Document:

<PAGE>   1
                                                                    EXHIBIT 10.1

                              AMENDED AND RESTATED

                                CREDIT AGREEMENT

                                  by and among

                      HEALTHCARE REALTY TRUST INCORPORATED,
                                  as Borrower,

                             BANK OF AMERICA, N.A.,
                            as Administrative Agent,

                            FIRST UNION NATIONAL BANK

                                       and

                            UBS AG, STAMFORD BRANCH,
                             as Syndication Agents,

                        THE OTHER BANKS IDENTIFIED HEREIN

                                       and

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

                                  July 2, 2001

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                                        Page
-------                                                                                                        ----
<S>      <C>                 <C>                                                                               <C>

ARTICLE I                    .....................................................................................1
         Section 1.01        Definitions..........................................................................1
         Section 1.02        Accounting Terms....................................................................16
         Section 1.03        Other Definitional Provisions.......................................................16

ARTICLE II                   ....................................................................................16
         Section 2.01        Commitments.........................................................................16
         Section 2.02        Method of Borrowing.................................................................18
         Section 2.03        Notes...............................................................................18
         Section 2.04        Scheduled Termination of Commitments; Maturity of Loans.............................19
         Section 2.05        Interest Rates......................................................................19
         Section 2.06        Letters of Credit...................................................................20
         Section 2.07        Swingline Loan Advances.............................................................23
         Section 2.08        Optional Termination or Reduction of Revolving Commitments..........................24
         Section 2.09        Prepayments.........................................................................25
         Section 2.10        Method of Electing Interest Rates...................................................25
         Section 2.11        General Provisions as to Payments...................................................26
         Section 2.12        Funding Losses......................................................................27
         Section 2.13        Computation of Interest and Fees....................................................28
         Section 2.14        Withholding Tax Exemption...........................................................28
         Section 2.15        Fees................................................................................28

ARTICLE III                  ....................................................................................29
         Section 3.01        Conditions to Initial Extensions of Credit..........................................29
         Section 3.02        Conditions to Extension of Credit...................................................30

ARTICLE IV                   ....................................................................................31
         Section 4.01        Corporate Existence and Power.......................................................31
         Section 4.02        Corporate and Governmental Authorization; No Contravention..........................31
         Section 4.03        Binding Effect......................................................................31
         Section 4.04        Litigation..........................................................................31
         Section 4.05        Compliance with ERISA...............................................................32
         Section 4.06        Environmental Matters...............................................................32
         Section 4.07        Material Subsidiaries...............................................................33
         Section 4.08        Not an Investment Company...........................................................33
         Section 4.09        Margin Stock........................................................................34
         Section 4.10        Compliance With Laws................................................................34
         Section 4.11        Absence of Liens....................................................................34
         Section 4.12        Debt................................................................................34
         Section 4.13        Contingent Liabilities..............................................................34
         Section 4.14        Investments.........................................................................34
         Section 4.15        Solvency............................................................................34
         Section 4.16        Taxes...............................................................................35
         Section 4.16        REIT Status.........................................................................35
         Section 4.18        Specified Affiliates................................................................35
         Section 4.19        Financial Condition.................................................................35
         Section 4.20        No Material Adverse Effect..........................................................35
</TABLE>

<PAGE>   3

<TABLE>
<S>      <C>                 <C>                                                                               <C>
ARTICLE V                    ....................................................................................35
         Section 5.01        Information.........................................................................36
         Section 5.02        Payment of Obligations..............................................................38
         Section 5.03        Maintenance of Property; Insurance..................................................38
         Section 5.04        Conduct of Business and Maintenance of Existence....................................38
         Section 5.05        Compliance with Laws................................................................39
         Section 5.06        Inspection of Property, Books and Records...........................................39
         Section 5.07        Negative Pledge.....................................................................39
         Section 5.08        Consolidations, Mergers and Sales and Transfer of Assets............................40
         Section 5.09        Creation of Subsidiaries............................................................41
         Section 5.10        Incurrence and Existence of Debt....................................................41
         Section 5.11        Transactions with Affiliates........................................................42
         Section 5.12        Use of Proceeds.....................................................................42
         Section 5.13        Constitutional Documents............................................................42
         Section 5.14        Investments.........................................................................42
         Section 5.15        Capital Expenditures................................................................43
         Section 5.16        Repurchase, Retirement or Redemption of Capital Stock; Dividends....................43
         Section 5.17        Ratio of Consolidated Funded Indebtedness to Consolidated Total Capital.............43
         Section 5.18        Consolidated Tangible Net Worth.....................................................43
         Section 5.19        Consolidated Coverage Ratio.........................................................43
         Section 5.20        Consolidated Senior Secured Debt to Consolidated Total Capital Ratio................43
         Section 5.21        Consolidated Unencumbered Realty to Consolidated Unsecured Debt Ratio...............44
         Section 5.22        Consolidated Unencumbered Coverage Ratio............................................44
         Section 5.23        Specified Affiliates................................................................44
         Section 5.24        REIT Status.........................................................................44
         Section 5.25        Leases..............................................................................44
         Section 5.26        Favorable Treatment.................................................................44
         Section 5.27        Construction and Development........................................................44
         Section 5.28        Limitation on Certain Agreements....................................................44

ARTICLE VI                   ....................................................................................45
         Section 6.01        Events of Default...................................................................45

ARTICLE VII                  ....................................................................................47
         Section 7.01        Appointment and Authorization.......................................................47
         Section 7.02        Agents and Affiliates...............................................................47
         Section 7.03        Action by Agent.....................................................................47
         Section 7.04        Consultation with Experts...........................................................47
         Section 7.05        Liability of Agent..................................................................48
         Section 7.06        Indemnification.....................................................................48
         Section 7.07        Credit Decision.....................................................................48
         Section 7.08        Successor Agent.....................................................................48
         Section 7.09        Agent's Fee.........................................................................49

ARTICLE VIII                 ....................................................................................49
         Section 8.01        Basis for Determining Interest Rate Inadequate or Unfair............................49
         Section 8.02        Illegality..........................................................................49
         Section 8.03        Increased Cost and Reduced Return...................................................50
         Section 8.04        Taxes...............................................................................51
         Section 8.05        Base Rate Loans Substituted for Affected Eurodollar Loans...........................52
</TABLE>

                                      -ii-

<PAGE>   4

<TABLE>
<S>      <C>                 <C>                                                                               <C>
         Section 8.06        Substitution of Bank................................................................52

ARTICLE IX                   ....................................................................................52
         Section 9.01        Notices.............................................................................52
         Section 9.02        No Waivers..........................................................................53
         Section 9.03        Expenses............................................................................53
         Section 9.04        Sharing of Set-Offs.................................................................54
         Section 9.05        Amendments and Waivers..............................................................54
         Section 9.06        Successors and Assigns..............................................................55
         Section 9.07        Collateral..........................................................................57
         Section 9.08        Purpose.............................................................................57
         Section 9.09        Governing Law; Submission to Jurisdiction...........................................57
         Section 9.10        Counterparts; Integration; Effectiveness............................................57
         Section 9.11        WAIVER OF JURY TRIAL................................................................57
</TABLE>

SCHEDULES

Schedule 2.01(a)             Banks and Commitments
Schedule 2.01(d)             Form of Bank Joinder Agreement
Schedule 2.02                Notice of Borrowing
Schedule 2.03(a)             Form of Note
Schedule 2.06(a)             Letters of Credit to be Issued on the Closing Date
Schedule 2.06(b)-1           Existing Letters of Credit
Schedule 2.06(b)-2           Notice of Request for Letter of Credit
Schedule 2.10                Notice of Interest Rate Election
Schedule 4.04                Litigation
Schedule 4.05                ERISA
Schedule 4.06                Environmental Matters
Schedule 4.07                Material Subsidiaries and Specified Affiliates
Schedule 4.12                Debt
Schedule 4.13                Contingent Liabilities
Schedule 4.14                Investments
Schedule 5.16                White Paper
Schedule 5.26                Form of Guaranty
Schedule 9.01                Notice Addresses
Schedule 9.06(c)             Form of Assignment Agreement

                                     -iii-
<PAGE>   5

                              AMENDED AND RESTATED
                           REVOLVING CREDIT AGREEMENT

         THIS AMENDED AND RESTATED CREDIT AGREEMENT (the "Credit Agreement")
dated as of July 2, 2001 is by and among HEALTHCARE REALTY TRUST INCORPORATED, a
Maryland corporation, BANK OF AMERICA, N.A., as administrative agent (in such
capacity, the "Agent"), FIRST UNION NATIONAL BANK and UBS AG, STAMFORD BRANCH,
as Syndication Agents, the other Banks identified herein, and BANC OF AMERICA
LLC, as Sole Lead Arranger and Sole Book Manager.

                                   WITNESSETH

         WHEREAS, a revolving credit facility (the "Existing Credit Facility")
exists in favor of the Borrower pursuant to the terms of that credit agreement
dated as of October 15, 1998 (as amended and modified, the "Existing Credit
Agreement") among the Borrower, certain Subsidiaries of the Borrower, as
guarantors, the banks identified therein, NationsBank, N.A., a national banking
association now known as Bank of America, N.A., as administrative agent for such
banks and First Union National Bank, Societe Generale and Bank Austria
Creditanstalt Corporate Finance, Inc., as co-agents;

         WHEREAS, the Borrower has requested certain modifications to the
Existing Credit Facility, including the release of the guaranties given by the
Subsidiaries of the Borrower thereunder;

         WHEREAS, the Banks have agreed to the requested modifications on the
terms and conditions provided herein; and

         WHEREAS, this Credit Agreement is given in replacement of and
substitution for the Existing Credit Agreement and to refinance the Existing
Credit Facility;

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

                                    ARTICLE I
                                   DEFINITIONS

         Section 1.01      Definitions.

         The following terms, as used herein, have the following meanings:

                  "Adjusted Eurodollar Rate" means, for the Interest Period for
         each Eurodollar Loan comprising part of the same borrowing (including
         conversions, extensions and renewals), a per annum interest rate
         determined pursuant to the following formula:

                  Adjusted Eurodollar Rate =        Interbank Offered Rate
                                              ---------------------------------
                                              1 - Eurodollar Reserve Percentage

                  "Administrative Questionnaire" means, with respect to each
         Bank, an administrative questionnaire in the form prepared by the Agent
         and submitted to the Agent duly completed by such Bank.

                  "Affiliate" means, with respect to any designated Person, (a)
         any officers or directors of such Person or (b) any other Person (other
         than a Subsidiary of such designated Person) that has

<PAGE>   6

         a relationship with the designated Person whereby either of such
         Persons directly or indirectly controls or is controlled by or is under
         common control with the other of such Persons. The term "control" means
         the possession, directly or indirectly, of the power, whether or not
         exercised, to direct or cause the direction of the management or
         policies of any Person, whether through ownership of voting securities,
         by contract or otherwise.

                  "Agent" means Bank of America, in its capacity as
         administrative agent for the Banks hereunder, and its successors in
         such capacity.

                  "Agent's Fee Letter" means that letter agreement dated as of
         _______, 2001 among Bank of America, N.A., Banc of America Securities
         LLC and the Borrower, as amended, modified, supplemented or replaced
         from time to time.

                  "Aggregate Revolving Committed Amount" means the aggregate
         amount of Revolving Commitments in effect, being initially ONE HUNDRED
         FIFTY MILLION DOLLARS ($150,000,000).

                  "Applicable Lending Office" means, with respect to any Bank,
         (a) in the case of its Base Rate Loans, its Domestic Lending Office and
         (b) in the case of its Eurodollar Loans, its Eurodollar Lending Office.

                  "Applicable Percentage" means for any day, the rate per annum
         set forth below opposite the applicable rating for the Borrower's
         senior unsecured (non-credit enhanced) long term debt then in effect,
         it being understood that the Applicable Percentage for (i) Base Rate
         Loans shall be the percentage set forth under the column "Base Rate
         Margin", (ii) Eurodollar Loans shall be the percentage set forth under
         the column "Eurodollar Margin and Letter of Credit Fee", (iii) the
         Letter of Credit Fee shall be the percentage set forth under the column
         "Eurodollar Margin and Letter of Credit Fee", and (iv) the Facility Fee
         shall be the percentage set forth under the column "Facility Fee":

<TABLE>
<CAPTION>
                                                                    Eurodollar
                               S&P and                                Margin           Base
              Pricing           Fitch            Moody's          and Letter of        Rate          Facility
               Level            Rating            Rating            Credit Fee        Margin            Fee
              -------          -------           -------          -------------       ------         --------
              <S>             <C>               <C>               <C>                 <C>            <C>

                 I            A- or above       A3 or above           0.725%              0%           0.20%
                II               BBB+              Baa1                0.85%              0%           0.20%
                III               BBB              Baa2                1.00%              0%           0.20%
                IV               BBB-              Baa3                1.15%              0%           0.20%
                 V            below BBB-        Below Baa3             1.60%           0.50%           0.30%
                              or unrated        or unrated
</TABLE>

                  The numerical classification set forth under the column
         "Pricing Level" shall be established based on the ratings by S&P,
         Moody's and Fitch (collectively, the "Rating Services") for the
         Borrower's senior unsecured (non-credit enhanced) long term debt.

                  Where such a rating is provided by only one Ratings Service,
         the pricing shall be determined by reference to that rating. Where a
         rating is provided by only two of the three Ratings Services, pricing
         shall be determined by reference to the higher of the two ratings if
         they are not more than one Pricing Level apart, or by an average of the
         applicable Pricing Levels (and applicable margins and fee percentages)
         if they are more than one Pricing Level apart. Where a

                                      - 2 -
<PAGE>   7
         rating is provided by all three Ratings Services, pricing shall be
         determined by reference to the rating level provided by two of the
         three Ratings Services, if the ratings are not more than one Pricing
         Level apart, or by an average of the applicable Pricing Levels (and
         applicable margins and fee percentages) if any of the ratings are more
         than one Pricing Level apart.

                  The Applicable Percentage shall be determined and adjusted on
         the date five (5) Business Days after each change in debt rating.
         Adjustments in the Applicable Percentage shall be effective as to all
         Loans and Letters of Credit, existing and prospective, from the date of
         adjustment. The Agent shall promptly notify the Banks of changes in the
         Applicable Percentage. Adjustments in the Applicable Percentage shall
         be effective as to existing Extensions of Credit as well as new
         Extensions of Credit made thereafter.

                  "Asset Sale" means any sale, lease or other disposition
         (including any such transaction effected by way of merger, amalgamation
         or consolidation) by the Borrower or any of its Subsidiaries or
         Specified Affiliates subsequent to the date hereof of any asset
         (including stock), including without limitation any sale-leaseback
         transaction, whether or not involving a Capital Lease, but excluding
         (a) any sale, lease or other disposition in the ordinary course of
         business of real property which is the subject of mortgage liens
         permitted hereunder, (b) any sale, lease or other disposition of raw
         materials, supplies or other nonfixed assets in the ordinary course of
         business, (c) any sale, lease or other disposition of surplus, obsolete
         or worn out machinery, equipment, molds or other manufacturing
         equipment in the ordinary course of business to the extent that the
         aggregate book value of all of such assets sold, leased or otherwise
         disposed of in a fiscal year does not exceed $5,000,000, (d) any sale
         or other disposition in the ordinary course of business of readily
         marketable securities, (e) any disposition of cash not prohibited
         hereunder, and (f) the issuance of any shares of stock in any Specified
         Affiliate to any officer, director or employee of the Borrower.

                  "Assignee" shall have the meaning given to such term in
         Section 9.06(c).

                  "Bank" means each bank listed on the signature pages hereof,
         each Assignee which becomes a Bank pursuant to Section 9.06(c), and
         their respective successors.

                  "Bank of America" means Bank of America, N.A., a national
         banking association, and its successors.

                  "BAS" means Banc of America Securities LLC, its successors and
         assigns.

                  "Base Rate" means, for any day, the rate per annum (rounded
         upwards, if necessary, to the nearest whole multiple of 1/100 of 1%)
         equal to the greater of (a) the Federal Funds Rate in effect on such
         day plus 1/2 of 1% or (b) the Prime Rate in effect on such day. If for
         any reason the Agent shall have determined (which determination shall
         be conclusive absent manifest error) that it is unable after due
         inquiry to ascertain the Federal Funds Rate for any reason, including
         the inability or failure of the Agent to obtain sufficient quotations
         in accordance with the terms hereof, the Base Rate shall be determined
         without regard to clause (a) of the first sentence of this definition
         until the circumstances giving rise to such inability no longer exist.
         Any change in the Base Rate due to a change in the Prime Rate or the
         Federal Funds Rate shall be effective on the effective date of such
         change in the Prime Rate or the Federal Funds Rate, respectively.

                  "Base Rate Borrowing" means a Borrowing consisting of Base
         Rate Loans.

                                     - 3 -
<PAGE>   8
                  "Base Rate Loan" means a Loan hereunder which bears interest
         at the Base Rate plus the Applicable Percentage pursuant to the
         applicable Notice of Borrowing or Notice of Interest Rate Election or
         the provisions of Article VIII.

                  "Benefit Arrangement" means at any time an employee benefit
         plan within the meaning of Section 3(3) of ERISA which is not a Plan or
         a Multiemployer Plan and which is maintained or otherwise contributed
         to by any member of the ERISA Group.

                  "Borrower" means Healthcare Realty Trust Incorporated, a
         corporation organized and existing under the laws of the State of
         Maryland, and its successors.

                  "Borrowing" means a Revolving Loan borrowing or Swingline Loan
         hereunder, including extensions and conversions.

                  "Business Day" means any day except a Saturday, Sunday or
         other day on which commercial banks in Charlotte, North Carolina or New
         York, New York are authorized or required by law to close.

                  "Buy-Sell Agreement" means a written agreement between the
         Borrower or any Subsidiary, as purchaser, and one or more third
         parties, as seller, obligating the Borrower or such Subsidiary, upon
         payment of a definitely determinable price, to acquire the real
         property and improvements described therein without contingency, except
         that the improvements are constructed in accordance with the conditions
         set forth in the particular Buy-Sell Agreement.

                  "Capital Lease" means a lease that would be capitalized on a
         balance sheet of the lessee prepared in accordance with GAAP.

                  "Capital Lease Indebtedness" means indebtedness incurred
         pursuant to a Capital Lease.

                  "Change of Control" means the occurrence of any of the
         following events: (i) any Person or two or more Persons acting in
         concert shall have acquired beneficial ownership, directly or
         indirectly, of, or shall have acquired by contract or otherwise, or
         shall have entered into a contract or arrangement that, upon
         consummation, will result in its or their acquisition of or control
         over, voting stock of the Borrower (or other securities convertible
         into such voting stock) representing 35% or more of the combined voting
         power of all voting stock of the Borrower, or (ii) during any period of
         up to 24 consecutive months, commencing after the Closing Date,
         individuals who at the beginning of such 24 month period were directors
         of the Borrower (together with any new director whose election by the
         Borrower's Board of Directors or whose nomination for election by the
         Borrower's shareholders was approved by a vote of at least two-thirds
         of the directors then still in office who either were directors at the
         beginning of such period or whose election or nomination for election
         was previously so approved) cease for any reason to constitute a
         majority of the directors of the Borrower then in office. As used
         herein, "beneficial ownership" shall have the meaning provided in Rule
         13d-3 of the Securities and Exchange Commission under the Securities
         Exchange Act of 1934.

                  "Closing Date" means the date on which the conditions set
         forth in Article III to the making of the initial Extension of Credit
         hereunder shall have been fulfilled and on which such initial Extension
         of Credit shall have been made.

                  "Code" means the Internal Revenue Code of 1986, as amended
         from time to time, or any successor statute.

                                     - 4 -
<PAGE>   9

                  "Commitments" means, collectively, the Revolving Commitment,
         the LOC Commitment and the Swingline Commitment.

                  "Commitment Period" means the period from and including the
         Closing Date to but not including the earlier of (i) the Termination
         Date, or (ii) the date on which the Commitments terminate in accordance
         with the provisions of this Credit Agreement.

                  "Consolidated Coverage Ratio" means, as of the date of
         determination, the ratio of (i) Consolidated EBITDA to (ii) the sum of
         Consolidated Interest Expense plus the aggregate amount of dividends,
         distributions and redemptions made in respect of preferred stock by the
         Borrower and its Consolidated Subsidiaries during the applicable
         period.

                  "Consolidated EBITDA" means, for the Borrower and its
         Consolidated Subsidiaries for any period, the sum of (a) net income,
         plus (b) to the extent deducted in determining such net income,
         Consolidated Interest Expense, plus (c) the amount of income taxes (or
         minus the amount of tax benefits), plus (d) depreciation and
         amortization, determined in each case on a consolidated basis in
         accordance with GAAP. Except as expressly provided otherwise, the
         applicable period shall be for the four consecutive fiscal quarters
         ending as of the date of determination.

                  "Consolidated Funded Indebtedness" means, without duplication,
         all obligations, liabilities and indebtedness of the Borrower and its
         Subsidiaries of the types described in subsections (a) through (f),
         inclusive, (i) and (j) of the definition of Debt.

                  "Consolidated Interest Expense" means, for the Borrower and
         its Consolidated Subsidiaries for any period, the interest expense and
         letter of credit fee expense determined on a consolidated basis in
         accordance with GAAP. Except as expressly provided otherwise, the
         applicable period shall be for the four consecutive fiscal quarters
         ending as of the date of determination.

                  "Consolidated Mortgage Debt" means the aggregate principal
         amount of all Debt of the Borrower and its Subsidiaries secured by a
         Lien on any real property owned or leased by them.

                  "Consolidated Senior Debt" means all Consolidated Funded
         Indebtedness other than any amount thereof the repayment of which has
         been subordinated to the repayment of any other Consolidated Funded
         Indebtedness.

                  "Consolidated Senior Secured Debt" means at any date the sum
         (without duplication) of (i) Consolidated Mortgage Debt plus (ii)
         Consolidated Subsidiary Debt plus (iii) all preferred stock of
         Subsidiaries not owned by the Borrower and/or one or more of its wholly
         owned Subsidiaries, valued at the higher of voluntary or involuntary
         liquidation preference thereof.

                  "Consolidated Subsidiary" means at any date any Subsidiary or
         other entity the accounts of which would be consolidated with those of
         the Borrower in its consolidated financial statements if such
         statements were prepared as of such date. For purposes of this Credit
         Agreement, Specified Affiliates of the Borrower shall be classified as
         Consolidated Subsidiaries.

                  "Consolidated Subsidiary Debt" means all Debt of Subsidiaries
         of the Borrower (exclusive of Debt owed to the Borrower), determined in
         accordance with GAAP on a consolidated basis.

                                     - 5 -
<PAGE>   10

                  "Consolidated Tangible Net Worth" means, at any time,
         consolidated stockholders' equity of the Borrower and its Consolidated
         Subsidiaries determined as of such time in accordance with GAAP, with
         no upward adjustments due to a revaluation of assets, minus all
         Intangible Assets.

                  "Consolidated Total Capital" means, at any time, the sum of
         (a) Consolidated Tangible Net Worth plus (b) Consolidated Funded
         Indebtedness.

                  "Consolidated Unencumbered Coverage Ratio" means, as of the
         date of determination, the ratio of (i) Consolidated Unencumbered
         EBITDA to (ii) Consolidated Unencumbered Interest Expense.

                  "Consolidated Unencumbered EBITDA" means, as regards the
         unencumbered properties of the Borrower and its Consolidated
         Subsidiaries for any period, the sum of (a) net income from such
         properties, plus (b) Consolidated Unencumbered Interest Expense, plus
         (c) the amount of income taxes (or minus the amount of tax benefits)
         associated with such properties, plus (d) depreciation and
         amortization, determined in each case on a consolidated basis in
         accordance with GAAP. Except as expressly provided otherwise, the
         applicable period shall be for the four consecutive fiscal quarters
         ending as of the date of determination.

                  "Consolidated Unencumbered Interest Expense" means, for the
         Borrower and its Consolidated Subsidiaries for any period, the interest
         expense and letter of credit fee expense determined on a consolidated
         basis in accordance with GAAP, other than in respect of Debt which is
         secured by a Lien on property of the Borrower or its Consolidated
         Subsidiaries. Except as expressly provided otherwise, the applicable
         period shall be for the four consecutive fiscal quarters ending as of
         the date of determination.

                  "Consolidated Unencumbered Realty" means, for the Borrower and
         its Subsidiaries, the book value of all realty (prior to deduction of
         accumulated depreciation) minus the book value of all properties (prior
         to deduction of accumulated depreciation) which are subject to any
         Liens (other than those permitted under clauses (b) - (g) and clauses
         (i) - (j) of Section 5.07).

                  "Consolidated Unsecured Debt" means all unsecured Debt of the
         Borrower and its Subsidiaries.

                  "Constitutional Documents" in relation to any corporate Person
         means the Certificate of Incorporation and Bylaws or other
         constitutional documents of such corporate Person.

                  "Credit Agreement" shall have the meaning given to such term
         in the introductory paragraph hereof.

                  "Debt" of any Person means at any date, without duplication,
         (a) all obligations of such Person for borrowed money, (b) all
         obligations of such Person evidenced by bonds, debentures, notes or
         other similar instruments, (c) all unconditional obligations of such
         Person to pay (as opposed to a contingent or conditional obligation of
         such Person to pay) the deferred purchase price of property or
         services, except security deposits, sums retained to secure
         performance, reserves for capital improvements, trade accounts payable
         and accrued expenses arising in the ordinary course of business, (d)
         all Capitalized Lease Indebtedness, (e) all Debt of others secured by a
         Lien on any asset of such Person, whether or not such Debt is assumed
         by such Person (to the extent of the lesser of the amount of such Debt
         and the book value of any assets subject to such Lien), (f) the maximum
         amount of all letters of credit issued or acceptance facilities
         established for the account of such Person and, without duplication,
         all drafts drawn thereunder

                                     - 6 -
<PAGE>   11

         (other than letters of credit and acceptance facilities supporting
         other Debt of such Person), (g) obligations under Interest Rate
         Protection Agreements, (h) all indebtedness relating to or arising from
         any Securities Transactions, (i) all instruments, obligations or
         undertakings treated as indebtedness in accordance with GAAP, or
         otherwise treated as indebtedness by S&P, Moody's or any other Ratings
         Service (whether or not treated as indebtedness for purposes of GAAP)
         and (j) all Debt of others Guaranteed by such Person (to the extent of
         the lesser of the amount of such Debt Guaranteed or the amount of such
         Guarantee); provided, however, Debt shall not include obligations under
         Buy-Sell Agreements.

                  "Default" means any condition or event which constitutes an
         Event of Default or which with the giving of notice or lapse of time or
         both would, unless cured or waived, become an Event of Default.

                  "Defaulting Bank" means, at any time, any Bank that, at such
         time, (i) has failed to make an Extension of Credit required pursuant
         to the terms of this Credit Agreement, (ii) has failed to pay to the
         Agent or any Bank an amount owed by such Bank pursuant to the terms of
         the Credit Agreement or any other of the Credit Documents, or (iii) has
         been deemed insolvent or has become subject to a bankruptcy or
         insolvency proceeding or to a receiver, trustee or similar proceeding.

                  "Dollars" and "$" means lawful money of the United States of
         America.

                  "Dollar Amount" means, in relation to any Debt denominated in
         Dollars, the amount of such Debt.

                  "Domestic Lending Office" means, as to each Bank, its office
         located at its address set forth in its Administrative Questionnaire
         (or identified in its Administrative Questionnaire as its Domestic
         Lending Office) or such other office as such Bank may hereafter
         designate as its Domestic Lending office by notice to the Borrower and
         the Agent.

                  "Environmental Laws" means any and all federal, state, local
         and foreign statutes, laws, regulations, ordinances, rules, judgments,
         orders, decrees, permits, grants, licenses, agreements or other
         governmental restrictions including, without limitation, the
         Comprehensive Environmental Response, Compensation and Liability Act,
         the Superfund Amendments and Reauthorization Act, the Resource
         Conservation and Recovery Act, the Toxic Substances Control Act, the
         Clean Air Act and the Clean Water Act relating to the environment or to
         emissions, discharges or releases of pollutants, contaminants,
         petroleum or petroleum products, chemicals or industrial, toxic or
         hazardous substances or wastes into the environment (including, without
         limitation, ambient air, surface water, ground water or land) or
         otherwise relating to the manufacture, processing, distribution, use,
         treatment, storage, disposal, transport or handling of pollutants,
         contaminants, petroleum or petroleum products, chemicals or industrial,
         toxic or hazardous substances or wastes or the clean-up or other
         remediation thereof.

                  "ERISA" means the Employment Retirement Income Security Act of
         1974, as amended, or any successor statute.

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

                  "Eurodollar Borrowing" means any Borrowing consisting of
         Eurodollar Loans.

                                     - 7 -
<PAGE>   12

                  "Eurodollar Business Day" means any Business Day on which the
         Agent and the Eurodollar Reference Bank are open for international
         business (including dealings in Dollar deposits) in London.

                  "Eurodollar Lending Office" means, as to each Bank, its
         office, branch or affiliate located at its address set forth in its
         Administrative Questionnaire (or identified in its Administrative
         Questionnaire as its Eurodollar Lending Office) or such other office,
         branch or affiliate of such Bank as it may hereafter designate as its
         Eurodollar Lending Office by notice to the Agent.

                  "Eurodollar Loan" means a Loan which bears interest at the
         Adjusted Eurodollar Rate plus the Applicable Percentage pursuant to the
         applicable Notice of Borrowing or Notice of Interest Rate Election.

                  "Eurodollar Reserve Percentage" means for any day, that
         percentage (expressed as a decimal) which is in effect from time to
         time under Regulation D of the Board of Governors of the Federal
         Reserve System (or any successor), as such regulation may be amended
         from time to time or any successor regulation, as the maximum reserve
         requirement (including, without limitation, any basic, supplemental,
         emergency, special, or marginal reserves) applicable with respect to
         Eurocurrency liabilities as that term is defined in Regulation D (or
         against any other category of liabilities that includes deposits by
         reference to which the interest rate of Eurodollar Loans is
         determined), whether or not the Bank has any Eurocurrency liabilities
         subject to such reserve requirement at that time. Eurodollar Loans
         shall be deemed to constitute Eurocurrency liabilities and as such
         shall be deemed subject to reserve requirements without benefits of
         credits for proration, exceptions or offsets that may be available from
         time to time to a Bank. The Eurodollar Rate shall be adjusted
         automatically on and as of the effective date of any change in the
         Eurodollar Reserve Percentage.

                  "Event of Acceleration" means any of the events or conditions
         set forth in Sections 6.01(g), (h) or (i) with respect to the Borrower.

                  "Event of Default" has the meaning set forth in Section 6.01.

                  "Existing Credit Agreement" has the meaning set forth in the
         preamble.

                  "Existing Credit Facility" has the meaning set forth in the
         preamble.

                  "Existing Letters of Credit" means those Letters of Credit
         outstanding on the Closing Date and identified on Schedule 2.06(b)-1.

                  "Extension of Credit" means, as to any Bank, the making
         (including extensions and conversions) of, or participation in, a Loan
         by such Bank or the issuance or extension of, or participation in, a
         Letter of Credit.

                  "Facility Fee" shall have the meaning given such term in
         Section 2.15(a).

                  "Federal Funds Rate" means, for any day, the rate of interest
         per annum (rounded upwards, if necessary, to the nearest whole multiple
         of 1/100 of 1%) equal to the weighted average of the rates on overnight
         Federal funds transactions with members of the Federal Reserve System
         arranged by Federal funds brokers on such day, as published by the
         Federal Reserve Bank of New York on the Business Day next succeeding
         such day, provided that (A) if such day is not a Business

                                     - 8 -
<PAGE>   13

         Day, the Federal Funds Rate for such day shall be such rate on such
         transactions on the next preceding Business Day and (B) if no such rate
         is so published on such next preceding Business Day, the Federal Funds
         Rate for such day shall be the average rate quoted to the Agent on such
         day on such transactions as determined by the Agent.

                  "Financing Documents" means the Credit Agreement, the Notes,
         the LOC Documents and the Guaranties, if any, in each case as amended
         and in effect from time to time.

                  "Fitch" means Fitch, Inc., a successor of the ratings
         businesses of Fitch IBCA, Inc. and Duff & Phelps Credit Rating Co.,
         Inc., and its successors and assigns in the business of rating
         securities.

                  "Foreign Government" means any government other than that of
         the United States of America or any political subdivision thereof.

                  "Foreign Person" means (a) any Foreign Government, (b) any
         agency of a Foreign Government, (c) any form of business enterprise
         organized under the laws of any country other than the United States of
         America or its possessions or any political subdivision thereof or (d)
         any form of business enterprise owned or controlled by any of the
         Persons described in clauses (a), (b) or (c) of this definition.

                  "Funds From Operations" means the Borrower's net income
         (loss), excluding gains (losses) from restructuring of indebtedness and
         sales of property, plus depreciation and amortization, and after
         adjustments for unconsolidated partnerships and joint ventures as
         hereafter provided. Notwithstanding contrary treatment under GAAP, for
         purposes hereof, "Funds From Operations" shall include, and be adjusted
         to take into account, the Borrower's interests in unconsolidated
         partnerships and joint ventures, on the same basis as consolidated
         partnerships and subsidiaries, as provided in the "white paper" issued
         in March 1995 by the National Association of Real Estate Investment
         Trusts, a copy of which is attached hereto as Schedule 5.16.

                  "GAAP" means generally accepted accounting principles in the
         United States applied on a consistent basis and subject to the terms of
         Section 1.02.

