (as amended, supplemented or otherwise modified from time to time,
the "Agreement"). Unless otherwise indicated, all Section, Exhibit and schedule
references in this Appendix are to Sections of and Exhibits and Schedules to the
Agreement.

         A. Defined Terms. As used in the Agreement, unless the context requires
a different meaning, the following terms have the meanings indicated
hereinbelow:

         "Accounts" means all accounts, contract rights, chattel paper,
instruments and documents, whether now owned or hereafter created or acquired by
Parent or in which Parent now has or hereafter acquires any interest.

         "Administrator" has the meaning set forth in the preamble.

         "Administrator's Office" means the office of the Administrator at 100
Federal Street, Eleventh Floor, Boston, Massachusetts 02110 or such other
address as shall be designated by the Administrator in writing to Seller, Parent
and each Purchaser.

         "Affected Party" means each of each Purchaser, each Program Support
Provider, any assignee or participant of any Purchaser or any Program Support
Provider, Fleet Securities, any successor to Fleet Securities as Administrator,
and any sub-agent of the Administrator.

         "Affiliate" when used with respect to a Person means any other Person,
directly or indirectly, controlling, controlled by, or under common control with
such Person, except, when used with respect to the Conduit Purchaser, Affiliate
shall mean the holder(s) of its limited liability company interests.

         "Allocation Limit" has the meaning set forth in Section 1.01.

         "Alternate Base Rate" means, on any date, a fluctuating rate of
interest per annum equal to the higher of

                  (a) the rate of interest most recently announced by the
         Liquidity Agent in Boston, Massachusetts, as its prime rate; and

                                       -1-

<PAGE>

                  (b) the Federal Funds Rate most recently determined by the
         Liquidity Agent plus 0.50% per annum.

The Alternate Base Rate is not necessarily intended to be the lowest rate of
interest determined by the Liquidity Agent in connection with extensions of
credit.

         "Applicable Law" means all applicable laws, rules, regulations
(including temporary and final income tax regulations), statutes, treaties,
codes, ordinances, permits, certificates, orders and licenses of and
interpretations by any Governmental Authority, and applicable judgments,
decrees, injunctions, writs, orders or like action of any court, arbitrator or
other administrative, judicial or quasi-judicial tribunal or agency of competent
jurisdiction.

         "Asset Interest" means an undivided ownership interest determined from
time to time as provided in Section 1.04(b) in all Pool Assets.

         "Business Day" means a day other than a Saturday or a Sunday on which
both (a) the Administrator at its principal office in Boston, Massachusetts is
open for business and (b) commercial banks in New York City and Chicago,
Illinois are not authorized or required to be closed for business.

         "Capital" means at any time with respect to the Asset Interest an
amount equal to (a) the aggregate of the amounts theretofore paid to Seller for
Purchases pursuant to Section 1.01, less (b) the aggregate amount of Collections
theretofore received and actually distributed to, and received by, a Purchaser
on account of the Capital pursuant to Section 3.01.

         "Capital Lease Obligations" means as to any Person, the obligations of
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and, for the purposes of the Agreement, the amount of such obligations at any
time shall be the capitalized amount thereof at such time determined in
accordance with GAAP.

         "Capital Stock" means any and all shares, interests, participations or
other equivalents (however designated) of capital stock of a corporation, any
and all equivalent ownership interests in a Person (other than a corporation)
and any and all warrants, rights or options to purchase any of the foregoing.

         "Change in Control" means any of the following:

                  (a) in relation to Parent, the acquisition following the date
         hereof by any person or group of persons (within the meaning of Section
         13 or 14 of the Exchange Act) of beneficial ownership (within the
         meaning of Rule 13d-3 promulgated by the Securities and Exchange
         Commission under the Exchange Act) of issued and outstanding shares of
         the capital stock of Parent entitled (without regard to the

                                       -2-

<PAGE>

         occurrence of any contingency) to vote for the election of members of
         the board of directors of Parent and having a then present right to
         exercise 51% or more of the voting power for the election of members of
         the board of directors of Parent attached to all such outstanding
         shares of capital stock of Parent, unless otherwise agreed in writing
         by the Liquidity Banks and the Administrator; or

                  (b) the creation or imposition of any Lien on any shares of
         capital stock of Seller; or

                  (c) the failure by Parent to own all of the issued and
         outstanding capital stock of Seller and each Originator (other than
         Parent).

         "Collections" means, with respect to any Receivable, all funds which
either (a) are received by Seller, Servicer, an Originator or any other Person
from or on behalf of the related Obligors in payment of any amounts owed
(including, without limitation, purchase prices, finance charges, interest and
all other charges) in respect of such Receivable, or applied to such amounts
owed by such Obligors (including, without limitation, insurance payments that
Seller, an Originator or Servicer applies in the ordinary course of its business
to amounts owed in respect of such Receivable and net proceeds of sale or other
disposition of repossessed goods or other collateral or property of the Obligor
or any other party directly or indirectly liable for payment of such Receivable
and available to be applied thereon), or (b) are deemed to have been received by
Seller or any other Person as a Collection pursuant to Section 3.02.

         "Commercial Paper Holders" means the holders from time to time of the
Commercial Paper Notes.

         "Commercial Paper Notes" means short-term promissory notes issued or to
be issued by Conduit Purchaser, or the proceeds of which are loaned to Conduit
Purchaser, to fund its investments in accounts receivable or other financial
assets.

         "Committed Purchaser" has the meaning set forth in the preamble.

         "Commitment" means with respect to any Committed Purchaser, the amount
listed opposite such Committed Purchaser's name on the signature page to the
Agreement.

         "Commitment Fee" means, for each day, the amount equal to the product
of (x) the unused Liquidity Commitment Amount on such day, times (y) the
Commitment Fee Rate, times (z) 1/360.

         "Commitment Fee Rate" has the meaning set forth in the Fee Letter.

         "Concentration Limit" for any Obligor at any time means an amount equal
to (i) the aggregate Unpaid Balance of all Eligible Receivables at such time
times (ii) the applicable percentage as set forth below opposite the appropriate
ratings of such Obligor's long-term and short-term unsecured debt,

                                       -3-

<PAGE>

or, in the case of any Obligor listed on Exhibit A hereto, the percentage set
forth opposite such Obligor's name on such Exhibit A, until such time as the
Administrator notifies the Servicer that any such Obligor listed on Exhibit A is
no longer eligible for such special percentage. Any Obligor that has a split
rating shall be deemed to be in the lower rating category.

<TABLE>
<CAPTION>
                                                                                Applicable
Long Term Rating                            Short-Term Rating                   Percentage
----------------                            -----------------                   ----------

S&P                 Moody's                 S&P               Moody's
---                 -------                 ---               -------
<S>                 <C>                     <C>               <C>                 <C>
A+ or better        A+ or better            A-1                 P-1               12.0%
BBB+ to A           Baa1 to A2              A-2                 P-2                9.0%
BBB- to BBB         Baa3 to Baa2            A-3                 P-3                6.0%
Lower than                                  Lower than                             3.0%
 BBB-/Baa3                                   BBB-/Baa3
 or Not Rated                                or Not Rated
</TABLE>

         "Conduit" means any entity that issues Commercial Paper Notes the
proceeds of which are loaned to Conduit Purchaser to fund its investments in
accounts receivable or other financial assets.

         "Conduit Purchaser" has the meaning set forth in the preamble.

         "Consolidated Net Income" means for any period, the consolidated net
income (or loss) of the Parent and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP; provided that there shall be
excluded (a) the income (or deficit) of any Person accrued prior to the date it
becomes a Subsidiary of the Parent or is merged into or consolidated with the
Parent or any of its Subsidiaries, (b) the income (or deficit) of any Person
(other than a Subsidiary of the Parent) in which the Parent or any of its
Subsidiaries has an ownership interest, except to the extent that any such
income is actually received by the Parent or such Subsidiary in the form of
dividends or similar distributions and (c) the undistributed earnings of any
Subsidiary of the Parent to the extent that the declaration or payment of
dividends or similar distribution by such Subsidiary is prohibited by the terms
of any Contractual Obligation (other than under any Loan Document (as defined in
the Credit Agreement)) or Requirement of Law applicable to such Subsidiary.

         "Consolidated Net Worth" means at any date, all amounts which would, in
accordance with GAAP, be included on a consolidated balance sheet of the Parent
and its Subsidiaries under stockholders' equity at such date; provided that any
net non-cash adjustments to such amounts after August 11, 1999 resulting from
foreign currency transactions, unfunded pension liabilities or unrealized gains
or losses in respect of securities shall be included to the extent such
adjustments exceed $2,000,000 as of the end of any fiscal quarter.

         "Contract" means a contract between an Originator and any Person, or an
invoice from an Originator to any Person, or any purchase order from any Person
to an Originator pursuant to or

                                       -4-

<PAGE>

under which such Person shall be obligated to make payments for products or
services to an Originator. A "related" Contract with respect to the Receivables
means a Contract under which Receivables in the Receivables Pool arise, which
evidence such Receivables, or which is relevant to the collection or enforcement
of such Receivables.

         "Contractual Obligation" with respect to any Person, means any
provision of any security issued by such Person or of any agreement, instrument
or other undertaking to which such Person is party or by which it or any of its
Property is bound.

         "Cost of Funds Rate" means with respect to any Settlement Period (or
portion thereof), the per annum rate equivalent to the weighted average of the
per annum rates which may be paid or payable by such Conduit Purchaser from time
to time as interest on or otherwise (by means of Hedge Agreements or otherwise)
in respect of those commercial paper notes issued by or on behalf of such
Conduit Purchaser that are allocated in whole or in part by or on behalf of such
Conduit Purchaser to fund or maintain Purchases during such Settlement Period as
determined by or on behalf of such Conduit Purchaser, which rates shall reflect
and give effect to the commissions of placement agents and dealers in respect of
such commercial paper notes and to net payments owed or received by such Conduit
Purchaser under any Hedge Agreements entered into by such Conduit Purchaser in
connection with such allocated commercial paper; provided, however, that if any
component of such rate is a discount rate, in calculating the "Cost of Funds
Rate" for such Settlement Period for the purposes of this definition, the
Conduit Purchaser shall for such component use the rate resulting from
converting such discount rate into an interest bearing equivalent rate per
annum.

         "Credit Agreement" means the Amended and Restated Credit Agreement
among Parent, as Borrower, the several lenders from time to time party thereto,
Chase Securities, Inc., as Sole Book-Manager, Lead Arranger and as Syndication
Agent, Salomon Smith Barney, Inc., as Documentation Agent, and The Chase
Manhattan Bank, as Administrative Agent, dated as of August 11, 1999.

         "Credit and Collection Policy" means those credit and collection
policies and practices relating to Contracts and Receivables described in
Schedule 7.01(g), as modified in accordance with Section 7.03(c).

         "Cut-Off Date" means the last day of each calendar month.

         "Deemed Collection" has the meaning set forth in the Purchase
Agreement.

         "Default Ratio" means the ratio (expressed as a percentage) computed as
of a Cut-Off Date by dividing (x) the Gross Write-off for the month ending on
such Cut-Off Date by (y) the aggregate Unpaid Balance of all Receivables as to
which any payment, or part thereof, remains unpaid for more than 120, but less
than 151, days from the original invoice date for such Receivable as of the
Cut-Off Date for the immediately preceding month.

                                       -5-

<PAGE>

         "Defaulted Receivable" means a Receivable: (a) as to which any payment,
or part thereof, remains unpaid for more than 120 days from the original invoice
date for such Receivable, (b) as to which the Obligor thereof is the subject of
an Event of Bankruptcy, or (c) which, consistent with the Credit and Collection
Policy, would be written off the Seller's books as uncollectible.

         "Delinquency Ratio" means, for any Cut-Off Date, the ratio (expressed
as a percentage) computed as of such Cut-Off Date by dividing (x) the aggregate
Unpaid Balance of all Receivables that remain unpaid for more than 90, but less
than 120 days, from the original invoice date therefor by (y) the aggregate
Unpaid Balance of all Pool Receivables on such Cut-Off Date.

         "Dilution" means any credit, adjustment, rebate, refund or setoff with
respect to any Receivable granted or allowed by Seller or any Affiliate of
Seller.

         "Dollars" means dollars in lawful money of the United States of
America.

         "Earned Discount" means for any Settlement Period:

                  C x ER x ED + LF
                  -----------
                      360
         where:

         C  = the daily average (calculated at the close of business each
              day) of the Capital during such Settlement Period,

         ER = the Earned Discount Rate for such Settlement Period,

         ED = the actual number of days elapsed during such Settlement Period,
              and

         LF = the Liquidation Fee, if any, during such Settlement Period.

         "Earned Discount Rate" means for any Settlement Period:

                  (a) in the case of any portion of the Capital funded by a
         Liquidity Funding, the greater of (1) the sum of (i) the Eurodollar
         Rate (Reserve Adjusted) for such Settlement Period, plus (ii) 1.25% per
         annum and (2) the then applicable interest rate pursuant to the Credit
         Agreement; and

                  (b) in the case of any portion of the Capital funded by any
         Commercial Paper Notes, the Cost of Funds Rate for such Settlement
         Period;

provided, however, that on any day during a Settlement Period when any
Liquidation Event or Unmatured Liquidation Event shall have occurred and be
continuing, the Earned Discount Rate for the Capital shall mean the higher of
(i) the Alternate Base Rate in effect on such day plus 2% per

                                       -6-

<PAGE>

annum and (ii) the Eurodollar Rate (Reserve Adjusted) for such Settlement Period
plus 3.25% per annum.