                  "Government" means the federal government of the United States
         of America or any agency thereof.

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

                  "Group" or "Group of Loans" means at any time a group of Loans
         consisting of (a) all Base Rate Loans at such time or (b) all
         Eurodollar Loans having the same Interest Period at such time; provided
         that, if a Loan of any particular Bank is converted to or made as a
         Base Rate Loan pursuant to Sections 8.02 or 8.04, such Loan shall be
         included in the same Group or Groups of Loans from time to time as if
         it had not been so converted or made as a Base Rate Loan.

                  "Guarantee" by any Person means any obligation, contingent or
         otherwise, of such Person directly or indirectly guaranteeing any Debt
         or other obligation of any other Person and, without limiting the
         generality of the foregoing, any obligation, direct or indirect,
         contingent or otherwise, of such Person (a) to purchase or pay (or
         advance or supply funds for the purchase or payment of) such Debt or
         other obligation (whether by virtue of partnership arrangements, by
         agreement to keep-well, to purchase assets, goods, securities or
         services, to take-or-pay, or to

                                     - 9 -
<PAGE>   14

         maintain financial statement conditions or otherwise) or (b) entered
         into for the purpose of assuring in any other manner the obligee of
         such Debt or other obligation of the payment thereof or to protect such
         obligee against loss in respect thereof (in whole or in part); provided
         that the term Guarantee shall not include endorsement for collection or
         deposit in the ordinary course of business.

                  "Guarantor" means any party that may give a guaranty of the
         loans and obligations hereunder in substantially the form of Schedule
         5.26 or other form reasonably satisfactory to the Agent and the
         Majority Banks, in each case as amended, supplemented or otherwise
         modified from time to time.

                  "Guaranties" means those guaranty agreements, if any, given in
         respect of the loans and obligations owing under this Credit Agreement,
         as amended, supplemented or otherwise modified from time to time.

                  "Hazardous Substance" means any toxic or hazardous substance,
         including petroleum and its derivatives presently regulated under the
         Environmental Laws.

                  "Intangible Assets" shall mean, as of the date of any
         determination thereof, the total amount of all assets of the Borrower
         and its Subsidiaries consisting of goodwill patents, trade names,
         trademarks, copyrights, franchises, experimental expense, organization
         expense, unamortized debt discount and expense, deferred assets (other
         than prepaid insurance and prepaid taxes), the excess of cost of shares
         acquired over book value of related assets and such other assets as are
         properly classified as "intangible assets" in accordance with GAAP.

                  "Interbank Offered Rate" means, for the Interest Period for
         each Eurodollar Loan comprising part of the same borrowing (including
         conversions, extensions and renewals), a per annum interest rate
         (rounded upwards, if necessary, to the nearest whole multiple of 1/100
         of 1%) equal to the rate of interest, determined by the Agent on the
         basis of the offered rates for deposits in dollars for a period of time
         corresponding to such Interest Period (and commencing on the first day
         of such Interest Period), appearing on Telerate Page 3750 (or, if, for
         any reason, Telerate Page 3750 is not available, the Reuters Screen
         LIBO Page) as of approximately 11:00 A.M. (London time) two (2)
         Business Days before the first day of such Interest Period. As used
         herein, "Telerate Page 3750" means the display designated as page 3750
         by Dow Jones Markets, Inc. (or such other page as may replace such page
         on that service for the purpose of displaying the British Bankers
         Association London interbank offered rates) and "Reuters Screen LIBO
         Page" means the display designated as page "LIBO" on the Reuters
         Monitor Money Rates Service (or such other page as may replace the LIBO
         page on that service for the purpose of displaying London interbank
         offered rates of major banks).

                  "Interest Period" means, with respect to each Eurodollar Loan,
         a period commencing on the date of Borrowing specified in the
         applicable Notice of Borrowing or on the date specified in the
         applicable Notice of Interest Rate Election and ending, one, two, three
         or six months thereafter, as the Borrower may elect in the applicable
         Notice; provided that:

                           (i)      any Interest Period which would otherwise
                  end on a day which is not a Eurodollar Business Day shall be
                  extended to the next succeeding Eurodollar Business Day unless
                  such Eurodollar Business Day falls in another calendar month,
                  in which case such Interest Period shall end on the next
                  preceding Eurodollar Business Day;

                           (ii)     any Interest Period which begins on the last
                  Eurodollar Business Day of a calendar month (or on a day for
                  which there is no numerically corresponding day in the

                                     - 10 -
<PAGE>   15

                  calendar month at the end of such Interest Period) shall end
                  on the last Eurodollar Business Day of a calendar month; and

                           (iii)    no Interest Period shall extend beyond the
                  Termination Date.

                  "Interest Rate Protection Agreement" means interest rate swap
         agreement or interest rate future, option, cap, collar or other hedging
         arrangements.

                  "Investment" means any investment in any Person, whether by
         means of share purchase, capital contribution (including, without
         limitation, subordinated debt), loan, time deposit, warrant, option or
         otherwise.

                  "Investment Policy" means the Borrower's investment policy
         currently in effect as of the date hereof and as previously disclosed
         in writing to the Banks, and as amended from time to time by Borrower
         with the approval of Majority Banks, which approval shall not be
         unreasonably delayed, it being agreed and understood that in the event
         Agent does not notify in writing within ten (10) days following the
         date of Agent's receipt of Borrower's request for approval of an
         amendment to the Investment Policy that the Majority Banks have
         disapproved the requested amendment, the Majority Banks shall be deemed
         to have approved the amended investment Policy.

                  "Issuing Bank" means Bank of America.

                  "Issuing Bank Fees" shall have the meaning assigned to such
         term in Section 2.15(c)(ii).

                  "Letter of Credit" means the Existing Letters of Credit and
         any letter of credit issued by the Issuing Bank for the account of the
         Borrower in accordance with the terms of Section 2.01(b).

                  "Letter of Credit Fee" shall have the meaning given such term
         in Section 2.15(c)(i).

                  "Liens" means, with respect to any asset, any mortgage, lien,
         pledge, charge, security interest or encumbrance of any kind in respect
         of such asset. For the purposes of this Credit Agreement, the Borrower
         or any Subsidiary of the Borrower shall be deemed to own subject to a
         Lien any asset which it has acquired or holds subject to the interest
         of a vendor or lessor under any conditional sales agreement, capital
         lease or other title retention agreement relating to such asset.

                  "Loan" or "Loans" means the Revolving Loans and/or Swingline
         Loans or a Eurodollar Loan and/or Base Rate Loan, as appropriate.

                  "LOC Commitment" means the commitment of the Issuing Bank to
         issue, and to honor payment obligations under, Letters of Credit
         hereunder and with respect to each Bank, the commitment of each Bank to
         purchase participation interests in the Letters of Credit up to such
         Bank's LOC Committed Amount as specified in Schedule 2.01(a), as such
         amount may be reduced from time to time in accordance with the
         provisions hereof.

                  "LOC Committed Amount" means, collectively, the aggregate
         amount of all of the LOC Commitments of the Banks to issue and
         participate in Letters of Credit as referenced in Section 2.01(b) and,
         individually, the amount of each Bank's LOC Commitment as specified in
         Schedule 2.01(a).

                                     - 11 -
<PAGE>   16

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

                  "LOC Obligations" means, at any time, the sum of (i) the
         maximum amount which is, or at any time thereafter may become,
         available to be drawn under Letters of Credit then outstanding,
         assuming compliance with all requirements for drawings referred to in
         such Letters of Credit plus (ii) the aggregate amount of all drawings
         under Letters of Credit honored by the Issuing Bank but not theretofore
         reimbursed.

                  "Long-Term Debt" shall mean, at any time, any senior unsecured
         debt obligations outstanding at such time with a maturity more than one
         (1) year after the date of any determination hereunder.

                  "Majority Banks" means, at any time, Banks having more than
         seventy-five percent (75%) of the Revolving Commitments, or if the
         Revolving Commitments have been terminated, Banks having more than
         seventy-five percent (75%) of the aggregate principal amount of the
         Obligations outstanding (taking into account in each case Participation
         Interests or the obligation to participate therein); provided that the
         Commitments of, and the outstanding principal amount of Obligations
         (taking into account in each case Participation Interests or the
         obligation to participate therein) owing to, a Defaulting Bank shall be
         excluded for purposes hereof in making a determination of Majority
         Banks.

                  "Margin Stock" has the meaning assigned to such term in
         Regulation U (to the extent applicable).

                  "Material Adverse Effect" means a material adverse effect on
         (i) the condition (financial or otherwise), operations, business,
         assets, liabilities or prospects of the Borrower and its Subsidiaries
         taken as a whole, (ii) the ability of the Borrower to perform any
         material obligation under the Financing Documents, or (iii) the rights
         and remedies of the Agent and the Banks under the Financing Documents.

                  "Material Plan" means a Plan or Plans having aggregate
         Unfunded Liabilities in excess of $5,000,000.

                  "Material Subsidiary" means any Subsidiary of the Borrower
         with total assets (prior to giving effect to depreciation or
         amortization) in excess of $1,000,000.

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

                  "Multiemployer Plan" means at any time an employee pension
         benefit plan within the meaning of Section 4001(a)(3) of ERISA to which
         any member of the ERISA Group is then making or accruing an obligation
         to make contributions or has within the preceding five (5) plan years
         made contributions, including for these purposes any Person which
         ceased to be a member of the ERISA Group during such five (5) year
         period.

                  "Note" or "Notes" means any of the Revolving Notes.

                  "Notice of Borrowing" has the meaning given to such term in
         Section 2.02(a).

                                     - 12 -
<PAGE>   17

                  "Notice of Interest Rate Election" has the meaning given to
         such term in Section 2.10(a).

                  "Obligations" means, collectively, the Revolving Loans,
         Swingline Loans and LOC Obligations.

                  "Parent" means, with respect to any Bank, any Person as to
         which such Bank is a Subsidiary.

                  "Participant" means a bank or other institution which assumes,
         in accordance with Section 9.06(b), a participating interest with
         respect to the Loans, the Notes and this Credit Agreement.

                  "Participation Interest" means the purchase by a Bank of a
         participation in LOC Obligations as provided in Section 2.06(b), in
         Swingline Loans as provided in Section 2.07(b), and in Revolving Loans
         as provided in Section 9.04.

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

                  "Person" means an individual, a corporation, a partnership, a
         limited liability company, an association, a trust or any other entity
         or organization, including a government or political subdivision or an
         agency or instrumentality thereof.

                  "Plan" means at any time an employee pension benefit plan as
         defined in Subsection 3(2) of ERISA (other than a Multiemployer Plan)
         which is covered by Title IV of ERISA or subject to the minimum funding
         standards under Section 412 of the Code and either (a) is maintained,
         or contributed to, by any member of the ERISA Group for employees of
         any member of the ERISA Group or (b) has at any time within the
         preceding five (5) years been maintained or contributed to, by any
         Person which was at such time a member of the ERISA Group for employees
         of any Person which was at such time a member of the ERISA Group.

                  "Prime Rate" means the rate of interest per annum publicly
         announced from time to time by Bank of America as its prime rate in
         effect at its principal office in Charlotte, North Carolina, with each
         change in the Prime Rate being effective on the date such change is
         publicly announced as effective (it being understood and agreed that
         the Prime Rate is a reference rate used by Bank of America in
         determining interest rates on certain loans and is not intended to be
         the lowest rate of interest charged on any extension of credit by Bank
         of America to any debtor).

                  "Quarterly Period" means a three month period ending on the
         last Business Day of each March, June, September and December.

                  "Quoted Rate" means, with respect to a Quoted Rate Swingline
         Loan, the fixed or floating percentage rate per annum, if any, offered
         by the Swingline Bank and accepted by the Borrower in accordance with
         the provisions hereof.

                  "Quoted Rate Swingline Loan" means a Swingline Loan bearing
         interest at the Quoted Rate.

                  "Ratings Services" shall have the meaning provided in the
         definition of "Applicable Percentage".

                                     - 13 -
<PAGE>   18

                  "REIT" means a real estate investment trust as defined in
         Sections 856-860 of the Internal Revenue Code of 1986, as amended and
         any successor provision.

                  "Regulation T" means Regulation T of the Board of Governors of
         the Federal Reserve System, as in effect from time to time.

                  "Regulation U" means Regulation U of the Board of Governors of
         the Federal Reserve System, as in effect from time to time.

                  "Regulation X" means Regulation X of the Board of Governors of
         the Federal Reserve System, as in effect from time to time.

                  "Release" has the meaning given to such term in Section
         4.06(a) hereof.

                  "Revolving Commitment" means, with respect to each Bank, the
         commitment of such Bank to make Revolving Loans in an aggregate
         principal amount at any time outstanding of up to such Bank's Revolving
         Committed Amount.

                  "Revolving Commitment Percentage" means, for each Bank, a
         fraction (expressed as a decimal) the numerator of which is the
         Revolving Committed Amount of such Bank at such time and the
         denominator of which is the Aggregate Revolving Committed Amount at
         such time. The initial Revolving Commitment Percentages are set out on
         Schedule 2.01(a).

                  "Revolving Committed Amount" means, collectively, the
         aggregate amount of all of the Revolving Commitments and, individually,
         the amount of each Bank's Revolving Commitment as specified in Schedule
         2.01(a), as such amounts may be reduced from time to time in accordance
         with the provisions hereof.

                  "Revolving Banks" means Banks holding Revolving Commitments,
         as identified on Schedule 2.01(a) and their successors and assigns.

                  "Revolving Loans" shall have the meaning assigned to such term
         in Section 2.01(a).

                  "Revolving Note" or "Revolving Notes" means the promissory
         notes of the Borrower in favor of each of the Revolving Banks
         evidencing the Revolving Loans and Swingline Loans in substantially the
         form attached as Schedule 2.03(a), individually or collectively, as
         appropriate, as such promissory notes may be amended, modified,
         supplemented, extended, renewed or replaced from time to time.

                  "Securities Transaction" means any purchase or other
         acquisition (including any such transaction effected by way of
         partnership formation, upreit, merger, amalgamation or consolidation)
         by the Borrower or any of its Subsidiaries subsequent to the date
         hereof of any real estate asset or any entity which has as its
         principal assets, real estate, through which Borrower or any of its
         Subsidiaries issue consideration comprised principally of its
         respective stock or securities, including, without limitation, common
         stock, preferred stock, and hybrid securities.

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

                  "Solvent" means, with respect to any person on a particular
         date, that on such date (a) the fair value of the property of such
         Person is greater than the total amount of liabilities,

                                     - 14 -
<PAGE>   19

         including, without limitation, contingent liabilities, of such Person,
         (b) the present fair saleable value of the assets of such Person is not
         less than the amount that will be required to pay the probable
         liability of such Person on its debts as they become absolute and
         matured, (c) such Person is able to realize upon its assets and pay its
         debts and other liabilities, contingent obligations and other
         commitments as they mature, (d) such Person does not intend to, and
         does not believe that it will, incur debts or liabilities beyond such
         Person's ability to pay as such debts and liabilities mature, and (e)
         such Person is not engaged in a business or a transaction, and is not
         about to engage in a business or a transaction, for which such Person's
         property would constitute unreasonably small capital after giving due
         consideration to the prevailing practice in the industry in which such
         Person is engaged. In computing the amount of contingent liabilities at
         any time, it is intended that such liabilities will be computed at the
         amount which, in light of all the facts and circumstances existing at
         such time, represents the amount that can reasonably be expected to
         become an actual or matured liability.

                  "Specified Affiliate" means any corporation, association or
         other business entity formed for the purpose of earning income not
         qualified as "rents from real property" under applicable provisions of
         the Code, in which the Borrower owns substantially all of the economic
         interest but less than 10% of the voting interests, and the remaining
         economic and voting interests are subject to restrictions requiring
         that ownership of such interests be held by officers, directors or
         employees of the Borrower.

                  "Subsidiary" means, with respect to any Person, any
         corporation or other entity of which securities or other ownership
         interests having ordinary voting power to elect a majority of the board
         of directors or other persons performing similar functions are at such
         time directly or indirectly owned by such Person.

                  "Subsidiary Guarantor" means any Subsidiary of the Borrower
         which is a Guarantor.

                  "Swingline Bank" means Bank of America.

                  "Swingline Commitment" means the commitment of the Swingline
         Bank to make Swingline Loans in an aggregate principal amount at any
         time outstanding up to the Swingline Committed Amount and the
         commitment of the Banks to purchase participation interests in the
         Swingline Loans up to their respective Revolving Commitment Percentage
         as provided in Section 2.07(b), as such amounts may be reduced from
         time to time in accordance with the provisions hereof.

                  "Swingline Committed Amount" means the amount of the Swingline
         Bank's Commitment as specified in Section 2.01(c).

                  "Swingline Loan" means a swingline revolving loan made by the
         Swingline Bank pursuant to the provisions of Section 2.01(c).

                  "Termination Date" means July 2, 2004, or such earlier date on
         which the Commitments shall terminate, whether by acceleration or
         otherwise.

                  "UCC" means, with respect to any jurisdiction, the Uniform
         Commercial Code as then in effect in that jurisdiction.

                  "Unfunded Liabilities" means, with respect to any Plan at any
         time, the amount (if any) by which (a) the present value of all
         benefits under such Plan exceeds (b) the fair market value of all Plan
         assets allocable to such benefits (excluding any accrued but unpaid
         contributions), all

                                     - 15 -
<PAGE>   20

         determined as of the then most recent valuation date for such Plan, but
         only to the extent that such excess represents a potential liability of
         a member of the ERISA Group to the PBGC or any other Person under Title
         IV of ERISA.

                  "Wholly Owned Consolidated Subsidiary" means, with respect to
         any Person, any Consolidated Subsidiary of such Person all of the
         shares of capital stock or other ownership interests of which (except
         directors' qualifying shares) are at the time directly or indirectly
         owned by such Person.

         Section 1.02      Accounting Terms.

         Unless otherwise specified herein, all accounting terms used herein
shall be interpreted, all accounting determinations hereunder shall be made, and
all financial statements and certificates required to be delivered hereunder
shall be prepared in accordance with GAAP in effect as of the Closing Date;
provided that, if the Borrower notifies the Agent that the Borrower wishes to
amend any covenant in Article V to eliminate the effect of any change in GAAP on
the operation of such covenant (or if the Agent notifies the Borrower that the
Majority Banks wish to amend Article V for such purpose), then the Borrower's
compliance with such covenant shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such covenant is amended in a manner satisfactory to
the Borrower and the Majority Banks.

         Section 1.03      Other Definitional Provisions.

         References to "Articles", "Sections" "subsections", "Schedules" and
"Exhibits" shall be to Articles, Sections, subsections, Schedules and Exhibits,
respectively, of this Credit Agreement unless otherwise specifically provided.
Any of the terms defined in Section 1.01 or referred to in Section 1.02 may,
unless the context otherwise requires, be used in the singular or the plural
depending on the reference. In this Credit Agreement, the word "including" means
"including without limitation" and the word "includes" means "includes without
limitation." Terms defined in this Credit Agreement and used, but not otherwise
defined in the Exhibits and Schedules, shall have the meaning ascribed to such
terms in this Credit Agreement.

                                   ARTICLE II
                                    THE LOANS

         Section 2.01      Commitments.

                  (a)      Revolving Commitments. During the Commitment Period,
         subject to the terms and conditions hereof, each Revolving Bank
         severally agrees to make revolving loans (the "Revolving Loans") to the
         Borrower in the amount of such Bank's Revolving Commitment Percentage
         of such Revolving Loans for the purposes hereinafter set forth;
         provided that (i) with regard to the Revolving Banks collectively, the
         aggregate principal amount of Obligations at any time shall not exceed
         the Aggregate Revolving Committed Amount and (ii) with regard to each
         Revolving Bank individually, such Revolving Bank's Revolving Commitment
         Percentage of Obligations at any time shall not exceed such Revolving
         Bank's Revolving Committed Amount. Revolving Loans shall be made by the
         Revolving Banks ratably in accordance with their respective Revolving
         Commitment Percentages. Revolving Loans may consist of Base Rate Loans
         or Eurodollar Loans, or a combination thereof, as the Borrower may
         request, and may be repaid and reborrowed in accordance with the
         provisions hereof. Revolving Loans consisting of (A) Eurodollar Loans
         shall be in the minimum aggregate principal amount of One Million
         Dollars ($1,000,000) and integral multiples of One Hundred Thousand
         Dollars ($100,000) in excess thereof, and (B) Base Rate Loans shall be
         in the minimum aggregate principal amount of

                                     - 16 -
<PAGE>   21

         Five Hundred Thousand Dollars ($500,000) and integral multiples of One
         Hundred Thousand Dollars ($100,000) in excess thereof. Notwithstanding
         anything contained herein to the contrary, the Borrower shall be
         limited to a maximum number of twenty (20) Eurodollar Loans outstanding
         at any time.

                  (b)      Letter of Credit Commitment. During the Commitment
         Period, subject to the terms and conditions hereof and of the LOC
         Documents, if any, and such other terms and conditions which the
         Issuing Bank may reasonably require, the Issuing Bank shall issue, and
         the Banks shall participate severally in, such Letters of Credit as the
         Borrower may request, in form acceptable to the Issuing Bank, for the
         purposes hereinafter set forth; provided that (i) the aggregate amount
         of LOC Obligations shall not exceed TEN MILLION DOLLARS ($10,000,000)
         at any time (the "LOC Committed Amount"), (ii) with regard to the
         Revolving Banks collectively, the aggregate principal amount of
         Obligations at any time shall not exceed the Aggregate Revolving
         Committed Amount and (iii) with regard to each Revolving Bank
         individually, such Revolving Bank's Revolving Commitment Percentage of
         Obligations at any time shall not exceed such Revolving Bank's
         Revolving Committed Amount. Letters of Credit issued hereunder shall
         have an expiry date not more than one year from the date of issuance or
         extension, and may not extend beyond the Termination Date.

                  (c)      Swingline Commitment. During the Commitment Period,
         subject to the terms and conditions hereof, the Swingline Bank agrees
         to make certain revolving loans (the "Swingline Loans") to the
         Borrower; provided that (i) the aggregate principal amount of Swingline
         Loans shall not exceed FIVE MILLION DOLLARS ($5,000,000) (the
         "Swingline Committed Amount"), (ii) with regard to the Revolving Banks
         collectively, the aggregate principal amount of Obligations at any time
         shall not exceed the Aggregate Revolving Committed Amount and (iii)
         with regard to each Revolving Bank individually, such Revolving Bank's
         Revolving Commitment Percentage of Obligations at any time shall not
         exceed such Revolving Bank's Revolving Committed Amount. Swingline
         Loans may consist of Base Rate Loans or Quoted Rate Swingline Loans, or
         a combination thereof, as the Borrower may request, and may be repaid
         and reborrowed in accordance with the provisions hereof. Swingline
         Loans shall be in a minimum principal amount of One Hundred Thousand
         Dollars ($100,000) and integral multiples of One Hundred Thousand
         Dollars ($100,000) in excess thereof.

                  (d)      Increase in Revolving Commitments. Subject to the
         terms and conditions set forth herein, upon thirty (30) days advance
         written notice to the Agent, the Borrower shall have the right, at any
         time and from time to time during the Commitment Period, to increase
         the Revolving Commitments by up to FIFTY MILLION DOLLARS ($50,000,000)
         in the aggregate (to an Aggregate Revolving Committed Amount of up to
         TWO HUNDRED MILLION DOLLARS ($200,000,000); provided that (i) any such
         increase shall be in a minimum principal amount of $10,000,000 and
         integral multiples of $5,000,000 in excess thereof (or the remaining
         amount, if less), (ii) if any Revolving Loans are outstanding at the
         time of any such increase, the Borrower shall make such payments and
         adjustments on the Revolving Loans (including payment of any
         break-funding amount owing under Section 2.12) as necessary to give
         effect to the revised commitment percentages and commitment amounts of
         the Banks and (iii) the conditions to Extensions of Credit in Section
         3.02 shall be true and correct. An increase in the Aggregate Revolving
         Committed Amount hereunder shall be subject to satisfaction of the
         following: (A) the amount of such increase shall be offered first to
         the existing Banks, and in the event the additional commitments which
         existing Banks are willing to take shall exceed the amount requested by
         the Borrower, then in proportion to the commitments of such existing
         Banks willing to take additional commitments, and (B) if the amount of
         the additional commitments requested by the Borrower shall exceed the
         additional commitments which the existing Banks are willing to take,
         then the Borrower may invite other commercial banks and

                                     - 17 -
<PAGE>   22

         financial institutions reasonably acceptable to the Agent to join this
         Credit Agreement as Banks hereunder for the portion of commitments not
         taken by existing Banks, provided that such other commercial banks and
         financial institutions shall enter into a Bank Joinder Agreement in the
         form attached hereto as Schedule 2.01(d), and provide such other
         documentation to give effect thereto as the Agent and the Borrower may
         reasonably request. In connection with any increase in the Revolving
         Commitments pursuant to this Section, Schedule 2.01(a) shall be revised
         to reflect the modified commitment percentages and commitments of the
         Banks.

         Section 2.02      Method of Borrowing.

                  (a)      The Borrower shall give the Agent and each Bank
         notice in substantially the form of Schedule 2.02 (a "Notice of
         Borrowing") not later than (i) 11:00 A.M. (Charlotte, North Carolina
         time) on the Business Day before the date of each Base Rate Borrowing
         and (ii) 11:00 A.M. (Charlotte, North Carolina time) on the third (3rd)
         Eurodollar Business Day before each Eurodollar Borrowing, specifying:

                           (i)      the amount of the proposed Borrowing;

                           (ii)     the date of such Borrowing, which shall be a
                  Business Day in the case of a Base Rate Borrowing or a
                  Eurodollar Business Day in the case of a Eurodollar Borrowing;

                           (iii)    whether the Loans comprising such Borrowing
                  are to be Base Rate Loans or Eurodollar Loans, or a
                  combination thereof, and

                           (iv)     in the case of a Eurodollar Borrowing, the
                  duration of the initial Interest Period applicable thereto,
                  subject to the provisions of the definition of Interest
                  Period.

                  (b)      Upon receipt of a Notice of Borrowing, the Agent
         shall promptly notify each Bank of the contents thereof and of such
         Banks ratable share of such Borrowing and such Notice of Borrowing
         shall not thereafter be revocable by the Borrower.

                  (c)      Not later than (i) 2:00 P.M., (Charlotte, North
         Carolina time) on the date of each Base Rate Borrowing, and (ii) 11:00
         A.M. (Charlotte, North Carolina time) on the date of each Eurodollar
         Borrowing, each Bank shall make available its ratable share of such
         Borrowing, in federal or other funds immediately available in
         Charlotte, North Carolina, to the Agent at its address specified in or
         pursuant to Section 9.01. Unless any applicable condition specified in
         Article III has not been satisfied, the Agent will make the funds so
         received from the Banks available to the Borrower at an account of the
         Borrower with the Agent immediately after being made available to the
         Agent at the Agent's aforesaid address in immediately available funds.

         Section 2.03      Notes.

                  (a)      The Revolving Loans and Swingline Loans shall be
         evidenced by a duly executed Revolving Note in favor of each Bank.

                  (b)      Upon receipt of each Bank's Note pursuant to Section
         3.01(b), the Agent shall forward such Note to such Bank via overnight
         courier service. Each Bank shall record on its Note the date, amount
         and maturity of each Loan made by it and the date and amount of each
         payment of principal made by the Borrower with respect thereto, and
         prior to any transfer of its Note shall endorse on the schedule forming
         a part thereof appropriate notations to evidence the foregoing
         information with respect to each such Loan then outstanding; provided
         that the failure

                                     - 18 -
<PAGE>   23

         of any Bank to make any such recordation or endorsement shall not
         affect the obligations of the Borrower hereunder or under such Note.
         Each Bank is hereby irrevocably authorized by the Borrower so to
         endorse its Note and to attach to and make a part of its Note a
         continuation of any such schedule as and when required.

         Section 2.04      Scheduled Termination of Commitments; Maturity of
Loans.

                  (a)      The Commitments shall terminate on the Termination
         Date and any Loans then outstanding (together with accrued interest
         thereon) and all accrued fees and other amounts payable hereunder
         (including all amounts payable under Section 2.12) shall be due and
         payable in full on such date. Each repayment pursuant to this Section
         2.04(a) shall be made together with accrued interest to the date of
         payment, and shall be applied ratably to payment of the Loans of the
         several Banks in accordance with their respective Revolving Commitment
         Percentages.

                  (b)      Within the foregoing limits of this Section 2.04,
         each required payment or prepayment shall be applied to the outstanding
         Group or Groups of Loans as the Borrower may designate to the Agent not
         less than five (5) Business Days or five (5) Eurodollar Business Days,
         as the case may be, prior to the date required for such payment or
         prepayment or failing such designation by the Borrower, as the Agent
         may specify by notice to the Borrower and the Banks.

         Section 2.05      Interest Rates.

                  (a)      Each Base Rate Loan shall bear interest on the
         outstanding principal amount thereof, for each day from the date such
         Loan is made until it becomes due, at a rate equal to the Base Rate for
         such day plus the Applicable Percentage. Such interest shall be payable
         quarterly in arrears on the last day of each Quarterly Period and on
         each date a Base Rate Loan is converted to a Eurodollar Loan. Any
         overdue principal of or interest on any Base Rate Loan shall bear
         interest, payable on demand, for each day until paid at a rate per
         annum equal to the sum of 2.00% plus the rate otherwise applicable to
         Base Rate Loans for such day.

                  (b)      Each Eurodollar Loan shall bear interest on the
         outstanding principal amount thereof, for the Interest Period
         applicable thereto, at a rate equal to the Adjusted Eurodollar Rate for
         such Interest Period plus the Applicable Percentage. Such interest
         shall be payable for each Interest Period on the last day thereof and,
         if such Interest Period is longer than 3 months, at intervals of 3
         months after the first day thereof. Any overdue principal of or
         interest on any Eurodollar Loan shall bear interest, payable on demand
         for each day until paid at a rate per annum equal to the sum of 2.00%
         plus (i) for each day during any Interest Period applicable to such
         Eurodollar Loan, the rate applicable to such Eurodollar Loan for such
         day, and (ii) for each day after the end of such Interest Period, the
         sum of 2.00% plus the rate applicable to Base Rate Loans for such day.

                  (c)      Each Swingline Loan shall bear interest on the
         outstanding principal amount thereof, for each day from the date such
         Loan is made until it becomes due, at a rate equal to the Base Rate
         plus Applicable Percentage, or the Quoted Rate, as applicable. Such
         interest shall be payable quarterly on the last day of each Quarterly
         Period in the case of Base Rate Loans, and on the last day of each
         Interest Period, or if the Interest Period is longer than three (3)
         months, at intervals of three (3) months after the first day thereof,
         in the case of Quoted Rate Swingline Loans. Any overdue principal of or
         interest on any Swingline Loans shall bear interest, payable on demand,
         for each day until paid at a rate per annum equal to the sum of 2.00%
         plus the rate otherwise applicable to such Swingline Loans for such day
         (or if no rate is otherwise applicable for such day, the Base Rate).

                                     - 19 -
<PAGE>   24
         (d)      The Agent shall determine each interest rate applicable to the
Loans hereunder. The Agent shall give prompt notice to the Borrower and the
Banks by facsimile, telex or cable of each rate of interest so determined, and
its determination thereof shall be conclusive in the absence of manifest error.

         (e)      The Eurodollar Reference Bank agrees to use its best efforts
to furnish quotations to the Agent as contemplated by this Section 2.05. If the
Eurodollar Reference Bank does not provide a timely quotation, the provisions of
Section 8.01 shall apply.

Section 2.06      Letters of Credit.

         (a)      Notice and Reports. Except for those Letters of Credit
described on Schedule 2.06(a) which shall be issued on the Closing Date, the
request for the issuance of a Letter of Credit shall be submitted by the
Borrower to the Issuing Bank at least three (3) Business Days prior to the
requested date of issuance (or such shorter period as may be agreed by the
Issuing Bank). A form of Notice of Request for Letter of Credit is attached as
Schedule 2.06(b)-2. The Issuing Bank will provide copies of the Letters of
Credit to the Agent and the Banks quarterly and more frequently upon request.

         (b)      Participation. Each Bank, with respect to the Existing Letters
of Credit, hereby purchases a participation interest in such Existing Letters of
Credit, and with respect to Letters of Credit issued on or after the Closing
Date, upon issuance of a Letter of Credit, shall be deemed to have purchased
without recourse a risk participation from the applicable Issuing Bank in such
Letter of Credit and the obligations arising thereunder, in each case in an
amount equal to its Revolving Commitment Percentage of the obligations under
such Letter of Credit and shall absolutely and unconditionally assume, and be
obligated to pay to the Issuing Bank therefor and discharge when due, its pro
rata share of the obligations arising under such Letter of Credit. Without
limiting the scope and nature of each Bank's participation in any Letter of
Credit, to the extent that the Issuing Bank has not been reimbursed as required
hereunder or under any such Letter of Credit, each such Bank shall pay to the
Issuing Bank its pro rata share of such unreimbursed drawing in same day funds
on the day of notification by the Issuing Bank of an unreimbursed drawing
pursuant to the provisions of subsection (d) hereof. The obligation of each Bank
to so reimburse the Issuing Bank shall be absolute and unconditional and shall
not be affected by the occurrence of a Default, an Event of Default or any other
occurrence or event. Any such reimbursement shall not relieve or otherwise
impair the obligation of the Borrower to reimburse the Issuing Bank under any
Letter of Credit, together with interest as hereinafter provided. The Borrower
agrees, to the fullest extent it may effectively do so under applicable law,
that each Bank which holds a participation in a Letter of Credit may exercise
rights of set-off or counterclaim and other rights with respect to such
participation as fully as if such holder of a participation were a direct
creditor of the Borrower in the amount of such participation.

         (c)      Reimbursement. In the event of any drawing under any Letter of
Credit, the Issuing Bank will promptly notify the Borrower. Unless the Borrower
shall immediately notify the Issuing Bank that the Borrower intends to otherwise
reimburse the Issuing Bank for such drawing, the Borrower shall be deemed to
have requested that the Banks make a Revolving Loan in the amount of the drawing
as provided in subsection (e) hereof on the related Letter of Credit, the
proceeds of which will be used to satisfy the related reimbursement obligations.
The Borrower promises to reimburse the Issuing Bank on the day of drawing under
any Letter of Credit (either with the proceeds of a Revolving Loan obtained
hereunder or otherwise) in same day funds. If the Borrower shall fail to
reimburse the Issuing Bank as provided hereinabove, the unreimbursed amount of
such drawing shall bear interest payable on demand at a per annum rate equal to
the Base Rate plus the sum of (i) the Applicable Percentage and (ii) two percent
(2%). The Borrower's

                                      -20-

<PAGE>   25

reimbursement obligations hereunder shall be absolute and unconditional under
all circumstances irrespective of any rights of setoff, counterclaim or defense
to payment the Borrower may claim or have against the Issuing Bank, the Agent,
the Banks, the beneficiary of the Letter of Credit drawn upon or any other
Person, including without limitation any defense based on any failure of the
Borrower to receive consideration or the legality, validity, regularity or
unenforceability of the Letter of Credit. The Issuing Bank will promptly notify
the other Banks of the amount of any unreimbursed drawing and each Bank shall
promptly pay to the Agent for the account of the Issuing Bank in Dollars and in
immediately available funds, the amount of such Bank's pro rata share of such
unreimbursed drawing. Such payment shall be made on the day such notice is
received by such Bank from the Issuing Bank if such notice is received at or
before 2:00 P.M. (Charlotte, North Carolina time) otherwise such payment shall
be made at or before 12:00 Noon (Charlotte, North Carolina time) on the Business
Day next succeeding the day such notice is received. If such Bank does not pay
such amount to the Issuing Bank in full upon such request, such Bank shall, on
demand, pay to the Agent for the account of the Issuing Bank interest on the
unpaid amount during the period from the date of such drawing until such Bank
pays such amount to the Issuing Bank in full at a rate per annum equal to, if
paid within two (2) Business Days of the date that such Bank is required to make
payments of such amount pursuant to the preceding sentence, the Federal Funds
Rate and thereafter at a rate equal to the Base Rate. Each Bank's obligation to
make such payment to the Issuing Bank, and the right of the Issuing Bank to
receive the same, shall be absolute and unconditional, shall not be affected by
any circumstance whatsoever and without regard to the termination of this Credit
Agreement or the Commitments hereunder, the existence of a Default or Event of
Default or the acceleration of the obligations of the Borrower hereunder and
shall be made without any offset, abatement, withholding or reduction
whatsoever. Simultaneously with the making of each such payment by a Bank to the
Issuing Bank, such Bank shall, automatically and without any further action on
the part of the Issuing Bank or such Bank, acquire a participation in an amount
equal to such payment (excluding the portion of such payment constituting
interest owing to the Issuing Bank) in the related unreimbursed drawing portion
of the LOC Obligation and in the interest thereon and in the related LOC
Documents, and shall have a claim against the Borrower with respect thereto.

         (d)      Repayment with Revolving Loans. On any day on which the
Borrower shall have requested, or been deemed to have requested, a Revolving
Loan advance to reimburse a drawing under a Letter of Credit, the Agent shall
give notice to the Banks that a Revolving Loan has been requested or deemed
requested by the Borrower to be made in connection with a drawing under a Letter
of Credit, in which case a Revolving Loan advance comprised of Base Rate Loans
(or Eurodollar Loans to the extent the Borrower has complied with the procedures
of Section 2.02(a) with respect thereto) shall be immediately made to the
Borrower by all Banks (notwithstanding any termination of the Commitments
pursuant to Section 6.01) pro rata based on the respective Revolving Commitment
Percentages of the Banks (determined before giving effect to any termination of
the Commitments pursuant to Section 6.01) and the proceeds thereof shall be paid
directly to the Issuing Bank for application to the respective LOC Obligations.
Each such Bank hereby irrevocably agrees to make its pro rata share of each such
Revolving Loan immediately upon any such request or deemed request in the
amount, in the manner and on the date specified in the preceding sentence
notwithstanding (i) the amount of such borrowing may not comply with the minimum
amount for advances of Revolving Loans otherwise required hereunder, (ii)
whether any conditions specified in Section 3.02 are then satisfied, (iii)
whether a Default or an Event of Default then exists, (iv) failure for any such
request or deemed request for Revolving Loan to be made by the time otherwise
required hereunder, (v) whether the date of such borrowing is a date on which
Revolving Loans are otherwise permitted to be made hereunder or (vi) any
termination of the Commitments relating thereto immediately prior to or
contemporaneously with such borrowing. In the event that any Revolving Loan
cannot for any reason be made on the date otherwise required above (including,
without limitation, as a result of the commencement of a proceeding under the

                                      -21-

<PAGE>   26

Bankruptcy Code with respect to the Borrower), then each such Bank hereby agrees
that it shall forthwith purchase (as of the date such borrowing would otherwise
have occurred, but adjusted for any payments received from the Borrower on or
after such date and prior to such purchase) from the Issuing Bank such
participation in the outstanding LOC Obligations as shall be necessary to cause
each such Bank to share in such LOC Obligations ratably (based upon the
respective Revolving Commitment Percentages of the Banks (determined before
giving effect to any termination of the Commitments pursuant to Section 6.01)),
provided that in the event such payment is not made on the day of drawing, such
Bank shall pay in addition to the Issuing Bank interest on the amount of its
unfunded Participation Interest at a rate equal to, if paid within two (2)
Business Days of the date of drawing, the Federal Funds Rate, and thereafter at
the Base Rate.

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

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

         (g)      Indemnification; Nature of Issuing Bank's Duties.

                  (i)      In addition to its other obligations under this
         Section 2.06, the Borrower hereby agrees to protect, indemnify, pay and
         save the Issuing Bank harmless from and against any and all claims,
         demands, liabilities, damages, losses, costs, charges and expenses
         (including reasonable attorneys' fees) that the Issuing Bank may incur
         or be subject to as a consequence, direct or indirect, of (A) the
         issuance of any Letter of Credit or (B) the failure of the Issuing Bank
         to honor a drawing under a Letter of Credit as a result of any act or
         omission, whether rightful or wrongful, of any present or future de
         jure or de facto government or governmental authority (all such acts or
         omissions, herein called "Government Acts").

                  (ii)     As between the Borrower and the Issuing Bank, the
         Borrower shall assume all risks of the acts, omissions or misuse of any
         Letter of Credit by the beneficiary thereof. The Issuing Bank shall not
         be responsible: (A) for the form, validity, sufficiency, accuracy,
         genuineness or legal effect of any document submitted by any party in
         connection with the application for and issuance of any Letter of
         Credit, even if it should in fact prove to be in any or all respects
         invalid, insufficient, inaccurate, fraudulent or forged; (B) for the
         validity or sufficiency of any instrument transferring or assigning or
         purporting to transfer or assign any Letter of Credit or the rights or
         benefits thereunder or proceeds thereof, in whole or in part, that may
         prove to be invalid or ineffective for any reason; (C) for errors,
         omissions, interruptions or delays in transmission or delivery of any
         messages, by mail, cable, telegraph, telex or otherwise, whether or not
         they be in cipher; (D) for any loss or delay in the transmission or
         otherwise of any document required in order to make a drawing under a
         Letter of Credit or of the proceeds thereof; and (E) for any
         consequences arising from causes beyond the control of the Issuing
         Bank, including, without limitation, any acts by Governmental
         Authorities. None of the above shall affect, impair, or prevent the
         vesting of the Issuing Bank's rights or powers hereunder.

                  (iii)    In furtherance and extension and not in limitation of
         the specific provisions hereinabove set forth, any action taken or
         omitted by the Issuing Bank, under or

                                      -22-

<PAGE>   27

         in connection with any Letter of Credit or the related certificates, if
         taken or omitted in good faith, shall not put such Issuing Bank under
         any resulting liability to the Borrower. It is the intention of the
         parties that this Credit Agreement shall be construed and applied to
         protect and indemnify the Issuing Bank against any and all risks
         involved in the issuance of the Letters of Credit, all of which risks
         are hereby assumed by the Borrower, including, without limitation, any
         and all acts by Governmental Authorities. The Issuing Bank shall not,
         in any way, be liable for any failure by the Issuing Bank or anyone
         else to pay any drawing under any Letter of Credit as a result of any
         acts by Governmental Authorities or any other cause beyond the control
         of the Issuing Bank.

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

                  (v)      Notwithstanding anything to the contrary contained in
         this subsection (g), the Borrower shall have no obligation to indemnify
         the Issuing Bank in respect of any liability incurred by the Issuing
         Bank (A) arising solely out of the gross negligence or willful
         misconduct of the Issuing Bank, as determined by a court of competent
         jurisdiction, or (B) caused by the Issuing Bank's failure to pay under
         any Letter of Credit after presentation to it of a request strictly
         complying with the terms and conditions of such Letter of Credit, as
         determined by a court of competent jurisdiction, unless such payment is
         prohibited by any law, regulation, court order or decree.

                  (vi)     The rights and benefits of this subsection (g) shall
         also extend to Banks which hold participations in Letters of Credit
         hereunder.

         (h)      Responsibility of Issuing Bank. It is expressly understood and
agreed that the obligations of the Issuing Bank hereunder to the Banks are only
those expressly set forth in this Credit Agreement and that the Issuing Bank
shall be entitled to assume that the conditions precedent set forth in Section
3.02 have been satisfied unless it shall have acquired actual knowledge that any
such condition precedent has not been satisfied; provided, however, that nothing
set forth in this Section 2.06 shall be deemed to prejudice the right of any
Bank to recover from the Issuing Bank any amounts made available by such Bank to
the Issuing Bank pursuant to this Section 2.06 in the event that it is
determined by a court of competent jurisdiction that the payment with respect to
a Letter of Credit constituted gross negligence or willful misconduct on the
part of the Issuing Bank.

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

Section 2.07      Swingline Loan Advances.

         (a)      Notices; Disbursement. Whenever the Borrower desires a
Swingline Loan advance hereunder it shall give written notice (or telephonic
notice promptly confirmed in writing) to the Swingline Bank not later than 11:00
A.M. (Charlotte, North Carolina time) on the Business Day of the requested
Swingline Loan advance. Each such notice shall be irrevocable and shall specify
(A) that a Swingline Loan advance is requested, (B) the date of the requested
Swingline Loan advance (which shall be a Business Day) and (C) the principal
amount of and Interest Period

                                      -23-

<PAGE>   28

for the Swingline Loan advance requested. Each Swingline Loan shall have such
maturity date as the Swingline Bank and the Borrower shall agree upon receipt by
the Swingline Bank of any such notice from the Borrower. The Swingline Bank
shall initiate the transfer of funds representing the Swingline Loan advance to
the Borrower by 3:00 P.M. (Charlotte, North Carolina time) on the Business Day
of the requested borrowing.

         (b)      Repayment of Swingline Loans. The principal amount of all
Swingline Loans shall be due and payable on the earlier of (A) the maturity date
agreed to by the Swingline Bank and the Borrower with respect to such Loan, but
not in any event more than 10 days from the date of the Swingline Loan advance,
or (B) the Termination Date. The Swingline Bank may, at any time, in its sole
discretion, by written notice to the Borrower and the Banks, demand repayment of
its Swingline Loans by way of a Revolving Loan advance, in which case the
Borrower shall be deemed to have requested a Revolving Loan advance comprised
solely of Base Rate Loans (or, with the requisite notice, Eurodollar Loans) in
the amount of such Swingline Loans; provided, however, that any such demand
shall be deemed to have been given one Business Day prior to the Termination
Date and on the date of the occurrence of any Event of Default described in
Section 6.01 and upon acceleration of the indebtedness hereunder and the
exercise of remedies in accordance with the provisions of Section 6.01. Each
Bank hereby irrevocably agrees to make its pro rata share of each such Revolving
Loan in the amount, in the manner and on the date specified in the preceding
sentence notwithstanding (i) the amount of such borrowing may not comply with
the minimum amount for advances otherwise required hereunder, (ii) whether any
conditions specified in Section 3.02 are then satisfied, (iii) whether a Default
or an Event of Default then exists, (iv) failure of any such request or deemed
request for Revolving Loan to be made by the time otherwise required hereunder,
(v) whether the date of such borrowing is a date on which Revolving Loans are
otherwise permitted to be made hereunder or (vi) any termination of the
Commitments relating thereto immediately prior to or contemporaneously with such
borrowing. In the event that a Revolving Loan cannot for any reason be made on
the date otherwise required above (including, without limitation, as a result of
the commencement of a proceeding under the Bankruptcy Code with respect to the
Borrower), then each Bank hereby agrees that it shall forthwith purchase (as of
the date such borrowing would otherwise have occurred, but adjusted for any
payments received from the Borrower on or after such date and prior to such
purchase) from the Swingline Bank such Participation Interests in the
outstanding Swingline Loans as shall be necessary to cause each such Bank to
share in such Swingline Loans ratably based upon its Revolving Commitment
Percentage (determined before giving effect to any termination of the
Commitments pursuant to Section 6.01), provided that (A) all interest payable on
the Swingline Loans shall be for the account of the Swingline Bank until the
date as of which the respective Participation Interest is requested to be
purchased and (B) at the time any purchase of Participation Interests pursuant
to this sentence is actually made, the purchasing Bank shall be required to pay
to the Swingline Bank, to the extent not paid to the Swingline Bank by the
Borrower in accordance with the terms hereof, interest on the principal amount
of Participation Interests purchased for each day from and including the day
upon which such borrowing would otherwise have occurred to but excluding the
date of payment for such Participation Interests, at the rate equal to the
Federal Funds Rate.

Section 2.08      Optional Termination or Reduction of Revolving Commitments.

         The Borrower may at any time, upon at least three (3) Business Days'
written notice to the Agent, terminate the Revolving Commitments in whole or
reduce the Revolving Commitments in part up to the amount by which the Revolving
Commitments exceed the aggregate principal amount of the Revolving Loans;
provided, however, any such partial reduction shall be in a minimum amount of
$5,000,000 (or such lesser aggregate amount of the Revolving Commitments as may
then be in effect) or

                                      -24-

<PAGE>   29

any larger multiple of $1,000,000, provided further, any such reduction shall be
made ratably among the Banks.

         Section 2.09      Prepayments.

                  (a)      Optional Prepayments.

                           (i)      The Borrower may, upon written notice
                  delivered to the Agent not later than 2:00 P.M. (Charlotte,
                  North Carolina time) on the first Business Day prior to the
                  date of such prepayment, prepay a Group of Base Rate Loans in
                  whole at any time, or from time to time in part in amounts
                  aggregating $500,000 or any larger multiple of $100,000 by
                  paying (in Dollars) the principal amount to be prepaid
                  together with accrued interest thereon to the date of
                  prepayment. Each such optional prepayment shall be applied to
                  prepay ratably the Base Rate Loans of the several Banks
                  included in such Group.

                           (ii)     The Borrower may, upon at least three (3)
                  Eurodollar Business Days' notice to the Agent, prepay a Group
                  of Eurodollar Loans in whole at any time, or from time to time
                  in part in amounts aggregating $1,000,000 or any larger
                  multiple of $100,000, by paying the principal amount to be
                  prepaid together with accrued interest thereon to the date of
                  prepayment, as designated by Borrower pursuant to Section
                  2.04(b); provided that the Borrower shall reimburse each Bank
                  for any loss or expense incurred by it as a result of any such
                  prepayment in accordance with Section 2.12. Each such optional
                  prepayment shall be applied to prepay ratably the Loans of the
                  several Banks included in such Group.

                           (iii)    Upon receipt of a notice of prepayment
                  pursuant to this Section, the Agent shall promptly notify each
                  Bank of the contents thereof and of such Bank's ratable share
                  of such prepayment and such notice shall not thereafter be
                  revocable by the Borrower.

                  (b)      Mandatory Prepayments. If at any time (i) the
         aggregate Obligations shall exceed the Aggregate Revolving Commitments,
         (ii) the aggregate LOC Obligations shall exceed the aggregate LOC
         Committed Amount, or (iii) the Swingline Loans shall exceed the
         Swingline Committed Amount, then the Borrower shall make prompt payment
         on the Loans or after payment of the Loans in full, provide cash
         collateral in respect of the LOC Obligations, in an amount sufficient
         to eliminate the deficiency.

         Section 2.10      Method of Electing Interest Rates.

                  (a)      The Loans included in each Borrowing shall bear
         interest initially at the type of rate specified by the Borrower in the
         applicable Notice of Borrowing. Thereafter, the Borrower may from time
         to time elect to change or continue the type of interest rate borne by
         each Group of Loans (subject in each case to the provisions of Article
         VIII), as follows:

                           (i)      if such Loans are Base Rate Loans, the
                  Borrower may elect to convert such Loans to Eurodollar Loans
                  as of any Eurodollar Business Day; and

                           (ii)     if such Loans are Eurodollar Loans, the
                  Borrower may elect to convert such Loans to Base Rate Loans or
                  elect to continue such Loans as Eurodollar Loans for an
                  additional Interest Period, in each case effective on the last
                  day of the then current Interest Period applicable to such
                  Loans;

                                      -25-

<PAGE>   30

         provided, that the Borrower may not elect to continue any Eurodollar
         Loan or convert any Loan into a Eurodollar Loan after the occurrence
         and during the continuation of a Default. Each such election shall be
         made by delivering a notice in substantially the form of Schedule 2.10
         (a "Notice of Interest Rate Election") to the Agent no later than 11:00
         A.M. (Charlotte, North Carolina time) (x) if the relevant Loans are to
         be converted to Base Rate Loans, the second Business Day before such
         conversion or continuation is to be effective and (y) if the relevant
         Loans are to be converted to Eurodollar Loans or continued as
         Eurodollar Loans for an additional Interest Period, the third
         Eurodollar Business Day before such conversion or continuation is to be
         effective. A Notice of Interest Rate Election may, if it so specifies,
         apply to only a portion of the aggregate principal amount of the
         relevant Group of Loans; provided that (i) such portion is allocated
         ratably among the Loans comprising such Group and (ii) the portion to
         which such Notice applies, and the remaining portion to which it does
         not apply, are each at least $500,000 and no more than one of such
         portions is other than a multiple of $100,000.

         (b)      Each Notice of Interest Rate Election shall specify:

                  (i)      the Group of Loans (or portion thereof) to which such
         notice applies;

                  (ii)     the date on which the conversion or continuation
         selected in such notice is to be effective, which shall comply with
         subsection (a) above;

                  (iii)    if the Loans comprising such Group are to be
         converted, the new type of Loans and, if such new Loans are Eurodollar
         Loans, the duration of the initial Interest Period applicable thereto;
         and

                  (iv)     if such Loans are to be continued as Eurodollar Loans
         for an additional Interest Period, the duration of such additional
         Interest Period.

Each Interest Period specified in a Notice of Interest Rate Election shall
comply with the provisions of the definition of Interest Period. No more than
twenty (20) Groups of Loans shall be outstanding at any one time.

         (c)      Upon receipt of a Notice of Interest Rate Election from the
Borrower pursuant to Section 2.10(a) above, the Agent shall promptly notify each
Bank of the contents thereof and such notice shall not thereafter be revocable
by the Borrower. If the Borrower fails to deliver a timely Notice of Interest
Rate Election to the Agent for any Group of Eurodollar Loans, such Loans shall
be converted into Base Rate Loans on the last day of the then current Interest
Period applicable thereto.

Section 2.11      General Provisions as to Payments.

         (a)      The Borrower shall make each payment of principal of, and
interest on, the Loans and of fees hereunder, without setoff, deduction,
counterclaim or withholding of any kind, not later than 3:00 p.m. (Charlotte,
North Carolina time) on the date when due, in federal or other funds immediately
available in Charlotte, North Carolina, to the Agent at its address referred to
in Section 9.01 and any of such payments received after 3:00 p.m. on the
required due date shall be deemed to have been paid by the Borrower on the next
succeeding Business Day. Any such payment with respect to a Loan shall be made
in Dollars. The Agent will promptly distribute to each Bank its ratable share of
each such payment received by the Agent for the account of the

                                      -26-

<PAGE>   31

Banks. Whenever any payment of principal of, or interest on, the Base Rate Loans
or of fees shall be due on a day which is not a Business Day, the date for
payment thereof shall be extended to the next succeeding Business Day. Whenever
any payment of principal of, or interest on, the Eurodollar Loans shall be due
on a day which is not a Eurodollar Business Day, the date for payment thereof
shall be extended to the next succeeding Eurodollar Business Day unless such
Eurodollar Business Day falls in another calendar month, in which case the date
for payment thereof shall be the next preceding Eurodollar Business Day. If the
date for any payment of principal is extended by operation of law or otherwise,
interest thereon shall be payable for such extended time.

         (b)      Unless the Borrower or any Bank has notified the Agent, prior
to the date any payment to be made by it is due, that it does not intend to
remit such payment, the Agent may, in its discretion, assume that the Borrower
or such Bank, as the case may be, has timely remitted such payment and may, in
its discretion and in reliance thereon, make available such payment to the
Person entitled thereto. If such payment was not in fact remitted to the Agent
in immediately available funds, then:

                  (i)      if the Borrower failed to make such payment, each
         Bank shall forthwith on demand repay to the Agent the amount of such
         assumed payment made available to such Bank, together with interest
         thereon in respect of each day from and including the date such amount
         was made available by the Agent to such Bank to the date such amount is
         repaid to the Agent at the Federal Funds Rate; and

                  (ii)     if any Bank failed to make such payment, the Agent
         shall be entitled to recover such corresponding amount on demand from
         such Bank. If such Bank does not pay such corresponding amount
         forthwith upon the Agent's demand therefor, the Agent promptly shall
         notify the Borrower, and the Borrower shall pay such corresponding
         amount to the Agent. The Agent also shall be entitled to recover from
         such Bank interest on such corresponding amount in respect of each day
         from the date such corresponding amount was made available by the Agent
         to the Borrower to the date such corresponding amount is recovered by
         the Agent, at a rate per annum equal to the daily Federal Funds Rate.
         Nothing herein shall be deemed to relieve any Bank from its obligation
         to fulfill its Commitment or to prejudice any rights that the Agent or
         Borrower may have against any Bank as a result of any default by such
         Bank hereunder.

         Section 2.12      Funding Losses.

         If the Borrower makes any payments of principal with respect to any
Eurodollar Loan or any Eurodollar Loan is converted to another type of Loan
(pursuant to Articles II, VI, VIII, or otherwise) on any day other than the last
day of an Interest Period applicable thereto, or if the Borrower fails to borrow
or prepay any Eurodollar Loans after notice has been given to any Bank in
accordance with the terms hereof, the Borrower shall reimburse each applicable
Bank on demand for any resulting reasonable out of pocket loss or expense
incurred by it (or any existing Participant in the related Loan, provided that
the amount collected by a Bank and its Participant shall not exceed the amount
which the Bank would have been entitled to collect absent such participation),
including (without limitation) any such loss incurred in obtaining, liquidating
or employing deposits from third parties to fund or maintain such Loan or
proposed Loan, but excluding loss of margin for the period after any such
payment or conversion or failure to borrow or prepay, provided that such Bank
shall have delivered to the Borrower (with a copy to the Agent) a certificate
prior to requesting reimbursement setting forth in reasonable detail its
calculation of the amount of such loss or expense, which certificate shall be
conclusive in the absence of manifest error. NOTWITHSTANDING THE FOREGOING
PROVISIONS OF THIS SECTION 2.12 TO THE CONTRARY, THE TERM "LOSS" SHALL NOT
INCLUDE AND BORROWER SHALL NOT BE

                                      -27-

<PAGE>   32

RESPONSIBLE FOR THE PAYMENT OF ANY LOST PROFITS (IN EXCESS OF THE AMOUNTS
OTHERWISE PAYABLE BY BORROWER HEREUNDER AS A PART OF THE ADJUSTED EURODOLLAR
RATE) OR ANY CONSEQUENTIAL, SPECULATIVE, PUNITIVE OR OTHER DAMAGES.

         Section 2.13      Computation of Interest and Fees.

         All interest and fees hereunder shall be computed on the basis of a
year of 360 days and paid for the actual number of days elapsed (including the
first day but excluding the last day).

         Section 2.14      Withholding Tax Exemption.

         At least five (5) Business Days prior to the first date on which
interest or fees are payable hereunder for the account of any Bank, each Bank
that is not incorporated under the laws of the United States of America or a
state thereof agrees that it will deliver to the Borrower and the Agent two duly
and properly completed copies of United States Internal Revenue Service Form
1001 or 4224 (or any successor form, in either case), certifying in either case
that such Bank is entitled to receive payments under this Credit Agreement and
the Notes without deduction or withholding of any United States federal income
taxes. Each Bank which so delivers a Form 1001 or 4224 (or any successor form,
in either case) further undertakes to deliver to the Borrower and the Agent two
(2) additional copies of such form (or a successor form) on or before the date
that such form expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent form so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower or the Agent, in each case certifying that such Bank
is entitled to receive payments under this Credit Agreement and the Notes
without deduction or withholding of any United States federal income taxes,
unless an event (including without limitation any change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would
otherwise be required which renders all such forms inapplicable or which would
prevent such Bank from duly completing and delivering any such form with respect
to it and such Bank advises the Borrower and the Agent that it is not capable of
receiving payments without any deductions or withholding of United States
federal income tax, in which case such Bank shall have appropriate amounts
withheld pursuant to applicable law. Notwithstanding any provision contained in
this Credit Agreement to the contrary, if the Borrower, on advice of counsel,
reasonably believes that the Borrower should withhold an amount with respect to
any Bank on account of any applicable Government requirement, the Borrower shall
be entitled to withhold such sum in accordance with the applicable Government
requirement.

         Section 2.15      Fees.

                  (a)      Facility Fee. From and after the Closing Date, the
         Borrower agrees to pay the Agent for the ratable benefit of the Banks a
         commitment fee for each calendar quarter, prorated for partial
         quarters, in an amount equal to the Applicable Percentage multiplied by
         the average daily aggregate amount of the Revolving Commitments (the
         "Facility Fee"). The Facility Fee shall be payable quarterly in arrears
         on the last day of each Quarterly Period commencing with the first such
         date to occur after the Closing Date. The Agent shall distribute the
         Facility Fee to the Banks pro rata in accordance with the respective
         Revolving Commitments of the Banks.

                  (b)      Upfront and Other Fees. The Borrower agrees to pay to
         the Agent for the benefit of the Banks the upfront and other fees
         provided in the Agent's Fee Letter.

                  (c)      Letter of Credit Fees.

                                      -28-

<PAGE>   33

                           (i)      Letter of Credit Fee. In consideration of
                  the LOC Commitment hereunder, the Borrower agrees to pay to
                  the Agent for the ratable benefit of the Banks a fee (the
                  "Letter of Credit Fee") equal to the Applicable Percentage per
                  annum on the average daily maximum amount available to be
                  drawn under Letters of Credit from the date of issuance to the
                  date of expiration. The Letter of Credit Fee shall be payable
                  quarterly in arrears on the 15th day following the last day of
                  each calendar quarter for the immediately preceding quarter
                  (or portion thereof) beginning with the first such date to
                  occur after the Closing Date.

                           (ii)     Issuing Bank Fees. In addition to the Letter
                  of Credit Fee, the Borrower agrees to pay to the Issuing Bank
                  for its own account without sharing by the other Banks (A) a
                  fronting and negotiation fee of one eighth of one percent
                  (0.125%) per annum on the average daily maximum amount
                  available to be drawn under Letters of Credit issued by it
                  from the date of issuance to the date of expiration, and (B)
                  customary charges of the Issuing Bank with respect to the
                  issuance, amendment, transfer, administration, cancellation
                  and conversion of, and drawings under, such Letters of Credit
                  (collectively, the "Issuing Bank Fees").

                  (d)      Agent's Fees. The Borrower agrees to pay the Agent
         such fees as may be agreed upon by the Agent and the Borrower from time
         to time.

                                   ARTICLE III
                                   CONDITIONS

         Section 3.01      Conditions to Initial Extensions of Credit.

         The obligation of the Banks to make initial Extensions of Credit
hereunder is subject to the satisfaction of such of the following conditions in
all material respects on or prior to the Closing Date as shall not have been
expressly waived in accordance with Section 9.05:

                  (a)      The Agent shall have received multiple counterparts
         hereof signed by each of the parties hereto;

                  (b)      The Agent shall have received a duly executed
         Revolving Note for the account of each Bank, complying with Section
         2.03;

                  (c)      The Agent and each Bank shall have received legal
         opinions of counsel to the Borrower, in form and substance satisfactory
         to the Agent and the Banks;

                  (d)      The Agent shall have received all documents it may
         reasonably request relating to the existence of the Borrower, the
         corporate authority for and the validity of each of the Financing
         Documents, and any other matters relevant hereto, all in form and
         substance satisfactory to the Agent;

                  (e)      The Agent shall have received the applicable Notice
         of Borrowing relating to such Extension of Credit;

                  (f)      No Default shall have occurred and be continuing
         immediately before the making of such Extension of Credit and no
         Default shall exist immediately thereafter;

                                      -29-

<PAGE>   34

                  (g)      The representations and warranties of the Borrower
         made in or pursuant to the Financing Documents to which it is a party
         shall be true in all material respects as of the date of the making of
         such Extensions of Credit;

                  (h)      The Extension of Credit will be extended in
         compliance with all applicable governmental laws and regulations
         (including without limitation Regulations U, T and X);

                  (i)      The Agent shall have received a certificate of the
         Borrower, signed on behalf of Borrower by the Borrower's chief
         executive officer or chief financial officer, confirming to the
         knowledge of such officer that (i) no Default is continuing, (ii) the
         Borrower is Solvent, (iii) the guaranties given by the Borrower's
         Subsidiaries to guarantee the $70 million 2000 Private Placement Debt
         have been released, (iv) other than the subsidiary guaranties given in
         respect of the $90 million 1995 Private Placement Debt, no other
         Consolidated Funded Indebtedness shall be benefited by any Guarantee
         given by Subsidiaries of the Borrower, and all other conditions
         precedent to the initial borrowing hereunder have been satisfied in all
         material respects;

                  (j)      The Agent shall have received evidence that the
         guaranties given by the Borrower's Subsidiaries to guarantee the
         Existing Credit Facility have been released;

                  (k)      The Agent and the Banks shall have been paid all fees
         due and payable pursuant to Sections 2.15(b) and (d) hereof;

                  (l)      No litigation shall be pending or to the knowledge of
         Borrower threatened against the Borrower, any Subsidiary or any
         Specified Affiliate which would be likely to have a Material Adverse
         Effect;

                  (m)      The Agent and the Banks shall have received such
         financial information regarding the Borrower and its Subsidiaries as
         may be requested by, and in each case in form and substance
         satisfactory to, the Agent and the Banks; and

                  (n)      There shall not have occurred or become known any
         material adverse change with respect to the condition (financial or
         otherwise), operations, business or assets of the Borrower and its
         Subsidiaries taken as a whole, since December 31, 2000.

                  The certificates and opinions referred to in this Section
         shall be dated not earlier than the date hereof and not later than the
         date of such initial Extensions of Credit.

         Section 3.02      Conditions to Extension of Credit.

         The obligation of any Bank to make any Extension of Credit hereunder
subsequent to the initial Extension of Credit is subject to the satisfaction of
such of the following conditions on or prior to the proposed date of the making
of such Extension of Credit:

                  (a)      The Agent shall receive the applicable Notice of
         Borrowing relating to such loan pursuant to Section 2.02(a) hereof;

                  (b)      No Default shall have occurred and be continuing
         immediately before the making of such Extension of Credit and no
         Default shall exist immediately thereafter;

                  (c)      The representations and warranties of the Borrower
         made in or pursuant to the Financing Documents shall be true in all
         material respects on and as of the date of such Extension of Credit;
         provided that the reaffirmation of the representations and warranties
         in

                                      -30-

<PAGE>   35

         respect of Schedule 4.07 (Subsidiaries and Affiliates), Schedule 4.12
         (Debt), Schedule 4.13 (Contingent Liabilities) and Schedule 4.14
         (Investments) shall be as of the most recent fiscal quarter end;

                  (d)      None of the Subsidiaries shall have given a Guarantee
         in respect of any other Debt (except to the extent expressly permitted
         under Section 5.26) unless such an equal and ratable Guarantee shall
         also have been given in respect of the loans and obligations hereunder
         in accordance with the provisions of Section 5.26; and

                  (e)      Immediately following the making of such Loan the sum
         of the outstanding principal balance of the Obligations shall not
         exceed the Commitments.

         The making of such Extension of Credit hereunder shall be deemed to be
a representation and warranty by the Borrower on the date thereof as to the
facts specified in clauses (b), (c), (d) and (e)of this Section.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

         The Borrower represents and warrants that:

         Section 4.01      Corporate Existence and Power.