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

                  (a) which is originated by an Originator in the ordinary
         course of its business for the sale or service of medical devices,
         equipment and related products, provided that if the Servicer fails to
         perform its obligation pursuant to Section 8.05(e) of the Agreement, no
         Receivables originated by Linvatec Canada ULC will be Eligible
         Receivables until the Servicer has delivered to the Administrator the
         Lock-Box Agreement described therein;

                  (b) which constitutes an "account" or a "general intangible"
         as defined in the UCC;

                  (c) the Obligor of which is (1) not an Affiliate of Seller,
         (2) is not a Governmental Authority (unless the assignment thereof is
         not subject to the Assignment of Claims Act (41 U.S.C.ss.15) or a
         similar state assignment of claims act) and (3) is a resident of the
         United States, Canada or a Permitted Country;

                  (d) which was purchased or otherwise acquired by Seller
         pursuant to the Purchase Agreement and which was designated by the
         related Originator as an "Eligible Receivable" pursuant to the Purchase
         Agreement;

                  (e) which is not an Overdue Receivable or a Defaulted
         Receivable;

                  (f) with respect to which the warranty of Seller in Section
         6.01(k) is true and correct;

                  (g) the sale of which, or of an undivided interest in which,
         does not contravene or conflict with Applicable Law, or require the
         consent of the Obligor or any other Person;

                  (h) which is denominated and payable only in Dollars in the
         United States, provided that not more than 10% of the Net Pool Balance
         may be denominated in Canadian Dollars;

                  (i) which arises under a Contract, which contract has been
         duly authorized by the parties thereto and that, together with such
         Receivable, is in full force and effect and constitutes the legal,
         valid and binding obligation of the Obligor of such Receivable
         enforceable against such Obligor in accordance with its terms and is
         not subject to any defense whatsoever (other than discharge in
         bankruptcy and payment);

                  (j) which, together with the Contract related thereto, does
         not contravene in any material respect any Applicable Law and with
         respect to which no party to the Contract related thereto is in
         violation of any Applicable Law in any material respect;

                                       -7-

<PAGE>

                  (k) which (i) satisfies all material applicable requirements
         of the Credit and Collection Policy and (ii) complies with such other
         criteria and requirements (other than those relating to the
         collectibility of such Receivable) as the Administrator may from time
         to time specify to Seller in writing in the exercise of reasonable
         business judgment;

                  (l) as to which the payment terms have not been altered or
         extended so as to materially affect the collectibility of such
         Receivable;

                  (m) the Unpaid Balance of which, when combined with the Unpaid
         Balance of all other Eligible Receivables, results in the Eligible
         Receivables being payable, on average (based on Dollar amount), within
         45 days or less from the invoice date therefor;

                  (n) which are not Receivables owed by an Obligor for which
         more than 20% of the aggregate Unpaid Balance of Receivables of such
         Obligor constitute Defaulted Receivables;

                  (o) which arise from the completion of the sale and delivery
         of goods and services performed, and which do not represent an invoice
         in advance of such completion; and

                  (p) which are not subject to any contingent performance
         requirements of the Seller or the related Originator unless such
         requirements are guaranteed or insured by third parties acceptable to
         the Administrator.

         "ERISA" means the U.S. Employee Retirement Income Security Act of 1974,
as amended from time to time.

         "Eurodollar Business Day" means a day of the year on which dealings are
carried on in the eurodollar interbank market and banks are open for business in
London and are not required or authorized to close in New York City.

         "Eurodollar Rate (Reserve Adjusted)" means, with respect to any
Settlement Period and any portion of the Capital, a rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) determined pursuant to the
following formula:

                  Eurodollar Rate      =       Eurodollar Rate
                  (Reserve Adjusted)              1 - Eurodollar
                                            Reserve Percentage
         where:

         "Eurodollar Rate" means, with respect to any Settlement Period and any
portion of the Capital, the rate per annum at which Dollar deposits in
immediately available funds are offered to the Eurodollar Office of the
Administrator two Eurodollar Business Days prior to the beginning of such period
by prime banks in the interbank eurodollar market at or about 11:00 a.m., New
York City time

                                       -8-

<PAGE>

for delivery on the first day of such Settlement Period, for the number of days
comprised therein and in an amount equal or comparable to the applicable portion
of the Capital for such Settlement Period.

         "Eurodollar Reserve Percentage" means, with respect to any Settlement
Period, the then maximum reserve percentage (expressed as a decimal, rounded
upward to the nearest 1/100th of 1%) prescribed by the Federal Reserve Board for
determining the maximum reserve requirements applicable to "Eurocurrency
Liabilities" pursuant to Regulation D having a term comparable to such
Settlement Period.

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

                  (a) any case or other proceeding shall be commenced, without
         the application or consent of such Person, in any court, seeking the
         liquidation, reorganization, debt arrangement, dissolution, winding up,
         or composition or readjustment of debts of such Person, the appointment
         of a trustee, receiver, custodian, liquidator, assignee, sequestrator
         or the like for such Person or all or substantially all of its assets,
         or any similar action with respect to such Person under any law
         relating to bankruptcy, insolvency, reorganization, winding up or
         composition or adjustment of debts, and such case or proceeding shall
         continue undismissed, or unstayed and in effect, for a period of 60
         consecutive days; or an order for relief in respect of such Person
         shall be entered in an involuntary case under the federal bankruptcy
         laws or other similar laws now or hereafter in effect and shall either
         not be contested or shall remain undismissed for 60 consecutive days;
         or

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

         "Excess Amount" as of any date, means the amount, if any, by which the
sum of the Capital, plus the Required Reserves on such date exceeds the Net Pool
Balance, as most recently calculated.

         "Excess Default Ratio" means the ratio (expressed as a percentage)
computed as of a Cut-Off Date by dividing (x) the aggregate Unpaid Balance of
all Defaulted Receivables as of such Cut-Off Date by (y) the aggregate Unpaid
Balance of all Eligible Receivables as of such Cut-Off Date.

         "Excess Default Reserve Percentage" means the amount, if any, by which
the Excess Default Ratio exceeds 10%.

         "Exchange Act" means the Securities and Exchange Act of 1934, as
amended.

                                       -9-

<PAGE>

         "Federal Funds Rate" means, for any period, a fluctuating interest rate
per annum equal (for each day during such period) to

                  (a) 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

                  (b) 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 Fleet Securities from three federal funds
         brokers of recognized standing selected by it.

         "Federal Reserve Board" means the Board of Governors of the Federal
Reserve System, or any successor thereto or to the functions thereof.

         "Fee Letter" has the meaning set forth in Section 4.01.

         "Fees" means the Commitment Fee and the Program Fee.

         "Final Payout Date" means the date following the Termination Date on
which the Capital shall have been reduced to zero and all other amounts payable
by Seller to Purchasers, the Administrator, the Affected Parties and the
Indemnified Parties under the Transaction Documents shall have been paid in
full.

         "Fleet Securities" has the meaning set forth in the preamble.

         "Foreign Obligor" means an Obligor that is a resident of (i) a
Permitted Country or (ii) a province of Canada that has not enacted legislation
similar to the UCC pursuant to which a secured creditor may perfect its interest
in accounts and general intangibles by making a central filing.

         "Funded Percentage" with respect to any Purchaser as of any date means
the ratio (expressed as a percentage) of (i) the portion of the then outstanding
Capital funded by such Purchaser divided by (ii) the entire then outstanding
Capital.

         "GAAP" means generally accepted accounting principles applicable in the
United States for reporting entities domiciled in the United States as in effect
from time to time, except that for purposes of Section 7.01(k) of the Agreement,
GAAP shall be determined on the basis of such principles in effect on the date
of the Agreement and consistent with those used in the preparation of the most
recent audited financial statements delivered pursuant to Section 7.02(b) of the
Agreement.

         "Governmental Action" means all permits, authorizations, registrations,
consents, approvals, waivers, exceptions, variances, orders, judgements,
decrees, licenses, exemptions, publications,

                                      -10-

<PAGE>

filings, notices to and declaration of or with, or required by, any Governmental
Authority, or required by any Applicable Law.

         "Governmental Authority" means any foreign or domestic federal, state,
county, municipal or other governmental or regulatory authority, agency, board,
body, commission, instrumentality, court or any political subdivision thereof.

         "Gross Writeoffs" means for any period the aggregate Unpaid Balance of
all Receivables that are deemed to be uncollectible in accordance with the
Credit and Collection Policy during such period, or that are owed by an Obligor
that is the subject of an Event of Bankruptcy, or that should be written off
during such period in accordance with GAAP.

         "Guarantee Obligation" means as to any Person (the "guaranteeing
person"), any obligation of (a) the guaranteeing person or (b) another Person
(including, without limitation, any bank under any letter of credit) to induce
the creation of which the guaranteeing person has issued a reimbursement,
counter indemnity or similar obligation, in either case guaranteeing or in
effect guaranteeing any Indebtedness, leases, dividends or other obligations
(the "primary obligations") of any other third Person (the "primary obligor") in
any manner, whether directly or indirectly, including, without limitation, any
obligation of the guaranteeing person, whether or not contingent, (i) to
purchase any such primary obligation or any Property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for the purchase
or payment of any such primary obligation or (2) to maintain working capital or
equity capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (ii) to purchase Property, securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any such
primary obligation against loss in respect thereof; provided, however, that the
term Guarantee Obligation shall not include endorsements of instruments for
deposit or collection in the ordinary course of business. The amount of any
Guarantee Obligation of any guaranteeing person shall be deemed to be the lower
of (a) an amount equal to the stated or determinable amount of the primary
obligation in respect of which such Guarantee Obligation is made and (b) the
maximum amount for which such guaranteeing person may be liable pursuant to the
terms of the instrument embodying such Guarantee Obligation, unless such primary
obligation and the maximum amount for which such guaranteeing person may be
liable are not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person's maximum reasonably
anticipated liability in respect thereof as determined by Parent in good faith.

         "Hedge Agreements" means any financial futures contract, option,
forward contract, warrant, swap, swaption, collar, floor, cap and other
agreement, instrument and derivative and other transactions of a similar nature
(whether currency linked, rate linked, index linked, insurance risk linked,
credit risk linked or otherwise) entered into by or on behalf of a Conduit
Purchaser.

         "Indebtedness" means of any person at any date, without duplication,
(a) all indebtedness of such person for borrowed money, (b) all obligations of
such Person for the deferred purchase price

                                      -11-

<PAGE>

of Property or services (other than current trade payables incurred in the
ordinary course of such Person's business, and overdue trade payables incurred
in the ordinary course of such Person's business to the extent the amount or
validity thereof is currently being contested in good faith by appropriate
procedures and reserves in conformity with GAAP with respect thereto have been
provided on the books of Parent or its Subsidiaries, as the case may be), (c)
all obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments, (d) all indebtedness created or arising under any
conditional sale or other title retention agreement with respect to Property
acquired by such person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession
or sale of such Property), (e) all Capital Lease Obligations of such Person (the
amount of which shall be calculated without regard to imputed interest), (f) all
obligations of such Person, contingent or otherwise, as an account party under
acceptance, letter of credit or similar facilities, (g) all obligations of such
Person, contingent or otherwise, to purchase, redeem, retire or otherwise
acquire for value any Capital Stock (other than common stock) of such Person,
(h) all Guarantee Obligations of such Person in respect of obligations of the
kind referred to in clauses (a) through (g) above to the extent quantified as
liabilities, contingent obligations or like term in accordance with GAAP on the
balance sheet (including notes thereto) of such Person, (i) all obligations of
the kind referred to in clause (a) through (h) above secured by (or for which
the holder of such obligation has an existing right, contingent or otherwise, to
be secured by) any Lien on Property (including, without limitation, accords and
contract rights) owned by such Person, whether or not such Person has assumed or
become liable for the payment of such obligation (but only to the extent of the
fair market value of such Property), (j) for purposes of Section 10.01(d) of the
Agreement, all obligations of such Person in respect of Interest Rate Protection
Agreements and (k) the liquidation value of any preferred Capital Stock of such
Person or its Subsidiaries held by any Person other than such Person and its
Wholly Owned Subsidiaries.

         "Indemnified Amounts" has the meaning set forth in Section 13.01.

         "Indemnified Party" has the meaning set forth in Section 13.01.

         "Independent Director" shall mean an individual who is not, and never
was, (1) a member, stockholder, director, officer, employee, Affiliate, customer
or supplier of, or an individual that has received any benefit (excluding,
however, any compensation received in such individual's capacity as Independent
Director) in any form whatever from, or an individual who has provided any
service (excluding, however, any service provided by such individual in such
individual's capacity as Independent Director) in any form whatever to, the
Parent or any of its subsidiaries or Affiliates, or (2) an individual owning
beneficially, directly or indirectly, any interest in the Parent, or (3) an
individual who is a relative or spouse of an individual described in clause (1)
or (2) above.

         "Interest Rate Protection Agreement" means any interest rate protection
agreement, interest rate futures contract, interest rate option, interest rate
cap or other interest rate hedge arrangement to or under which Parent or any of
its Subsidiaries is a party or a beneficiary on the date of the Agreement or
becomes a party or a beneficiary after the date of the Agreement.

                                      -12-

<PAGE>

         "Lien" means any mortgage, lien, pledge, encumbrance, charge, title
retention or other security interest of any kind, whether arising under a
security agreement, mortgage, deed of trust, assignment, pledge or financing
statement or arising as a matter of law, judicial process or otherwise.

         "Liquidation Event" has the meaning set forth in Section 10.01.

         "Liquidation Fee" means, for each day in any Settlement Period during
the Liquidation Period following the occurrence of a Liquidation Event, the
amount, if any, by which:

                  (a) the additional Earned Discount (calculated without taking
         into account any Liquidation Fee) which would have accrued on the
         reductions of the Capital during such Settlement Period (as so
         computed) if such reductions had not been made, exceeds

                  (b) the income, if any, received by the related Purchaser from
         investing the proceeds of such reductions of the Capital.

         "Liquidation Period" means the period commencing on the Termination
Date and ending on the Final Payout Date.

         "Liquidity Agent" means Fleet National Bank, as agent for the Liquidity
Banks under the Liquidity Agreement, or any successor to Fleet National Bank in
such capacity.

         "Liquidity Agreement" means and includes the Liquidity Agreement dated
as of November 1, 2001 among Conduit Purchaser, Fleet National Bank, as
Liquidity Agent, and certain financial institutions, party thereto as liquidity
providers, and any other agreement hereafter entered into by Conduit Purchaser
providing for the making of loans, purchases or undivided interests or other
extensions of credit to Conduit Purchaser to support all or part of Conduit
Purchaser's payment obligations with respect to the Commercial Paper Notes or to
provide an alternate means of funding Purchaser's investments in accounts
receivable or other financial assets.

         "Liquidity Bank" means any one of, and "Liquidity Banks" means all of,
Fleet National Bank and the other financial institutions that are at any time
parties to a Liquidity Agreement as liquidity providers.