         The Borrower and each of its Material Subsidiaries is a corporation
duly incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation, has all corporate powers and all material
governmental licenses, authorizations, consents and approvals required to carry
on its business as now conducted and is duly qualified as a foreign entity and
in good standing under the laws of each jurisdiction where its ownership, lease
or operation of property or the conduct of its business requires such
qualification, other than in such jurisdictions where the failure to be so
qualified and in good standing would not, in the aggregate, have a Material
Adverse Effect.

         Section 4.02      Corporate and Governmental Authorization; No
                           Contravention.

         The execution and delivery by the Borrower of the Financing Documents
and the performance by the Borrower of its obligations thereunder are within the
corporate power of the Borrower, have been duly authorized by all necessary
corporate action, require no action by or in respect of, or filing with, any
governmental body, agency or official (except for any such action or filing that
has been taken and is in full force and effect) and do not contravene, or
constitute a default under, any provision of applicable law or regulation or of
the Constitutional Documents of the Borrower or of any material agreement,
judgment, injunction, order, decree or other material instrument binding upon
the Borrower or result in the creation or imposition of any Lien on any asset of
the Borrower other than Liens created pursuant to the Financing Documents.

         Section 4.03      Binding Effect.

         The Financing Documents constitute valid and binding agreements of the
Borrower, enforceable against the Borrower in accordance with their terms.

         Section 4.04      Litigation.

         Except as set forth on Schedule 4.04 attached hereto, there is no
action, suit or proceeding pending against, or to the knowledge of the Borrower
threatened against or affecting, the Borrower or

                                      -31-

<PAGE>   36

any of its Material Subsidiaries before any court or arbitrator or any
governmental body, agency or official in which there is a reasonable likelihood
of an adverse decision which would materially adversely affect the business or
the consolidated results of operations of the Borrower and its Material
Subsidiaries (taken as a whole), or which in any manner draws into question the
validity of any Financing Document.

         Section 4.05      Compliance with ERISA.

         Except as set forth on Schedule 4.05 attached hereto, each member of
the ERISA Group has fulfilled its obligations in all material aspects under the
minimum funding standards of ERISA and the Code with respect to each Plan and is
in compliance in all material respects with the presently applicable provisions
of ERISA and the Code with respect to each Plan. Except as previously disclosed
to the Banks in writing prior to the date hereof, no member of the ERISA Group
has (i) sought a waiver of the minimum funding standard under Section 412 of the
Code in respect of any Plan, (ii) failed to make any contribution or payment to
any Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or made
any amendment to any Plan or Benefit Arrangement, which in either event has
resulted or could reasonably be expected to result in the imposition of a Lien
or the posting of a bond or other security under ERISA or the Code or (iii)
incurred any liability under Title IV of ERISA other than a liability to the
PBGC for premiums or similar items under Section 4007 of ERISA.

         Section 4.06      Environmental Matters.

         Except as set forth on Schedule 4.06 hereto:

                  (a)      No written notice, notification, demand, request for
         information, citation, summons, complaint or order has been received by
         the Borrower and to the knowledge of the Borrower, no penalty has been
         assessed and no investigation or review is pending or threatened by any
         governmental or other entity, (i) with respect to any alleged violation
         of any Environmental Laws in connection with the conduct of the
         Borrower and relating to a Hazardous Substance or (ii) with respect to
         any alleged failure to have any permit, certificate, license, approval,
         registration or authorization required in connection with the conduct
         of the Borrower relating to a Hazardous Substance or (iii) with respect
         to any generation, treatment, storage, recycling, transportation,
         disposal or release (including a release as defined in 42 U.S.C.
         Section 9601(22)) ("Release") of any Hazardous Substance used by the
         Borrower, which alleged violation, alleged failure to have any required
         permit, certificate, license, approval, or registration, or generation,
         treatment, storage, recycling, transportation, disposal or release, is
         reasonably likely to result in liability to the Borrower in excess of
         $1,000,000 in any instance or $5,000,000 in the aggregate.

                  (b)      (i) To the Borrower's knowledge, there has been no
         Release of a Hazardous Substance at, on or under any property used by
         the Borrower or for which the Borrower or any of its Material
         Subsidiaries would be liable, which Release, is reasonably likely to
         result in liability to the Borrower in excess of $1,000,000 in any
         instance or $5,000,000 in the aggregate; (ii) to the Borrower's
         knowledge, neither the Borrower nor any of its Material Subsidiaries
         has, other than as a generator or in a manner not regulated or
         prohibited under the Environmental Laws, stored or treated any
         "hazardous waste" (as defined in 42 U.S.C. Section 6903(5)) on any
         property used by the Borrower or for which the Borrower or any of its
         Material Subsidiaries would be liable, except for such storage or
         treatment which is not reasonably likely to result in liability to the
         Borrower or any of its Material Subsidiaries in excess of $1,000,000 in
         any instance or $5,000,000 in the aggregate; and (iii) to the
         Borrower's knowledge no polychlorinated biphenyl ("PCB") in
         concentrations greater than 50 parts per million, friable asbestos, or
         underground storage tank (in use or abandoned) is at any property used
         by the

                                      -32-

<PAGE>   37

         Borrower or for which the Borrower or any of its Material Subsidiaries
         would be liable, except for such PCBs, friable asbestos or underground
         storage tanks that are not reasonably likely to result in liability to
         the Borrower or any of its Material Subsidiaries in excess of
         $1,000,000 in any instance or $5,000,000 in the aggregate.

                  (c)      To the knowledge of the Borrower, neither the
         Borrower nor any of its Material Subsidiaries has transported or
         arranged for the transportation (directly or indirectly) of any
         Hazardous Substance to any location which is listed under the
         Comprehensive Environmental Response, Compensation and Liability Act of
         1980, as amended ("CERCLA"), on the Comprehensive Environmental
         Response, Compensation and Liability Information System, as amended
         ("CERCLIS"), or on any similar state list or which is the subject of
         any federal state or local enforcement action or other investigation
         which may lead to claims for clean-up costs, remedial work, damages to
         natural resources or for personal injury claims, including, but not
         limited to, claims under CERCLA, that are reasonably likely to result
         in liability to the Borrower or any of its Material Subsidiaries in
         excess of $1,000,000 in any instance or $5,000,000 in the aggregate.

                  (d)      No written notification of a Release of a Hazardous
         Substance has been filed by or on behalf of the Borrower or any of its
         Material Subsidiaries, which individually or in combination with other
         such Releases, is reasonably likely to result in liability for the
         Borrower or any of its Material Subsidiaries in excess of $1,000,000 in
         any instance or $5,000,000 in the aggregate.

                  (e)      There have been no environmental audits or similar
         investigations conducted by or which are in the possession of the
         Borrower or any of its Material Subsidiaries in relation to any
         property used by the Borrower or for which the Borrower or any of its
         Material Subsidiaries would be liable, which identify one or more
         environmental liabilities of the Borrower or any of its Material
         Subsidiaries which are reasonably likely to exceed $1,000,000 in any
         instance or $5,000,000 in the aggregate.

         Section 4.07      Material Subsidiaries.

         Set forth on Schedule 4.07 hereto is a complete and accurate list of
all of the Material Subsidiaries of the Borrower, showing as to each such
Material Subsidiary the jurisdiction of its organization, the number of shares
of each class of capital stock or other equity interests outstanding and the
percentage of the outstanding shares of each such class owned (directly or
indirectly) by the Borrower or any other Material Subsidiary of the Borrower and
the number of shares covered by all outstanding options, warrants, rights of
conversion or purchase, and similar rights. All of the outstanding capital stock
or other equity interests of all of such Material Subsidiaries identified in
such Schedule 4.07 as being owned by the Borrower or any of its Material
Subsidiaries has been validly issued, is fully paid and nonassessable and is
owned directly or indirectly by the Borrower or any of its Material
Subsidiaries, as the case may be, free and clear of all Liens other than a Lien
described in and permitted by Section 5.07 hereof. The Borrower may provide
periodic updates of the information in Schedule 4.07, which shall be deemed
modified to include the updated information.

         Section 4.08      Not an Investment Company.

         Neither the Borrower nor any of its Material Subsidiaries is an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended.

                                      -33-

<PAGE>   38

         Section 4.09      Margin Stock.

         No proceeds of any Loan will be used to purchase or carry any Margin
Stock or to extend credit to others for the purpose of purchasing or carrying
any Margin Stock in violation of Regulations U, T or X.

         Section 4.10      Compliance With Laws.

         Except as set forth on Schedule 4.10 attached hereto and made a part
hereof or as previously disclosed in writing to the Banks prior to the date
hereof, the Borrower and each of its Material Subsidiaries is in compliance in
all material respects with all applicable laws, rules and regulations
(including, without limitation, environmental laws, rules and regulations), and
is not in violation of, or in default under, any term or provision of any
charter, bylaw, mortgage, indenture, agreement, instrument, statute, rule,
regulation, judgment, decree, order, writ or injunction applicable to it, except
for any such non-compliance, violation, default or failure to comply which would
not be reasonably likely, individually or in the aggregate, to have a material
adverse effect on the business, financial position or results of operations of
the Borrower and its Material Subsidiaries, taken as a whole, or on the ability
of the Borrower and its Material Subsidiaries, taken as a whole, to perform its
obligations under the Financing Documents.

         Section 4.11      Absence of Liens.

         There are no liens of any nature whatsoever on any properties or assets
of the Borrower or any of its Material Subsidiaries, except as otherwise
permitted under Section 5.07 hereof.

         Section 4.12      Debt.

         Other than as set forth on Schedule 4.12 hereto, there is no material
Debt of the Borrower and its Material Subsidiaries outstanding as of the date
hereof. The Borrower may provide periodic updates of the information in Schedule
4.12, which shall be deemed modified to include the updated information.

         Section 4.13      Contingent Liabilities.

         As of the Closing Date, other than as set on Schedule 4.13 there are no
material contingent liabilities (other than contingent liabilities that
constitute Debt and material contingent liabilities arising out of customary
indemnifications given by the Borrower or its Material Subsidiaries to its
officers and directors, its underwriters or its lenders) of the Borrower or its
Material Subsidiaries as of the date hereof. The Borrower may provide periodic
updates of the information in Schedule 4.13, which shall be deemed modified to
include the updated information.

         Section 4.14      Investments.

         Set forth on Schedule 4.14 is a complete and accurate list, in all
material respects, as of the date hereof of all investments by the Borrower or
any of its Material Subsidiaries in any Person, other than investments by the
Borrower or any of its Material Subsidiaries in a Material Subsidiary or
Specified Affiliate. The Borrower may provide periodic updates of the
information in Schedule 4.14, which shall be deemed modified to include the
updated information.

         Section 4.15      Solvency.

         The Borrower is Solvent after giving effect to the transactions
contemplated by the Financing Documents.

                                      -34-

<PAGE>   39

         Section 4.16      Taxes.

         The Borrower and its Material Subsidiaries have filed, or caused to be
filed, all tax returns (federal, state, local and foreign) required to be filed
and paid all amounts of taxes shown thereon to be due (including interest and
penalties) and have paid all other taxes, fees, assessments and other
governmental charges owing by them, except for such taxes (i) which are not yet
delinquent or (ii) as are being contested in good faith and by proper
proceedings, and against which adequate reserves are being maintained in
accordance with GAAP. The Borrower is not aware of any proposed material tax
assessments against it or any of its Material Subsidiaries.

         Section 4.17      REIT Status.

         The Borrower is taxed as a "real estate investment trust" within the
meaning of Section 856 (a) of the Code.

         Section 4.18      Specified Affiliates.

         Except as set forth on Schedule 4.07, there are no Specified Affiliates
as of the date hereof.

         Section 4.19      Financial Condition.

         Each of the financial statements described below (copies of which have
been provided to the Agent and the Banks), have been prepared in accordance with
GAAP throughout the periods covered thereby, present fairly in all material
respects the financial condition and results from operations of the entities and
for the periods specified, subject in the case of interim company-prepared
statements to normal year-end adjustments:

                  (i)      annual audited consolidated balance sheet of the
         Borrower and its consolidated subsidiaries dated as of December 31,
         2000, together with related statements of income and cash flows
         certified by Ernst & Young, certified public accountants; and

                  (ii)     interim company-prepared consolidated balance sheet
         of the Borrower and its consolidated subsidiaries dated as of March 31,
         2001, together with related company-prepared statements of income and
         cash flows.

         Section 4.20      No Material Adverse Effect.

         Since the date of the annual audited financial statements referenced in
Section 4.19, there has been no circumstance, development or event relating to
or affecting the Borrower and its Material Subsidiaries which has had or is
reasonably likely to have a Material Adverse Effect.

                                    ARTICLE V
                                    COVENANTS

         The Borrower hereby covenants and agrees that until the Obligations,
together with interest, fees and other obligations hereunder, have been paid in
full and the Commitments hereunder shall have terminated, the Borrower shall,
and shall cause its Subsidiaries to, perform and comply with the following
covenants:

                                      -35-

<PAGE>   40

Section 5.01      Information.

The Borrower will deliver to Agent and the Banks:

         (a)      as soon as available and in any event within ninety (90) days
after the end of each fiscal year of the Borrower, a consolidated and
consolidating balance sheet of the Borrower and its Subsidiaries as of the end
of such fiscal year and the related consolidated and consolidating statements of
income and consolidated statement of cash flows for such fiscal year, setting
forth in each case in comparative form the figures for the previous fiscal year,
and, with respect to such financial information for the Borrower, such
consolidated statements shall be audited statements by Ernst & Young or other
independent public accountants of nationally recognized standing and containing
an opinion of such accountants, which opinion shall be without exception,
qualification or limitation on scope of audit;

         (b)      as soon as available and in any event within forty-five (45)
days after the end of each of the first three (3) fiscal quarters of each fiscal
year of the Borrower, a consolidated and consolidating balance sheet of the
Borrower and its Subsidiaries as of the end of such quarter and the related
consolidated and consolidating statements of income and consolidated statement
of cash flows for such quarter and for the portion of the Borrower's fiscal year
ended at the end of such quarter, setting forth in each case in comparative form
the figures for the corresponding quarter and the corresponding portion of the
previous fiscal year, all certified (subject to normal year-end adjustments) as
to fairness of presentation, GAAP and consistency by the chief financial officer
of the Borrower;

         (c)      simultaneously with the delivery of each set of financial
statements referred to in subsections (a) and (b) of this Section, a certificate
of Borrower, signed on behalf of Borrower by the chief financial officer of the
Borrower (i) stating whether, to such officer's knowledge, there exists on the
date of such certificate any Default and, if any Default then exists, setting
forth the details thereof and the action that the Borrower is taking or proposes
to take with respect thereto, (ii) stating whether, since the date of the most
recent financial statements previously delivered pursuant to subsection (a) or
(b) of this Section, there has been a change in the GAAP applied in preparing
the financial statements then being delivered from those applied in preparing
the most recent audited financial statements so delivered which is material to
the financial statements then being delivered, (iii) stating how much of the
outstanding principal balance of the Loans as of the end of the applicable
fiscal quarter has been used for the general corporate purposes of the Borrower
and its Subsidiaries, (iv) furnishing calculations demonstrating the compliance
by the Borrower of the covenants contained in Sections 5.18, 5.19, 5.20, 5.21
and 5.22 hereof, and (v) attaching management's summary of the results contained
in such financial statements;

         (d)      simultaneously with the delivery of each set of financial
statements referred to in clause (a) above, a statement (addressed to the Agent
for the benefit of the Banks) of the firm of independent public accountants
which reported on such statements whether anything has come to their attention
to cause them to believe that any Default existed on the date of such
statements;

         (e)      promptly, and in any event within five (5) Business Days after
any officer obtains knowledge thereof, written notice to the Agent of any change
by a Ratings Service in its rating for the Borrower's senior unsecured
(non-credit enhanced) long term debt;

         (f)      within five (5) Business Days after any officer obtains
knowledge of any Default, if such Default is then continuing, a certificate of
Borrower, signed on behalf of Borrower by the chief financial officer of the
Borrower, setting forth the details thereof and the action which the Borrower is
taking or proposes to take with respect thereto;

                                      -36-

<PAGE>   41

         (g)      promptly upon the mailing thereof to the shareholders of the
Borrower generally, copies of all financial statements, reports and proxy
statements so mailed;

         (h)      promptly upon the filing thereof, copies of all registration
statements (other than the exhibits thereto and any registration statements on
Form S-8 or its equivalent) and reports on Forms 10-K, 10-Q and 8-K (or their
equivalents) which the Borrower shall have filed with the Securities and
Exchange Commission;

         (i)      if and when any member of the ERISA Group (i) gives or is
required to give notice to the PBGC of any "reportable event" (as defined in
Section 4043 of ERISA) with respect to any Plan which might constitute grounds
for a termination of such Plan under Title IV of ERISA, or knows that the plan
administrator of any Plan has given or is required to give notice of any such
reportable event, a copy of the notice of such reportable event given or
required to be given to the PBGC; (ii) receives notice of complete or partial
withdrawal liability with respect to any Multiemployer Plan under Title IV of
ERISA or notice that any Multiemployer Plan is in reorganization, is not Solvent
or has been terminated, a copy of such notice; (iii) receives notice from the
PBGC under Title IV of ERISA of its intent to terminate, impose liability (other
than for premiums under Section 4007 of ERISA) in respect of, or appoint a
trustee to administer any Plan, a copy of such notice; (iv) applies for a waiver
of the minimum funding standard under Section 412 of the Code, a copy of such
application; (v) gives notice of intent to terminate any Plan under Section
4041(c) of ERISA, a copy of such notice and other information filed with the
PBGC; (vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of
ERISA, a copy of such notice; or (vii) except as previously disclosed to the
Banks in writing prior to the date hereof, fails to make any payment or
contribution to any Plan or Multiemployer Plan or in respect of any Benefit
Arrangement or makes any amendment to any Plan or Benefit Arrangement which has
resulted or could result in the imposition of a lien or the posting of a bond or
other security under ERISA or the Code, a certificate of Borrower, signed on
behalf of Borrower by the chief financial officer, the chief accounting officer
or the treasurer of the Borrower, setting forth details as to such occurrence
and the action, if any, which the Borrower or any applicable member of the ERISA
Group is required or proposes;

         (j)      as soon as possible after any officer of the Borrower obtains
knowledge of the commencement of, or of a material threat of the commencement
of, an action, suit or proceeding against the Borrower or any of its
Subsidiaries before any court or arbitrator or any governmental body, agency or
official in which there is a reasonable likelihood of an adverse decision which
would after the application of applicable insurance materially and adversely
affect the business, financial position or results of operations of the Borrower
and its Consolidated Subsidiaries, in each case considered as a whole, or which
in any manner questions the validity of any Financing Document, a written report
informing the Banks in reasonable detail of the nature of such pending or
threatened action, suit or proceeding;

         (k)      to the extent the information provided by the Borrower on
Schedule 4.07 (Subsidiaries and Affiliates), Schedule 4.12 (Debt), Schedule 4.13
(Contingent Liabilities) and Schedule 4.14 (Investments) changes following the
Closing Date, the Borrower will provide the Agent with updated information not
less frequently than quarterly, and such schedules shall be deemed modified to
include the updated information as provided in Section 4; and

         (l)      from time to time such additional information regarding the
financial position or business of the Borrower and its Subsidiaries, as the
Agent or any Bank may reasonably request.

         For purposes of the foregoing:

                                      -37-

<PAGE>   42

                  (i)      during any period when GAAP or related auditing
         standards require that a Specified Affiliate of the Borrower be
         accounted for as a Subsidiary for purposes of the consolidated
         financial statements of the Borrower and its Subsidiaries, the term
         "Subsidiary" shall include a Specified Affiliate of the Borrower for
         purposes of paragraphs (a) and (b) above; and

                  (ii)     during any period when GAAP or related auditing
         standards do not require that a Specified Affiliate of the Borrower be
         accounted for as a Subsidiary for purposes of the consolidated
         financial statements of the Borrower and its Subsidiaries, the terms
         "Subsidiary" shall not include a Specified Affiliate of the Borrower
         for purposes of paragraphs (a) and (b) above and, if the Borrower shall
         have any Specified Affiliates during any period covered by the
         financial statements delivered pursuant to paragraphs (a) or (b) above,
         the Borrower shall deliver (A) financial statements of the character
         specified in paragraphs (a) and (b) above for such Specified Affiliates
         within the time periods set forth in paragraphs (a) and (b) above, and
         (B) on a combined basis, financial statements of the character
         specified in paragraphs (a) and (b) above for the Borrower, its
         Subsidiaries and such Specified Affiliates accompanied by the opinions
         and certificates specified in paragraphs (b) and (c) above within the
         time periods set forth in paragraphs (a), (b) and (c) above.

         Section 5.02      Payment of Obligations.

         The Borrower will pay and discharge, and will cause each of its
Subsidiaries to pay and discharge, at or before maturity, or prior to expiration
of applicable notice, grace and curative periods, all their respective material
obligations and liabilities, including, without limitation, tax liabilities,
except where the same may be contested in good faith by appropriate proceedings,
and will maintain, and will cause each of its Subsidiaries to maintain, in
accordance with GAAP, appropriate reserves for the accrual of any of the same.

         Section 5.03      Maintenance of Property; Insurance.

                  (a)      The Borrower will keep, and will cause each of its
         Subsidiaries to keep, or will in the ordinary course of business cause
         the tenants of respective properties to keep, all property materially
         useful and necessary in its business in good working order and
         condition, ordinary wear and tear excepted.

                  (b)      The Borrower will maintain, and will cause each of
         its Subsidiaries to maintain, with financially sound and responsible
         insurance companies, insurance on all their respective properties in at
         least such amounts and against such risks (and with such risk
         retention) as are usually insured against in the same general area by
         companies of established repute engaged in the same or a similar
         business, and will furnish to the Banks, upon request from the Agent,
         information presented in reasonable detail as to the insurance so
         carried. The insurance described in this Section 5.03 may be carried by
         the tenants under the respective tenant leases of such properties in
         lieu of by Borrower or its Subsidiaries so long as the Borrower or its
         respective Subsidiary is named as loss payee and additional insured
         with respect to such insurance.

         Section 5.04      Conduct of Business and Maintenance of Existence.

         Except as contemplated otherwise by the Investment Policy, the Borrower
will continue, and will cause each Subsidiary to continue, to engage in business
of the same general type as now conducted by

                                      -38-

<PAGE>   43

the Borrower and each of its Subsidiaries, and will preserve, renew and keep in
full force and effect, and will cause each of its Subsidiaries to preserve,
renew and keep in full force and effect their respective corporate existences
and, except for any such rights, privileges and franchises the failure to
preserve which would not in the aggregate have a material adverse effect on the
Borrower and its Subsidiaries, taken as a whole, or the ability of the Borrower
or any Subsidiary to perform any of their respective obligations under any
Financing Document, their respective rights, privileges and franchises necessary
or desirable in the normal conduct of business; provided that nothing in this
Section 5.04 shall prohibit (a) the merger of a Subsidiary of the Borrower into
the Borrower or the merger or consolidation of any Subsidiary of the Borrower
with or into another Person if the corporation surviving such consolidation or
merger is a Wholly Owned Consolidated Subsidiary of the Borrower and if, in each
case, after giving effect thereto, no Default shall have occurred and be
continuing and a responsible officer of the Borrower shall deliver to the Agent
an officer's certificate representing that after giving effect to the
transaction (i) the Borrower is in compliance with the terms of the Credit
Agreement on a pro forma basis and (ii) no Event of Default shall then exist, or
(b) the termination of the corporate existence of any Subsidiary of the Borrower
or the discontinuation of any line of business of the Borrower or any of its
Subsidiaries if the Borrower in good faith determines that such termination is
in the best interest of the Borrower or such Subsidiary, as the case may be, and
is not materially disadvantageous to the Banks.

         Section 5.05      Compliance with Laws.

         The Borrower will comply, and cause each of its Subsidiaries to comply,
in all material respects with all applicable laws, ordinances, rules,
regulations, and requirements of governmental authorities (including, without
limitation, Environmental Laws and ERISA and the rules and regulations
thereunder) the failure to comply with which would have a material adverse
effect on the Borrower and its Subsidiaries, taken as a whole, or their ability
to perform any of their obligations under any Financing Document, except where
the necessity of compliance therewith is contested in good faith by appropriate
proceedings.

         Section 5.06      Inspection of Property, Books and Records.

         The Borrower will keep, and will cause each of its Subsidiaries to
keep, proper books of record and account in which full, true and correct entries
shall be made of all material dealings and transactions in relation to its
business and activities; and, except to the extent prohibited by applicable law,
rule, regulations or orders, will permit, and will cause each of its
Subsidiaries to permit, representatives of any Bank at such Bank's expense
(which expense shall not be subject to reimbursement by Borrower hereunder) to
visit and inspect any of their respective properties (subject to the rights of
tenants in possession thereof and to any limitations on the inspection rights of
Borrower in connection therewith), to examine and make abstracts from any of
their respective books and records and to discuss their respective affairs,
finances and accounts with their respective officers, employees and independent
public accountants, upon reasonable prior written notice to Borrower, all at
such reasonable times and as often as may reasonably be desired.

         Section 5.07      Negative Pledge.

         The Borrower will not, nor will it permit any of its Subsidiaries to
create, assume or suffer to exist any Lien on any asset now owned or hereafter
acquired by it, except:

                  (a)      mortgage Liens to the extent not prohibited, both
         before and after giving effect thereto, by the provisions of Sections
         5.21 (Consolidated Senior Secured Debt to Consolidated Total Capital
         Ratio), Section 5.22 (Consolidated Unencumbered Realty to Consolidated
         Unsecured Debt Ratio) and Section 5.23 (Consolidated Unencumbered
         Interest Coverage Ratio);

                                      -39-

<PAGE>   44

                  (b)      carriers', warehousemen's, mechanics', landlords',
         materialmen's, repairmen's, statutory banker's or other like Liens
         arising in the ordinary course of business and which are not overdue
         for a period of more than thirty (30) days or which are being contested
         in good faith by appropriate proceedings;

                  (c)      Liens for taxes, assessments or other governmental
         charges not yet due or which are being contested in good faith and by
         appropriate proceedings and for which adequate reserves are taken in
         accordance with GAAP;

                  (d)      Liens imposed by law on pledges or deposits in
         connection with workmen's compensation, unemployment insurance and
         other social security legislation which do not interfere with or
         adversely affect in any material respect the ordinary conduct of the
         business of the Borrower or any of its Subsidiaries;

                  (e)      deposits to secure the performance of bids, tenders,
         trade or government contracts (other than for borrowed money), leases,
         licenses, statutory obligations, surety bonds (other than in relation
         to judgments), performance bonds, reserves for capital improvements and
         other obligations of a like nature incurred in the ordinary course of
         business;

                  (f)      easements, rights-of-way, zoning and similar
         restrictions and other encumbrances or title defects incurred, or
         leases or subleases granted to others which are in existence as of the
         date hereof, or if not in existence as of the date hereof, do not
         interfere with or adversely affect in any material respect the ordinary
         conduct of the business, or detract from the value of the property, of
         the Borrower or any of its Subsidiaries;

                  (g)      Liens securing reimbursement obligations with respect
         to trade letters of credit issued in the ordinary course of business;
         provided that such Liens only attach to the assets being acquired with
         the proceeds of such letters of credit;

                  (h)      any Lien arising out of the refinancing, extension,
         renewal or refunding of any Debt secured by any Lien, to the extent
         such Lien is permitted by any of the foregoing clauses of this Section;
         provided that such Debt is not increased and is not secured by any
         additional assets;

                  (i)      Liens on properties securing security deposits of
         tenants, provided that the aggregate amount of such security deposits
         secured by such Liens shall not exceed 5% of Consolidated Total Capital
         at any time outstanding; and

                  (j)      Liens securing Debt of any Subsidiary or Specified
         Affiliate owing to the Borrower.

         Section 5.08 Consolidations, Mergers and Sales and Transfer of Assets.

                  (a)      The Borrower will not, nor will it permit any of its
         Subsidiaries to, consolidate or merge with or into any other Person
         except as permitted in accordance with Section 5.04.

                  (b)      The Borrower will not, nor will it permit any of its
         Subsidiaries to, make any transfer or investment of assets or any Asset
         Sale without the prior written consent of the Majority Banks, except
         where, immediately after giving effect thereto, on a pro forma basis,
         (i)(A) Consolidated Unencumbered Realty (prior to giving effect to
         depreciation and amortization) held by the Borrower shall be not less
         than $250,000,000 and (B) Consolidated Unencumbered Realty (prior to
         giving effect to depreciation and amortization) held by the Borrower
         and its Consolidated Subsidiaries (including, for purposes hereof, in
         the case of non-

                                      -40-

<PAGE>   45

         Subsidiary joint ventures, the lesser of (i) the outstanding principal
         amount of first mortgage lien indebtedness owed to the Borrower and its
         Consolidated Subsidiaries by such non-Subsidiary joint venture, or (ii)
         the fair market value of the property that is the subject of such first
         mortgage lien) shall be not less than $800,000,000, and (iii) no
         Default or Event of Default shall exist. For any such transfer,
         investment, sale or disposition involving consideration in excess of
         $50,000,000, in each such instance, the Borrower shall deliver to the
         Agent an officer's certificate (A) representing that after giving
         effect to the transaction (i) the Borrower is in compliance with the
         terms of the Credit Agreement on a pro forma basis and (ii) no Default
         or Event of Default exists, and (B) describing the transaction in
         detail reasonably satisfactory to the Agent.

         Section 5.09      Creation of Subsidiaries.

         The Borrower will not, nor will it permit any of its Subsidiaries to,
create any Subsidiary except for the creation of a wholly owned Subsidiary of
the Borrower or a Specified Affiliate provided that (i) such Subsidiary or
Specified Affiliate is organized under the laws of a jurisdiction within the
United States of America and (ii) no Default exists immediately prior to or
after the creation of such Subsidiary or Specified Affiliate.

         Section 5.10      Incurrence and Existence of Debt.

         The Borrower will not, and will not permit any of its Subsidiaries to,
incur, assume or permit to exist any Debt, except:

                  (a)      the loans and obligations owing under this Credit
         Agreement and the guaranty of the loans and obligations owing under
         this Credit Agreement;

                  (b)      (i) indebtedness of the Borrower owing under the $90
         million 1995 private placement note issue (but the maturity date
         thereof may not be extended beyond the original maturity date, nor may
         the payment terms be otherwise amended or modified) and guaranty
         obligations of the Subsidiaries of the Borrower in respect thereof
         (but, in the case of the guaranty obligations, only to the original
         maturity for the private placement and not to any extended maturity
         date), and (ii) indebtedness of the Borrower owing under the $70
         million 2000 private placement note issue;

                  (c)      additional publicly issued or privately placed Debt
         of the Borrower, provided that the final maturity thereof shall not be
         prior to the Termination Date hereunder;

                  (d)      Debt of the Borrower and its Subsidiaries secured by
         mortgage liens, provided that such Debt shall be non-recourse to the
         Borrower and its Subsidiaries except to the extent of the property
         pledged to secure such Debt; and

                  (e)      unsecured inter-company Debt of the Borrower and its
         Subsidiaries between and among themselves, provided that the aggregate
         amount of such inter-company Debt owing by Subsidiaries to the Borrower
         shall not exceed the amount of loans and investments by the Borrower
         permitted under Section 5.14;

provided, that in the case of indebtedness incurred under clauses (c) through
(e), immediately after giving effect to the incurrence or assumption thereof,
the Borrower and its Subsidiaries shall be in compliance with the terms of this
Credit Agreement, including the financial covenants hereunder.

                                      -41-
<PAGE>   46

         Section 5.11      Transactions with Affiliates.

         The Borrower will not and will not permit any Subsidiary to enter into
directly or indirectly any material transaction or material group of related
transactions (including without limitation the purchase, lease, sale or exchange
of properties of any kind or the rendering of any service) with any Affiliate
(other than the Borrower), except in the ordinary course and pursuant to the
reasonable requirements of the Borrower's or such Subsidiary's business and upon
fair and reasonable terms no less favorable to the Borrower or such Subsidiary
than would be obtainable in a comparable arm's-length transaction with a Person
not an Affiliate.

         Section 5.12      Use of Proceeds.

         The Extensions of Credit hereunder will be used (i) to refinance
existing indebtedness for borrowed money, (ii) to finance the acquisition of
healthcare real estate properties by the Borrower and its Subsidiaries, and
(iii) to finance the general corporate purposes of the Borrower and its
Subsidiaries.

         Section 5.13      Constitutional Documents.

         Subject to changes, including any dissolutions permitted pursuant to
this Credit Agreement: (i) the Borrower will not, nor will it permit any of its
Subsidiaries to, amend its Constitutional Documents in any manner which could
materially adversely affect the rights of the Banks under the Financing
Documents or their ability to enforce the same; and (ii) the Borrower will not
amend its Constitutional Documents in a manner which would permit a single
shareholder (as determined for purposes hereof pursuant to the attribution
provisions of Section 544 of the Code as modified by Section 856 of the Code) to
own more than thirty percent (30%) of the outstanding stock in Borrower.

         Section 5.14      Investments.