         "Liquidity Commitment Amount" means, at any time, the then aggregate
amount of the Liquidity Banks' commitments under the Liquidity Agreement.

         "Liquidity Funding" means a loan or purchase made by the Liquidity Bank
(or simultaneous loans or purchases made by the Liquidity Banks) pursuant to a
Liquidity Agreement.

         "Lock-Box" means any post office box to which Collections of Pool
Receivables are sent.

                                      -13-

<PAGE>

         "Lock-Box Account" means any bank account to which Collections of Pool
Receivables are sent or deposited.

         "Lock-Box Agreement" means a letter agreement, in substantially the
form of Exhibit 5.01(f), among Seller, Parent and any Lock-Box Bank.

         "Lock-Box Bank" means any of the banks holding one or more Lock-Box
Accounts for receiving Collections from Pool Receivables.

         "Material Adverse Effect" with respect to any event or circumstance,
means a material adverse effect on:

                  (i) the results of operation, financial condition or assets of
         Seller or Parent;

                  (ii) the ability of Servicer, any Originator or Parent to
         perform its obligations under this Agreement or any other Transaction
         Document;

                  (iii) the validity, enforceability or collectibility of this
         Agreement or any other Transaction Document or the validity,
         enforceability or collectibility of a material portion of the
         Receivables; or

                  (iv) the status, existence, perfection, priority or
         enforceability of the Administrator's or any Purchaser's interest in
         the Pool Assets.

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

         "Net Pool Balance" at any time means an amount equal to (i) the
aggregate Unpaid Balance of the Eligible Receivables in the Receivables Pool at
such time, minus (ii) the aggregate amount by which the aggregate Unpaid Balance
of the Eligible Receivables of each Obligor and its Affiliates exceeds the
Concentration Limit for such Obligor at such time (the amount equal to clause
(i) minus clause (ii) called the "Unadjusted Net Pool Balance"), minus (iii) the
aggregate amount by which the aggregate Unpaid Balance of those Eligible
Receivables the Obligor of which is a Foreign Obligor exceeds 10% of the
Unadjusted Net Pool Balance.

         "Obligor" means a Person obligated to make payments with respect to a
Receivable, including any guarantor thereof.

         "Originator" means the Parent in its capacity as originator of
Receivables, together with the other originators party to the Purchase
Agreement.

         "Overdue Receivable" means a Receivable that remains unpaid for more
than 90 (or, in the case of a Receivable owed by an Obligor that is not a
resident of the United States, 120) days from the original invoice date for such
Receivable, or that has been charged off before it has become 91

                                      -14-

<PAGE>

(or, in the case of a Receivable owed by an Obligor that is not a resident of
the United States, 121) days past due.

         "Parent" has the meaning set forth in the preamble.

         "Percentage" means, with respect to any Committed Purchaser, the ratio,
expressed as a percentage, of (i) such Committed Purchaser's Commitment divided
by (ii) the aggregate Commitments of all of the Committed Purchasers.

         "Permitted Country" means a country that satisfies all of the following
criteria: (i) it has a long-term foreign currency rating of at least A by S&P
and A2 by Moody's, (ii) it has a short-term foreign currency rating of at least
A-1 by S&P and P-1 by Moody's, (iii) it is listed in Part I or Part II of
Exhibit B hereto and (iv) the Administrator has not notified the Servicer that
such country shall no longer be a Permitted Country.

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

         "Pool Assets" has the meaning set forth in Section 1.04(a).

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

         "Program Agreement" means each Liquidity Agreement, each agreement
pursuant to which Conduit Purchaser obtains funding, through the issuance of
Commercial Paper Notes or otherwise, and each other agreement entered into by
Conduit Purchaser in connection with its securitization program.

         "Program Fee" means, for each day, the amount equal to the product of
(x) the Capital on such day, times (y) the Program Fee Rate, times (z) 1/360.

         "Program Fee Rate" has the meaning set forth in the Fee Letter.

         "Program Information" has the meaning set forth in Section 14.07.

         "Program Support Provider" means each of each entity that issues
Commercial Paper Notes, each Liquidity Bank and the Administrator.

         "Property" means any right or interest in or to property of any kind
whatsoever, whether real, personal or mixed, and whether tangible or intangible,
including, without limitation, Capital Stock.

         "Purchase" has the meaning set forth in Section 1.01.

                                      -15-

<PAGE>

         "Purchase Agreement" means the Purchase and Sale Agreement, dated as of
November 1, 2001, among Seller and the Originators.

         "Purchase Limit" has the meaning set forth in Section 1.01.

         "Purchase Termination Date" means that day

                  (a) the Administrator declares a Purchase Termination Date in
         a notice to Seller in accordance with Section 10.02(a); or

                  (b) in accordance with Section 10.02(b), becomes the Purchase
         Termination Date automatically.

         "Purchaser" means any of Conduit Purchaser and any Committed Purchaser.

         "Purchasers' Share" of any amount means the then Asset Interest,
expressed as a percentage (but not greater than 100%), times such amount.

         "Rating Agencies" at any time means those rating agencies then rating
the Commercial Paper Notes.

         "Receivable" means any right to payment from a Person, whether
constituting an account, chattel paper, instrument or general intangible,
arising under a Contract and includes the right to payment of any interest or
finance charges and other obligations of such Person with respect thereto.
Indebtedness and other obligations arising from any one transaction, including,
without limitation, indebtedness and other obligations represented by an
individual invoice or agreement, shall constitute a Receivable separate from a
Receivable consisting of the indebtedness and other obligations arising from any
other transaction.

         "Receivables Pool" means at any time all then outstanding Receivables,
other than Reconveyed Receivables.

         "Reconveyed Receivable" means a Receivable for which an Originator has
paid the full Unpaid Balance pursuant to the Purchase Agreement.

         "Regulation D" means Regulation D of the Federal Reserve Board, or any
other regulation of the Federal Reserve Board that prescribes reserve
requirements applicable to nonpersonal time deposits or "Eurocurrency
Liabilities" as presently defined in Regulation D, as in effect from time to
time.

                                      -16-

<PAGE>

         "Regulatory Change" means, relative to any Affected Party

                  (a) any change in (or the adoption, implementation, change in
         phase-in or commencement of effectiveness of) any

                           (i) United States federal or state law or foreign law
                  applicable to such Affected Party;

                           (ii) regulation, interpretation, directive,
                  requirement or request (whether or not having the force of
                  law) applicable to such Affected Party of (A) any court,
                  government authority charged with the interpretation or
                  administration of any law referred to in clause (a)(i) or of
                  (B) any fiscal, monetary or other authority having
                  jurisdiction over such Affected Party; or

                           (iii) GAAP or regulatory accounting principles
                  applicable to such Affected Party and affecting the
                  application to such Affected Party of any law, regulation,
                  interpretation, directive, requirement or request referred to
                  in clause (a)(i) or (a)(ii) above; or

                  (b) any change in the application to such Affected Party of
         any existing law, regulation, interpretation, directive, requirement,
         request or accounting principles referred to in clause (a)(i), (a)(ii)
         or (a)(iii) above.

         "Reinvestment" has the meaning set forth in Section 1.03.

         "Related Security" means, with respect to any Pool Receivable: (a) all
of Seller's or the related Originator's right, title and interest in and to all
Contracts that relate to such Pool Receivable; (b) all security interests or
liens and property subject thereto from time to time purporting to secure
payment of such Pool Receivable, whether pursuant to the Contract related to
such Pool Receivable or otherwise; (c) all UCC financing statements covering any
collateral securing payment of such Pool Receivable; (d) all guarantees and
other agreements or arrangements of whatever character from time to time
supporting or securing payment of such Pool Receivable whether pursuant to the
Contract related to such Pool Receivable or otherwise; and (e) all of Seller's
and the related Originator's interest in the merchandise (including returned
merchandise), if any, relating to the sale that gave rise to such Pool
Receivable.

         "Reporting Date" has the meaning set forth in Section 3.01(a).

         "Required Reserve Percentage" means, on any day, an amount equal to the
sum of (1) 15% plus (2) the most recently calculated Excess Default Reserve
Percentage.

         "Requirement of Law" means as to any Person, the certificate of
incorporation and by-laws or other organizational or governing documents of such
Person, and any law, treaty, rule or

                                      -17-

<PAGE>

regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such person or any of its
Property or to which such Person or any of its Property is subject.

         "S&P" means Standard & Poor's Ratings Services.

         "Sales" means sales of the Originators which generate trade
receivables.

         "Sales-Based Dilution Ratio" as of any Cut-Off Date means (a) the
aggregate reduction attributable to Dilutions occurring in the Unpaid Balance of
Pool Receivables which Dilutions were granted during the month ending on such
Cut-Off Date; divided by (b) the aggregate amount of Sales for the month
immediately preceding the month ending as of such Cut-Off Date.

         "Secured Parties" means Purchasers, the Administrator, the Indemnified
Parties and the Affected Parties.

         "Selected Country" means a country listed on Part II of Exhibit B
hereto.

         "Seller" has the meaning set forth in the preamble.

         "Seller's Share" of any amount means (x) 100% minus the Asset Interest
(but such Asset Interest shall not be greater than 100%) times (y) such amount.

         "Servicer" has the meaning set forth in Section 8.01(a).

         "Servicer Report" has the meaning set forth in Section 3.01.

         "Servicer Transfer Event" has the meaning set forth in Section 8.01(b).

         "Servicer's Fee" means, for each day, an amount equal to (x) the
Servicer's Fee Rate, times (y) the aggregate Unpaid Balance of all Pool
Receivables at the close of business on such day, times (z) 1/360.

         "Servicer's Fee Rate" means 0.50% per annum or, in the event that
Parent is no longer the Servicer, such higher rate as may be charged by the
successor Servicer.

         "Settlement Date" has the meaning set forth in Section 3.01(c).

         "Settlement Period" means the period (i) in the case of the first
Settlement Period, from, and including, the date of the initial Purchase to, but
excluding the next Settlement Date and (ii) thereafter, from, and including,
each Settlement Date to, but excluding, the next Settlement Date.

                                      -18-

<PAGE>

         "Subsidiary" means a corporation of which Parent and/or its other
Subsidiaries own, directly or indirectly, such number of outstanding shares as
have more than 50% of the ordinary voting power for the election of directors.

         "Successor Notice" has the meaning set forth in Section 8.01(b).

         "Tangible Net Worth" at any date means a sum equal to: (i) the net book
value (after deducting related depreciation, obsolescence, amortization,
valuation, and other proper reserves) at which the tangible assets (which for
purposes of this definition shall include Receivables owned by such Person) of a
Person would be shown on a balance sheet at such date in accordance with GAAP
minus (ii) the amount at which such Person's liabilities (other than capital
stock and surplus) would be shown on such balance sheet in accordance with GAAP,
and including as liabilities all reserves for contingencies and other potential
liabilities.

         "Termination Date" means the earliest of

                  (a) the date of termination (whether by scheduled expiration,
         termination on default or otherwise) of any Liquidity Bank's Commitment
         under the Liquidity Agreement;

                  (b)      the Purchase Termination Date;

                  (c) with respect to Conduit Purchaser, November 1, 2006, and
         with respect to each Committed Purchaser, the date of the termination
         of such Committed Purchaser's commitment under the Liquidity Agreement;
         and

                  (d) the date on which Seller terminates Purchasers' right to
         make Purchases and Reinvestments pursuant to Section 1.05.

         "Transaction Documents" means this Agreement, the Lock-Box Agreements,
the Purchase Agreement, the Fee Letter and the Initial Purchaser Notes.

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

         "Unmatured Liquidation Event" means any event which, with the giving of
notice or lapse of time, or both, would become a Liquidation Event.

         "Unpaid Balance" of any Receivable means at any time the unpaid
principal amount thereof; provided that, if such Receivable is denominated in
Canadian Dollars, the unpaid principal amount thereof shall be converted to
Dollars using the applicable conversion rate published on such day in The Wall
Street Journal as the conversion rate; provided, further that if such Receivable
is owed by an Obligor that is a resident of a Selected Country, the Unpaid
Balance of such Receivable shall mean 50% of the unpaid principal amount
thereof.

                                      -19-

<PAGE>

         "Weekly Report" has the meaning set forth in Section 3.01(a).

         "Wholly Owned Subsidiary" mean, as to any Person, any other Person all
of the Capital Stock of which (other than (i) a nominal number of shares held by
foreign nationals to the extent required by local law or (ii) directors'
qualifying shares required by law) is owned by such person directly and/or
through other Wholly Owned Subsidiaries.

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

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

         D. Interpretation. In each Transaction Document, unless a clear
contrary intention appears:

                  (i) the singular number includes the plural number and vice
         versa;

                  (ii) reference to any Person includes such Person's successors
         and assigns but, if applicable, only if such successors and assigns are
         permitted by the Transaction Documents, and reference to a Person in a
         particular capacity excludes such Person in any other capacity or
         individually;

                  (iii)    reference to any gender includes each other gender;

                  (iv) reference to any agreement (including any Transaction
         Document), document or instrument means such agreement, document or
         instrument as amended, supplemented or modified and in effect from time
         to time in accordance with the terms thereof and, if applicable, the
         terms of the other Transaction Documents and reference to any
         promissory note includes any promissory note which is an extension or
         renewal thereof or a substitute or replacement therefor; and

                  (v) reference to any Applicable Law means such Applicable Law
         as amended, modified, codified, replaced or reenacted, in whole or in
         part, and in effect from time to time, including rules and regulations
         promulgated thereunder and reference to any section or other provision
         of any Applicable Law means that provision of such Applicable Law from
         time to time in effect and constituting the substantive amendment,
         modification, codification, replacement or reenactment of such section
         or other provision.