         The Borrower shall not make or permit to exist, nor shall it permit any
of its Subsidiaries to make or permit to exist, any Investment except: (i)
marketable direct obligations issued or unconditionally guaranteed by the
Government or issued by any agency thereof and backed by the full faith and
credit of the United States of America, in each case maturing within one (1)
year from the date of acquisition thereof, (ii) marketable direct obligations
issued by any state of the United States of America or any political subdivision
of any such state or any public instrumentality thereof maturing within one (1)
year from the date of acquisition thereof and, at the time of acquisition,
having the highest rating obtainable from either S&P or Moody's, (iii)
commercial paper maturing no more than one (1) year from the date of creation
thereof and, at the time of acquisition, having a rating in one of the two
highest rating categories of S&P or Moody's, (iv) certificates of deposit,
bankers acceptances or time deposits maturing within one (1) year from the date
of acquisition thereof issued by any of the Banks, (v) certificates of deposit
or bankers acceptances maturing within one (1) year from the date of acquisition
thereof or time deposits maturing within thirty (30) days from the date of
acquisition thereof issued by other commercial banks organized under the laws of
the United States of America or any state thereof or the District of Columbia,
each having shareholders' equity of not less than $600,000,000, (vi) repurchase
agreements with commercial banks or with securities dealers, in any case fully
secured as to principal and interests by obligations described in clauses
(i)-(v) of this Section, (vii) Investments by the Borrower and its Subsidiaries
existing as of the Closing Date, (viii) Investments by the Borrower and
Subsidiary Guarantors in and to the Borrower and Subsidiary Guarantors, (ix)
Investments by Subsidiaries of the Borrower that are not Guarantors in and to
the Borrower and Subsidiary Guarantors, (x) Investments by the Borrower and
Subsidiary Guarantors in and to Subsidiaries of the Borrower that are not
Guarantors hereunder to the extent permitted under Section 5.08(b), and (xi)
Investments in and to joint ventures or other non-Subsidiary enterprises in the
same or closely related lines of business in an aggregate amount up to ten
percent (10%) of the book value of consolidated assets of the Borrower and its
Subsidiaries.

                                      -42-

<PAGE>   47

         Section 5.15      Capital Expenditures.

         The Borrower shall not, nor shall it permit any of its Subsidiaries to,
make any capital expenditures in an aggregate amount in excess of FIVE MILLION
DOLLARS ($5,000,000) per fiscal year; provided, however (i) capital expenditures
incurred to acquire, expand or improve facilities intended to be revenue
producing shall not be deemed to be capital expenditures for purposes of the
foregoing requirement, and (ii) capital expenditures required pursuant to any
lease or other contract shall not be deemed to be capital expenditures for
purposes of the foregoing requirement.

         Section 5.16      Repurchase, Retirement or Redemption of Capital
                           Stock; Dividends.

                  (a)      The Borrower will not, nor will it permit any of its
         Subsidiaries (other than its wholly owned Subsidiaries or the Specified
         Affiliates) to, repurchase, retire or redeem any of its capital stock;
         provided that the Borrower may redeem (i) its 6.55% Convertible
         Subordinated Debentures due 2002 and its 10.5% Convertible Subordinated
         Debentures due 2002 and (ii) its preferred stock with proceeds from the
         sale of its common stock.

                  (b)      The Borrower will not pay dividends on any of its
         stock in any fiscal year in excess of ninety-five percent (95%) of
         Funds From Operations for such fiscal year; provided that (i) any
         wholly owned Subsidiary of the Borrower may pay dividends or make
         distributions to its parent company and (ii) the Borrower may pay such
         dividends as are necessary to maintain its status as a REIT.

                  (c)      The Borrower will cause its Subsidiaries to dividend
         or otherwise transfer (not less frequently than quarterly) to it all
         excess cash on hand (except as provided in the cash management
         arrangements with the Borrower's special purpose entities) to be held
         in a common cash concentration and management account(s).

         Section 5.17      Ratio of Consolidated Funded Indebtedness to
                           Consolidated Total Capital.

         The Borrower will not permit its ratio of Consolidated Funded
Indebtedness to Consolidated Total Capital to exceed 0.40 to 1.0 as of the last
day of each fiscal quarter.

         Section 5.18      Consolidated Tangible Net Worth.

         The Borrower shall maintain Consolidated Tangible Net Worth at all
times of at least $800,000,000; provided, however, such amount shall be
increased by an amount equal to (a) ninety-five percent (95%) of the net
proceeds received by the Borrower on account of any additional equity offerings
made subsequent to the Closing Date; and (b) without duplication for any amounts
counted under the foregoing clause (a), ninety-five percent (95%) of the net
proceeds received by the Borrower on account of any Securities Transaction
completed subsequent to the Closing Date.

         Section 5.19      Consolidated Coverage Ratio.

         The Borrower will maintain a Consolidated Coverage Ratio as of the last
day of each fiscal quarter (computed for the four (4) consecutive quarterly
periods then ending) of no less than 2.5 to 1.0.

         Section 5.20      Consolidated Senior Secured Debt to Consolidated
                           Total Capital Ratio.

         The ratio of Consolidated Senior Secured Debt to Consolidated Total
Capital shall not at any time exceed 0.20 to 1.0.

                                      -43-

<PAGE>   48

         Section 5.21      Consolidated Unencumbered Realty to Consolidated
                           Unsecured Debt Ratio.

         The ratio of Consolidated Unencumbered Realty to Consolidated Unsecured
Debt shall not at any time be less than 2.1 to 1.0.

         Section 5.22      Consolidated Unencumbered Coverage Ratio.

         The Borrower shall maintain a Consolidated Unencumbered Coverage Ratio
as of the last day of each fiscal quarter (computed for the four (4) consecutive
quarterly periods then ending) of no less than 2.5 to 1.0.

         Section 5.23      Specified Affiliates.

         The Borrower will give the Agent prompt notice of any Subsidiary that
to the Borrower's knowledge becomes a Specified Affiliate subsequent to the
Closing Date.

         Section 5.24      REIT Status.

         The Borrower will meet the requirements of Section 857(a) of the Code
and regulations thereunder.

         Section 5.25      Leases.

         The Borrower will not modify or amend any lease where the Borrower is
the lessor thereunder if such modification or amendment would have a material
adverse effect on the Borrower.

         Section 5.26      Favorable Treatment.

         The Borrower will not permit its Subsidiaries to give a Guarantee or
pledge of collateral (other than in connection with non-recourse financing as
permitted under Section 5.10(d) hereof) in respect of any other Debt (other than
the guaranty in respect of the $90 million 1995 private placement note issue and
then only to the extent that the maturity date of the guaranteed indebtedness is
not extended beyond the original maturity date and the payment terms thereof are
not otherwise amended or modified) unless such Subsidiary shall also give an
equal and ratable Guarantee and pledge of collateral of the loans and
obligations hereunder (in substantially the form attached as Schedule 5.26 or
such other form as may be reasonably acceptable to the Agent and the Majority
Banks) and become a Subsidiary Guarantor hereunder, without prejudice to any
Event of Default that may arise under Section 5.06.

         Section 5.27      Construction and Development.

         The Borrower and its Subsidiaries will not engage in construction and
development projects in which the total project costs of all such concurrent
construction and development projects exceed, in the aggregate at any one time,
ten percent (10%) of the book value of consolidated assets of the Borrower and
its Subsidiaries (it being understood and agreed for purposes of this Section
that a project shall be considered under construction and/or development until a
certificate of occupancy therefor, or other similar certificate, shall have been
issued by appropriate governmental authorities).

         Section 5.28      Limitation on Certain Agreements.

         The Borrower will not, nor will it permit its Subsidiaries to, enter
into, assume or otherwise become subject to any agreement (i) restricting their
ability to grant a lien on their property (except with

                                      -44-

<PAGE>   49

respect to those properties which are the subject of non-recourse financing
permitted under Section 5.10(d) hereof), or (ii) restricting the ability of the
Subsidiaries to give a guaranty of the loans and obligations hereunder.

                                   ARTICLE VI
                                EVENTS OF DEFAULT

         Section 6.01      Events of Default.

         The occurrence of any of the following events shall constitute an event
of default hereunder (individually, an "Event of Default" and collectively the
"Events of Default"):

                  (a)      The Borrower shall fail to pay (i) when due any
         principal of any Loan or any reimbursement obligation owing on account
         of a drawing under a Letter of Credit or (ii) within five (5) days
         after the same shall become due, any interest on any Obligation or any
         fees or any other amount payable hereunder;

                  (b)      Default in the due performance or observance of any
         term, covenant or agreement contained in Section 5.07 through 5.28,
         inclusive;

                  (c)      The Borrower shall fail to observe or perform any
         covenant or agreement contained in any Financing Document (other than
         those covered by clause (a) or (b) above) for thirty (30) days after
         the earlier of a responsible officer of the Borrower becoming aware of
         such failure or written notice of such failure shall have been given to
         the Borrower by the Agent or any Bank;

                  (d)      Any representation, warranty, certification or
         statement made or deemed made by the Borrower in any Financing Document
         or in any certificate, financial statement or other document delivered
         pursuant thereto shall prove to have been incorrect in any material
         respect when made (or deemed made) and such representation, warranty,
         certification or statement shall remain incorrect for thirty (30) days
         after the earlier of a responsible officer of the Borrower becoming
         aware of such failure or written notice of such failure shall have been
         given to the Borrower by the Agent or any Bank;

                  (e)      The Borrower or any of its Material Subsidiaries
         shall fail to make any payment in respect of any Debt in an aggregate
         amount in excess of $5,000,000 when due or within any applicable grace
         period;

                  (f)      Any event or condition shall occur which would cause
         or permit the acceleration of the maturity of any Debt of Borrower or
         any Material Subsidiary in an aggregate amount in excess of $5,000,000
         or enables the holder of such Debt or any Person acting on such
         holder's behalf to accelerate the maturity thereof;

                  (g)      The Borrower or any Material Subsidiary of the
         Borrower shall commence a voluntary case or other proceeding seeking
         liquidation, reorganization or other relief with respect to itself or
         its debts under any bankruptcy, insolvency or other similar law now or
         hereafter in effect or seeking the appointment of a trustee, receiver,
         liquidator, custodian or other similar official of it or any
         substantial part of its property, or shall consent to any such relief
         or to the appointment of or taking possession by any such official in
         an involuntary case or other proceeding commenced against it, or shall
         make a general assignment for the benefit of creditors,

                                      -45-

<PAGE>   50

         or shall fail generally to pay its debts as they become due, or shall
         take any corporate action to authorize any of the foregoing;

                  (h)      An involuntary case or other proceeding shall be
         commenced against the Borrower or any Material Subsidiary of the
         Borrower seeking liquidation, reorganization or other relief with
         respect to it or its debts under any bankruptcy, insolvency or other
         similar law now or hereafter in effect or seeking the appointment of a
         trustee, receiver, liquidator, custodian or other similar official of
         it or any substantial part of its property, and such involuntary case
         or other proceeding shall remain undismissed and unstayed for a period
         of thirty (30) days; or an order for relief shall be entered against
         the Borrower or any Material Subsidiary of the Borrower under the
         federal bankruptcy laws as now or hereafter in effect;

                  (i)      The Borrower or any Material Subsidiary of the
         Borrower shall admit in writing its inability to pay its debts as and
         when they fall due;

                  (j)      Except as previously disclosed to the Banks in
         writing prior to the date hereof: any member of the ERISA Group shall
         fail to pay when due an amount or amounts aggregating in excess of
         $5,000,000 which it shall have become liable to pay under Title IV of
         ERISA; or notice of intent to terminate any Plan which is then a
         Material Plan shall be filed under Title IV of ERISA by any member of
         the ERISA Group, any plan administrator or any combination of the
         foregoing; or the PBGC shall institute proceedings under Title IV of
         ERISA to terminate, to impose liability (other than for premiums under
         Section 4007 of ERISA) in respect of, or to cause a trustee to be
         appointed to administer any Plan which is then a Material Plan; or a
         condition shall exist by reason of which the PBGC would be entitled to
         obtain a decree adjudicating that any Plan which is then a Material
         Plan must be terminated; or there shall occur a complete or partial
         withdrawal from, or a default, within the meaning of Section 4219(c)(5)
         of ERISA, with respect to, one or more Multiemployer Plans which could
         cause one or more members of the ERISA Group to incur a current payment
         obligation, that is, an obligation or series of obligations payable
         within twelve (12) months, in excess of $5,000,000;

                  (k)      An uninsured, final, unappealable judgment or order
         for the payment of money in excess of $5,000,000 shall be rendered
         against the Borrower or any of its Material Subsidiaries and such
         judgment or order shall continue unsatisfied and unstayed for a period
         of thirty (30) days;

                  (l)      (i) The voting interests in any Specified Affiliate
         shall be held by a Person other than a director, officer or employee of
         the Borrower, (ii) the Borrower shall fail to own substantially all of
         the economic interest in any Specified Affiliate and the remainder of
         such economic interest shall be held by a Person other than directors,
         officers and/or employees or (iii) a Specified Affiliate shall engage
         in any of the actions or activities that are limited or restricted by
         Article 5 hereof;

                  (m)      Except as to (i) the guaranties in respect of loans
         and obligations under the Existing Credit Facility to be released
         pursuant to Section 3.01(j) and (ii) any guaranty which is dissolved,
         released or merged or consolidated out of existence as the result of or
         in connection with a dissolution, merger or consolidation permitted by
         Section 5.04, any guaranty of the loans and obligations hereunder or
         any material provision thereof shall cease to be in full force and
         effect, or any Guarantor or any Person acting by or on behalf of such
         Guarantor shall deny or disaffirm such Guarantor's obligations under
         such guaranty, or any Guarantor shall default in the due performance or
         observance of any term, covenant or agreement on its part to be
         performed or observed pursuant to any guaranty; or

                                      -46-

<PAGE>   51

                  (n)      the occurrence of a Change of Control;

         then, and in every such event, the Agent shall during the continuance
         of such Event of Default (i) if requested by the Majority Banks, by
         notice to the Borrower terminate the Commitments, (ii) if requested by
         the Majority Banks, by notice to the Borrower declare the Notes
         (together with accrued interest thereon) and all other amounts payable
         by the Borrower hereunder to be, and such Notes and amounts shall
         thereupon become, immediately due and payable without presentment,
         demand, protest or other notice of any kind, all of which are hereby
         waived by the Borrower, (iii) provide cash collateral in respect of the
         LOC Obligations, and (iv) take such other actions as are directed by
         the Majority Banks; provided that in the case of any Event of
         Acceleration, without any notice to the Borrower or any other act by
         the Agent or any Bank, the Commitments shall automatically terminate
         and the Notes (together with accrued interest thereon) shall
         automatically become immediately due and payable without presentment,
         demand, protest or other notice of any kind, all of which are hereby
         waived by the Borrower; and provided further that the Agent may
         terminate commitments, declare the Loans and Obligations hereunder
         immediately due and payable and demand cash collateral for the LOC
         Obligations without prior notice to or the consent of the Banks where
         it determines such action is warranted and appropriate based on the
         facts and circumstances. Subject to the request or direction of the
         Majority Banks as provided above, Agent shall have the exclusive right
         to enforce the remedies available under this Credit Agreement during
         the continuance of any Event of Default hereunder.

                                   ARTICLE VII
                                    THE AGENT

         Section 7.01      Appointment and Authorization.

         Each Bank appoints the Agent to act as its agent in connection herewith
and each of the other Financing Documents.

         Section 7.02      Agents and Affiliates.

         Bank of America shall have the same rights and powers under this Credit
Agreement as any other Bank and may exercise or refrain from exercising the same
as though it were not the Agent, and Bank of America and each of its affiliates
may accept deposits from, lend money to, and generally engage in any kind of
business with the Borrower, any of its Subsidiaries and any of its or their
respective Affiliates as if it were not the Agent.

         Section 7.03      Action by Agent.

         The obligations of the Agent under the Financing Documents are only
those expressly set forth herein with respect to it. Without limiting the
generality of the foregoing the Agent shall not be required to take any action
with respect to any Default or Event of Default, except as expressly provided in
Article VI.

         Section 7.04      Consultation with Experts.

         The Agent may consult with legal counsel (who may be counsel for the
Borrower), independent public accountants and other experts selected by the
Agent and shall not be liable for any action taken or omitted to be taken by the
Agent in good faith in accordance with the advice of such counsel, accountants
or experts.

                                      -47-

<PAGE>   52

         Section 7.05      Liability of Agent.

         Neither the Agent nor any of its directors, officers, agents or
employees shall be liable for any action taken or not taken by it in connection
with the Financing Documents (a) with the consent or at the request of the
Majority Banks; or (b) in the absence of gross negligence or willful misconduct
of the Agent. In requests for consents and direction from the Banks, the Agent
may provide reasonable periods in which to respond. Neither the Agent nor any of
its directors, officers, agents or employees shall be responsible for or have
any duty to ascertain, inquire into or verify (i) any statement, warranty or
representation made in connection with any Financing Document; (ii) the
performance or observance of any of the covenants or agreements of the Borrower,
(iii) the satisfaction of any condition specified in Article III, except receipt
of items required to be delivered to the Agent; or (iv) the validity,
effectiveness or genuineness of any Financing Document or any other instrument
or writing furnished in connection therewith. The Agent shall not incur any
liability by acting in reliance upon any notice, consent, certificate, statement
or other writing (which may be a bank wire, facsimile, telex or similar writing)
believed by it to be genuine or to be signed by the proper party or parties.

         Section 7.06      Indemnification.

         Each Bank shall, ratably in accordance with its Revolving Commitment,
indemnify the Agent and BAS (to the extent not reimbursed by the Borrower)
against any cost, expense (including reasonable counsel fees and disbursements),
claim, demand, action, loss or liability (except such as result from the Agent's
or BAS's gross negligence or willful misconduct) that the Agent may suffer or
incur in connection with the Financing Documents or any action taken or omitted
by the Agent thereunder.

         Section 7.07      Credit Decision.

         Each Bank acknowledges that it has, independently and without reliance
upon the Agent or any other Bank, and based on such documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter
into this Credit Agreement. Each Bank also acknowledges that it will,
independently and without reliance upon the Agent or any other Bank, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking any action
under the Financing Documents.

         Section 7.08      Successor Agent.

         The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Banks and the Borrower. The Majority Banks may
remove the Agent for cause at any time by giving thirty (30) days prior written
notice to the Agent, the other Banks and the Borrower. Upon any such resignation
or removal of the Agent, the Majority Banks shall have the right to appoint a
successor Agent, with the consent of the Borrower (which consent shall not
unreasonably be withheld, but which may in any event be withheld if (a) the
Borrower in good faith concludes that the appointment of such proposed successor
Agent could result in a violation of any law, rule, guideline or regulation, or
a violation of, revocation of, failure to renew or modification of any order,
facility security clearance or permit or (b) the credit standing of the proposed
successor Agent is lower than that of the preceding Agent); provided, however,
such consent of the Borrower shall not be required upon the occurrence and
during the continuance of an Event of Default. If no successor Agent shall have
been so appointed by the Majority Banks, and shall have accepted such
appointment, within thirty (30) days after the retiring Agent gives notice of
resignation, then the retiring Agent may, on behalf of the Banks and with the
consent of the Borrower (which consent shall not be unreasonably withheld except
as aforesaid), appoint a successor Agent, which shall have core capital of at
least $500,000,000. Upon the acceptance of its appointment as Agent hereunder by
a successor Agent the retiring Agent shall be discharged from its duties and
obligations hereunder. After any retiring Agent's resignation hereunder as
Agent, the

                                      -48-

<PAGE>   53

provisions of this Article shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Agent. In the event of any successor
agent to Bank of America, (i) all references herein to Bank of America shall be
deemed to refer to such successor agent and (ii) all references to Charlotte,
North Carolina shall be deemed to mean the city in which the successor Agent's
headquarters is located.

         Section 7.09      Agent's Fee.

         The Borrower shall pay to the Agent for its own account fees in the
amounts and at the time previously agreed upon in writing between the Borrower
and the Agent.

                                  ARTICLE VIII
                             CHANGE IN CIRCUMSTANCES

         Section 8.01      Basis for Determining Interest Rate Inadequate
                           or Unfair.

         If on or prior to the first day of any Interest Period for any
Eurodollar Loan:

                  (a)      the Agent is advised by the Eurodollar Reference Bank
         that deposits in Dollars (in the applicable amounts) are not being
         offered to the Eurodollar Reference Bank in the relevant market for
         such Interest Period, or

                  (b)      the Majority Banks advise the Agent that the Adjusted
         Eurodollar Rate as determined by the Agent will not adequately and
         fairly reflect the cost to such Banks of funding their Eurodollar Loans
         for such Interest Period,

the Agent shall forthwith give notice thereof to the Borrower and the Banks,
whereupon until the Agent notifies the Borrower that the circumstances giving
rise to such suspension no longer exist, (i) the obligations of the Banks to
make new Eurodollar Loans or to convert outstanding Loans into Eurodollar Loans
shall be suspended and (ii) each outstanding Eurodollar Loan, as the case may
be, shall be converted into a Base Rate Loan on the last day of the then current
Interest Period applicable thereto. Unless the Borrower notifies the Agent at
least one (1) Business Day before the date of any Eurodollar Borrowing for which
a Notice of Borrowing has previously been given that it elects not to borrow on
such date, such Borrowing shall instead be made as a Base Rate Borrowing.

         Section 8.02      Illegality.

         If, on or after the date of this Credit Agreement, the adoption of any
applicable law, rule or regulation, or any change therein, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof or compliance by any Bank (or its Eurodollar Lending Office) with any
request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency shall make it unlawful or
impossible for any Bank (or its Eurodollar Lending Office) to make, maintain or
fund its Eurodollar Loans and such Bank shall so notify the Agent, the Agent
shall forthwith give notice thereof to the other Banks and the Borrower,
whereupon until such Bank notifies the Borrower and the Agent that the
circumstances giving rise to such suspension no longer exist, the obligation of
such Bank to make new Eurodollar Loans, or to convert outstanding Loans into
Eurodollar Loans, shall be suspended. Before giving any notice to the Agent
pursuant to this Section, such Bank shall designate a different Eurodollar
Lending Office if such designation will avoid the need for giving such notice
and will not, in the judgment of such Bank, be otherwise disadvantageous to such
Bank. If such notice is given, each Eurodollar Loan of such Bank then
outstanding shall be converted to a Base Rate Loan either (a) on the last day of
the then current Interest Period applicable to such Eurodollar Loan

                                      -49-

<PAGE>   54

if such Bank may lawfully continue to maintain and fund such Loan to such day or
(b) immediately if such Bank shall determine that it may not lawfully continue
to maintain and fund such Loan to such day.

         Section 8.03      Increased Cost and Reduced Return.

                  (a)      If on or after the date hereof, the adoption of any
         applicable law, rule or regulation, or any change therein, or any
         change in the interpretation or administration thereof by any
         governmental authority, central bank or comparable agency charged with
         the interpretation or administration thereof, or compliance by any Bank
         (or its Eurodollar Lending Office) with any request or directive
         (whether or not having the force of law) of any such authority, central
         bank or comparable agency:

                           (i)      shall subject any Bank (or its Applicable
                  Lending Office) to any tax, duty or other charge with respect
                  to its Eurodollar Loans, or its obligation to make Eurodollar
                  Loans, or shall change the basis of taxation of payments to
                  any Bank (or its Eurodollar Lending Office) of the principal
                  of or interest on its Eurodollar Loans or any other amounts
                  due under this Credit Agreement in respect of its Eurodollar
                  Loans or its obligation to make Eurodollar Loans (except for
                  (i) Non-Excluded Taxes covered by Section 8.04 (including
                  Non-Excluded Taxes imposed solely by reason of any failure of
                  such Bank to comply with its obligations under Section 2.14
                  and (ii) changes in the rate of tax imposed on, or
                  contemplated with respect to, the income of such Bank or its
                  Eurodollar Lending Office or changes generally affecting the
                  manner in which the income of such Bank or its Applicable
                  Lending Office is subjected to taxation, by the jurisdiction
                  in which such Bank's principal executive office or Eurodollar
                  Lending Office is located or the jurisdiction under the laws
                  of which such Bank is organized); or

                           (ii)     shall impose, modify or deem applicable any
                  reserve, special deposit or similar requirement (including,
                  without limitation, any such requirement imposed by the Board
                  of Governors of the Federal Reserve System, but excluding with
                  respect to any Eurodollar Loan any such requirement included
                  in an applicable Eurodollar Reserve Percentage) against assets
                  of, deposits with or for the account of, or credit extended
                  by, any Bank (or its Applicable Lending Office) or shall
                  impose on any Bank (or its Applicable Lending Office) or on
                  the United States market for certificates of deposit or the
                  London interbank market any other condition affecting its
                  Eurodollar Loans, its Note or its obligation to make
                  Eurodollar Loans;

         and the result of any of the foregoing is to increase the cost to such
         Bank (or its Eurodollar Lending Office) of making or maintaining any
         Eurodollar Loan, or to reduce the amount of any sum received or
         receivable by such Bank (or its Eurodollar Lending Office) under this
         Credit Agreement or under its Note with respect thereto, by an amount
         deemed by such Bank to be material (except to the extent that such
         increased cost or reduction of a sum received or receivable is
         attributable to such Bank's failure to perform any of its obligations
         under Section 2.14 or is otherwise attributable to any act or action of
         such Bank other than the loaning of funds under this Credit Agreement),
         then, within fifteen (15) days after demand by such Bank (with a copy
         to the Agent) accompanied by a certificate setting forth in reasonable
         detail its calculation of such increased cost or reduction, the
         Borrower shall pay to such Bank such additional amount or amounts as
         will compensate such Bank for such increased cost or reduction.

                  (b)      If any Bank shall have determined that, after the
         date hereof, the adoption or change of any applicable law, rule,
         guideline or regulation regarding capital adequacy, or any change
         therein, or any change in the interpretation or administration thereof
         by any governmental authority, central bank or comparable agency
         charged with the interpretation or

                                      -50-

<PAGE>   55

         administration thereof or any request or directive regarding capital
         adequacy (whether or not having the force of law) of any such
         authority, central bank or comparable agency, has or would have the
         effect of reducing the rate of return on capital of such Bank (or its
         Parent) as a consequence of such Bank's obligations hereunder to a
         level below that which such Bank (or its Parent) could have achieved
         but for such adoption, change, request or directive (taking into
         consideration its policies with respect to capital adequacy) by an
         amount deemed by such Bank to be material then from time to time,
         within fifteen (15) days after demand by such Bank (with a copy to the
         Agent) accompanied by a certificate setting forth in reasonable detail
         its calculation of such reduction, the Borrower shall pay such Bank
         such additional amount or amounts as will compensate such Bank (or its
         Parent) for such reduction.

                  (c)      Each Bank will promptly notify the Borrower and the
         Agent of any event of which it has knowledge, occurring after the date
         hereof, which will entitle such Bank to compensation pursuant to this
         Section and will designate a different Applicable Lending Office if
         such designation will avoid the need for, or reduce the amount of, such
         compensation and will not, in the judgment of such Bank, be otherwise
         disadvantageous to such Bank. A certificate of any Bank claiming
         compensation under this Section and setting forth in reasonable detail
         its calculation of the additional amount or amounts to be paid to it
         hereunder shall be conclusive in the absence of manifest error. In
         determining such amount, such Bank may use any reasonable averaging and
         attribution methods. Failure on the part of any Bank to demand
         compensation under subsection (a) or (b) with respect to any period
         shall not constitute a waiver of such Bank's right to demand
         compensation with respect to such period or any other period; provided,
         however, that no Bank shall be entitled to compensation for the period
         which is more than thirty (30) days prior to the date the Borrower
         receives the certificate described in this subsection (c) via
         facsimile. Each Bank agrees that it will send the certificate described
         above via facsimile to insure immediate receipt by the Borrower.

         Section 8.04      Taxes.

         Except as provided below in this subsection, all payments made by the
Borrower under this Credit Agreement and any Notes shall be made free and clear
of, and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any court, or governmental body, agency or other
official, excluding taxes measured by or imposed upon the overall net income of
any Bank or its applicable lending office, or any branch or affiliate thereof,
and all franchise taxes, branch taxes, taxes on doing business or taxes on the
overall capital or net worth of any Bank or its applicable lending office, or
any branch or affiliate thereof, in each case imposed in lieu of net income
taxes, imposed: (i) by the jurisdiction under the laws of which such Bank,
applicable lending office, branch or affiliate is organized or is located, or in
which its principal executive office is located, or any nation within which such
jurisdiction is located or any political subdivision thereof; or (ii) by reason
of any connection between the jurisdiction imposing such tax and such Bank,
applicable lending office, branch or affiliate other than a connection arising
solely from such Bank having executed, delivered or performed its obligations,
or received payment under or enforced, this Credit Agreement or any Notes. If
any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions
or withholdings ("Non-Excluded Taxes") are required to be withheld from any
amounts payable to the Agent or any Bank hereunder or under any Notes, (A) the
amounts so payable to the Agent or such Bank shall be increased to the extent
necessary to yield to the Agent or such Bank (after payment of all Non-Excluded
Taxes) interest or any such other amounts payable hereunder at the rates or in
the amounts specified in this Credit Agreement and any Notes, provided, however,
that the Borrower shall be entitled to deduct and withhold any Non-Excluded
Taxes and shall not be required to increase any such amounts payable to any Bank
that is not organized under the laws of the United States of America or a state
thereof if such Bank fails to comply with the requirements of Section 2.14
whenever any Non-Excluded Taxes are payable by the Borrower, and (B) as promptly
as

                                      -51-

<PAGE>   56

possible thereafter the Borrower shall send to the Agent for its own account or
for the account of such Bank, as the case may be, a certified copy of an
original official receipt received by the Borrower showing payment thereof. If
the Borrower fails to pay any Non-Excluded Taxes when due to the appropriate
taxing authority or fails to remit to the Agent the required receipts or other
required documentary evidence, the Borrower shall indemnify the Agent and the
Banks for any incremental taxes, interest or penalties that may become payable
by the Agent or any Bank as a result of any such failure. The agreements in this
subsection shall survive the termination of this Credit Agreement and the
payment of the Loans and all other amounts payable hereunder.

         Section 8.05      Base Rate Loans Substituted for Affected
                           Eurodollar Loans.

         If (i) the obligation of any Bank to make or maintain Eurodollar Loans
has been suspended pursuant to Section 8.02 or (ii) any Bank has demanded
compensation under Section 8.03 and the Borrower shall by at least five (5)
Eurodollar Business Days' prior notice to such Bank through the Agent have
elected that the provisions of this Section shall apply to such Bank, then,
unless and until such Bank notifies the Borrower that the circumstances giving
rise to such suspension or demand for compensation no longer apply:

                  (a)      all Loans which would otherwise be made by such Bank
         as (or continued as or converted into) Eurodollar Loans shall instead
         be Base Rate Loans (on which interest and principal shall be payable
         contemporaneously with the related Eurodollar Loans of the other
         Banks), and

                  (b)      after each of its Eurodollar Loans has been repaid
         (or converted to a Base Rate Loan), all payments of principal which
         would otherwise be applied to repay such Eurodollar Loans shall be
         applied to repay its Base Rate Loans instead.

If such Bank notifies the Borrower that the circumstances giving rise to such
notice no longer apply, unless Borrower elects otherwise, the principal amount
of each such Base Rate Loan shall be converted into a Eurodollar Loan on the
first day of the next succeeding Interest Period applicable to the related
Eurodollar Loan of the other Banks.

         Section 8.06      Substitution of Bank.

         If (i) the obligation of any Bank to make Eurodollar Loans has been
suspended pursuant to Section 8.02 or (ii) any Bank has demanded compensation
under Section 8.03, the Borrower shall have the right, with the assistance of
the Agent, to seek a substitute bank or banks reasonably satisfactory to the
Agent and the Borrower (which may be one or more of the Banks) to purchase the
Note of such Bank and the interest of such Bank in the Unused Fees and to assume
the Commitment of such Bank for a purchase price equal to all amounts payable to
such Bank hereunder and under the Note, and the Borrower, the Agent, such Bank
and such substitute bank or banks shall execute and deliver an appropriately
completed Assignment and Assumption Agreement pursuant to Section 9.06(c) hereof
to effect the assignment of rights to and assumption of obligations by such
substitute bank or banks.

                                   ARTICLE IX
                                  MISCELLANEOUS

         Section 9.01      Notices.

         All notices, requests and other communications to any party hereunder
shall be in writing (including bank wire, telex, facsimile transmission or
similar writing) and shall be given to such party:

                                      -52-

<PAGE>   57

(a) in the case of the Borrower and the Agent, at the address, facsimile number
or telex number set out below, and in the case of the Banks, at their respective
address, facsimile number or telex number set forth on the Schedule 9.1 hereto
or (b) at such other address, facsimile number or telex number as such party may
hereafter specify for the purpose of notice to the Agent and the Borrower:

         If to the Borrower:                Healthcare Realty Trust Incorporated
                                            3310 West End Avenue
                                            Suite 700
                                            Nashville, Tennessee 37203
                                            Attn:    Treasurer
                                            Phone:   (615) 269-8175
                                            Fax:     (615) 269-8122

         If to the Agent:                   Bank of America, N.A.
                                            One Independence Center
                                            101 North Tryon Street, 15th Floor
                                            Charlotte, North Carolina 28255
                                            Attn:    James D. Young
                                                     Agency Services
                                            Phone:   (704) 386-9372
                                            Fax:     (704) 409-0030

                                            with a copy to:

                                            Bank of America, N.A.
                                            100 North Tryon Street, 17th Floor
                                            Charlotte, North Carolina 28255
                                            Attn:    Will Duke
                                            Phone:   (704) 388-6006
                                            Fax:     (704) 388-6002

Each such notice, request or other communication shall be effective (i) if given
by telex, when such telex is transmitted to the telex number specified in or
pursuant to this Section and the appropriate answer back is received, (ii) if
given by facsimile, when such facsimile is transmitted to the number specified
in or pursuant to this Section,(iii) if given by mail, 72 hours after such
communication is deposited in the mails with first class postage prepaid,
addressed as aforesaid or (iv) if given by any other means, when delivered at
the address specified in or pursuant to this Section; provided that notices to
the Agent or the Borrower or any Bank under Article II or Article VIII shall not
be effective until received.

         Section 9.02      No Waivers.

         No failure or delay by the Agent or any Bank in exercising any right,
power or privilege hereunder or under any Note shall operate as a waiver thereof
nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies herein provided shall be cumulative and not exclusive of any
rights or remedies provided by law.

         Section 9.03      Expenses.

                  (a)      The Borrower shall pay (i) all reasonable
         out-of-pocket expenses of the Agent associated with the preparation and
         due diligence of the Loans, including reasonable fees and disbursements
         of special counsel for the Agent (but excluding administration and
         syndication

                                      -53-

<PAGE>   58

         costs), in connection with any waiver or consent requested by Borrower
         hereunder or any amendment hereof requested by Borrower or any Default
         hereunder, any waiver or consent hereunder or any amendment hereof or
         any Default or alleged Default hereunder and (ii) if an Event of
         Default occurs, all reasonable out-of-pocket expenses incurred by the
         Agent and each Bank, including reasonable fees and disbursements of
         counsel in connection with such Event of Default and work-out,
         collection, bankruptcy, insolvency and other enforcement proceedings
         resulting therefrom.

                  (b)      The Borrower shall indemnify and defend the Agent,
         BAS and each other Bank and their respective directors, officers,
         agents, employees, Subsidiaries and Affiliates (the "Indemnified
         Parties") from, and hold each of them harmless against any and all
         losses, liabilities, claims, damages or expenses incurred by any of
         them arising out of, by reason of or in connection with this Credit
         Agreement (but excluding any such losses, liabilities, claims, damages
         or expenses incurred by reason of (i) the gross negligence or willful
         misconduct by the indemnitee, and/or (ii) any claim made by Agent, BAS
         or any Bank against the other), including, but without limitation,
         amounts paid in settlement, court costs, and fees and disbursements of
         no more than one separate law firm acting as counsel for any or all of
         the parties indemnified hereunder, in each case incurred in connection
         with any such investigation, litigation or other proceedings; provided,
         that the Indemnified Parties shall be entitled to reimbursement of the
         expenses of more than one separate law firm if the Indemnified Parties,
         in their reasonable discretion, determine that a single law firm would
         not be able to adequately represent the interests of the Indemnified
         Parties in a matter. Notwithstanding the foregoing provisions of this
         paragraph to the contrary, each Indemnified Party shall use its best
         efforts to mitigate any losses, liabilities, claims, damages or
         expenses as to which it is entitled to seek indemnity pursuant to the
         provisions hereof.

         Section 9.04      Sharing of Set-Offs.

         Each Bank agrees that if it shall, by exercising any right of set-off
or counterclaim or otherwise, receive payment of a proportion of the aggregate
amount of principal and interest due with respect to any Note held by it which
is greater than the proportion received by any other Bank in respect of the
aggregate amount of principal and interest due with respect to any Note held by
such other Bank, the Bank receiving such proportionately greater payment shall
purchase such participation in the Notes held by the other Banks, and such other
adjustments shall be made, as may be required so that all such payments of
principal and interest with respect to the Notes held by the Banks shall be
shared by the Banks pro rata. The Borrower agrees, to the fullest extent it may
effectively do so under applicable law, that any holder of a participation in a
Note, whether or not acquired pursuant to the foregoing arrangements, may
exercise rights of set-off or counterclaim and other rights with respect to such
participation as fully as if such holder of a participation were a direct
creditor of the Borrower in the amount of such participation.

         Section 9.05      Amendments and Waivers.

         Any provision of this Credit Agreement or any of the other Financing
Documents may be modified, amended or waived if, but only if, such modification,
amendment or waiver is in writing and is signed by the Borrower and the Majority
Banks (and, if the rights or duties of the Agent are affected thereby, by the
Agent); provided that no such modification, amendment or waiver shall, unless
signed by all the Banks, (a) increase the Commitment of any Bank or subject any
Bank to any additional obligation, (b) reduce the principal of or rate of
interest on any Loan or any fees or other amounts payable to any Bank hereunder,
(c) postpone the date fixed for any scheduled payment of principal of or
interest on any Loan or any fees hereunder or for any scheduled reduction or
termination of any Commitment, (d) except as provided in Section 2.01(d), change
the percentage of the Commitments or of the aggregate unpaid

                                      -54-

<PAGE>   59

principal amount of the Notes, or the number of Banks, which shall be required
for the Banks or any of them to take any action under this Section or any other
provision of this Credit Agreement, (e) change any definition or covenant level
requirement of the ratio of Consolidated Unencumbered Realty to Consolidated
Unsecured Debt in Section 5.21 or (f) release of any Subsidiary Guarantor from
its guaranty obligations of the loans and obligations hereunder, if any.

         Section 9.06      Successors and Assigns.

                  (a)      The provisions of this Credit Agreement shall be
         binding upon and inure to the benefit of the parties hereto and their
         respective successors and assigns, except that the Borrower may not
         assign or otherwise transfer any of its rights or obligations under
         this Credit Agreement without the prior written consent of all the
         Banks, and no Bank may assign or otherwise transfer any of its rights
         or obligations under this Credit Agreement except in compliance with
         this Section 9.06; provided that nothing contained herein shall prevent
         or prohibit any Bank from (i) pledging its Loans and Obligations to a
         Federal Reserve Bank in support of borrowings made by such Bank from
         such Federal Reserve Bank, or (ii) granting assignments or selling
         participations in such Bank's Obligations and/or Commitments hereunder
         to a parent company and/or an Affiliate or Subsidiary of such Bank.

                  (b)      Any Bank at any time may grant to one or more banks
         or other institutions (each a "Participant") participating interests in
         its Commitment or any or all of its Loans. In the event of any such
         grant by a Bank of a participating interest to a Participant, whether
         or not upon notice to the Borrower and the Agent, such Bank shall
         remain responsible for the performance of its obligations hereunder,
         and the Borrower and the Agent shall continue to deal solely and
         directly with such Bank in connection with such Bank's rights and
         obligations under this Credit Agreement. Any agreement pursuant to
         which any Bank may grant such a participating interest shall provide
         that such Bank shall retain the sole right and responsibility to
         enforce the obligations of the Borrower hereunder including, without
         limitation, the right to approve any amendment, modification or waiver
         of any provision of the Financing Documents; provided that such
         participation agreement may provide that such Bank will not agree to
         any modification, amendment or waiver of this Credit Agreement
         described in clause (a), (b) or (c) of Section 9.05, without the
         consent of the Participant. An assignment or other transfer which is
         not permitted by subsection (c) or (d) below shall be given effect for
         purposes of this Credit Agreement only to the extent of a participating
         interest granted in accordance with this subsection (b).

                  (c)      Each Bank may assign all or a portion of its rights,
         obligations, or rights and obligations hereunder (including, without
         limitation, its loans and commitments hereunder) pursuant to an
         assignment agreement substantially in the form of Schedule 9.06(c), to
         (i) a Bank, (ii) an affiliate of a Bank or (iii) any other Person
         (other than the Borrower or an Affiliate of the Borrower) reasonably
         acceptable to the Agent and, so long as no Default or Event of Default
         has occurred and is continuing, the Borrower, which consent shall not
         be unreasonably withheld or delayed and which consent shall be deemed
         given if the Borrower shall not make written objection within two
         Business Days after notice of the proposed assignment; provided that
         (i) any such assignment (other than an assignment to an existing Bank
         or affiliate of an existing Bank) shall be in a minimum aggregate
         principal amount of $5,000,000 (or the remaining amount of loans and
         commitments, if less) and integral multiples of $1,000,000 in excess
         thereof, and (ii) each such assignment shall be in a constant, not
         varying, percentage of all the Bank's rights and obligations under this
         Credit Agreement. Any assignment hereunder shall be effective upon
         delivery to the Agent of written notice of the assignment together with
         a transfer fee of $3,500 payable to the Agent for its own account from
         and after the effective date specified in the applicable assignment
         agreement. The assigning Bank will give prompt notice to the Agent and
         the Borrower of any such assignment. Upon the effectiveness of any such
         assignment (and after notice

                                      -55-

<PAGE>   60

         to, and (to the extent required pursuant to the terms hereof), with the
         consent of, the Borrower as provided herein), the assignee shall become
         a "Bank" for all purposes of this Credit Agreement and the other
         Financing Documents and, to the extent of such assignment, the
         assigning Bank shall be relieved of its obligations hereunder to the
         extent of the Obligations and Commitment components being assigned.
         Along such lines the Borrower agrees that upon notice of any such
         assignment and surrender of the appropriate Note or Notes, it will
         promptly provide to the assigning Bank and to the assignee separate
         promissory notes in the amount of their respective interests
         substantially in the form of the original Note (but with notation
         thereon that it is given in substitution for and replacement of the
         original Note or any replacement notes thereof). By executing and
         delivering an assignment agreement in accordance with this
         Section 11.3(b), the assigning Bank thereunder and the assignee
         thereunder shall be deemed to confirm to and agree with each other and
         the other parties hereto as follows: (i) such assigning Bank warrants
         that it is the legal and beneficial owner of the interest being
         assigned thereby free and clear of any adverse claim; (ii) except as
         set forth in clause (i) above, such assigning Bank makes no
         representation or warranty and assumes no responsibility with respect
         to any statements, warranties or representations made in or in
         connection with this Credit Agreement, any of the other Financing
         Documents or any other instrument or document furnished pursuant hereto
         or thereto, or the execution, legality, validity, enforceability,
         genuineness, sufficiency or value of this Credit Agreement, any of the
         other Financing Documents or any other instrument or document furnished
         pursuant hereto or thereto or the financial condition of the Borrower
         or any of its Affiliates or the performance or observance by the
         Borrower of any of its obligations under this Credit Agreement, any of
         the other Financing Documents or any other instrument or document
         furnished pursuant hereto or thereto; (iii) such assignee represents
         and warrants that it is legally authorized to enter into such
         assignment agreement; (iv) such assignee confirms that it has received
         a copy of this Credit Agreement, the other Financing Documents and such
         other documents and information as it has deemed appropriate to make
         its own credit analysis and decision to enter into such assignment
         agreement; (v) such assignee will independently and without reliance
         upon the Agent, such assigning Bank or any other Bank, and based on
         such documents and information as it shall deem appropriate at the
         time, continue to make its own credit decisions in taking or not taking
         action under this Credit Agreement and the other Financing Documents;
         (vi) such assignee appoints and authorizes the Agent to take such
         action on its behalf and to exercise such powers under this Credit
         Agreement or any other Financing Document as are delegated to the Agent
         by the terms hereof or thereof, together with such powers as are
         reasonably incidental thereto; and (vii) such assignee agrees that it
         will perform in accordance with their terms all the obligations which
         by the terms of this Credit Agreement and the other Financing Documents
         are required to be performed by it as a Bank. Any purported assignment
         which does not comply with the requirements of this Section 9.06(c)
         shall be null and void.

                  (d)      Any Bank may at any time assign all or any portion of
         its rights under this Credit Agreement and its Notes to a Federal
         Reserve Bank. No such assignment shall release the transferor Bank from
         its obligations hereunder.

                  (e)      The Borrower agrees that each Participant shall to
         the extent provided in its participation agreement, be entitled to the
         benefits of Section 8.03 and 2.15 with respect to its participating
         interest; provided that no Participant or other transferee of any
         Bank's rights shall be entitled to receive any greater payment under
         Section 8.03 or 2.12 (whether individually or in aggregate with any
         such payments received by such Bank) than such Bank would have been
         entitled to receive with respect to the rights transferred if such
         rights had not been transferred.

                  (f)      Borrower shall not be required to pay any costs or
         expenses in connection with any participation, assignment or transfer
         described in this Section 9.06. No such participation or, except as
         provided in Section 9.06(c) above with respect to an assignment which
         is consented to

                                      -56-

<PAGE>   61

         by Borrower, assignment or transfer shall release any Bank from
         liability for its obligations hereunder.

         Section 9.07      Collateral.

         Each of the Banks represents to the Borrower, the Agent and each of the
other Banks that it in good faith is not relying upon any "Margin Stock" (as
defined in Regulation U) as collateral in the extension or maintenance of the
credit provided for in the Financing Documents.

         Section 9.08      Purpose.

         This Credit Agreement refinances the Existing Credit Facility in full
and is given in replacement of and substitution for the Existing Credit
Agreement.

         Section 9.09      Governing Law; Submission to Jurisdiction.

         This Credit Agreement and each Note shall be governed by and construed
in accordance with the laws of the State of North Carolina. The Borrower, Agent
and each Bank hereby submits to the nonexclusive jurisdiction of the United
States District Court of the Western District of North Carolina and of any North
Carolina State court sitting in Charlotte for purposes of all legal proceedings
arising out of or relating to this Credit Agreement or the transactions
contemplated hereby. The Borrower, Agent and each Bank irrevocably waives, to
the fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of the venue of any such proceeding brought in such a court
and any claim that any such proceeding brought in such a court has been brought
in an inconvenient forum.

         Section 9.10      Counterparts; Integration; Effectiveness.

         This Credit Agreement may be signed in any number of counterparts, each
of which shall be an original with the same effect as if the signatures thereto
and hereto were upon the same instrument. This Credit Agreement constitutes the
entire agreement and understanding among the parties hereto and supersedes any
and all prior agreements and understandings, oral or written, relating to the
subject matter hereof. This Credit Agreement shall become effective when the
Agent shall have received counterparts hereof signed by all of the parties
hereto.

         Section 9.11      WAIVER OF JURY TRIAL.

         EACH OF THE BORROWER, THE AGENT AND EACH BANK HEREBY IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS CREDIT AGREEMENT, ANY FINANCING DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY.

                  [remainder of page intentionally left blank]

                                      -57-

<PAGE>   62

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

                       HEALTHCARE REALTY TRUST INCORPORATED,
                       a Maryland corporation, as Borrower

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

                       BANK OF AMERICA, N.A., in its capacity as
                       Agent and in its individual capacity as a Bank

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

                       FIRST UNION NATIONAL BANK, in its capacity as a
                       Syndication Agent and in its individual capacity
                       as a Bank

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

                       UBS AG, STAMFORD BRANCH, in its capacity as a
                       Syndication Agent and in its individual capacity
                       as a Bank

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

                       FIRST TENNESSEE BANK NATIONAL
                       ASSOCIATION

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

                       AMSOUTH BANK

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

                       CREDIT LYONNAIS, NEW YORK BRANCH

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

                                      -58-

<PAGE>   63

                                Schedule 2.01(a)

                             Schedule of Commitments

<TABLE>
<CAPTION>
                                                    Revolving Committed           Revolving              Letter of Credit
                       Bank                                Amount                 Percentage                Commitment
                       ----                         -------------------           ----------             ----------------
<S>                                                 <C>                           <C>                    <C>
Bank of America, N.A.                                   $ 35,000,000.00           23.333335%               $ 2,333,333.50

First Union National Bank                               $ 35,000,000.00           23.333335%               $ 2,333,333.50

UBS AG, Stamford Branch                                 $ 35,000,000.00           23.333335%               $ 2,333,333.50

First Tennessee Bank National Association               $ 15,000,000.00           10.000000%               $ 1,000,000.00

AmSouth Bank                                            $ 15,000,000.00           10.000000%               $ 1,000,000.00

Credit Lyonnais, New York Branch                        $ 15,000,000.00           10.000000%               $ 1,000,000.00
                                                    -------------------           ----------             ----------------

                                                        $150,000,000.00              100%                  $10,000,000.00
</TABLE>

                                      -59-

<PAGE>   64

                                Schedule 2.01(d)

                         Form of Bank Joinder Agreement

         THIS BANK JOINDER AGREEMENT (this "Agreement") dated as of __________,
200__ to the Credit Agreement referenced below is by and among [NEW BANK] (the
"New Bank"), HEALTHCARE REALTY TRUST INCORPORATED, a Maryland corporation (the
"Borrower") and BANK OF AMERICA, N.A., as administrative agent (in such
capacity, the "Agent") for the Banks. Capitalized terms used but not defined
herein shall have the meanings provided in the Credit Agreement.

                               W I T N E S S E T H

         WHEREAS, pursuant to that Amended and Restated Credit Agreement (as
amended and modified from time to time, the "Credit Agreement") dated as of
July 2, 2001 among the Borrower, the Banks and the Agent, the Banks agreed to
provide the Borrower with a $150 million revolving credit facility;

         WHEREAS, pursuant to Section 2.01(d) of the Credit Agreement, the
Borrower has requested that the New Bank provide an additional Revolving
Commitment under the Credit Agreement; and

         WHEREAS, the New Bank has agreed to provide the additional Revolving
Commitment on the terms and conditions set forth herein and to become a "Bank"
under the Credit Agreement in connection therewith.

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

         1.       The New Bank hereby agrees to provide Commitments to the
Borrower in the amounts set forth on Schedule 2.01(a) to the Credit Agreement as
attached hereto. The Revolving Commitment Percentage of the New Bank shall be as
set forth on Schedule 2.01(a).

         2.       The New Bank (a) represents and warrants that it is a
commercial lender, other financial institution or other "accredited" investor
(as defined in SEC Regulation D) which makes or acquires or loans on the
ordinary course of business and that it will make or acquire Loans for its own
account in the ordinary course of business, (b) confirms that it has received a
copy of the Credit Agreement, together with copies of the financial statements
referred to in Section 5.01 thereof and such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to enter
into this Agreement; (c) agrees that it will, independently and without reliance
upon the Agent or any other Bank and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Credit Agreement; (d) appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement as are delegated to the
Agent by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; and (e) agrees that, as of the effective date,
the New Bank shall (i) be a party to the Credit Agreement and the other Credit
Documents, (ii) be a "Bank" for all purposes of the Credit Agreement and the
other Credit Documents, (iii) perform all of the obligations that by the terms
of the Credit Agreement are required to be performed by it as a "Bank" under the
Credit Agreement and (iv) shall have the rights and obligations of a Bank under
the Credit Agreement and the other Credit Documents.

         3.       This Agreement shall be governed by, and construed in
accordance with, the laws of the State of North Carolina.

<PAGE>   65

         4.       This Agreement may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of
this Agreement by telecopier shall be effective as delivery of a manually
executed counterpart of this Agreement.

         IN WITNESS WHEREOF, the New Bank, the Borrower and the Agent have
caused this Agreement to be executed by their officers thereunto duly authorized
as of the date hereof.

                                   HEALTHCARE REALTY TRUST INCORPORATED,
                                   a Maryland corporation

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

                                   BANK OF AMERICA, N.A. (formerly
                                   NationsBank, N.A.), as Agent

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

                                   [NEW BANK],
                                   as New Bank

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

                                   New Bank Address for Notices:

<PAGE>   66

                                  Schedule 2.02

                           FORM OF NOTICE OF BORROWING

Bank of America, N.A.                          Bank of America, N.A.,
  as Agent for the Banks                         as Swingline Bank
101 N. Tryon Street                            101 N. Tryon Street
Independence Center, 15th Floor                Independence Center, 15th Floor
NC1-001-15-04                                  NC1-001-15-04
Charlotte, North Carolina  28255               Charlotte, North Carolina  28255
Attention:  Agency Services                    Attention:  Agency Services

         RE:      Amended and Restated Credit Agreement dated as of July 2, 2001
                  (as amended and modified, the "Credit Agreement") among
                  HEALTHCARE REALTY TRUST INCORPORATED, the Banks identified
                  therein and Bank of America, N.A., as Agent. Terms used but
                  not otherwise defined herein shall have the meanings provided
                  in the Credit Agreement.

Ladies and Gentlemen:

The undersigned hereby gives notice of a request for Revolving Loan pursuant to
Section 2.02 of the Credit Agreement or of a request for Swingline Loan pursuant
to Section 2.07 (b) of the Credit Agreement as follows:

                                    Revolving Loan
         ----------------------
                                    Swingline Loan
         ----------------------

         (A)      Date of Borrowing
                  (which is a Business Day)      -------------------------------

         (B)      Principal Amount of
                  Borrowing                      -------------------------------

         (C)      Interest rate basis            -------------------------------

         (D)      Interest Period and the
                  last day thereof               -------------------------------

In accordance with the requirements of Section 3.02 of the Credit Agreement, the
undersigned Borrower hereby certifies that:

         (a) The representations and warranties contained in the Credit
Agreement and the other Credit Documents are true and correct in all material
respects as of the date of this request, and will be true and correct after
giving effect to the requested Extension of Credit (except for those which
expressly related to an earlier date).

         (b) No Default or Event of Default exists, or will exist after giving
effect to the requested Extension of Credit.

         (c) All conditions set forth in Section 2.02 as to the making of
Revolving Loans or in Section 2.07 as to the making of Swingline Loans, as
appropriate, have been satisfied.

<PAGE>   67

                                       Very truly yours,

                                       HEALTHCARE REALTY TRUST INCORPORATED,
                                       a Maryland corporation

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

<PAGE>   68

                                Schedule 2.03(a)

                             FORM OF REVOLVING NOTE

                                                                    July 2, 2001

         FOR VALUE RECEIVED, the undersigned Borrower hereby promises to pay to
the order of ______________________, its successors and assigns, on or before
the Termination Date to the office of the Agent in immediately available funds
as provided in the Credit Agreement,

                  (i)      in the case of Revolving Loans, such Bank's Revolving
         Committed Amount or, if less, the aggregate unpaid principal amount of
         all Revolving Loans owing to such Bank; and

                  (ii)     in the case of Swingline Loans, if such lender is the
         Swingline Bank, the aggregate Swingline Committed Amount or, if less,
         the aggregate unpaid principal amount of all Swingline Loans owing to
         such Swingline Bank; and

together with interest thereon at the rates and as provided in the Credit
Agreement.

         This Note is one of the Revolving Notes referred to in the Amended and
Restated Credit Agreement dated as of July 2, 2001 (as amended and modified, the
"Credit Agreement") among HEALTHCARE REALTY TRUST INCORPORATED, a Maryland
corporation, the Banks identified therein and Bank of America, N.A., as Agent.
Terms used but not otherwise defined herein shall have the meanings provided in
the Credit Agreement.

         The holder may endorse and attach a schedule to reflect borrowings
evidenced by this Note and all payments and prepayments thereon; provided that
any failure to endorse such information shall not affect the obligation of the
undersigned Borrower to pay amounts evidenced hereby.

         Upon the occurrence of an Event of Default, all amounts evidenced by
this Note may, or shall, become immediately due and payable as provided in the
Credit Agreement without presentment, demand, protest or notice of any kind, all
of which are waived by the undersigned Borrower. In the event payment of amounts
evidenced by this Note is not made at any stated or accelerated maturity, the
undersigned Borrower agrees to pay, in addition to principal and interest, all
costs of collection, including reasonable attorneys' fees.

         This Note and the Loans and amounts evidenced hereby may be transferred
only as provided in the Credit Agreement.

         This Note shall be governed by, and construed and interpreted in
accordance with, the law of the State of North Carolina.

         In WITNESS WHEREOF, the undersigned Borrower has caused this Note to be
duly executed as of the date first above written.

                                       HEALTHCARE REALTY TRUST INCORPORATED,
                                       a Maryland corporation

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

<PAGE>   69

                                Schedule 2.06(a)

               Letters of Credit to be issued on the Closing Date

<PAGE>   70

                               Schedule 2.06(b)-1

                           Existing Letters of Credit

<PAGE>   71

                               Schedule 2.06(b)-2

                 Form of Notice of Request for Letter of Credit

                                     [Date]

Bank of America, N.A.                       Bank of America, N.A.
  as Issuing Bank under the                   as Agent under the
  Credit Agreement referred to below          Credit Agreement referred to below
101 N. Tryon Street                         101 N. Tryon Street
Independence Center, 15th Floor             Independence Center, 15th Floor
NC1-001-15-04                               NC1-001-15-04
Charlotte, North Carolina 28255             Charlotte, North Carolina 28255

Attention:        Agency Services

         Re:      Amended and Restated Credit Agreement dated as of July 2, 2001
                  (as amended and modified, the "Credit Agreement") among
                  HEALTHCARE REALTY TRUST INCORPORATED, the Banks identified
                  therein and Bank of America, N.A., as Agent. Terms used but
                  not otherwise defined herein shall have the meanings provided
                  in the Credit Agreement.

Ladies and Gentlemen:

         The undersigned, pursuant to Section 2.06(b) of the Credit Agreement,
hereby requests that the following Letters of Credit be issued on [Date] as
follows:

         (1)      Account Party:

         (2)      For use by:

         (3)      Beneficiary:

         (4)      Face Amount of Letter of Credit:

         (5)      Date of Issuance:

         Delivery of Letter of Credit should be made as follows:

         In accordance with the requirements of Section 3.02 of the Credit
Agreement, the undersigned Borrower hereby certifies that:

         (a)      The representations and warranties contained in the Credit
Agreement and the other Credit Documents are true and correct in all material
respects as of the date of this request, and will be true and correct after
giving effect to the requested Extension of Credit (except for those which
expressly relate to an earlier date).

         (b)      No Default or Event of Default exists, or will exist after
giving effect to the requested Extension of Credit.

<PAGE>   72

         (c)      All conditions set forth in Section 2.06 as to the issuance of
a Letter of Credit have been satisfied.

                                    Very truly yours,

                                    HEALTHCARE REALTY TRUST INCORPORATED,
                                    a Maryland corporation

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

<PAGE>   73

                                  Schedule 2.10

                    Form of Notice of Interest Rate Election

Bank of America, N.A.,
  as Agent for the Banks
101 N. Tryon Street
Independence Center, 15th Floor
NC1-001-15-04
Charlotte, North Carolina 28255
Attention: Agency Services

         Re:      Amended and Restated Credit Agreement dated as of July 2, 2001
                  (as amended and modified, the "Credit Agreement") among
                  HEALTHCARE REALTY TRUST INCORPORATED, the Banks identified
                  therein and Bank of America, N.A., as Agent. Terms used but
                  not otherwise defined herein shall have the meanings provided
                  in the Credit Agreement.

Ladies and Gentlemen:

         The undersigned hereby gives notice pursuant to Section 2.10 of the
Credit Agreement that it requests an extension or conversion of a Revolving Loan
outstanding under the Credit Agreement, and in connection therewith sets forth
below the terms on which such extension or conversion is requested to be made:

         (A)      Date of Extension or Conversion
                  (which is the last day of the
                  applicable Interest Period)
                                                      --------------------------

         (B)      Principal Amount of
                  Extension or Conversion
                                                      --------------------------

         (C)      Interest rate basis
                                                      --------------------------

         (D)      Interest Period and the
                  last day thereof
                                                      --------------------------

         In accordance with the requirements of Section 3.02 of the Credit
Agreement, the undersigned Borrower hereby certifies that:

                  (a)      The representations and warranties contained in the
         Credit Agreement and the other Credit Documents are true and correct in
         all material respects as of the date of this request, and will be true
         and correct after giving effect to the requested Extension of Credit
         (except for those which expressly relate to an earlier date).

                  (b)      No Default or Event of Default exists, or will exist
         after giving effect to the requested Extension of Credit.

                  (c)      All conditions set forth in Section 2.02 as to the
         making of Revolving Loans or in Section 2.07 as to the making of
         Swingline Loans, as appropriate, have been satisfied.

<PAGE>   74

                                    Very truly yours,

                                    HEALTHCARE REALTY TRUST INCORPORATED,
                                    a Maryland corporation

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

<PAGE>   75

                                  Schedule 4.04

                                Legal Proceedings

<PAGE>   76

                                  Schedule 4.05

                                  ERISA Matters

<PAGE>   77

                                  Schedule 4.06

                              Environmental Matters

<PAGE>   78

                                  Schedule 4.07

                  Subsidiaries (including Specified Affiliates)

Subsidiaries:

Specified Affiliates:

Other Affiliates:

<PAGE>   79

                                  Schedule 4.10

                              Compliance with Laws

<PAGE>   80

                                  Schedule 4.12

                                      Debt

<PAGE>   81

                                  Schedule 4.13

                             Contingent Liabilities

<PAGE>   82

                                  Schedule 4.14

                                   Investments

<PAGE>   83

                                  Schedule 5.26

                                Form of Guaranty

<PAGE>   84

                                  Schedule 9.01

                                Bank's Addresses

<TABLE>
<CAPTION>
                                      Address for                      Domestic                             Eurodollar
          Banks                         Notice                      Lending Office                        Lending Office
          -----                         ------                      --------------                        --------------

<S>                         <C>                                 <C>                              <C>
Bank of America, N.A.       Bank of America, N.A.               Bank of America, N.A.            Bank of America, N.A.
                            101 N. Tryon Street                 101 N. Tryon Street              101 N. Tryon Street
                            Independence Center, 15th Floor     Independence Center, 15th Floor  Independence Center, 15th Floor
                            Charlotte, NC 28255                 Charlotte, NC 28255              Charlotte, NC 28255
                            Attn: James D. Young                Attn:  James D. Young            Attn: James D. Young
                            Tel: 704-386-9372                   Tel:  704-386-9372               Tel: 704-386-9372
                            Fax: 704-409-0030                   Fax:  704-409-0030               Fax: 704-409-0030

                            With a copy to:

                            Bank of America, N.A.
                            100 N. Tryon Street, 15th Floor
                            Charlotte, NC 28255
                            Attn:  Will Duke
                            Tel: 704-388-6006
                            Fax: 704-388-6002

First Union National Bank   First Union National Bank           First Union National Bank        First Union National Bank
                            One First Union, NC5604             One First Union, NC0166          Capital Markets Service Dept.
                            Charlotte, NC 28288                 Charlotte, NC 28288              One First Union Center, TW-5
                            Attn: Rex Rudy                      Attn: Joy Auten                  301 South College Street
                            Tel: 704-383-6506                   Tel: 704-                        Charlotte, NC 28288-0785
                            Fax: 704-383-6205                   Fax: 704-                        Attn: Sue Patterson
                                                                                                 Tel: 704-374-7121
                                                                                                 Fax: 704-383-9144
UBS AG, Stamford
Branch

First Tennessee Bank
National Association
</TABLE>

<PAGE>   85

<TABLE>
<CAPTION>
                                      Address for                      Domestic                             Eurodollar
          Banks                         Notice                      Lending Office                        Lending Office
          -----                         ------                      --------------                        --------------

<S>                                   <C>                           <C>                                   <C>
AmSouth Bank

Credit Lyonnais, New
York Branch
</TABLE>

<PAGE>   86

                                Schedule 9.06(c)

                        Form of Assignment and Acceptance

         THIS ASSIGNMENT AND ACCEPTANCE dated as of___________________ , 200____
is entered into between THE BANK IDENTIFIED ON THE SIGNATURE PAGES AS THE
"ASSIGNOR" (the "Assignor") and THE PARTIES IDENTIFIED ON THE SIGNATURE PAGES AS
"ASSIGNEES" ("Assignee").

         Reference is made to that Amended and Restated Credit Agreement dated
as of July 2, 2001 (as amended and modified, the "Credit Agreement") among
HEALTHCARE REALTY TRUST INCORPORATED, a Maryland corporation (the "Borrower"),
the Banks identified therein and Bank of America, N.A., as Agent. Terms defined
in the Credit Agreement are used herein with the same meanings.

         1.       The Assignor hereby sells and assigns, without recourse, to
the Assignees, and the Assignees hereby purchase and assume, without recourse,
from the Assignor, effective as of the Effective Date shown below, those rights
and interests of the Assignor under the Credit Agreement identified below (the
"Assigned Interests"), including the Obligations and Commitments relating
thereto, together with unpaid interest and fees relating thereto accruing from
the Effective Date. The Assignor represents and warrants that it owns interests
assigned hereby free and clear of liens, encumbrances or other claims. Each of
the Assignees represents that it is an assignee permitted under Section 9.06(c)
of the Credit Agreement. The Assignor and each of the Assignees hereby makes and
agrees to be bound by all the representations, warranties and agreements set
forth in Section 9.06 of the Credit Agreement, a copy of which has been received
by each such party. From and after the Effective Date (i) each Assignee, if it
is not already a Bank under the Credit Agreement, shall be a party to and be
bound by the provisions of the Credit Agreement and, to the extent of the
interests assigned by this Assignment and Acceptance, have the rights and
obligations of a Bank thereunder and (ii) each Assignor shall, to the extent of
the interests assigned by this Assignment and Acceptance, relinquish its rights
and be released from its obligations under the Credit Agreement (other than the
rights of indemnification referenced in Section 9.03 of the Credit Agreement).
Schedule 2.1 is deemed modified and amended to the extent necessary to give
effect to this Assignment.

         2.       This Assignment and Acceptance shall be governed by and
construed in accordance with the laws of the State of North Carolina.

         3.       Terms of Assignment

<TABLE>
         <S>                                         <C>
         (a)      Date of Assignment:                                          , 200__
                                                     --------------------------
         (b)      Legal Name of Assignor:            SEE SIGNATURE PAGE
         (c)      Legal Name of Assignee:            SEE SIGNATURE PAGE
         (d)      Effective Date of Assignment:                                , 200__
                                                     --------------------------
</TABLE>

See Schedule I attached for a description of the Loans, Obligations and
Commitments (and the percentage interests therein and relating thereto) which
are the subject of this Assignment and Acceptance.

         4.       The fee payable to the Agent in connection with this
Assignment is enclosed.

         IN WITNESS WHEREOF, the parties hereto have caused the execution of
this instrument by their duly authorized officers as of the date first above
written.