                                      -20-

<PAGE>

                                    Exhibit A

                                                      Applicable
                     Obligor                          Percentage
                     -------                          ----------
                  Owens & Minor                           6%

                                      -21-

<PAGE>

                                    Exhibit B

                               Permitted Countries

PART I:

         England
         France
         Italy
         Germany
         Japan

PART II:

         Australia                  Hong Kong                 Sweden
         Austria                    Iceland                   Switzerland
         Belgium                    Ireland                   Taiwan
         Bermuda                    Luxembourg
         Denmark                    New Zealand
         Finland                    Norway
         Greece                     Portugal
         The Netherlands            Singapore
                                    Spain

                                      -22-NCR CORPORATION
                                MASTER AGREEMENT

                                                                  __10180389____
                                                                 Customer Number

                           ____Ipswich Savings Bank__
                           Your Business Name ("you")

                            _____23 Market Street____
                                 Street Address

                         ________Ipswich, MA 10938_____
                               City State Zip Code

                        ---------------------------------
                                 Effective Date

                                    CONTENTS
                                    --------
1 - Definitions                                   8 - Your Obligations
2 - Orders, Addenda, and Contract Formation       9 - Product Evaluation
3 - Delivery and Installation                    10 - Defense of Infringement
                                                      Claims
4 - Prices, Invoice, Payment, Taxes, and Title   11 - NCR's Liability
5 - Services                                     12 - Dispute Resolution
6 - License to Use Software and Deliverables     13 - Miscellaneous Terms
7 - Warranties

--------------------------------------------------------------------------------
1.0            DEFINITIONS
--------------------------------------------------------------------------------

1.1      "Agreement" means this Master Agreement.

1.2      "Addendum" is defined in Section 2.1.

1.3      "Contract" is defined in Section 2.3.

1.4      "Deliverables" is defined in Section 5.3.

1.5      "Equipment" means hardware and associated peripherals and features that
         you acquire from NCR.

                                                                               1
<PAGE>

1.6 "NCR Product Specifications" means NCR's official published specifications
for Products when you acquire them (which NCR will provide to you upon request),
and the documentation which NCR includes with Products delivered to you.

1.7            "NCR" means NCR Corporation.

1.8            "Policies" is defined in Section 2.2.

1.9            "Products" means Equipment, Software, Services, Deliverables,
                and Supplies.

1.10           "Services" means those services that you acquire from NCR,
                including those described in Section 5.0.

1.11           "Software" means computer programs in any form that you acquire
                from NCR, but does not include diagnostic software as set out in
                Section 6.3

1.12           "Supplies" means consumable items that you acquire from NCR.

--------------------------------------------------------------------------------
2.0            ORDERS, ADDENDA, AND CONTRACT FORMATION
--------------------------------------------------------------------------------

2.1 Scope; Addenda -- This Agreement establishes general terms and conditions
that apply to your acquisition (directly or through a leasing company) of
Products for your use. This Agreement does not authorize you to acquire Products
for resale or redistribution. In the future, you and NCR may agree to additional
terms covering a specific transaction. These terms will be contained in an
"Addendum" (which may be called an Addendum, "Statement of Work," or other
name).

2.2 NCR Policies -- This Agreement refers to a number of NCR policies
("Policies"). These are written policies that apply to NCR's customers
generally. They contain supplemental details of NCR's Products (for example,
details regarding Services and Software usage terms) and the way that NCR
interacts with its customers (for example, NCR's credit policies). These
Policies are incorporated into this Agreement as if they were written in it. NCR
will give you copies at your request. Changes to these Policies affect only
Contracts (defined in the next Section) which you and NCR subsequently create or
which renew; they do not change Contracts in place at the time of the change
during such Contracts' then-current terms.

2.3 Contracts -- This Agreement, standing alone, does not constitute an
obligation to buy or provide Products except and until you and NCR enter into an
Addendum, purchase order, or other document that contains terms and conditions,
such as Products being ordered, quantities, prices, delivery schedules, and
discounts, which apply only to a specific transaction. This Agreement and each
set of transaction-specific documentation will together constitute a "Contract"
between you and NCR that is a binding agreement separate from other Contracts.
NCR may accept written or oral orders. NCR accepts an order when it signs the
order or acknowledges it by performance or otherwise. If NCR accepts a written
order, the Contract includes the written order, this Agreement, the applicable
Policies, and any applicable Addenda.

                                                                               2
<PAGE>

Unless NCR specifically agrees in writing, any preprinted language on your order
forms will not be a part of the  Contract.  If NCR  accepts an oral  order,  the
Contract  includes this  Agreement,  the  applicable  Policies,  any  applicable
Addenda,  and the quantities,  prices and product  identifications  confirmed on
NCR's invoice or acknowledgment. If there is a conflict within any Contract, the
following  order of  precedence  will  apply:  first,  the  order,  second,  any
applicable Addenda, third, Policies, and finally, this Agreement.

2.4 Other Software License Terms; Other Company's Products -- If NCR provides
Software to you with a "shrink-wrap" or other license, those license terms are
included in the Contract rather than the license terms in this Agreement. If NCR
provides you with Equipment, Software, Deliverables, or Supplies that bear the
logo or copyright of another company with warranty and/or support terms from the
other company, the other company's terms are included in the Contract rather
than those in this Agreement, and, unless specifically agreed in writing, NCR
provides no warranty or support for these products. Upon your request, NCR will
give you a copy of the terms discussed in this Section 2.4 before you order
these products.

2.5 Invoiced Services -- In order to facilitate the continuation of Services at
the end of a warranty period or maintenance Service term, NCR may offer to
provide the Services by sending invoices covering them to the person you
designate. These invoices will clearly describe the Services and identify the
covered Products. If you want the Services, pay the invoices, or let NCR perform
the Services. The Contract will include this Agreement, the applicable Policies,
and the invoice terms. If you do not want the Services but your employees
mistakenly pay the invoice or accept the Services, notify NCR within three
months and NCR will cancel the Contract. If you have made any payments, NCR will
refund them, less charges for time and materials which NCR has already provided.
If you have not made any payments, NCR will charge you for time and materials
which NCR has already provided.

2.6 Electronic Data Interchange ("EDI") -- NCR may provide EDI options,
including electronic ordering, invoicing and payment. These options and NCR's
acceptance of your electronic document will be governed by an EDI Addendum to
this Agreement. If, however, you and NCR communicate electronically without
executing an EDI Addendum, an identification code contained in an electronic
document will be legally sufficient to verify the sender's identity and the
document's authenticity as a signed writing.

2.7 Changes -- Each Contract is the complete agreement between you and NCR
concerning transactions covered by it, and replaces any prior or contemporary
oral or written communications. If you request that NCR cancel or modify a
Contract (including changing delivery or installation dates or locations), you
and NCR will negotiate in good faith new schedules and/or sufficient
compensation to NCR for accommodating you. If no agreement is reached, the
Contract will continue unmodified, and if you refuse to perform further or
reject NCR's tender of Products, NCR may pursue its available remedies. No
change to this Agreement or a Contract will be effective unless it is in writing
and signed by authorized representatives of both you and NCR. Changes to
Contracts should be made on NCR's change control form.

                                                                               3
<PAGE>

--------------------------------------------------------------------------------
3.0            DELIVERY AND INSTALLATION
--------------------------------------------------------------------------------

3.1 Delivery -- NCR will use commercially reasonable efforts to perform its
obligations by dates included in a Contract. These dates are estimates only. NCR
will inform you of delays as far in advance as reasonably possible. If NCR's
performance is delayed (other than by a force majeure) for an unreasonable time,
you may cancel delivery without penalty.

3.2 Location and Risk of Loss -- NCR will deliver Products to the location that
you specify. If you select the shipping agent, the agent's receipt of the
Products constitutes delivery. Risk of loss passes to you upon delivery. You
agree to inspect Products when you receive them and to notify NCR promptly if
there is any visible damage.

3.3 Installation -- NCR will notify you if Products require a special physical
environment. You agree to provide that environment prior to installation. Upon
request, NCR will provide installation Services which may be separately
chargeable.

--------------------------------------------------------------------------------
4.0            PRICES, INVOICE, PAYMENT, TAXES, AND TITLE
--------------------------------------------------------------------------------

4.1 Prices -- Prices will be included in Contracts. If NCR announces a price
increase for a Product which you have ordered and the Contract specifies
delivery more than 120 days after the price increase becomes effective, NCR may
increase your price for the Product. Price increases for Services or Software
licensed for a periodic fee will only apply to subsequent billing periods.

4.2 Invoice and Payment -- Payment is due when you receive the invoice. NCR
reserves the right to charge late fees if it does not receive payment within 30
days from the date of the invoice, at the rate of one and one-half percent per
month, or up to the maximum allowed by law, whichever is less. If you do not pay
after NCR notifies you of your default, NCR also may suspend or terminate
applicable Services and repossess or reclaim the applicable Products without
waiving NCR's right to payment.

4.3 Taxes and Other Charges -- Product prices exclude delivery and installation
charges; charges associated with preparing your site; and all taxes (such as
sales, use, and ad valorem taxes, and assessments after audit) other than NCR's
net income or franchise taxes. If you qualify for tax exemptions, you must
provide NCR with appropriate exemption documentation.

4.4 Title -- Title of Equipment passes to you on delivery, except if NCR stores
purchased Equipment for you, title passes to you where and when storage occurs.
NCR retains a purchase money security interest in each Product that you purchase
until you pay for it. You appoint NCR as your agent to sign and file a financing
statement to perfect NCR's security interest. In addition to NCR's retention of
a purchase money security interest in Products, NCR may make its acceptance of
orders subject to the entering into of additional mutually acceptable credit
arrangements, which may include the making of advance payments.

                                                                               4
<PAGE>

--------------------------------------------------------------------------------
5.0            SERVICES
--------------------------------------------------------------------------------

5.1            Equipment Warranty and Maintenance Services

               5.1.1 During the term of an Equipment warranty or Contract for
               Equipment maintenance Services, NCR will maintain the covered
               Equipment in accordance with this Section and applicable Policies
               so that it complies with the warranties in Section 7.1.b. Unless
               otherwise stated, the initial term of a Contract for Equipment
               maintenance Services is one year and will automatically renew for
               additional one year terms unless you or NCR terminate it. You or
               NCR may terminate a Contract for Equipment maintenance Services
               at any time by providing 30 days advance written notice. On
               termination under this Section 5.1.1, NCR will refund the
               unapplied portion of any advance payment.

               5.1.2 NCR's Equipment warranty and prepaid or contract
               maintenance Services include parts and, if labor is included in
               the Service, labor during covered hours. NCR will charge
               separately for: (1) Supplies; (2) service calls outside of the
               applicable scope of contracted Service or coverage hours; (3)
               service calls for Equipment that was in good operating condition
               at the time of the call; (4) use of specified types of Equipment
               above their rated usage levels (which NCR will provide to you at
               your request); and (5) per-call Services covering Products
               outside of warranty or not on contract maintenance. NCR will also
               charge separately to repair Equipment which has failed due to:
               (i) an alteration to Equipment or Software or attachment not
               provided by NCR, approved by NCR in writing or compatible with
               NCR's standard interfaces; (ii) your use of Supplies or products
               acquired from third parties that are defective or that do not
               meet NCR standards or specifications; (iii) your or any third
               party's negligence, misuse, or abuse; or (iv) fire, smoke, water,
               or acts of God. Replaced parts become or remain NCR's property.

               5.1.3 You must maintain the Equipment site consistent with NCR
               specifications at your expense, and you must provide safe working
               conditions and appropriate utility services for maintenance
               personnel. When Equipment is under warranty or a Contract for
               maintenance Services, or is loaned to you under Section 9.0, you
               may not allow anyone other than NCR or an authorized NCR warranty
               service provider to maintain it. Before accepting an order for
               maintenance Services for Equipment that is not then under
               maintenance Services or which anyone other than NCR has installed
               or serviced, NCR may inspect and refurbish it at your expense.
               Orders for maintenance Services must include all of the same type
               of Equipment at a location.

               5.1.4 If NCR provides Services for products you acquire from
               third parties, NCR will maintain those products in good operating
               condition during the term of the Contract for those Services. NCR
               will not assume the manufacturer's warranty obligations or make
               modifications specified by the manufacturer unless otherwise
               agreed in writing.

5.2            Software Services

               5.2.1 During the term of a Software warranty or Contract for
               Software Services, NCR will perform the following in accordance
               with this Agreement and applicable Policies: (1)

                                                                               5
<PAGE>

               provide  telephone  access to NCR support  resources to assist in
               resolving Software problems; and (2) distribute, at your request,
               Software  updates.  NCR will announce the availability of updates
               via internet postings or otherwise.  Unless otherwise stated, the
               initial term of a Contract for Software  Services is one year and
               will automatically renew for additional one year terms unless you
               or NCR terminate it. You or NCR may terminate a Software Services
               Contract at any time by providing 30 days advance written notice.
               On  termination  under this  Section  5.2.1,  NCR will refund the
               unapplied portion of any advance payment.

               5.2.2 NCR will provide Software Services for the most recent
               release and the prior release of covered Software. Software
               Services for the prior release may not include updates or code
               level fixes. When you order Software Services, you must order the
               same level of service (to the extent available) for all
               interdependent Software operating on the same Equipment. If you
               have licensed multiple copies of the same Software, you must
               order Software Services for each copy used at the same location.

               5.2.3 To permit NCR to provide Software Services, upon request
               you agree to assist in isolating Software problems. You also
               agree to provide modems and telephone lines for NCR to access
               your system remotely, to install and test all fixes and updates,
               and to perform other actions reasonably requested by NCR.

5.3 Professional Services -- When NCR performs Services for you, NCR may provide
you with "Deliverables." Deliverables may include: (1) custom or third party
Software in executable or source code form; and (2) written, visual, or audio
materials such as architectural designs, data models, and training materials in
either written or electronic form; which relate to your information processing
systems. Software Deliverables may be subject to additional terms and conditions
contained in an Addendum.

--------------------------------------------------------------------------------
6.0            LICENSE TO USE SOFTWARE AND DELIVERABLES
--------------------------------------------------------------------------------

6.1 Scope -- Subject to your payment of all one-time or periodic license fees,
NCR grants you a non-transferable, non-exclusive license to use Software and
Deliverables under the terms of this Agreement. Unless the Contract or
applicable Policies specify that the license to Software is periodic, your
license is perpetual. If the Contract or applicable Policies do not specify
usage terms such as the number of users or site license rights, you may use
Software at any time on a single processing unit of the class and model for
which you originally licensed it. You may use Software in object code only,
unless you and NCR agree to additional terms regarding the use of source code.
The license term for Software and Deliverables begins on delivery. Your license
to use Software or Deliverables terminates automatically if you violate the
license terms. When a license terminates, you will immediately stop using the
Software or Deliverables and either return or destroy all copies.

6.2 General -- You may not copy Software or Deliverables; transfer, disclose,
sublicense or distribute them to any party; or use them other than as allowed by
this Agreement or a Contract, except that, subject to Section 2.4, (a) you may
transfer Software and Deliverables to your

                                       6
<PAGE>

affiliates who agree to be bound by
this Agreement, (b) you may give access to the Software and Deliverables to your
consultants who agree to be bound by the license terms of this Section 6.0 and
the Contract, for the sole purpose of performing consulting services for you,
and (c) if you transfer Equipment to a third party, you may transfer Software
running on that Equipment to the third party for that party's internal use only
(and not for resale or redistribution) if you notify NCR and give the other
party a copy of the license terms of the Contract, including this Section 6.0
and all usage limitations. The license transfer will be effective when the third
party accepts the terms by initial use of the Software and pays any applicable
relicense fees. You will retain copyright notices and proprietary legends on all
copies of Software and Deliverables you possess or transfer. Software and
Deliverables remain the property of NCR or its licensors. You will not take any
steps, such as reverse assembly or reverse compilation, to derive a source code
equivalent of Software.

6.3 Diagnostic Software -- NCR may provide Products to you that include
software, data, documentation, and other material that NCR uses to diagnose the
operation of the Products ("Diagnostic Tools"). Diagnostic software may be
firmware or it may be loaded in memory from disks or other media. The Diagnostic
Tools are not licensed for use by any person other than NCR Corporation.
Diagnostic Tools are the confidential intellectual property of NCR and are
provided solely to assist NCR in supporting its Products. They may not be
copied, disclosed to any third party (except under the same terms as under
Section 6.2(c)), or used by any person for any purpose whatsoever without NCR's
express written consent. NCR may delete or remove Diagnostic Tools at any time
without notice. NCR PROVIDES NO WARRANTIES FOR DIAGNOSTIC TOOLS AND IS NOT
LIABLE FOR THEIR USE BY ANY PERSON OTHER THAN NCR.

--------------------------------------------------------------------------------
7.0            WARRANTIES
--------------------------------------------------------------------------------

7.1            Equipment, Supplies, Software, and Services - NCR warrants that:

               (a) Title in Equipment and Supplies will be free and clear except
               for NCR's security interest.

               (b) Equipment, Supplies, and Software media will be free from
               defects in material and workmanship and will conform to NCR
               Product Specifications. Software operation will materially
               conform to NCR Product Specifications (except for Software
               Deliverables, which are covered in 7.1(c) below).

               (c) Deliverables, including Software Deliverables, will
               materially conform to the specifications included in the
               applicable Addendum.

               (d) Equipment and Software listed in the "NCR Year 2000
               Qualification List" ("Qualified Products") at the time of
               acquisition from NCR will comply with the "NCR Year 2000
               Qualification Requirements Definition" in effect at the time of
               acquisition. Both the Qualification List and the Qualification
               Requirements Definition will be made available to you at your
               request. This warranty applies only to the performance of the

                                                                               7
<PAGE>

               Qualified Products themselves, and does not extend to the use of
               Qualified Products in combination with other products, whether
               acquired from NCR or not. Notwithstanding Section 7.2, this
               warranty is not limited in duration.

               (e) It will provide Services in a professional manner consistent
               with Section 5.0, any Contract, and applicable Policies in effect
               at the time the Services are rendered.

               Equipment may include used components, which will not affect the
               applicable warranties.

7.2 Warranty Period -- Unless otherwise specified in a Contract or Policies at
the time of delivery, the warranty period for Equipment and Supplies is 90 days,
and for Software and Deliverables is 30 days. The warranty period begins on
delivery of the Product. The warranty for a copy of a piece of Software covers
only that specific copy; software fixes supplied under warranty Services may not
be incorporated into other copies of the same Software which are not then under
warranty or a Contract for Software Services.

7.3 Nonconformance with Warranties -- If Equipment, Software (except Software
Deliverables, which are covered by the next sentence), or Supplies do not
conform to their warranties during the applicable warranty period, NCR will
without charge: (a) under Section 5.1 repair Equipment or replace it with a unit
of Equipment that is at least functionally equivalent; (b) under Section 5.2
correct Software; or (c) replace Supplies. If NCR does not perform Services as
warranted (including by providing Deliverables that do not conform to their
warranties) and you provide prompt notice, NCR will use its best efforts to
reperform them.

7.4            Refunds

               7.4.1 If NCR is unable to repair, correct, or replace Equipment,
               Software (except Software Deliverables, which are covered by
               Section 7.4.2), or Supplies under Section 7.3 within a reasonable
               time, you may return the defective Product and obtain a refund,
               within 30 days, or you may accept the Product "as is."

               7.4.2 If NCR is unable to reperform Services as warranted under
               Section 7.3 within a reasonable time (including by correcting any
               non-conforming Deliverables), you may terminate the Contract and
               obtain a refund of your payments to NCR for those Services and/or
               associated Deliverables. Your refund for a fixed term Services
               Contract will not exceed your most recent payment for such
               Services.

               7.4.3 If NCR makes a warranty in a Contract that does not have a
               specified remedy for its failure, and a problem arises concerning
               that warranty, you will notify NCR promptly in writing, and NCR
               will without charge correct the problem. If NCR is unable to
               correct the problem within a reasonable time, you may return the
               affected Product(s) and obtain a refund.

               7.4.4 Any refund under this Section 7.0 will be reduced on the
               same basis as you depreciate the Product(s) in your financial
               statements, calculated from the delivery date. If you do not
               depreciate the Product(s), the refund will be reduced on a 5-year
               straight-line basis.

                                                                               8
<PAGE>

7.5 Warranty Services -- NCR will provide warranty Services under the applicable
Policies in effect when it delivers the Products. You may separately purchase
expanded warranty Services from NCR, when available.

7.6 EXCEPT FOR WARRANTIES SPECIFICALLY CONTAINED IN THIS AGREEMENT OR A
CONTRACT, NCR DISCLAIMS ALL WARRANTIES, EXPRESS AND IMPLIED, INCLUDING BUT NOT
LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND THOSE ARISING FROM A COURSE OF DEALING. NCR DOES NOT WARRANT THAT
PRODUCTS WILL OPERATE UNINTERRUPTED OR ERROR FREE, OR THAT ALL DEFICIENCIES,
ERRORS, DEFECTS OR NONCONFORMITIES WILL BE CORRECTED. NCR HAS NO WARRANTY
OBLIGATION FOR PRODUCTS THAT YOU ACQUIRE FROM THIRD PARTIES, EVEN IF NCR
ASSISTED IN EVALUATING OR SELECTING THEM. THE FAILURE OF PRODUCTS YOU ACQUIRE
FROM THIRD PARTIES OR THEIR SUPPLIERS WILL NOT AFFECT YOUR OBLIGATIONS TO NCR.
IF NCR DESIGNATES THAT PRODUCTS ARE PROVIDED "AS IS," THERE IS NO WARRANTY.

7.7 Exclusive Remedies -- Your rights and remedies set forth in this Agreement
or a Contract are exclusive and in lieu of all other rights and remedies related
to any Contract or Product (except to the extent that applicable law prohibits
agreements to disclaim warranties or limit liabilities).

--------------------------------------------------------------------------------
8.0            YOUR OBLIGATIONS
--------------------------------------------------------------------------------

The successful performance of our Products depends on your knowledgeable
selection and operation of the Products and your reasonable cooperation with
NCR. Your obligations include, unless otherwise agreed:

               (a)  determining whether the Products, if they perform as
                    warranted, will meet your specific requirements;

               (b)  giving NCR sufficient, free, and safe access to your
                    facilities, free of any hazardous materials (e.g., asbestos)
                    or conditions;

               (c)  providing back-up equipment and services to safeguard your
                    programs, data and funds;

               (d)  giving NCR reasonable access to your employees, including
                    clearly identified key contacts;

               (e)  obtaining the commitment of your management to the success
                    of the Products and communicating that commitment to all of
                    your employees;

               (f)  appropriately educating your employees on the use of the
                    Products;

                                                                               9
<PAGE>

               (g)  giving NCR information that it requests that is reasonably
                    relevant to your implementation or operation of the
                    Products;

               (h)  obtaining any necessary governmental permits or consents;

               (i)  implementing and operating the Products;

               (j)  testing and operating Software and all Software updates; and

               (k)  documenting Software problems.

If you cause a delay in NCR's performance under a Contract, NCR may charge you a
reasonable amount for accommodating you. This reasonable amount is typically a
standard $150.00 an hour.

--------------------------------------------------------------------------------
9.0            PRODUCT EVALUATION
--------------------------------------------------------------------------------

NCR may loan Products to you for your evaluation. You and NCR will agree in
advance on: (1) the length of the evaluation period; (2) prices if you elect to
acquire the Products; (3) the post-evaluation warranty periods, if any; and (4)
who will bear related costs of freight, installation/deinstallation and
maintenance. The evaluation period will begin when NCR delivers the Products to
you. At the end of the evaluation period, you will make the Products available
for return to NCR, or NCR will invoice you for the Products at the agreed
prices. You agree not to move the Products to another location during the
evaluation without NCR's consent. DURING YOUR EVALUATION, PRODUCTS ARE FURNISHED
TO YOU "AS IS." IF YOU ARE DISSATISFIED WITH THEM FOR ANY REASON, YOUR EXCLUSIVE
REMEDY WILL BE NCR'S REMOVAL OF THE PRODUCTS FROM YOUR SITE.

--------------------------------------------------------------------------------
10.0           DEFENSE OF INFRINGEMENT CLAIMS
--------------------------------------------------------------------------------

NCR will defend at its expense any claim or suit brought against you alleging
that any Product infringes a patent, copyright or trade secret and will pay all
costs and damages finally awarded, if you promptly notify NCR of the claim and
give NCR (a) the information and cooperation that NCR reasonably asks for, and
(b) sole authority to defend or settle the claim. In handling the claim, NCR
will obtain for you the right to continue using the Product or replace or modify
the Product so that it becomes non-infringing. If NCR is unable to reasonably
secure those remedies, as a last resort NCR will refund the purchase price for
infringing Equipment and refund one-time license fees for infringing Software.
The refund will be reduced on the same basis as you depreciate the infringing
Product in your financial statements. If you do not depreciate it, the refund
will be reduced on a 5-year straight-line basis. NCR is not obligated to
indemnify you under this Section 10.0 if the alleged infringement is based on
the use of the Product with other products not furnished directly by NCR, or on
NCR's compliance with any designs, specifications or instructions provided by
you, or if anyone other than NCR has

                                                                              10
<PAGE>

modified the Product. THIS SECTION STATES NCR'S ENTIRE LIABILITY FOR
INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADE SECRETS, AND OTHER INTELLECTUAL
PROPERTY RIGHTS.

--------------------------------------------------------------------------------
11.0           NCR'S LIABILITY
--------------------------------------------------------------------------------

Circumstances may arise where, because of NCR's default or other liability, you
are entitled to recover damages from NCR. In each such instance, regardless of
the basis on which you become entitled to claim damages, your sole remedy, and
NCR's entire liability (except to the extent that applicable law prohibits
agreements to limit liabilities), is as follows:

11.1 For failure (i) of Equipment, Supplies, and Software (other than Software
Deliverables, which are covered by the next clause) to conform to their
warranties during a warranty period, (ii) to perform Services (including by
providing Deliverables that do not conform to their warranties) as warranted,
and (iii) any warranty as set out in Section 7.4.3, as stated in Section 7.0.

11.2 For delays in delivery, as stated in Section 3.1 or as otherwise provided
in a Contract.

11.3 For your dissatisfaction with Products that NCR loans to you, as stated in
Section 9.0.

11.4 For infringement of patents, copyrights, trade secrets, and other
intellectual property rights, as stated in Section 10.0.

11.5 For bodily injury, including death, caused by NCR's negligence, NCR's
liability will be unlimited, to the extent NCR's negligence caused the injury.
For physical damage to tangible property, NCR will be liable for direct damages
up to $1,000,000 per occurrence, to the extent NCR's negligence caused the
damage.

11.6 FOR ALL CLAIMS NOT EXPRESSLY ADDRESSED IN SECTIONS 11.1 THROUGH 11.5 (OR IF
THE REMEDIES IN THOSE SECTIONS ARE HELD TO HAVE FAILED OF THEIR ESSENTIAL
PURPOSE OR ARE OTHERWISE HELD TO BE INVALID OR UNENFORCEABLE), INCLUDING BUT NOT
LIMITED TO CLAIMS OF FRAUD OR MISREPRESENTATION ARISING OUT OF OR RELATED IN ANY
MANNER TO THE PERFORMANCE OF ANY OBLIGATIONS UNDER A CONTRACT, NCR'S CUMULATIVE
LIABILITY (INCLUDING REFUNDS AND THE VALUE OF REPLACEMENT PRODUCTS GIVEN TO YOU)
WILL BE LIMITED TO YOUR PROVEN DIRECT DAMAGES NOT TO EXCEED THE AMOUNT YOU PAID
NCR FOR THE APPLICABLE PRODUCT IN CONTROVERSY.

11.7 UNDER NO CIRCUMSTANCES ARE NCR, OR ITS OFFICERS, DIRECTORS, EMPLOYEES,
AFFILIATES, SUBCONTRACTORS, OR SUPPLIERS LIABLE FOR ANY INDIRECT, INCIDENTAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES; OR FOR LOSS OF PROFITS, REVENUE, OR DATA;
WHETHER IN AN ACTION IN CONTRACT, TORT,

                                                                              11
<PAGE>

PRODUCT LIABILITY, STATUTE OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF
THOSE DAMAGES.

11.8 SECTIONS 11.6 AND 11.7 WILL SURVIVE FAILURE OF AN EXCLUSIVE OR LIMITED
REMEDY.

--------------------------------------------------------------------------------
12.0           DISPUTE RESOLUTION
--------------------------------------------------------------------------------

12.1 Negotiation, Escalation and Mediation -- If any controversy or claim arises
relating to this Agreement or any Contract, you and NCR will attempt in good
faith to negotiate a solution to our differences, including progressively
escalating any controversy or claim through senior levels of management. If
negotiation does not result in a resolution within 15 business days of when one
party first notifies the other of the controversy or claim, you and NCR will
participate in good faith mediation as administered by the American Arbitration
Association.