         ASSIGNOR:                                  ASSIGNEE:
         --------                                   --------

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

                                           Address for Notices:

ACKNOWLEDGMENT AND CONSENT

BANK OF AMERICA, N.A.                    HEALTHCARE REALTY TRUST INCORPORATED,
as Agent                                 a Maryland corporation

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

<PAGE>   87

                                   SCHEDULE I
                          TO ASSIGNMENT AND ACCEPTANCE
                      HEALTHCARE REALTY TRUST INCORPORATED

            REVOLVING LOANS AND LETTERS OF CREDIT PRIOR TO ASSIGNMENT

<TABLE>
<CAPTION>
               Revolving    Revolving      Revolving         LOC          LOC
               Committed   Commitment        Loans        Committed   Obligations
                Amount     Percentage     Outstanding      Amount     Outstanding
               ---------   ----------     -----------     ---------   -----------
<S>            <C>         <C>            <C>             <C>         <C>
ASSIGNOR

ASSIGNEES

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

               $                          $               $           $
</TABLE>

<PAGE>   88

   REVOLVING LOANS AND LETTERS OF CREDIT INTERESTS SUBJECT TO THIS ASSIGNMENT

<TABLE>
<CAPTION>
               Revolving    Revolving     Revolving       LOC         LOC
               Committed   Commitment       Loans      Committed  Obligations
                Amount     Percentage    Outstanding    Amount    Outstanding
               ---------   ----------    -----------   ---------  -----------
<S>            <C>         <C>           <C>           <C>        <C>
ASSIGNOR

ASSIGNEES

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

               $                         $             $          $
</TABLE>

<PAGE>   89

                                   SCHEDULE I
                          TO ASSIGNMENT AND ACCEPTANCE
                      HEALTHCARE REALTY TRUST INCORPORATED

             REVOLVING LOANS AND LETTERS OF CREDIT AFTER ASSIGNMENT

<TABLE>
<CAPTION>
             Revolving    Revolving     Revolving         LOC          LOC
             Committed   Commitment       Loans        Committed   Obligations
              Amount     Percentage    Outstanding      Amount     Outstanding
             ---------   ----------    -----------     ---------   -----------
             <S>         <C>           <C>             <C>         <C>

ASSIGNOR

ASSIGNEES

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

             $                         $               $           $
</TABLE><PAGE>   1

This RECEIVABLES PURCHASE AGREEMENT is entered into as of June 26, 2001 among:

         (1)      AGCO CANADA, LTD., a Saskatchewan corporation, as the Seller,

         (2)      AGCO CORPORATION, a Delaware corporation, as initial Servicer,

         (3)      THE PURCHASERS party hereto,

         (4)      THE ADMINISTRATORS party hereto, and

         (5)      COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
                  "RABOBANK INTERNATIONAL" NEW YORK BRANCH, as Agent and
                  Custodian.

                             PRELIMINARY STATEMENTS

         WHEREAS the Seller has Dealer Receivables and will have additional
Dealer Receivables;

         WHEREAS, the Seller desires to transfer and assign Ownership Interests
in the Dealer Receivables and Related Security with respect thereto to the
Purchasers from time to time;

         WHEREAS, each Purchaser may, in its absolute and sole discretion,
purchase Ownership Interests from the Seller from time to time;

         WHEREAS, the Seller and the Purchaser have agreed that all such
Ownership Interests as well as the interests of the Seller in the Dealer
Receivables and Related Security shall be held by the Custodian as agent and
bailee of the Seller and the Purchasers in accordance with the terms of this
Agreement;

         WHEREAS, each Administrator has been requested and is willing to act on
behalf of the Purchasers in its Related Group in accordance with the terms
hereof; and

         WHEREAS, Rabobank has been requested and is willing to act as the Agent
on behalf of the Purchasers in accordance with the terms hereof and to act as
the Custodian on behalf of both the Seller and the Purchasers;

         NOW, THEREFORE, in consideration of the premises set forth above, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, it is agreed as follows:

                                   ARTICLE I
                                   DEFINITIONS

Section 1.01      Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

<PAGE>   2
                                      -2-

         "Adjusted Eurodollar Rate" means for any period, a rate per annum equal
to the sum of (a) 1.50%, and (b) the quotient of (i) LIBOR for such period,
divided by (ii) a number equal to 1.00 minus the Eurodollar Reserve Percentage,
if applicable. The Adjusted Eurodollar Rate shall be determined by the Agent and
shall be rounded upward, if necessary, to the nearest 1/100th of 1%.

         "Administrator" means (i) with respect to the Related Group that
includes Nieuw Amsterdam, Rabobank in its capacity as administrator for such
Related Group hereunder, and any successor thereto in such capacity and (ii)
with respect to any other Related Group that may become party hereto pursuant to
Section 13.02, the Person designated as such in the relevant Joinder Agreement,
and any successor thereto in such capacity.

         "Administrator Agreement" means an agreement between an Administrator
and the members of its Related Group relating to the performance of such
Administrator's duties hereunder.

         "Adverse Claim" means a lien, security interest, charge, encumbrance,
mortgage, pledge, assignment, hypothec, hypothecation, privilege, title
retention or other right or claim in, of or on any Person's assets or properties
in favour of any other Person.

         "Affected Party" means a Purchaser, a Conduit Funding Source or any of
their respective Affiliates.

         "Affiliate" means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person or any Subsidiary of such Person. A Person
shall be deemed to control another Person if the controlling Person owns 10% or
more of any class of voting securities of the controlled Person or possesses,
directly or indirectly, the power to direct or cause the direction of the
management or policies of the controlled Person, whether through ownership of
stock, by contract or otherwise.

         "AGCO U.S." means AGCO Corporation, a Delaware corporation, and any
successor thereto.

         "Agent" means Rabobank in its capacity as agent for the Purchasers
hereunder, and any successor thereto in such capacity.

         "Agreement" means this Receivables Purchase Agreement, as it may be
amended, restated, supplemented or modified and in effect from time to time.

         "Alternative Rate" means the Adjusted Eurodollar Rate, provided,
however, that the "Alternative Rate" shall be equal to the Base Rate (i) for any
Settlement Period not equal to a month, (ii) with respect to any portion of
Investment which is not outstanding during an entire Settlement Period or which
does not accrue Yield at the Alternative Rate for an entire Settlement Period,
(iii) at any time when the Adjusted Eurodollar Rate has been suspended as
provided in Section 5.02, (iv) for any Settlement Period for which the Seller so
elects by delivery of a written notice to such effect to the Agent and each
Administrator not later than the third Business Day

<PAGE>   3
                                      -3-

prior to the commencement of such Settlement Period, and (v) in respect of any
Investment transferred by Nieuw Amsterdam to any other Person, during the
initial period of three Business Days immediately following such transfer;
provided, further however, that if, for any Settlement Period, the average
Alternative Rate as determined in accordance with the foregoing is less than the
weighted average cost of funds (expressed as an annual interest rate based on a
360 day year) incurred by the Purchasers for such period to fund their
Investments (as determined by the Agent, whose determination thereof shall be
conclusive for purposes hereof) (such rate being the "Cost of Funds Rate"), the
"Alternative Rate" for such Settlement Period shall be equal to the Cost of
Funds Rate for such Settlement Period.

         "Applicable Unpaid Obligations" has the meaning set out in Section
5.05(a).

         "Authorized Officer" shall mean, with respect to the Seller or AGCO
U.S., its respective corporate controller, treasurer or chief financial officer.

         "Base Rate" means, on any date, a fluctuating rate of interest per
annum equal to the higher of (a) the Prime Rate (or, for any period when the
Agent has elected in accordance with Section 3.07 to denominate the Investment
in Canadian Dollars, the Canadian Prime Rate) and (b) the Federal Funds Rate
+ 0.50%.

         "Business Day" means any day on which banks are not authorized or
required to close in New York, New York or Toronto, Canada and, if the
applicable Business Day relates to any computation or payment to be made with
respect to the Adjusted Eurodollar Rate, any day on which dealings in dollar
deposits are carried on in the London interbank market.

         "Canadian Dealer" means a Dealer that is located in Canada or that
remits payments to a Lock-Box and/or Deposit Account located in Canada.

         "Canadian Dollar Equivalent" means, at any time, (i) with respect to
any amount expressed in U.S. Dollars, the Equivalent Amount thereof at such time
in Canadian Dollars, and (ii) with respect to any amount expressed in Canadian
Dollars, the amount thereof.

         "Canadian Dollars" or "Cdn $" means the lawful currency of Canada.

         "Canadian Prime Rate" means, at any time, the rate of interest charged
by Royal Bank of Canada for Canadian dollar commercial loans made in Canada and
which it refers to as its "Prime Rate".

         "Carrying Cost Reserve Percentage" means, at any time, a percentage
equal to:

         1.5 * (3 Month LIBOR + 3.0%) * DSO/365

where

<TABLE>
         <S>               <C>   <C>
         3 Month LIBOR     =     LIBOR for an assumed Settlement Period of three
                                 months commencing on the immediately preceding
                                 Payment Date.
</TABLE>

<PAGE>   4
                                      -4-

<TABLE>
         <S>               <C>   <C>
         DSO               =     The product of (i) 270, times (ii) a fraction,
                                 the numerator of which is equal to the aggregate
                                 Outstanding Balance of all Dealer Receivables as of
                                 the last day of the calendar month most recently
                                 ended on or prior to the date of determination, and
                                 the denominator of which is equal to the aggregate
                                 Outstanding Balance of all Dealer Receivables arising
                                 during the nine calendar month period then most
                                 recently ended on or prior to such date.
</TABLE>

         "Cash Control Event" means the occurrence of either of the following
events: (i) the Servicer's long-term corporate or senior implied rating shall be
Ba3 or lower by Moody's or BB- or lower by S&P or (ii) any Early Amortization
Event.

         "Charged-Off Receivable" means a Dealer Receivable, (i) as to which the
Obligor has taken any action, or suffered any event to occur, of the type
described in Section 10.01(e) or (ii) which, consistent with the Credit and
Collection Policy, would be written off the Seller's books as uncollectible.

         "Collection Account" means the account maintained in the name of
Servicer at the Collection Account Bank having the account no. 0002-1400-281, or
any new collection account established by the Servicer pursuant to Section 4.07.

         "Collection Account Bank" means Bank of Montreal or, if the Servicer
establishes any new Collection Account pursuant to Section 4.07, the Eligible
Bank at which such account is established.

         "Collection Notice" means a notice, in substantially the form of Annex
A to Exhibit B, from the Agent to a Deposit Account Bank.

         "Collections" means, with respect to any Dealer Receivable, all cash
collections and other cash proceeds in respect of such Dealer Receivable,
including, without limitation, all Sales Taxes or other related amounts accruing
in respect thereof, all cash proceeds of Related Security with respect to such
Dealer Receivable and all Deemed Collections with respect to such Dealer
Receivable and any other amounts which are stated herein to be applied as
Collections, but for greater certainty, not including any collections of Finance
Charges. Without limiting the generality of the foregoing, it is understood and
agreed that Collections shall include all such amounts received (including
insurance proceeds, if any) with respect to Dealer Receivables which have
previously become Defaulted Receivables or Charged-Off Receivables.

         "Commercial Paper Notes" means the short-term promissory notes issued
by a Purchaser having an original maturity of 45 days or less (including the
date of issuance thereof).

         "Conduit Funding Agreement" means any agreement or instrument executed
by any Conduit Funding Source with or for the benefit of a Purchaser pursuant to
which such Conduit Funding Source provides liquidity, credit enhancement or
back-up purchase support or facilities to such Purchaser.

<PAGE>   5
                                      -5-

         "Conduit Funding Source" means any bank, insurance company or other
funding entity providing liquidity, credit enhancement or back-up purchase
support or facilities to a Purchaser.

         "Contract" means, with respect to any Dealer Receivable, any and all
instruments, agreements, invoices or other writings pursuant to which such
Dealer Receivable arises or which evidences such Dealer Receivable, including,
without limitation, any related Dealer Agreement.

         "CP Rate" means, with respect to any Purchaser for any period, the per
annum rate equivalent to the weighted average of the per annum rates paid or
payable by such Purchaser from time to time as interest on Commercial Paper
Notes (by means of interest rate hedges or otherwise and taking into
consideration any incremental carrying costs associated with Commercial Paper
Notes issued by such Purchaser maturing on dates other than those certain dates
on which such Purchaser is to receive funds) in respect of Funding Commercial
Paper Notes issued by such Purchaser, which rates shall reflect and give effect
to (i) the commissions of placement agents and dealers in respect of such
Commercial Paper Notes, to the extent such commissions are reasonably allocated,
in whole or in part, to such Commercial Paper Notes by the related Administrator
(on behalf of such Purchaser), (ii) other borrowings by such Purchaser,
including, without limitation, borrowings to fund small or odd dollar amounts
that are not easily accommodated in the commercial paper market and (iii) any
related Currency Protection Agreements and the costs incurred thereunder;
provided that if any component of such rate is a discount rate, in calculating
the CP Rate the related Administrator shall for such component use the rate
resulting from converting such discount rate to an interest bearing equivalent
rate per annum; and provided further that any Purchaser which becomes a party
hereto pursuant to Section 13.02 may specify a different "CP Rate" in the
relevant Joinder Agreement, in which case the term "CP Rate", when used in
reference to such Purchaser, shall have the meaning assigned to such term in
such Joinder Agreement.

         "Credit Agreement" means that certain Credit Agreement dated as of
April 17, 2001 (as amended, restated, supplemented or otherwise modified from
time to time) by and among AGCO U.S. and the Subsidiaries signatory thereto, the
Lenders and Issuing Banks party thereto, Cooperatieve Centrale
Raiffeisen-Boerenleenbank B.A., "Rabobank Nederland", Canadian Branch, as
Canadian Administrative Agent and Cooperatieve Centrale
Raiffeisen-Boerenleenbank B.A., "Rabobank Nederland", New York Branch, as
Canadian Administrative Agent.

         "Credit and Collection Policy" means the Servicer's credit and
collection policies and practices relating to Contracts, Dealer Receivables and
Related Security existing on the date hereof, as modified from time to time in
accordance with Section 8.04(b).

         "Credit Enhancement" means the product of (a) the Net Eligible
Receivables Balance, times (b) the greater of (i) the Dynamic Reserve Percentage
and (ii) 17%.

         "Currency Deficiency" has the meaning set out in Section 5.05(b).

         "Currency Excess" has the meaning set out in Section 5.05(b).

<PAGE>   6
                                      -6-

         "Currency Protection Agreement" shall mean a forward or spot exchange
contract, currency exchange agreement or other agreement or arrangement entered
into by the Agent or any Purchaser and designed to protect the Agent or one or
more Purchasers against fluctuations in currency values or to allow for the
conversion of currencies, in either case in connection with the transactions
contemplated by this Agreement.

         "Custodian" means Rabobank in its capacity as Custodian hereunder, and
any successors thereto in such capacity.

         "Dealer" means a Person that has entered into a Dealer Agreement with
the Seller.

         "Dealer Agreement" means an agreement between the Seller and another
Person that has agreed to act as a dealer for equipment manufactured or
distributed by the Seller including, without limitation, any "Dealer Sales and
Service Agreement" in substantially the form attached hereto as Exhibit F or any
substantially similar agreement, howsoever denominated.

         "Dealer Concentration Limit" means, at any time with respect to any
Dealer and its Affiliates, 3.0% of the Eligible Receivables Balance (or, if a
Special Concentration Limit is in effect with respect to such Dealer and its
Affiliates, such Special Concentration Limit).

         "Dealer Receivable" means the indebtedness and other obligations owed
to the Seller (without giving effect to any Transfer or conveyance hereunder) or
in which the Seller has a security interest or other interest, whether
constituting an account, chattel paper, instrument or general intangible,
arising in connection with the sale of farm machinery (other than a sale of
individual parts) to a Canadian Dealer pursuant to a Dealer Agreement and
includes, without limitation, the obligation to pay any Sales Taxes or similar
charges with respect thereto, but excluding any obligation to pay Finance
Charges. Indebtedness and other rights and obligations arising from any one
transaction, including, without limitation, indebtedness and other rights and
obligations represented by an individual invoice, shall constitute a Dealer
Receivable separate from a Dealer Receivable consisting of the indebtedness and
other rights and obligations arising from any other transaction.

         "Deemed Collections" means, the aggregate of all amounts the Seller
shall have been deemed to have received as a Collection of a Dealer Receivable
pursuant to Section 4.02 or otherwise hereunder.

         "Default Ratio" means, at any time, the percentage equivalent of a
fraction, the numerator of which is equal to the sum of (i) the aggregate
Outstanding Balance of Dealer Receivables that were Defaulted Receivables as of
the last day of the immediately preceding month, plus (ii) the aggregate
Outstanding Balance of all Dealer Receivables which became Charged Off
Receivables during the immediately preceding one month period (such Outstanding
Balance to be computed as of the respective dates such Dealer Receivables became
Charged Off Receivables), minus (iii) the aggregate amount of Collections
received in respect of such Charged Off Receivables during the immediately
preceding one month period (excluding any Collections received prior to the
respective dates on which such Dealer Receivables became

<PAGE>   7
                                      -7-

Charged Off Receivables), and the denominator of which is equal to the Eligible
Receivables Balance as of the last day of the immediately preceding month.

         "Defaulted Receivable" means a Dealer Receivable as to which any
payment, or part thereof, remains unpaid for 91 days or more from the original
due date for such payment (or, if such due date has been amended in accordance
with the Credit and Collection Policy, from such amended due date).

         "Deferred Reinvestment Purchase" has the meaning specified in Section
3.03.

         "Delinquent Receivable" means a Dealer Receivable that is not a
Defaulted Receivable and as to which any payment, or part thereof, remains
unpaid for 61 days or more from the original due date for such payment.

         "Deposit Account" means the Collection Account or any other
concentration account, depositary account, lock-box account or similar account
in which any Collections are collected or deposited.

         "Deposit Account Agreement" means an agreement substantially in the
form of Exhibit B among the Seller, the Agent and a Deposit Account Bank.

         "Deposit Account Bank" means, at any time, any of the banks holding one
or more Deposit Accounts.

         "Dilution" means, at any time, the amount of any reduction in the
outstanding balance of a Dealer Receivable as a result of any setoff, dispute,
discount, rebate, return, netting, adjustment or any other reason including
warranty claims, other than (i) payment in cash of such outstanding balance by
the Obligor, (ii) credit for a trade-in of used equipment, to the extent such
credit simultaneously gave rise to a new Dealer Receivable in respect of such
equipment having an original Outstanding Balance equal to or greater than the
amount of such reduction or (iii) such Dealer Receivable having become a
Charged-Off Receivable.

         "Dilution Ratio" means, at any time, the percentage equivalent of a
fraction, the numerator of which is equal to the aggregate amount of Dilutions
which occurred during the calendar month then most recently ended, and the
denominator of which is equal to the original Outstanding Balance of all Dealer
Receivables which arose from the sale of new equipment and for which the final
payment of principal owing by the Obligor was made in the immediately preceding
calendar month.

         "Dynamic Reserve Percentage" means, at any time, the sum of (i) the
Loss Reserve Percentage, plus (ii) the Variable Dilution Reserve Percentage,
plus (iii) the Carrying Cost Reserve Percentage.

         "Early Amortization Event" has the meaning specified in Section 10.01.

         "Eligible Bank" means a depository institution or trust company,
organized under the laws of the United States or any State thereof (a "U.S.
Institution") or of Canada or any Province

<PAGE>   8
                                      -8-

thereof (a "Canadian Institution"), that (i) in the case of a U.S. Institution,
is a member of the Federal Deposit Insurance Corporation, (ii) in the case of a
Canadian Institution, is a member of the Canada Deposit Insurance Corporation,
(iii) has a combined capital and surplus of not less than U.S. $50,000,000 or
the Canadian Dollar Equivalent thereof , (iv) has (or is a subsidiary of a
Person that has) a long-term unsecured debt rating of at least A or better by
S&P and A2 or better by Moody's, and (iv) has been approved in writing by each
Administrator, such approval not to be unreasonably withheld.

         "Eligible Receivable" means, at any time, a Dealer Receivable that
satisfies each of the following criteria:

         (a)      the representations and warranties set forth in Sections
         6.01(i) and 6.01(j) are true and correct with respect to such Dealer
         Receivable,

         (b)      the Obligor of such Dealer Receivable is a Dealer and is not
         an Affiliate of the Seller,

         (c)      such Dealer Receivable arises under a Dealer Agreement
         substantially in the form attached hereto as Exhibit F (or in such
         other form as shall have been approved in writing by the Agent, such
         approval not to be unreasonably withheld), which, together with such
         Dealer Receivable, is in full force and effect and has not been
         terminated and constitutes the legal, valid and binding obligation of
         the related Obligor enforceable against such Obligor in accordance with
         its terms subject to no offset, counterclaim or other defense or
         contingency,

         (d)      such Dealer Receivable is denominated and payable only in
         Canadian dollars in Canada,

         (e)      the Obligor of such Dealer Receivable (i) if a natural person,
         is a resident of Canada or, if a corporation or other business
         organization, is organized under the laws of Canada or any Province or
         Territory thereof and has an office in Canada; and (ii) is not a
         government or a governmental subdivision or agency,

         (f)      such Dealer Receivable is evidenced by an invoice issued
         pursuant to a Dealer Agreement and constitutes an "account" or "chattel
         paper", within the meaning of Section 9-105 and Section 9-106,
         respectively, of the UCC of all applicable jurisdictions in the United
         States, or comparable legislation in Canada,

         (g)      such Dealer Receivable is not a Defaulted Receivable, a
         Delinquent Receivable or a Charged-Off Receivable,

         (h)      the Obligor of such Dealer Receivable has not been served with
         a notice by or on behalf of the Servicer, notifying such Obligor of
         breaches committed and unremedied by it of any Contract related to such
         Dealer Receivable (including, without limitation, any refusal or
         failure of such Dealer to account to the Servicer for the proceeds of
         the sale of Equipment) during the immediately preceding twelve (12)
         calendar months,

<PAGE>   9
                                      -9-

         (i)      such Dealer Receivable was generated in the ordinary course of
         the Seller's business from the sale of equipment to the Obligor by the
         Seller, and not by any other Person (in whole or in part),

         (j)      such Dealer Receivable complies in all material respects with
         all applicable requirements of the Credit and Collection Policy and has
         not had its payment terms extended,

         (k)      such Dealer Receivable is required to be paid in full within
         twenty-four (24) months of the date of determination,

         (l)      such Dealer Receivable is required to be paid in full within
         twelve (12) months of the date such Dealer Receivable arises; provided
         that Dealer Receivables which satisfy all criteria in this definition
         other than this clause (l) may be treated as Eligible Receivables
         hereunder so long as the aggregate Outstanding Balance of such Dealer
         Receivables does not exceed 20% of the aggregate Outstanding Balance of
         all Dealer Receivables,

         (m)      such Dealer Receivable arises from the sale of new equipment;
         provided that Dealer Receivables arising from the sale of used
         equipment may be treated as Eligible Receivables hereunder so long as
         the aggregate Outstanding Balance of such Dealer Receivables does not
         exceed 25% of the aggregate Outstanding Balance of all Dealer
         Receivables,

         (n)      (i) the Outstanding Balance of such Dealer Receivable when
         combined with the aggregate Outstanding Balance of all other Eligible
         Receivables owing by the same Dealer or any Affiliate of such Dealer,
         would not exceed the applicable Dealer Concentration Limit and (ii) if
         the Dealer in respect of such Dealer Receivable is located in the
         Northwest Territories or Nunavut, the Outstanding Balance of such
         Dealer Receivable when combined with the aggregate Outstanding Balance
         of all other Eligible Receivables owing from Dealers located in the
         Northwest Territories or Nunavut, would not exceed 5% of the Eligible
         Receivables Balance,

         (o)      the outstanding balance of such Dealer Receivable is due and
         payable in full upon the Dealer's sale of the related Equipment,

         (p)      the outstanding principal balance of such Dealer Receivable
         does not exceed the purchase price for the related Equipment payable by
         the Dealer,

         (q)      such Dealer Receivable arises under a Dealer Agreement which
         (i) does not require the Obligor under such Dealer Agreement to consent
         to the Transfer, sale or assignment of the rights and duties of the
         Seller under such Dealer Agreement, (ii) does not contain a
         confidentiality provision that purports to restrict the ability of any
         Purchaser to exercise its rights under this Agreement, including,
         without limitation, its right to review such Dealer Agreement, and
         (iii) contains an obligation to pay a specified sum of money,

<PAGE>   10
                                      -10-

         (r)      such Dealer Receivable, together with the Dealer Agreement and
         each other Contract related thereto, does not contravene any law, rule
         or regulation applicable thereto to an extent which would in any way
         impair the ability of the Servicer to ultimately collect any and all
         amounts payable in respect of such Dealer Receivable, and

         (s)      which the Agent has not designated, in its reasonable business
         judgment and in good faith applying the credit criteria customarily
         applied by the Agent in transactions of this type, upon (30) days'
         notice to the Seller, as no longer eligible for Transfer hereunder.

         "Eligible Receivables Balance" means, at any time, the aggregate
Outstanding Balance of all Eligible Receivables at such time.

         "Equipment" means, with respect to any Dealer Receivable, the equipment
the sale or financing of which gave rise to such Dealer Receivable and all
financing statements or other filings relating thereto.

         "Equivalent Amount" means, at any time, with respect to a specified
amount of any currency, the amount of any other currency that may be purchased
by the Agent with such specified amount of the first mentioned currency at the
rate of exchange for the purchase of such other currency with the first
mentioned currency as quoted by the Agent on the immediately preceding Business
Day as its noon rate for such purchases. Notwithstanding the foregoing, if at
the time in question the Agent or the applicable Purchasers have in place a
Currency Protection Agreement which applies to the conversion of the amounts in
question into the desired currency, the rate as aforesaid shall be the rate for
the purchase of such other currency as specified in such Currency Protection
Agreement, to the extent considered by the Agent to be reasonable in the
circumstances.

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

         "Eurodollar Reserve Percentage" means for any day, the maximum rate
(expressed as a decimal) at which any lender subject thereto would be required
to maintain reserves under Regulation D of the Board of Governors of the Federal
Reserve System (or any successor or similar regulations relating to such reserve
requirements) against Eurocurrency Liabilities (as defined therein), if such
liabilities were outstanding. The Eurodollar Reserve Percentage shall be
adjusted automatically on and as of the effective date of any change in the
Eurodollar Reserve Percentage.

         "Face Amount" means in relation to any Commercial Paper Note (a) if
issued on a discount basis, the amount due at the maturity thereof and (b) if
issued on an interest-bearing basis, the principal amount stated therein plus
the amount of all interest scheduled to accrue thereon through its stated
maturity date.

         "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

<PAGE>   11
                                      -11-

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 the Agent from three Federal funds brokers of recognized standing
selected by it in good faith.

         "Fee Letter" means (i) with respect to the Related Group that includes
Nieuw Amsterdam, that certain fee letter dated as of the date hereof, among the
Seller, Nieuw Amsterdam and Rabobank, as Administrator for such Related Group,
as the same may be amended or modified and in effect from time to time and (ii)
with respect to any other Related Group, the fee letter entered into among the
Seller, the related Purchaser for such Related Group and the related
Administrator on or prior to the date on which the members of such Related Group
become parties hereto, as the same may be amended or modified and in effect from
time to time.

         "Finance Charges" means, with respect to a Contract, any finance,
interest, late payment charges or similar charges owing by an Obligor pursuant
to such Contract.

         "Funding Commercial Paper Notes" means, during any period, Commercial
Paper Notes issued by any Purchaser that are allocated, in whole or in part, by
the related Administrator (on behalf of such Purchaser) to fund or maintain the
Investment of such Purchaser during such period, as determined by the related
Administrator (on behalf of such Purchaser) and reported to the Seller and the
Servicer.

         "Incremental Purchase" means a purchase of Ownership Interests which
increases the total outstanding Investment hereunder, including the initial
purchase of an Ownership Interest hereunder.

         "Indebtedness" of a Person means such Person's (i) obligations for
borrowed money, (ii) obligations representing the deferred purchase price of
property or services (other than accounts payable arising in the ordinary course
of such Person's business payable on terms customary in the trade), (iii)
obligations, whether or not assumed, secured by liens, (iv) obligations which
are evidenced by notes, acceptances, or other instruments, (v) capitalized lease
obligations, (vi) net liabilities under interest rate swap, exchange or cap
agreements, (vii) obligations under any agreement, undertaking or arrangement by
which such Person assumes, guarantees, endorses, contingently agrees to purchase
or provide funds for the payment of, or otherwise becomes or is contingently
liable upon, the obligation or liability of any other Person, or agrees to
maintain the net worth or working capital or other financial condition of any
other Person, or otherwise assures any creditor of such other Person against
loss, including, without limitation, any comfort letter, operating agreement,
take-or-pay contract or application for a letter of credit and (viii)
liabilities in respect of unfunded vested benefits under plans covered by Title
IV of ERISA or any pension benefits or similar legislation in any applicable
jurisdictions in Canada.

<PAGE>   12
                                      -12-

         "Investment" means, with respect to any Ownership Interest at any time,
an amount, expressed in U.S. Dollars (except as otherwise provided in Section
3.07) equal to (A) the Purchase Price for such Ownership Interest, minus (B) the
U.S. Dollar Equivalent (except as otherwise provided in Section 3.07), using the
applicable exchange rate from the definition herein of "Equivalent Amount" (as
determined by the Agent), of the sum of the aggregate amount of Collections and
other payments received by the Agent which in each case are applied to reduce
such Investment in accordance with the terms and conditions of this Agreement,
provided, however, that such Investment of such Ownership Interest shall not be
reduced by any distribution of any portion of Collections if at any time such
distribution is rescinded or must be returned for any reason.

         "Joinder Agreement" means an agreement, in form and substance
reasonably satisfactory to each of the parties hereto, entered into among each
of the parties hereto and the members of a new Related Group pursuant to Section
13.02.

         "LIBOR" means, for any Settlement Period, an interest rate per annum
(rounded upward, if necessary, to the nearest 1/100th of 1%) as determined on
the basis of the offered rates for deposits in U.S. dollars, for a period of
time comparable to such Settlement Period which appears at Telerate Page 3750 as
of 11:00 a.m. (London time) two Business Days before the first day of such
Settlement Period. If the Agent is unable to determine LIBOR by reference to
Telerate Page 3750 on any applicable interest determination date, LIBOR shall be
the rate (rounded upward as described above, if necessary) for deposits in
dollars for a period substantially equal to such Settlement Period on the
Reuters Screen LIBO Page, as of 11:00 a.m. (London time) two Business Days
before the first day of such Settlement Period. If the Agent is unable to
determine LIBOR for any period by reference to either the Telerate Page 3750 or
the Reuters Screen LIBO Page, then LIBOR for that Settlement Period will be
determined on the basis of the offered rates for deposits in U.S. dollars for a
period of time comparable to such Settlement Period which are offered by the
Reference Bank in the London interbank market at approximately 11:00 a.m.
(London time) two Business Days before the first day of such Settlement Period.

         "Liquidity Termination Date" means, at any time, the Scheduled Purchase
Commitment Termination Date at such time, under and as defined in the Liquidity
Asset Purchase Agreement of even date among Nieuw Amsterdam, the Purchasers from
time to time parties thereto and Rabobank as Liquidity Agent, as such agreement
may be amended, restated, supplemented or modified and in effect from time to
time, and upon any extension of the Scheduled Purchase Commitment Termination
Date at any time, the Liquidity Termination Date shall be adjusted accordingly.

         "Lock-Box" means a locked postal box to which Obligors remit
Collections and with respect to which a Deposit Account Bank has been granted
exclusive access for the purpose of retrieving and processing such Collections.

         "Loss Reserve Percentage" means, at any time, 2.0 times the highest
average Default Ratio for any three consecutive month period ending during the
twelve (12) complete calendar month period then most recently ended.

<PAGE>   13
                                      -13-

         "Majority Purchasers" means, at any time, Purchasers owning in excess
of 66-2/3% of the aggregate Investments at such time.

         "Material Adverse Effect" means a material adverse effect on (i) the
financial condition or operations of the Seller and its Subsidiaries or the
Servicer and its Affiliates, (ii) the ability of the Seller or the Servicer to
perform its obligations under this Agreement, (iii) the legality, validity or
enforceability of this Agreement, (iv) the Seller's or any Purchasers' interest
in the Dealer Receivables generally or in any significant portion of the Dealer
Receivables, the Related Security or the Collections with respect thereto, or
(v) the collectibility of the Dealer Receivables generally or of any material
portion of the Dealer Receivables.

         "Maximum Program Amount" means U.S. $60,000,000.

         "Monthly Report" means a report, in substantially the form of Exhibit A
hereto, furnished by the Servicer to the Agent pursuant to Section 9.05.

         "Moody's" means Moody's Investors Service, Inc., and any successor
thereto.

          "Net Eligible Receivables Balance" means, at any time, an amount equal
to (a) the Eligible Receivables Balance minus (b) the product of (i) the Planned
Dilution Ratio, times (ii) the New Equipment Receivables Percentage, times (iii)
the Eligible Receivables Balance.

         "New Equipment Receivables Percentage" means, at any time, the
aggregate Outstanding Balance of the Dealer Receivables which arose from the
sale of new equipment, expressed as a percentage of the aggregate Outstanding
Balance of all Dealer Receivables.

         "Nieuw Amsterdam" means Nieuw Amsterdam Receivables Corporation, a
Delaware corporation, together with its successors and permitted assigns.

         "Obligor" means a Dealer or any other Person obligated to make payments
pursuant to a Contract, including any guarantor.