12.2 Arbitration -- Any controversy or claim between you and NCR, whether based
on contract, tort, statute, or other legal theory (including but not limited to
any claim of infringement, fraud, or misrepresentation) which cannot be resolved
by negotiation or mediation will be resolved by binding arbitration under this
Section 12.2 and the then-current Commercial Rules and supervision of the
American Arbitration Association. The duty to arbitrate will extend to any
employee, officer, shareholder, agent, or affiliate of you or NCR making or
defending a claim which would be subject to arbitration if brought by you or
NCR. If any part of this Section 12.0 is held to be unenforceable, it will be
severed and will not affect either the duty to arbitrate or any other part of
this Section 12.0. The arbitration will be held in the United States
headquarters city of the party not initiating the claim before a sole arbitrator
who is knowledgeable in business information and electronic data processing
systems. The arbitrator's award will be final and binding and may be entered in
any court having jurisdiction. The arbitrator will not have the power to award
punitive or exemplary damages, or any damages excluded by, or in excess of, any
damage limitations expressed in this Agreement or a Contract. Issues of
arbitrability will be determined in accordance solely with the federal
substantive and procedural laws relating to arbitration; in all other respects,
the arbitrator will be obligated to apply and follow the substantive law of the
state of Massachusetts, as provided by Section 13.9.

12.3 Costs -- Each party will bear its own attorney's fees and other costs
associated with the negotiation, mediation, and arbitration provided for by this
Section 12.0, except that costs and expenses of arbitration other than
attorney's fees will be paid as provided by the rules of the American
Arbitration Association. If court proceedings to stay litigation or compel
arbitration are necessary, the party who unsuccessfully opposes such proceedings
will pay all associated costs, expenses and attorney's fees which are reasonably
incurred by the other party.

12.4 Two Year Limitation -- Neither you nor NCR may bring a claim or action
regardless of form, arising out of or related to this Agreement, including any
claim of fraud or misrepresentation, more than two years after the delivery of
any Products at issue, or more than two years after cause of action accrues,
whichever is later.

                                                                              12
<PAGE>

12.5 Confidentiality - In order to facilitate the resolution of controversies or
claims between you and NCR, you and NCR will keep them confidential, including
details regarding negotiations, mediation, arbitration, and settlement terms.

12.6 Substitute Products -- Your acceptance of refunds or substitute Products
under this Agreement waives all claims relating to the nonperforming Products
involved.

--------------------------------------------------------------------------------
13.0 MISCELLANEOUS TERMS
--------------------------------------------------------------------------------

13.1 Effective Date; Non-Waiver; Assignment -- The cover page of this Agreement
specifies the effective date. If the date is left blank, the date NCR signs this
Agreement or first provides Products to you is the effective date. Failure to
enforce any term of this Agreement or a Contract is not a waiver of future
enforcement of that or any other term. Neither you nor NCR may assign this
Agreement, a Contract, or its rights or obligations under them without the
express written consent of the other, except NCR may assign this Agreement or a
Contract to an affiliate and may use subcontractors or resellers to fulfill its
obligations.

13.2 Severability -- If any provision of this Agreement or a Contract is held to
be illegal, invalid, or unenforceable, the provision will be enforced to the
maximum extent permissible so as to effect the intent of the parties, and the
remaining provisions of this Agreement or the Contract will remain in full force
and effect.

13.3 Termination -- This Agreement will remain in effect until you or NCR
terminate it on 30 days advance written notice. Termination of this Agreement
will not terminate any existing Contract.

13.4 Insolvency and Bankruptcy -- On the occurrence of any of the following, all
Contracts will automatically terminate unless the non-affected party elects to
have any such contract continue:

               (a)  the admission by either party in writing of its inability to
                    pay its debts generally or the making of a general
                    assignment for the benefit of creditors;

               (b)  any affirmative act of insolvency by either party or the
                    filing by or against any party of any petition or action
                    under any bankruptcy, reorganization, insolvency
                    arrangement, liquidation, dissolution or moratorium law, or
                    any other law or laws for the relief of, or relating to,
                    debtors; or

               (c)  the subjection of a material part of either party's property
                    to any levy, seizure, assignment or sale for or by any
                    creditor, third party or governmental agency.

13.5 Confidentiality; Customer References -- Except as required by law, you and
NCR will keep the terms and conditions of this Agreement and of Contracts,
including pricing, confidential; provided, however, that NCR may without your
consent disclose to third parties

                                                                              13
<PAGE>

that you are a customer of NCR without revealing any specific terms of this
Agreement or any Contract.

13.6 Notices -- All notices (including requests, consents or waivers) made under
this Agreement or any Contract will be in writing and delivered by facsimile,
electronic mail, or other electronic means (in which case the recipient will
provide acknowledgment within one business day separately from any
machine-generated automatic reply); or by prepaid means providing proof of
delivery. Notices are effective upon receipt. NCR will send notices to you at
the address on the face of this Agreement, and you will send notices to NCR at
its local district office or other designated address, with an additional copy
to:

                   General Counsel/Notices  WHQ-5
                   NCR Corporation
                   Dayton, OH  45479
                   Fax:       (937) 445-7214
                   Email:      law.notices@daytonOH.ncr.com

Either party may change its address upon notice as required by this Section.

13.7 Geographic Scope -- This Agreement applies only to the United States; NCR
will not provide Products, including warranty or maintenance Services, outside
the United States. You may not export Products without appropriate approvals
from the United States and foreign government.

13.8 Force Majeure -- Neither party is liable for failing to fulfill its
obligations due to acts of God, civil or military authority, war, riots,
strikes, fire, or other causes beyond its reasonable control, except for your
obligation to make payments.

13.9 Choice of Law -- New York law governs this Agreement, except for its laws
regarding choice of law and as stated in Section 12.2; the United Nations
Convention on Contracts for the International Sales of Goods does not apply.

THIS AGREEMENT TOGETHER WITH ANY CONTRACTS SETS OUT THE ENTIRE AGREEMENT WITH
RESPECT TO YOUR ACQUISITION OF PRODUCTS FROM NCR. YOU ACKNOWLEDGE THAT YOU HAVE
READ AND UNDERSTAND THE TERMS OF THIS AGREEMENT.

                                                                              14
<PAGE>

Executed on your behalf by:                        NCR CORPORATION

/s/ David L. Grey                                 /s/ George O. Tucker
--------------------                              --------------------
Authorized Signature                              Authorized Signature

David L. Grey                                     George O. Tucker
Printed Name                                      Printed Name

July 17, 2001                                     August 31,2001
Date                                                            Date

                                                                              15
<PAGE>
NCR CORPORATION                                             [GRAPHIC - NCR LOGO]

ORDER FOR PROCESSING SERVICES                  NCR Customer Information Services
--------------------------------------------------------------------------------
Customer Name

Ipswich Savings Bank
--------------------------------------------------------------------------------
Street Address

23 Market Street
--------------------------------------------------------------------------------
City, State and Zip Code

Ipswich, MA 01938
--------------------------------------------------------------------------------
Customer Number              Initial Term                 Contract Order Number

10180389                     36 months
--------------------------------------------------------------------------------

YOU AGREE TO PURCHASE OR LICENSE AND NCR CUSTOMER INFORMATION SERVICES (CIS), ON
ACCEPTANCE, AGREES TO FURNISH THE APPLICATIONS LISTED BELOW FOR THE TERM
INDICATED AND THE PRICES SPECIFIED ON THIS ORDER.

Term - The term for each processing application will commence upon the first
processing of such application by NCR for you and will continue for the period
specified. The term for any periodic Software license granted will commence upon
delivery of the Software to you and will continue for the period specified.
Estimated processing start dates and delivery dates are subject to change.
Thereafter, the term for each such processing application and each Software
license will renew automatically for a like period unless written notice of
termination for each processing application and Software license is given.
Notice of termination must be given not less than one hundred eighty (180) days
prior to the scheduled end date of the initial term or renewal term when the
termination will become effective.

Charges - Customer shall pay for Processing Services and Software in accordance
with the rates and terms specified in this Order.

------------------------  --------------  ----------------------  -------------
   APPLICATION             APPLICATION      BILLING REFERENCE       ESTIMATED
      NAME                 CODE NUMBER           NUMBER             START DATE
------------------------  --------------  ----------------------  -------------
SAVINGS ACCOUNTS              5320
------------------------  --------------  ----------------------  -------------
CERTIFICATES > 180 DAYS       5320
------------------------  --------------  ----------------------  -------------
CERTIFICATES 30-180 DAYS      5320
------------------------  --------------  ----------------------  -------------
CERTIFICATES < 30 DAYS        5320
------------------------  --------------  ----------------------  -------------
NOW/DDA ACCOUNTS              5320
------------------------  --------------  ----------------------  -------------
LOANS                         5339
------------------------  --------------  ----------------------  -------------
LASER PRINTED BILL            3654
------------------------  --------------  ----------------------  -------------
LASER PRINTED STATEMENTS      3654
------------------------  --------------  ----------------------  -------------
LASER PRINTED DEL NOTES       3654
------------------------  --------------  ----------------------  -------------

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

                                                                               1

Ordered NCR Product and Services are subject to the Addendum, dated
________________, 200___, between You and NCR.

------------------------------------  ------------------------------------------
Executed by (Type or Print Name and    NCR Customer Information Services
Title)
------------------------------------  ------------------------------------------
Authorized Signature                   Authorized Signature            Date
 Date

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

                                                                               2

<PAGE>

NCR CORPORATION                                             [GRAPHIC - NCR LOGO]

ORDER FOR PROCESSING SERVICES                  NCR Customer Information Services
                                                                          Page 2
--------------------------------------------------------------------------------
Hours of On-line Operations

Standard hours of on-line system operation and availability are:
            __8____  a.m. to ___8____ p.m.  (_et__)  Monday through Thursday
            __8____  a.m. to ___8____ p.m.  (_et__)  Friday
            __8____  a.m. to ___4____ p.m.  (_et__)  Saturday
            __8____  a.m. to ___1____ p.m.  (_et__)  Sunday

Additional hours of system operations and availability may be assessed an extra
charge.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Data Input and Transmission

For Account Processing, you will deliver or complete transmission of input data
to NCR no later than ____7_____ p.m. (et___) Monday through Friday,
and ___1____ p.m. (_et__) Saturday.

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

--------------------------------------------------------------------------------
Processing and Delivery

NCR will use reasonable efforts to complete the processing of your input
transactions and have completed work available for on-line access by you by
__8_____ a.m. (_et__) of your next business day.

NCR will use reasonable efforts to make available regularly scheduled weekly and
monthly reports within __48___ hours of the actual close of the period.

     Reports to be provided are:                           Frequency:
     ____see attached_______________________              _____________
     _______________________________________              _____________
     _______________________________________              _____________
     _______________________________________              _____________
     _______________________________________              _____________
     _______________________________________              _____________
     _______________________________________              _____________

NCR will use reasonable efforts to make available regularly scheduled daily
reports by __8____ a.m. (_et__) of your next on-line day.

             Reports to be provided are:
             ______see attached_________________________________________
             _____________________________________________
             _____________________________________________
             _____________________________________________
             _____________________________________________
             _____________________________________________

NCR will use reasonable efforts to make available completed statements within
_48__ hours of the end of the actual statement period.

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

                                                                               3

<PAGE>

NCR CORPORATION                                             [GRAPHIC - NCR LOGO]

ORDER FOR PROCESSING SERVICES                  NCR Customer Information Services

                                                                          Page 3
--------------------------------------------------------------------------------

From time to time, NCR upgrades its offerings to bring improved solutions to its
customers. During the Order term, NCR may, upon six (6) months advance written
notice, replace the specific application it currently uses to provide Processing
Services to you with an alternative application. If NCR replaces the processing
application, NCR will use commercially reasonable efforts to minimize the
disruption to your daily operations and will provide reasonable assistance (e.g,
development and implementation of a project plan and appropriate training for
your trainers) to facilitate this conversion. Within thirty (30) days of your
receipt of NCR's notice of any such change, you agree to either (a) notify NCR
in writing of your acceptance of the conversion date provided by NCR, or (b)
notify NCR in writing of your intent to perform an evaluation of the replacement
application to confirm that the replacement application provides substantially
similar functionality as the application you currently utilize. If (1) you do
not complete the evaluation within sixty (60) days of receipt of NCR's
conversion notice, or (2) after performing such evaluation, you reasonably
determine that the replacement application has substantially similar
functionality as the application you currently utilize, you will notify NCR in
writing of your agreement to complete the conversion as specified in NCR's
conversion notice to you. If (a) you notify NCR within the sixty (60) day
evaluation period that the replacement application does not contain
substantially similar functionality as the application you currently utilize,
and (b) any documented missing functionality is not identified (by the NCR user
group) in a request for features to be included in a future release of the
application for implementation prior to any proposed conversion date, you may
terminate this Order at your convenience prior to the end of the Term without
payment of early termination charges, provided however, you will pay NCR
deconversion charges as indicated on the deconversion pricing schedule provided
to you at that time. In the event of your request to terminate, NCR may require
you to convert to an alternative service within six (6) months of NCR's notice.

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

Any Services or Products not listed on this Order but requested by you will be
provided at NCR's then-current prices.

<TABLE>
<CAPTION>
--------------------  ----------------------------------  ----------  ------  -----  --------------
     APPL./ITEM                 PRODUCT DESCRIPTION        QTY.       PRICE    PER      MIN/MAX
       CODE NO.
--------------------  ----------------------------------  ----------  ------  -----  --------------
<S>                   <C>                                 <C>         <C>     <C>    <C>
5320                  SAVINGS ACCOUNTS                    CURRENT     .44     ACCT   MONTHLY
--------------------  ----------------------------------  ----------  ------  -----  --------------
5320                  CERTIFICATES > 180 DAYS             CURRENT     .44     ACCT   MONTHLY
--------------------  ----------------------------------  ----------  ------  -----  --------------
5320                  CERTIFICATES 30-180 DAYS            CURRENT     .44     ACCT   MONTHLY
--------------------  ----------------------------------  ----------  ------  -----  --------------
5320                  CERTIFICATES < 30 DAYS              CURRENT     .44     ACCT   MONTHLY
--------------------  ----------------------------------  ----------  ------  -----  --------------
5320                  NOW/DDA ACCOUNTS                    CURRENT     .44     ACCT   MONTHLY
--------------------  ----------------------------------  ----------  ------  -----  --------------
5339                  LOANS                               CURRENT     .44     ACCT   MONTHLY
--------------------  ----------------------------------  ----------  ------  -----  --------------
3654                  LASER PRINTED BILL                  CURRENT     .09     PAGE   PAGE
--------------------  ----------------------------------  ----------  ------  -----  --------------
3654                  LASER PRINTED STATEMENTS            CURRENT     .085    PAGE   PAGE
--------------------  ----------------------------------  ----------  ------  -----  --------------
3654                  LASER PRINTED DEL NOTES             CURRENT     .09     PAGE   PAGE
--------------------  ----------------------------------  ----------  ------  -----  --------------
</TABLE>

                                                                               4

<PAGE>

NOTES:

1.   Term of this agreement is effective with the April 2001 invoice (which
     covers March activity).
2.   If at any time during the current term of this contract, NCR announces that
     STARCOM will no longer be supported, Ipswich Bank can terminate this
     contract, without early termination charges, with 180 day written
     notification.
3.   If NCR does not perform Services as warranted to your satisfaction during
     months 25 through 30 of this 36 month Order, and you provide NCR with
     prompt written notice, NCR will use its best efforts to remedy the
     nonconforming Service. If NCR is unable to cure the non-forming Service
     within 60 days from notice, you may provide NCR written notification of
     your intent to terminate this Order, without early termination charges.
4.   NCR's charges for contract termination can be found on the attached
     Schedule 2. These charges supersede the early termination fees listed in
     the Processing Services Addendum, if any.
5.   Ipswich Savings Bank may provide written intent to convert to the STARCOM
     replacement system at any time during the term of this Order.
6.   The following offer under this Section 5 is valid through December 14, 2001
     only. If Ipswich Savings Bank signs an order for Profile by December 14,
     2001, NCR will charge the bank the following for the conversion & education
     to the Profile system:
     o    Based upon current volumes (April 2001) the bank will pay $29,500.00
          (half of the calculated $59,000.00, which represents $14,000.00 for
          training/education and $45,000.00 for the actual account conversion).
     o    This $29,500.00 includes the conversion of 45,000 accounts (currently
          bank has 38,648 open accounts). Any additional accounts over 45,000
          will be charged .50 cents over and above the $29,500.00.  This is to
          allow for potential account growth and potential account acquisition.

                                                                               5

<PAGE>

                                   SCHEDULE 1
REPORTS AND SERVICES

The STARCOM Financial System includes all standard reports listed below. The
reports listed below are representative; their titles, contents and frequency
are subject to change without notice.

I.   STARCOM Financial Deposit Account System Reports

        A.  Daily Report Preparation

                1.  Teller Terminal Proof
                2.  Daily Transaction Summary Report
                3.  Savings Transaction Journal
                4.  Savings Exception Activity Journal
                5.  NOW/DDA Account:
                     a.  Non-Sufficient and Uncollected Funds Report
                     b.  Waived Service Charge Journal
                     c.  Kiting Suspect Report
                     d.  Stop Payment Suspect Report
                     e.  Overdraft Journal
                     f.   Returned Items Report
                     g.  Non-Sufficient Funds (NSF) Notices
                     h.  Uncollected Funds Notices
                6.  Savings Trial Balance (Totals Only)
                7.  Savings Daily Maintenance Journal
                8.  CIF N & A Search Key Update
                9.  Direct Deposit Validation Report
               10.  NOW Inclearing Validation Report
               11.  ATM Transaction Validation
               12.  Savings Exception Recap Report
               13.  Savings Variable Rate Earnings Report
               14.  Certificate Maturity Update Journal
               15.  Permanent Withdrawal Order (PWO) and Income Processing
                      Update Journal
               16.  Autotrans Reconciliation Report
               17.  Summary of Month-to-Date Savings Account Activity
               18.  Misc. Receipts and Checks Issued Register
               19.  Misc. Receipts and Checks Issued Summary

        B.     Weekly Report Preparation

                1.  Savings Overdraft Trial Balance
                2. Savings Trial Balance (Fiche Only)

                                                                               6

<PAGE>

I.  STARCOM Financial Deposit Account System Reports (cont'd)

        C.     Monthly Report Preparation

                1.  Savings Trial Balance (Detail) (Fiche Only)
                2.  Certificate of Deposit Recap
                3.  Dormant and Inactive Report
                4.  New Account Listing
                5.  Closed Account Listing
                6.  Certificate of Deposit - Maturity Summary
                7.  Combined Statements Register
                8.  Retirement Account Billing Report
                9.  Retirement Account Trial Balance
               10.  Pension Fund Statements Register
               11.  STARS Overage Report/Notices
               12.  Investment Changes Report
               13.  Matured Investment Report
               14.  Accounts Eligible for Distribution
               15.  Accounts Requiring Distribution
               16.  Accounts Over Reinvestment Level
               17.  Age Summary Report
               18.  Distribution Summary

        D.     Periodic Report Preparation

                1.  Anticipated Earnings Recalculation Journal
                2.  Pre-Check Exception Report
                3.  Savings History Print
                4.  Savings Account Type Table Update Report
                5.  Stop Payment Expiration Report
                6.  Savings Masterfile Print
                7.  Parameter Update Journal
                8.  Check Register
                9.  Earnings Crediting Exception Report
               10.  Earnings Transfer Journal
               11.  Earnings Distribution Journal and Trial Balance (Fiche Only)

        E.     Annual Report Preparation

                1.  Purged Accounts Listing
                2.  Earnings Paid YTD Reported to IRS
                3.  Federal Forms Exception Report
                4.  STARS Shortage Report/Notices
                5.  All Federal Forms (see Schedule 2 for pricing)

                                                                               7

<PAGE>

II.  STARCOM Financial Loan Account System Reports

        A.     Daily Report Preparation

                1.  Collateral Loan Transaction Journal
                2.  Exception Loan Transaction Journal
                3.  Consumer Loan Transaction Journal
                4.  Commercial Loan Transaction Journal
                5.  Loan Transaction Journal
                6.  Mortgage Loan Active-Delinquent Journal
                7.  Mortgage Loan Transaction Journal
                8.  Loan SATT Index Rate Update
                9.  Loan Maintenance Journal
               10.  Input Loan Summary Trial Balance
               11.  Accrual Loan Trial Balance
               12.  Collection Loan Disbursement Report
               13.  Loan Trial Balance (Summary)
               14.  Summary of Month-to-Date Loan
               15.  Commercial Loan Delinquency Report
               16.  Commercial Loan New Account Report
               17.  Commercial Loan Paid-Off Account Report
               18.  Commercial Loan Line of Credit Report
               19.  Commercial Loan Collateral Control Report
               20.  Commercial Loan Maintenance Journal
               21.  Commercial Loan Review Report
               22.  Commercial Loan Trial Balance
               23.  Consumer Loan Exception Journal
               24.  Single Payment Loan Maturity Report
               25.  Single Payment Loan Renewal
               26.  New Consumer Loan Report
               27.  New Consumer Loan Report
               28.  Paid Off Consumer Loan Report
               29.  Subsidiary Journal Participation Loans
               30.  Subsidiary Journal Update Report
               31.  Construction Loan Update Report
               32.  Lot Status Report

                                                                               8

<PAGE>

II.  STARCOM Financial Loan Account System Reports (cont'd)
        B.  Monthly Report Preparation
                1.  New Installation Loans Report
                2.  New Mortgage - Collateral Loans Report
                3.  Loans in Foreclosure Report
                4.  Paid Off Mortgage - Collateral Loans Report
                5.  Loan Trial Balance (Detail)
                6.  Accrued/Prepaid Journal
                7.  Delinquency Summary
                8.  Pledged Loan Report
                9.  Pledged Savings on Loan Accounts
               10.  Analysis of Loans by Asset Limitation Code
               11.  Analysis of Loans by FSLIC Location Code
               12.  Analysis of Loans by Interest Rate
               13.  Analysis of Loans by Location Code
               14.  Analysis of Loans by Purpose Code
               15.  Collateral Loan Report
               16.  Deferred Income and Expense Trailer Print
               17.  Deferred Expense Journal
               18.  Deferred Income Journal
               19.  Schedule RC-J Report
               20.  Section H Report
               21.  Maturity Projection Report
               22.  Commercial Delinquency Summary
               23.  Commercial Loan Inactive Account Report
               24.  Consumer Loan Delinquency Summary
               25.  (Mortgage) Loan Activity Report FNMA LASER
               26.  (Mortgage) Loan Activity Summary FNMA LASER
               27.  Monthly Payment/Note Rate Change FNMA LASER
               28.  Trial Balance FNMA LASER
               29.  FNMA 2010 Monthly Accounting Report
               30.  FNMA 2020 Liquidation Schedule
               31.  FNMA 2030 Monthly Summary Report
               32.  GNMA 1710A Issuer's Monthly Accounting Report
               33.  GNMA 1710E Liquidation Schedule
               34.  GNMA 1710D Issuer's Monthly Summary Report
               35.  MBS "Other" Detail Report
               36.  Cash Receipts Serviced Loans
               37.  Delinquent Serviced Loans
               38.  New/Closed Accounts Serviced Loans
               39.  Next Month Prepaid Serviced Loans
               40.  Prepaid Receipts Serviced Loans

                                                                               9

<PAGE>

II.  STARCOM Financial Loan Account System Reports (cont'd)

        B.  Monthly Report Preparation (cont'd)

               41.  Trial Balance Serviced Loans
               42.  Remittance Reconciliation
               43.  Participation Report Summary
               44.  308 Group Report (FHLMC MIDANET)

        C.     Periodic Report Preparation

                1.  Loan Masterfile Print
                2.  Commercial Loan Masterfile Print
                3.  Late Charge Journal
                4.  Delinquency Report
                5.  Slow Loan Report
                6.  Delinquency Report by Investor
                7.  Delinquency Summary by Investor
                8.  Consumer Loan Delinquency Report
                9.  Commercial Delinquency by Investor
               10.  Commercial Delinquency Summary by Investor
               11.  Consumer Delinquency by Investor
               12.  Consumer Delinquency Summary by Investor
               13.  Adjustable Mortgage Loan - Notice Options
               14.  Alternative Mortgage Instrument Analysis Report
               15.  Single Payment Loan Maturity Notice
               16.  Collection Card
               17.  Paid Off Loan Card
               18.  FNMA Special Trial Balance
               19.  Line of Credit Earnings Report
               20.  Line of Credit Trial Balance
               21.  Commercial Loan Compensating Balance Report
               22.  FHA Case Number Listing
               23.  IRS Report
               24.  Loan Disclosure Statement
               25.  Escrow Disbursements Due
               26.  Insurance Disbursements Due
               27.  MIP Disbursement Due
               28.  Taxes Due Report
               29.  Loan History Print
               30.  Purged Account Report
               31.  Pending Payoff Report
               32.  Loan Portfolio
               33.  Recycle/Assumption Report
               34.  Dealer Floorplan Update Report

                                                                              10

<PAGE>

II.  STARCOM Financial Loan Account System Reports (cont'd)
        C.     Periodic Report Preparation (cont'd)

               35.  Dealer Floorplan Collateral Report
               36.  Dealer Floorplan Report by Collateral Report
               37.  Dealer Trial Balance
               38.  Dealer Statistical Loan Volume
               39.  Dealer Floorplan Purged Collateral Report
               40.  Dealer Floorplan Report
               41.  Dealer Floorplan Inventory Report
               42.  Dealer Funds Report
               43.  Construction Loan Update Report
               44.  Construction Loan Builder Summary
               45.  Construction Loan Bill
               46.  Construction Loan Billing Summary
               47.  Construction Loan Summary Report
               48.  Construction Loan Master File Print
               49.  Loan Standard Account Type Table
               50.  Participation Report
               51.  Loan Totals Only Trial Balance
               52.  FHLMC Form 11 Detail
               53.  FHLMC Form 13SF Detail
               54.  FHLMC Form 381 Detail
               55.  FHLMC Delivery Detail Report
               56.  FHLMC Delivery Exception Report
               57.  FNMA Loan Schedule 1068
               58.  FNMA Loan Schedule 1069
               59.  FNMA Delivery Exception Report
               60.  Loan Masterfile Processing Report

                                                                              11

<PAGE>

III.  STARCOM Financial General Ledger System Reports

        A.  Daily Report Preparation

               1.  Transaction Entry Run Report:  Input Source Totals
               2.  Daily Trial Balance and Posting Run:  Detail and Summary
               3.  G/l Cycle Update Report
               4.  Trial Balance by Account
               5.  Trial Balance by Master Record
               6.  Master File Maintenance Report

        B.     Monthly Report Preparation

               1. Monthly Statement of Operations (Income and Expense)
               2.  Custom Statement of Conditions
               3.  Custom Statement of Operations
               4.  G/L Data Extract for Financial Information Plus

        C.  Periodic Report Preparation

               1.  Snapshot Report
               2.  Budget Report
               3.  Standing Journal Entry Snapshot Print Report
               4.  Account/Department Cross Reference Report
1.             Chart of Accounts

                                END OF SCHEDULE 1

                                                                              12

<PAGE>

                                   SCHEDULE 2

Except as otherwise provided for in this Order, in the event that Ipswich Bank
terminates the Order prior to the end of the term for convenience, whether prior
to or after certification, NCR shall be entitled to retain any deposit
previously paid by and/or due from Ipswich Bank, any charges due for the initial
conversion and masterfile set up, and in lieu of other damages actually
incurred, the early termination charges listed below:

Termination
During Months
-------------

o    Month 1 - 12         Eight times the average monthly billing*

                          For the most recent three month period,
                          or eith times the proposed monthly
                          billing*, whichever is greater.

o    Month 13 - 24        Six times the average monthly billing* for
                          the most recent three month period.

o    Month 25 - 36        Four times the average monthly billing*
                          for the most recent three month billing.

*Monthly billing - as described above refers to Monthly Base charges and Data
Communication charges only.

This schedule supersedes the early termination fees listed in the Processing
Services Addendum, if any.

                                                                              13

NCR CORPORATION                                             [GRAPHIC - NCR LOGO]

                          PROCESSING SERVICES ADDENDUM

                              Ipswich Savings Bank

This Processing Services Addendum between __Ipswich Savings Bank__ ("You") and
NCR Corporation ("NCR") is agreed to on __________, 200___ (the "Effective
Date").

Signed:

You                                          NCR Corporation

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

1.0  THIS ADDENDUM
     -------------
1.1 Our Contract with respect to Processing Services you acquire consists of the
Master Agreement dated __________, 200___ ("Master Agreement"), this Addendum,
the Order and any Schedules and Appendices attached to the Order, collectively
referred to as the "Addendum". We may enter into more than one Order if multiple
services are ordered by you from NCR. Unless otherwise agreed in writing, all
Processing Services will be governed by the Addendum.

1.2 If a conflict exists between the terms and conditions of any of the
documents referenced above, the order of precedence will be: (a) the Order and
its Schedules and Appendices; (b) this Addendum; and (c) the Master Agreement.
Any pre-printed language on your forms shall not apply.

1.3 AN ORDER MAY CONTAIN TERMS AND CONDITIONS, INCLUDING BUT NOT LIMITED TO
WARRANTY AND LIABILITY PROVISIONS, WHICH REPLACE OR ADD TO THE TERMS AND
CONDITIONS OF THIS ADDENDUM OR THE MASTER AGREEMENT. IF THE TERMS OF THIS
ADDENDUM AND AN ORDER CONFLICT, THE ORDER WILL PREVAIL.

2.0  EFFECTIVE DATE
     --------------
2.1 This Addendum specifies the Effective Date above. If the date is left blank,
the date NCR signs this Addendum or first provides Products to you is the
Effective Date. Termination of this Addendum or the Master Agreement will not
terminate any Order.

2.2 Each Order will specify an Effective Date for that Order and a term length,
if applicable. The Order will automatically renew for a term of equal length to
the Initial Term until terminated

                                                                               1
<PAGE>

by either party by written notice to the other
no less than 180 days prior to the end of any Term, unless an Order is
terminated according to Section 11.0 of this Addendum.

3.0  DEFINITIONS
     -----------
3.1 As used in this Addendum, the following terms will have the following
meanings. Capitalized terms not defined in this Addendum will have the meanings
assigned in the Master Agreement.

(a) "Order" means the Order for Products which defines the equipment, software,
or services which you are acquiring from NCR, and any Schedules or Appendices
attached to that Order.

(b) "Processing Services" means services performed by NCR in the handling and
processing of your data.

(c) "Processing Center" means the NCR location which processes your data.
Processing may occur in 1 or more Processing Centers.

3.2 Reference to the conduct of a party includes the conduct of employees,
subcontractors or agents of that party. NCR may provide Services either directly
or through subcontractors.

4.0 SCOPE
    -----
4.1 NCR will provide the Processing Services ordered by you in accordance with
this Addendum and your Order. When performing the Processing Services, NCR will
use reasonable care in the handling of your input media and data. NCR will, to
the extent commercially reasonable, correct any errors or damage to your input
media or data caused by NCR's fault or negligence at its expense.

4.2 Processing Services will have processing priority over other services at the
Processing Center. In the event processing cannot continue on-site, Processing
Services will receive processing priority over other services at the back-up
processing site.

5.0 NCR'S RESPONSIBILITIES
    ----------------------
5.1 NCR will process your input data during NCR's regularly scheduled nightly
processing hours. If you or your agent provides data input to the Processing
Center after the designated hours, NCR will endeavor to reschedule the
processing of the late data input prior to the next on-line day or Clearing
Agent deadline. If late data input cannot be processed prior to the next on-line
day or Clearing Agent deadline, NCR will process your late data input as soon as
reasonably possible without interrupting previously scheduled processing
activity.

5.2 NCR will provide reasonable assistance to you to satisfy Federal and State
regulatory agencies requests for information. NCR maintains insurance coverage
which provides adequate protection for its business needs.

                                                                               2

<PAGE>

5.3 NCR's Processing Centers have a disaster recovery plan in place which
outlines procedures that will be followed in the event. NCR's disaster recovery
plan for all Processing Centers is reviewed on a regular basis. The
communications portion of the disaster recovery plan is tested every year on a
rotating basis. Upon your written request, NCR will provide you with a copy of
its disaster recovery contingency test for Processing Center(s) provided
Services to you.

5.4 NCR will provide you with the information you may need to develop a disaster
contingency plan which will work with NCR's plan.

5.5 NCR will use reasonable efforts to promptly incorporate published regulatory
updates and changes that affect Processing Services.

5.6 NCR will notify you reasonably in advance of any system changes which impact
the Processing Services you receive from NCR, and will provide sufficient
information to assist you with any changes you may need to make, if any, in
order to continue to receive the Processing Services.

5.7 NCR will retain your daily files for 30 business days, in addition NCR will
retain your monthly files for 90 days, and your quarterly files for 1 year (or
other period as may be required by regulation or law) after they are used for
processing. Upon your written request and payment of applicable charges, if any,
NCR will provide you with your master file data and all current account
information maintained by NCR. NCR will retain records, etc., as NCR is required
to by Federal and State regulatory requirements.

6.0  YOUR RESPONSIBILITIES
     ---------------------
6.1  You agree to maintain records, source and backup data:
     1)  for file and input data recreation, if necessary; and
     2)  as required by Federal and State regulatory requirements.

6.2  You agree to obtain and maintain:
     1)  insurance coverage against loss of data as well as other steps required
         by law or regulation; and
     2)  fidelity coverage to protect you from wrongful or dishonest acts
         committed by your employees, agents or subcontractors.

6.3 You agree to assume all expenses related to the delivery or transmission of
input data to the Processing Center and the return delivery or transmission of
data and reports. Input media must be in good condition and the data format must
conform to NCR's specifications in order to avoid delays in processing. If input
data is to be received from multiple locations, NCR will commence processing
after all data is received at the Processing Center unless processing can begin
prior to receiving all data.

6.4 You are responsible for implementation and operation of your accounting,
management, and reporting systems, audit functions, and recovery routines. You
are also responsible for the

                                                                               3
<PAGE>

operation and maintenance of your on-site computer systems and data
communications equipment.

6.5 If system parameters for Processing Services are to be changed or portions
of files are to be deleted, the Processing Center must be notified in writing at
least 30 days in advance so that your change can be accommodated.

6.6 Corrections needed to Processing Services due to your submission of (i)
unusable input data, (ii) data not in the proper format, or (iii) data not
balanced properly, will be processed as soon as reasonably possible without
interrupting previously scheduled processing activity. Additional processing
time or other assistance required for these corrections may be charged to you at
NCR's then-current rates.

6.7 You agree to check, balance and reconcile each report generated by NCR upon
receipt. You agree to notify NCR in writing within 2 business days of receipt of
the report of any discrepancies. Any claim by you for a discrepancy that NCR
does not receive within this 2 business day period shall be forever barred.
Should you discover a discrepancy after this time period, NCR will use its
reasonable efforts to correct the discrepancy at its earliest convenience.
However, given the difficulty of reprocessing beyond this 2 business day period,
NCR may charge you at its then-current rates for the correction of this
discrepancy.

7.0  REGULATORY AGENCIES AND OTHER LEGAL REQUIREMENTS
     ------------------------------------------------
7.1 The data, records and reports to be generated, received or maintained by NCR
pursuant an Addendum may be subject to examination by Federal and State
regulatory agencies that have jurisdiction over your business, to the same
extent as such records would be subject if they were maintained and produced
directly by yourself. Any expenses incurred by NCR associated with these audits
may be billed to you (and other customers, as appropriate) at NCR's then-current
rates.

7.2 You are responsible for notifying the appropriate Federal and State
regulatory agencies of all information required concerning Processing Services
including, but not limited to, the commencement and termination of Processing
Services, and methods and control procedures used in processing your data.

7.3 During the term of an Addendum, the federal regulatory agency which governs
your business will have the authority and responsibility to review and govern
NCR and the Processing Services. NCR will provide the appropriate regulatory
agency's District Director with a copy of the current third party review report
when a review by any regulatory agency is performed. NCR will provide the
regulatory agencies with a copy of NCR's current audited financial statements.

7.4 You or your authorized agent may audit your records at a mutually
agreed-upon time. You agree to pay any reasonable expenses incurred by NCR in
connection with any such audit.

                                                                               4
<PAGE>

8.0  INVOICING
     ---------
8.1 NCR will invoice you on a recurring basis for Processing Services. Other
Products will be invoiced upon delivery. Invoices are due and payable upon
receipt unless otherwise specified on the Order.

8.2 If Processing Services are suspended or terminated for failure to pay an
undisputed invoice, you will be liable for reinstatement charges.

9.0  WARRANTIES
     ----------
9.1 THE PROVISIONS OF THIS SECTION 9.0 GOVERN NCR'S WARRANTY OBLIGATIONS FOR
PROCESSING SERVICES AND, WITH RESPECT TO PROCESSING SERVICES, SUPERSEDE ANY
INCONSISTENT PROVISION IN THE MASTER AGREEMENT.

9.2 NCR warrants that it will perform its obligations under this Addendum in a
professional and workmanlike manner.

9.3 NCR'S LIABILITY AND YOUR SOLE REMEDY IN THE EVENT OF LOSS OF MEDIA OR DATA,
DAMAGE OR CONTAMINATION TO EITHER DATA OR MEDIA, OR ERRONEOUS PROCESSING, WILL
BE LIMITED TO REPLACEMENT OF THE MEDIA ON WHICH THE DATA IS STORED, AND TO THE
EXTENT COMMERCIALLY REASONABLE, CORRECTION OF ERRORS IN PROCESSING. YOU AGREE TO
ALWAYS MAINTAIN BACKUP DATA AS PROTECTION AGAINST SUCH LOSS, DAMAGE OR
CONTAMINATION.

9.4 NCR WILL NOT BE RESPONSIBLE FOR ERRORS OR DELAYS RESULTING FROM THE FAULTY
TRANSMISSION OF DATA FROM YOU, OR FOR DELAYS IN PROCESSING OR IN THE DELIVERY OF
THE PROCESSED DATA IN ANY FORM DUE TO CAUSES BEYOND ITS CONTROL.

9.5 Upon your written request, NCR will procure for your telecommunication
and/or data communication products and services from a provider ("Provider") of
such products and services.

NCR IS NOT RESPONSIBLE FOR AND DOES NOT WARRANT THE PERFORMANCE OF ANY PROVIDER
OR ITS SERVICES, AND YOU AGREE THAT NCR HAS NO LIABILITY TO YOU FOR SUCH
PERFORMANCE OR SERVICES.

You agree to bound by the terms of (i) any agreement between NCR and the
Provider for services rendered to or for you by the Provider, and (ii) any
applicable tariff, which terms related to warranties, limitation of such
Provider's liabilities, and the availability of remedies. If you file a claim
against the Provider and obtain a judgment against it, or settle a controversy
with the Provider, you agree that you will not be entitled to any remedies from
NCR that are in addition to or in lieu of any remedies received from or
settlements agreed to with the Provider.

                                                                               5
<PAGE>

9.6 Your rights and remedies set forth in this Addendum are exclusive and in
lieu of all other rights and remedies related to any Order or Product.

10.0 CONFIDENTIALITY
     ---------------
10.1 "Confidential Information" means all data, reports, Software,
specifications and information transmitted or received by either party during
the term of an Order: (i) in documents or other tangible materials clearly
marked CONFIDENTIAL or the like; (ii) data and reports which contain your input
data; or (iii) orally or in any other intangible form, if at the time of
disclosure the disclosing party tells the receiving party that the information
is confidential, and within ten (10) days after that first disclosure, the
disclosing party delivers to the receiving party documents or other tangible
materials clearly marked CONFIDENTIAL or the like which discloses or describes
that information.

               Confidential Information does not include information which: (a)
is or becomes publicly known or readily ascertainable by the public through no
wrongful act of the receiving party; (b) is independently developed by or for
the receiving party; (c) the receiving party receives from a third party, if the
receiving party does not know of any restrictions on the disclosure of that
information; or (d) the disclosing party discloses to a third party without
similar restrictions on disclosure.

10.2 During the term of an Order and for a period of two (2) years from the
termination or non-renewal of an Order, each party will use reasonable efforts
to prevent the disclosure of Confidential Information to any other person,
unless disclosure is required by law. All materials containing Confidential
Information delivered by a party under this Addendum are and will remain the
disclosing party's property; at the disclosing party's written request, the
receiving party must promptly return to the disclosing party all Confidential
Information, except a single archival copy.

11.0 TERMINATION
     -----------
11.1 Either party may terminate this Addendum if:
     1)  A party files a petition of bankruptcy or receivership, or
         makes an assignment for the benefit of creditors, or should a
         received be appointed or applied for; or

     2)  A party is unable to
         cure a default of any of its obligations hereunder within 30 days
         of written notice being received by the defaulting party.

If NCR is unable to cure a default, pursuant to this Paragraph 11.1, you may
terminate an Order without obligation to NCR for early termination charges as
defined below. You will be responsible to pay all other invoices, charges, etc.,
outstanding as of the termination date.

11.2 You may terminate for convenience an Order, in whole or in part, prior to
the end of any term. In the event of an early termination, you agree to pay NCR
a termination charge in accordance with NCR's then-current termination charges,
unless otherwise specified on your Order, and repayment of any discounts granted
to you during the term. If you terminate an Order for Processing Services in
part and NCR is unable to reasonably continue to provide Processing

                                                                               6
<PAGE>

Services due to your partial termination, NCR reserves the right to terminate
the Order in whole and you agree to pay early termination charges and repayment
of discounts granted on the entire Order being terminated early. Upon receipt of
your early termination notice, NCR will retain any deposit previously paid by
and/or due from you, any discounts extended to you will no longer be granted
through the remainder of the Order's term, and NCR will be paid in full by you
for any other charges due to NCR as of the effective date of termination.

11.3 You may terminate an Order at the end of any term by providing NCR with
written notice 180 days prior to the end of such term. You will not incur
termination charges if the provisions of this paragraph 11.3 are met.

11.4 Upon receiving your notice of intent to terminate and upon placement of an
Order for deconversion services, NCR will, when requested and when all invoices
due have been paid, provide you with your account information contained in NCR's
current files. This information will be provided in the standard machine format
on media used by NCR at the time. All costs for programming, materials, computer
time, project management, etc., will be paid by you in accordance with NCR's
then-current price schedule.

                                                                               7

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