         "Other Taxes" has the meaning specified in Section 11.03(b).

         "Outstanding Balance" means, with respect to any Dealer Receivable, the
outstanding principal balance of such Dealer Receivable expressed in Canadian
Dollars including any amount payable by the applicable Obligor or Obligors in
respect of goods and services tax, but for greater certainty excluding any
Finance Charges.

<PAGE>   14
                                      -14-

         "Ownership Interest" means, at any time, an undivided percentage
ownership interest (computed as set forth below) associated with a designated
amount of Investment in (i) each Dealer Receivable existing at such time, (ii)
all Related Security with respect to each such Dealer Receivable, and (iii) all
Collections with respect to, and other proceeds of, each such Dealer Receivable
(collectively, at any time, the "Pool Assets"). Each such undivided percentage
interest shall equal:

                                        I
                                   -----------
                                   (NERB - CE)

where:

         I        =        the Investment of such Ownership Interest.

         CE       =        the Credit Enhancement.

         NERB     =        the Net Eligible Receivables Balance;

provided that if, at the time in question, such Investment is expressed in U.S.
Dollars, the U.S. Dollar Equivalent at such time of the Credit Enhancement and
Net Eligible Receivables Balance shall be used for the foregoing calculation.
Each Ownership Interest shall be computed on its date of purchase and recomputed
(or deemed recomputed) on each day prior to the Termination Date on which the
Investment associated with such Ownership Interest, the Credit Enhancement or
the Net Eligible Receivables Balance changes. The variable percentage
represented by any Ownership Interest as computed (or deemed recomputed) as of
the close of the Business Day immediately preceding the Termination Date shall
remain constant at all times on and after the Termination Date.

         "Payment Date" means (i) the 20th day of each calendar month (or, if
such day is not a Business Day, the next succeeding Business Day) and (ii) from
and after the occurrence of an Early Amortization Event, each additional
Business Day designated as a "Payment Date" by the Agent.

         "Payment Rate" means, at any time, the percentage equivalent of a
fraction, the numerator of which is equal to the original Outstanding Balance of
all Dealer Receivables for which the final payment of principal owing by the
Obligor was made in the immediately preceding calendar month, and the
denominator of which is equal to the aggregate Outstanding Balance of all Dealer
Receivables as of the last day of the immediately preceding calendar month.

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

         "Planned Dilution" means, with respect to any calendar month, the
aggregate amount of reserves accrued on the accounting books of the Seller with
respect to program discounts expected to be taken by the Dealers at the time of
settlement, as calculated by the Servicer on the

<PAGE>   15
                                      -15-

last day of the immediately preceding calendar month in accordance with the
accounting practices of the Seller as in effect on the date hereof.

         "Planned Dilution Amount" means an amount, determined as of the
Business Day immediately preceding the Termination Date, equal to the sum of (a)
the Planned Dilution for the calendar month then most recently ended plus (b)
the product of (i) the Variable Dilution Reserve Percentage and (ii) the Net
Eligible Receivables Balance.

         "Planned Dilution Ratio" means, with respect to any calendar month, the
greater of (a) 10%, and (b) the percentage equivalent of a fraction, the
numerator of which is equal to the aggregate Planned Dilution for such calendar
month, and the denominator of which is equal to the aggregate Outstanding
Balance of the Dealer Receivables which arose from the sale of new equipment as
of the last day of the immediately preceding calendar month.

         "Pool Assets" has the meaning set out in the definition of Ownership
Interest.

         "Potential Early Amortization Event" means an event which, with the
passage of time or the giving of notice, or both, would constitute an Early
Amortization Event.

         "Prime Rate" means the rate announced by Rabobank from time to time as
its prime rate in the United States, such rate to change as and when such
designated rate changes. The Prime Rate is not intended to be the lowest rate of
interest charged by Rabobank in connection with extension of credit to debtors.

         "Purchase" means an Incremental Purchase or a Reinvestment Purchase or
a Deferred Reinvestment Purchase.

         "Purchase Notice" has the meaning set forth in Section 3.02.

         "Purchase Price" means, with respect to any Incremental Purchase of an
Ownership Interest, including for greater certainty, the initial purchase of an
Ownership Interest hereunder, the amount in U.S. Dollars paid to the Seller for
such Ownership Interest, which shall not exceed the least of (i) the amount
requested by the Seller in the applicable Purchase Notice, (ii) the unused
portion of the Maximum Program Amount on the applicable purchase date and (iii)
the excess, if any, of the U.S. Dollar Equivalent of the Net Eligible
Receivables Balance (less the Credit Enhancement), on the applicable purchase
date over the aggregate outstanding amount of Investment determined as of the
date of the most recent Monthly Report, taking into account such proposed
Incremental Purchase, subject to adjustment as provided in Section 4.05.

         "Purchaser" means Nieuw Amsterdam or any other Person that may become a
party hereto as a "Purchaser" pursuant to a Joinder Agreement as described in
Section 13.02, together in each case with their respective successors and
assigns.

         "Purchaser Obligations" means, at any time, the aggregate outstanding
Investment hereunder, all Yield, Swap Costs and Servicer Fees and any applicable
taxes thereon, all costs of

<PAGE>   16
                                      -16-

the Custodian or the Agent of collection and enforcement of this Agreement and
any Currency Deficiency.

         "Purchasers' Portion" has the meaning set out in Section 4.03(a).

         "Rabobank" means Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.,
"Rabobank International", New York Branch, and any successor thereto.

         "Records" means, with respect to any Dealer Receivable, all Contracts
and other documents, books, records and other information (including, without
limitation, computer programs, tapes, disks, punch cards, data processing
software and related property and rights) relating to such Dealer Receivable,
any Related Security therefor and the related Obligor.

         "Reference Bank" means, with respect to any Settlement Period to which
any portion of the Investment of a Related Group has been allocated, the
Administrator for such Related Group or such other bank as the Administrator for
such Related Group shall reasonably and in good faith designate with the consent
of each Purchaser in such Related Group.

         "Reinvestment Purchase" has the meaning set forth in Section 3.03.

         "Related Group" means (i) Nieuw Amsterdam, as a Purchaser, and
Rabobank, as Administrator, together with their respective successors and
assigns or (ii) any other group of Purchasers and their related Administrator
that shall become a party hereto as a "Related Group" pursuant to Section 13.02,
together with their respective successors and assigns.

         "Related Security" means, with respect to any Dealer Receivable:

         (i)      all of the Seller's interest in the Equipment or other
inventory and goods (including returned, foreclosed or repossessed inventory or
goods) the financing or sale of which by the Seller gave rise to such Dealer
Receivable, and all insurance contracts with respect thereto,

         (ii)     all other security interests, liens or other Adverse Claims
and property subject thereto from time to time, if any, purporting to secure
payment of such Dealer Receivable, whether pursuant to the Dealer Agreement
related to such Dealer Receivable or otherwise, together with all financing
statements and security agreements describing any collateral securing such
Dealer Receivable,

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

         (iv)     the related Dealer Agreement and all service contracts and
other agreements associated with such Dealer Receivable,

         (v)      all Records related to such Dealer Receivable, and

<PAGE>   17

                                      -17-

         (vi)     all proceeds of any of the foregoing.

         "Reporting Date" means the 5th Business Day preceding each Payment
Date.

         "Required Canadian Dollar Amount" has the meaning set out in Section
5.05(a).

         "Reuters Screen LIBO Page" means the display on the Reuter Monitor
Money Rates Service (or any successor service) on the applicable page on such
service for the purpose of displaying the London interbank rates of major banks
for deposits in U.S. dollars.

         "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., and any successor thereto.

         "Sales Taxes" means all sales taxes, goods and services taxes,
harmonized taxes and other similar taxes and all related penalties and interest,
including provincial sales tax, goods and services tax, and any taxes payable
under similar legislation in any other jurisdiction of Canada, including Quebec
sales tax.

         "Seller" means AGCO Canada, Ltd., a Saskatchewan corporation, and any
successor thereto.

         "Seller Obligations" means, at any time, all amounts required to be
paid by the Seller under Section 4.01 hereof, together with all other
liabilities and obligations (howsoever created, arising or evidenced, whether
direct or indirect, absolute or contingent, or due or to become due) of the
Seller to the Custodian, the Agent, any Administrator, any Purchaser or any
other Affected Party, arising under or in connection with this Agreement or any
of the other Transaction Documents or the transactions contemplated thereby and
shall include, without limitation, all fees, expense reimbursements,
indemnifications, and other amounts due or to become due from the Seller under
the Transaction Documents, including, without limitation, fees and other
obligations that accrue after the commencement of any bankruptcy,
reorganization, arrangement, insolvency, liquidation or similar proceeding with
respect to the Seller.

         "Servicer" means at any time the Person (which may be the Agent) then
authorized pursuant to Article IX to service, administer and collect Dealer
Receivables.

         "Servicer Default" has the meaning set forth in Section 9.07.

         "Servicer Fee" has the meaning set forth in Section 9.06.

         "Settlement Period" means each period from and including the
immediately preceding Payment Date (or, in the case of the initial Settlement
Period, the date of the initial Purchase hereunder) to but excluding the next
succeeding Payment Date.

         "Special Concentration Limit" means, at any time, with respect to all
of the Dealer Receivables owing from a single Obligor, together with Dealer
Receivables owing from its Affiliates, the amount set forth on Schedule II next
to such Obligor's name; provided that the Agent may, with the consent of the
Majority Purchasers, at any time, in its sole discretion, reduce

<PAGE>   18
                                      -18-

or increase the Special Concentration Limit for any Obligor upon not less than
three (3) Business Days' notice to the Seller; provided further that in no event
shall the Special Concentration Limit of any single Obligor be reduced so that
the Dealer Receivables owing from such single Obligor together with the Dealer
Receivables owing from its Affiliates are required to be less than 3% of the
aggregate of all Dealer Receivables.

         "Subsidiary" of a Person means (i) any corporation more than 50% of the
outstanding securities having ordinary voting power of which shall at the time
be owned or controlled, directly or indirectly, by such Person or by one or more
of its Subsidiaries or by such Person and one or more of its Subsidiaries, or
(ii) any partnership, association, joint venture or similar business
organization more than 50% of the ownership interests having ordinary voting
power of which shall at the time be so owned or controlled.

         "Swap Costs" means, for any Payment Date, an amount (which may be
negative) equal to the sum (without duplication) of (a) any fees, premiums or
other costs payable on such Payment Date by the Agent on behalf of the
Purchasers or any of them, or by any Purchaser, to the counterparty to a
Currency Protection Agreement in connection with the entering into of the
Currency Protection Agreement on such Payment Date, plus (b) any amounts payable
to a counterparty to a Currency Protection Agreement which expires or is to be
closed out at any time subsequent to the prior Payment Date in connection with
the cash settlement of the Currency Protection Agreement and any and all other
losses, costs and expenses to be incurred by the Agent on behalf of the
Purchasers or any of them, or by any Purchaser in connection with the breakage
of any Currency Protection Agreement or other spot, forward or other currency
exchange or hedging arrangement to which any of them shall then be a party or
otherwise existing for the benefit of any of them and obtained for purposes of
effecting a currency exchange, minus (c) any amounts payable to the Agent on
behalf of the Purchasers or any of them, or to any Purchaser, by a counterparty
to a Currency Protection Agreement which expires or is to be closed out at any
time subsequent to the prior Payment Date in connection with the cash settlement
of the Currency Protection Agreement.

         "Taxes" has the meaning specified in Section 11.03(a).

         "Telerate Page 3750" means the display on Bridge Telerate, Inc. (or any
successor service) on page 3750 (or any other page as may replace such page on
such service) for the purpose of displaying the London interbank rates of major
banks for deposits in U.S. dollars.

         "Termination Date" means the earliest to occur of (i) the Liquidity
Termination Date, (ii) the Business Day immediately prior to the occurrence of
an Early Amortization Event set forth in Section 10.01(e), (iii) the Business
Day specified in a written notice from the Agent following the occurrence of any
other Early Amortization Event, (iv) the date which is 30 days after the Agent's
receipt of written notice from the Seller that it wishes to terminate the
facility evidenced by this Agreement, and (V) June 25, 2006.

         "Transaction Documents" means, collectively, this Agreement, each
Purchase Notice, each Joinder Agreement, each Deposit Account Agreement and the
Fee Letters, and all other

<PAGE>   19
                                      -19-

instruments, documents and agreements executed and delivered in connection
herewith or therewith.

         "Transfer" means sell, assign, convey, set-over and transfer, or,
depending upon the context, sale, assignment, conveyance, set-over and transfer,
and "Transferred" shall be interpreted accordingly.

         "UCC" means, (i) with respect to any jurisdiction in the United States,
the Uniform Commercial Code as from time to time in effect in such jurisdiction,
and (ii) with respect to any jurisdiction in Canada, the personal property
security legislation applicable in such jurisdiction, including with respect to
the jurisdictions of Canada other than Quebec, the Northwest Territories and
Nunavut, the Personal Property Security Act applicable in such jurisdictions.

         "Unpaid Obligations" means the Seller Obligations and the Purchaser
Obligations.

         "U.S. Dollars" or "U.S.$" means the lawful currency of the United
States of America.

         "U.S. Dollar Equivalent" means, at any time, (i) with respect to any
amount expressed in Canadian Dollars, the Equivalent Amount thereof at such time
in U.S. Dollars, and (ii) with respect to any amount expressed in U.S. Dollars,
the amount thereof.

         "Variable Dilution Ratio" means, with respect to any calendar month, a
percentage equal to the Dilution Ratio minus the Planned Dilution Ratio.

         "Variable Dilution Reserve Percentage" means, at any time, a percentage
equal to the product of (i) 2.0 times, (ii) 1 minus the Loss Reserve Percentage,
times (iii) the New Equipment Receivables Percentage, times (iii) the highest
three month rolling average Variable Dilution Ratio during the twelve complete
calendar month period then most recently ended.

         "Yield" means, for each respective Settlement Period related to each
Ownership Interest, an amount equal to:

                           YRT  x  C  x   ED
                                          --
                                          360

<TABLE>
                  <S>       <C>     <C>      <C>
                  where:    YRT     =        the Yield Rate applicable to such Ownership Interest for
                                             such Settlement Period;

                            C       =        the amount of Investment of such Ownership Interest; and

                            ED      =        the actual number of days elapsed during such Settlement
                                             Period;
</TABLE>

provided that, to the extent that the Agent estimates the amount of any Unpaid
Obligations for purposes of entering into a Currency Protection Agreement as
contemplated in Section 5.05, and

<PAGE>   20
                                      -20-

the amount so estimated exceeds the actual amount of such Unpaid Obligations,
the excess shall also, in addition to the foregoing, constitute Yield for such
Settlement Period.

         "Yield Rate" means, for any Settlement Period and any Ownership
Interest, (i) to the extent the Purchaser which holds such Ownership Interest
funds or maintains its Investment for such Settlement Period through the
issuance of Commercial Paper Notes, the CP Rate and (ii) to the extent such
Purchaser does not fund or maintain its Investment for such Settlement Period
through the issuance of Commercial Paper Notes, the Alternative Rate; provided
that from and after the occurrence and during the continuation of an Early
Amortization Event, the Yield Rate for all Ownership Interests shall, if so
declared by the Agent pursuant to Section 10.02, be equal to the Base Rate plus
2%; and provided further that, to the extent that the Agent estimate the amount
of any Unpaid Obligations for purposes of entering into an Currency Protection
Agreement as contemplated in Section 5.05, and the amount so estimated exceeds
the actual amount of such Unpaid Obligations, the excess shall constitute Yield
for the related Payment Date and , it may using such approach (including
incorporating such cushions) as it considers reasonable .

Section 1.02      Other Terms. All accounting terms not specifically defined
herein shall be construed in accordance with generally accepted accounting
principles. All terms used in the Personal Property Security Act of the Province
of Ontario, and not specifically defined herein, are used herein as defined in
such legislation, except that any reference herein to "equipment" includes
inventory as defined therein. Except as otherwise expressly provided in this
Agreement, all dollar amounts referred to in this Agreement are stated in U.S.
Dollars.

                                   ARTICLE II
                              TRANSFER TO CUSTODIAN

Section 2.01      Deposit with Custodian. With effect as of the date of this
Agreement, the Seller hereby delivers to, and deposits with, the Custodian all
of the Seller's present and future right, title and interest in, to and under
all present and future Pool Assets, all moneys due or to become due with respect
to such Pool Assets and all proceeds of such Pool Assets. The Custodian shall
hold the same as agent and bailee for and on behalf of the Seller and the
Purchasers as their interests and entitlements are set out herein.

Section 2.02      Acceptance by Custodian. With respect to all Pool Assets
delivered to and deposited with the Custodian by the Seller hereunder, the
Custodian agrees to act as the agent and bailee for and on behalf of the Seller
and the Purchasers, and to perform the functions and services and exercise the
authority conferred on it by the Seller and the Purchasers pursuant to this
Agreement. Subject to the terms and conditions hereof, the Custodian hereby
acknowledges its acceptance, as agent and bailee for and on behalf of the Seller
and the Purchasers, of the delivery and deposit of all of the Seller's present
and future right, title and interest in, to and under the Pool Assets.

Section 2.03      Appointment of Custodian. In order to better achieve the
purposes hereof, each of the Seller and the Purchasers hereby appoints, empowers
and instructs the Custodian to hold and possess the Pool Assets as its agent and
bailee for and on their behalf as tenants-in-common and

<PAGE>   21
                                      -21-

authorizes, empowers and instructs the Custodian to take, in the Custodian's own
name or in the name of the Seller and the Purchasers, all actions and exercise
on behalf of the Seller and the Purchasers, all rights of such Persons
specifically contemplated by this Agreement, including, without limitation, the
right to commence action against any Obligor or otherwise enforce obligations of
such Obligor under or in connection with any Pool Asset, whether in the name of
the Custodian, the name of the Seller and the Purchasers jointly or otherwise
and to perform the duties and functions contemplated herein in a manner
consistent with the terms and subject to the applicable provisions hereof.
Except as expressly set forth in this Agreement, the authority of the Custodian
to take such actions, exercise such rights and perform such duties and functions
shall be exclusive and may not be taken by any other Person. The Seller and the
Purchasers hereby irrevocably authorize, empower and instruct the Custodian to
execute and deliver on their behalf, as attorney-in-fact or otherwise, all such
documents and instruments as may be necessary or desirable to accomplish the
foregoing and grant an irrevocable power of attorney to the Custodian, with full
power of substitution, coupled with an interest, to accomplish the foregoing.

Section 2.04      Power of Custodian. The Custodian shall have no power to
create, assume or incur indebtedness or other liabilities relating to the Pool
Assets or to Transfer or otherwise deal with such Pool Assets or any part
thereof or interest therein, other than as expressly contemplated by this
Agreement. It is understood and agreed by the Custodian, on the one hand, and
the Seller and the Purchasers, on the other hand, that the relationship between
them is limited to the Custodian acting as agent and bailee on behalf of such
other parties and that this Agreement does not create, and should not be
construed as creating, any other relationship, except as expressly provided
herein. The Custodian shall hold the Pool Assets and the proceeds thereof
outside Canada and none of the functions, obligations or authority of the
Custodian shall be carried out directly or indirectly in Canada. For greater
certainty, any reference herein to a Transfer to or by the Custodian of any
property, the delivery to or deposit with the Custodian of any property, or the
holding or ownership by the Custodian of any property, shall be deemed to refer
to any such Transfer, delivery, deposit, holding or ownership, as applicable,
to, by, with or for the Seller and the Purchaser for whom the Custodian acts as
agent hereunder as their interests and entitlements are set out herein.

                                   ARTICLE III
                                PURCHASE FACILITY

Section 3.01      Purchase Facility. Upon the terms and subject to the
conditions hereof, the Seller may, at its option from time to time, Transfer
and, upon payment of the Purchase Price therefor, hereby Transfers Ownership
Interests to the Purchasers. In accordance with the terms and conditions set
forth herein, each Purchaser may, at its option, purchase, Ownership Interests
from time to time during the period from the date hereof to but not including
the Termination Date; provided that in no event shall any Incremental Purchase
be made hereunder to the extent that, after giving effect thereto, the aggregate
Investment held by all Purchasers hereunder would exceed the Maximum Program
Amount. Notwithstanding that the Purchase Price is denominated as a U.S. Dollar
amount and without affecting such denomination, the Seller may request the
Purchaser to pay the Purchase Price to the Seller in Canadian Dollars and in
such event, the

<PAGE>   22
                                      -22-

Purchaser shall purchase Canadian Dollars with the Purchase Price before paying
same to the Seller, and then pay such Canadian Dollar amount to the Seller.

Section 3.02      Incremental Purchases. The Seller shall provide each
Administrator with at least three Business Days' prior notice in a form set
forth as Exhibit D hereto of each Incremental Purchase (a "Purchase Notice").
Except as set forth below, each Purchase Notice shall be irrevocable and shall
specify the requested Purchase Price (which, except as otherwise provided in
Section 3.07, shall be expressed in U.S. Dollars and shall not be less than U.S.
$10,000,000) and date of purchase (which, in the case of any Incremental
Purchase (after the initial purchase hereunder), may be on any Business Day).
Following receipt of a Purchase Notice, each Administrator will determine
whether the Purchaser in its Related Group agrees to make the portion of the
Incremental Purchase to be made by its Related Group. Each Administrator shall,
on or prior to the proposed date of purchase, notify the Seller if its Purchaser
declines to make the portion of the Incremental Purchase to be made by its
Related Group (a "Conduit Refusal"), and, in such event, the Purchase Notice
shall be deemed to be cancelled. Unless it is notified of a Conduit Refusal on
or prior to the date of Purchase, the Seller shall be entitled to assume that
the portion of the Purchase contemplated in such Purchase Notice shall be made
by the Purchasers in such Administrator's Related Group. On the date of each
Incremental Purchase, upon satisfaction of the applicable conditions precedent
set forth in Article VII, the Seller hereby Transfers to the Agent, on behalf of
the applicable Purchasers, the Ownership Interests which are the subject of such
Incremental Purchase and, if requested by the Agent as additional evidence of
such Transfer, shall execute such conveyance documents in respect of such
Transfer as the Agent may reasonably request, and the Purchasers participating
in such Incremental Purchase shall deposit to the Seller's account identified in
the Purchase Notice related to such Incremental Purchase, in immediately
available funds, no later than 4:30 p.m. (New York time), an amount in U.S.
Dollars equal to the portion of the Purchase Price which is to be funded by its
Related Group, based on the terms of any applicable Joinder Agreement.

Section 3.03      Reinvestment Purchases. On each date on which Collections are
received by the Servicer prior to the Termination Date, the Seller hereby
requests and the Purchasers hereby agree to make, simultaneously with such
receipt and out of Collections available for such purpose pursuant to Article
IV, a reinvestment (each a "Reinvestment Purchase"), with that portion of each
and every Collection received by the Servicer that is part of any Ownership
Interest and this is not otherwise allocated hereunder. Upon such Reinvestment
Purchase, the Seller shall Transfer to the Agent on behalf of the Purchasers, in
accordance with Section 3.06, and in consideration of such available
Collections, an Ownership Interest so that, as a result of and after giving
effect to such Reinvestment Purchase, the amount of Investment of such Ownership
Interest immediately after such receipt and corresponding Reinvestment Purchase
shall be equal to the amount of Investment immediately prior to receipt of such
available Collections, provided that if and to the extent that on any such date
after giving effect to such Reinvestment Purchase, the aggregate of the
Ownership Interests of the Purchasers would otherwise exceed 100%, such
Reinvestment Purchase shall not occur and the Servicer shall set aside and be
deemed to hold in trust for the benefit of the Purchasers all or such portion of
such available Collections which, if they were applied to reduce the Investments
of the Purchasers, would result in the aggregate of the Ownership Interests of
the Purchasers being equal to 100%,

<PAGE>   23
                                      -23-

until the next date on which Reinvestment Purchases may be made as contemplated
hereinabove, on which date such Reinvestment Purchases shall be made, subject
again to application of this proviso (each a "Deferred Reinvestment Purchase").
Upon such Reinvestment Purchase or Deferred Reinvestment Purchase, the Servicer
shall hold the applicable Collections for the benefit of the Seller. The
Transfer of the applicable Ownership Interest to the Agent on behalf of the
applicable Purchaser shall occur as provided in Section 3.06.

Section 3.04      Investment Reductions and Reductions in Maximum Program
Amount. The Seller shall provide the Agent with at least five Business Days'
prior written notice of any reduction in Investment from Collections requested
by the Seller. Such notice shall designate (i) the date upon which any such
reduction of Investment shall occur (which must be a Payment Date), and (ii) the
aggregate amount of Investment to be reduced. Any such reduction to the
Investment shall be applied ratably to the Ownership Interests of the Purchasers
in accordance with the amount of Investment (if any) held by each and
Collections which would otherwise have been applied towards a Reinvestment
Purchase shall be held by the Servicer and applied in accordance with Section
4.05 (sixth) instead to the extent of such requested reduction. Further, the
Seller shall have the right, upon at least ten Business Days' prior written
notice to the Administrators, to terminate in whole or reduce ratably in part
the unused portions of each Related Group's pro rata share of the Maximum
Program Amount, provided, however, that each such partial reduction shall be in
the aggregate amount of U.S. $10,000,000 or an integral multiple of U.S.
$1,000,000 in excess of that amount.

Section 3.05      Maximum Ownership Interests.

         (a)      The Seller shall ensure that the aggregate Ownership Interests
                  of the Purchasers shall at no time exceed in the aggregate
                  100%. If at any time, notwithstanding the retention of
                  Collections in trust as required by the proviso in Section
                  3.03 and the application thereof as contemplated by Section
                  4.05 and without duplication of the Seller's obligations under
                  Section 4.02, the aggregate of the Ownership Interests of the
                  Purchasers exceeds 100%, the Seller shall immediately pay to
                  the Agent, as and by way of an indemnity against the
                  performance of the Dealer Receivables, an amount to be applied
                  to reduce the Investment of the Ownership Interests, such that
                  after giving effect to such payment, the aggregate of the
                  Ownership Interests equals or is less than 100%. Each such
                  payment shall be allocated among the Purchasers ratably in
                  accordance with the amount of Investment (if any) held by
                  each.

         (b)      The Seller shall also ensure that the U.S. Dollar Equivalent
                  of the aggregate of the Investments does not at any time
                  exceed the Maximum Program Amount. If at any time, the U.S.
                  Dollar Equivalent of the aggregate of the Investments exceeds
                  the Maximum Program Amount, the Seller shall immediately pay
                  to the Agent, as and by way of indemnity, that amount, to be
                  applied to reduce the Investments, such that after giving
                  effect to such reduction, the U.S. Dollar Equivalent of the
                  aggregate Investments equals or less than the Maximum Program
                  Amount. Each such payment shall be applied to reduce the
                  Investments and allocated among the Purchasers rateably in
                  accordance with the Investment (if any) held by each.

<PAGE>   24
                                      -24-

Section 3.06      Transfers.

         (a)      Effective upon the date of each Incremental Purchase
                  (including, without limitation, the initial Purchase) and the
                  date of each Reinvestment Purchase, and each other date on
                  which any Ownership Interest is re-calculated hereunder, as
                  provided in the definition thereof herein, the Seller hereby
                  Transfers to the Agent on behalf of the applicable Purchasers
                  (to the extent not Transferred to and then held by the Agent
                  on behalf of the applicable Purchasers prior to any such
                  effective date) an undivided percentage ownership interest in
                  (i) each Dealer Receivable then existing, (ii) all Related
                  Security with respect to such Dealer Receivables, and (iii)
                  all Collections with respect to, and other proceeds of, such
                  Dealer Receivables and Related Security, such that,
                  immediately following such Transfer, the undivided percentage
                  ownership interest of each Purchaser in the Pool Assets shall
                  (following the application of Section 3.06(b)) be equal to the
                  Ownership Interest of the applicable Purchaser. Each Ownership
                  Interest shall be initially computed on the date of the
                  initial purchase of such Ownership Interest hereunder.

         (b)      If on any day (the "current day"), any Purchaser has an
                  undivided interest in any Pool Assets in excess of that which
                  is required to be included in the Ownership Interest of such
                  Purchaser on such current day after the application of Section
                  3.06(a) in respect of such day, such excess undivided
                  interests are hereby Transferred by such Purchaser to the
                  Seller at the close of business on such current day in
                  consideration or part consideration for the Transfer to such
                  Purchaser on such current day pursuant to Section 3.06(a).

Section 3.07      Denomination of Investment. The Agent may at any time notify
the Seller that, effective as of the date specified in such notice, and
thereafter until otherwise provided herein, the Investments shall be expressed
in Canadian Dollars. From and after the effective date of any such notice (i)
each Investment shall be expressed in Canadian Dollars, and the amount thereof
shall be the Canadian Dollar Equivalent of the U.S. Dollar amount of such
Investment as of such effective date, (ii) any provision hereof which compares
the amount of any Investment as against any amount expressed in U.S. Dollars,
shall be deemed to compare the U.S. Dollar Equivalent of such Investment against
such U.S. Dollar amount, and (iii) for purposes of the definition herein of
Investment, the Investment shall be reduced by the full amount of Collections
applied thereto, expressed in Canadian Dollars, and not converted to U.S.
Dollars, as otherwise provided therein. The Agent may at any time, by notice to
the Seller, revoke any notice given under this Section 3.07 effective as of the
date specified in such notice, in which case clauses (i), (ii) and (iii) above
shall no longer apply, subject to application again thereafter if the Agent
provides a subsequent notice under this Section 3.07.

                                   ARTICLE IV
                            PAYMENTS AND COLLECTIONS

Section 4.01      Seller Obligations. The Seller shall pay to each Administrator
when due, for the account of the Purchasers in its Related Group, (i) such fees
as are set forth in the Fee Letter to

<PAGE>   25
                                      -25-

which such Administrator is a party, (ii) all amounts payable to reduce the
Ownership Interests, if required, pursuant to Section 3.05, (iii) all amounts
payable pursuant to Article XI, if any, and (iv) if the Servicer is not AGCO
U.S. or an Affiliate thereof, the Servicer Fee. In addition, if at any time or
from time to time the Agent or any Purchaser pays any amounts to a Deposit
Account Bank under or in connection with a Lockbox or Deposit Account Agreement
or a Deposit Account Bank withdraws or sets off against any amounts in a Deposit
Account, the Seller shall forthwith reimburse the Agent and each such Purchaser
for any such amounts so paid, withdrawn or set off against. If the Seller fails
to pay any of the Seller Obligations when due or the Servicer fails to pay or
remit any amounts required to be paid or remitted by it hereunder or under any
of the other Transaction Documents, such Person shall pay to the Agent, for the
account of the applicable Related Group, on demand, interest on such amount at a
per annum rate equal to the Base Rate plus 2% until paid. Notwithstanding the
foregoing, no provision of this Agreement or the Fee Letters shall require the
payment or permit the collection of any amounts of interest in excess of the
maximum permitted by applicable law.

Section 4.02      Collections Received by Seller; Deemed Collections. If at any
time the Seller or any of its Affiliates receives any Collections, the Seller
shall immediately pay (or cause such Affiliate to pay) such Collections to the
Servicer and, at all times prior to such payment, such Collections shall be held
in trust by the Seller or such Affiliate for the exclusive benefit of the
Purchasers and the Agent to the extent of their interests therein. In the event
any Dilution occurs with respect to a Dealer Receivable, the Seller shall be
deemed to have received a Collection of such Dealer Receivable in the amount of
such Dilution; provided that no such Collection shall be deemed to have been
received by the Seller unless (i) if such Dilution occurs on or prior to the
Termination Date, the aggregate Ownership Interests exceed 100% after giving
effect to such Dilution or (ii) if such Dilution occurs after the Termination
Date, the aggregate amount of Dilution that has occurred with respect to the
Dealer Receivables since the Termination Date exceeds the Planned Dilution
Amount. In addition, the Seller shall be deemed to have received a Collection in
full of a Dealer Receivable if either (A) any of the representations or
warranties in Section 6.01(i), (j) or (s) are no longer true with respect to
such Dealer Receivable or (B) such Dealer Receivable shall cease to be an
Eligible Receivable by reason of the Dealer's failure or refusal to account to
the Servicer for the proceeds of the sale of Equipment; provided that no such
Collection shall be deemed to have been received by the Seller unless either (i)
the Ownership Interests exceed 100% or (ii) the Termination Date has occurred.
Any deemed Collections paid by the Seller shall be made as and by way of
indemnity by the Seller. On each Payment Date, the Seller shall pay to the
Servicer an amount equal to the aggregate amount of Collections deemed to have
been received by it pursuant to this Section 4.02 since the immediately
preceding Payment Date.

Section 4.03      Collections Prior to Termination Date.

         (a)      On each day prior to the Termination Date, the Servicer shall
                  determine the amount of Collections received on such day, and
                  the portion thereof that relate to the Ownership Interests
                  therein (determined based on the percentage amount of such
                  Ownership Interests). Each such portion (the "Purchasers'
                  Portion") shall be set aside and held in trust by the Servicer
                  for the exclusive benefit of the

<PAGE>   26
                                      -26-

                  Purchasers and the Agent and for application in accordance
                  with the terms hereof. The balance of any such Collections
                  which are received by the Servicer shall be remitted by the
                  Servicer to the Seller, subject however to any rights of the
                  Agent or the Purchasers with respect thereto under Sections
                  4.09 or 14.15.

         (b)      On each day prior to the Termination Date, the Servicer shall,
                  out of the Purchasers' Portion of Collections received by it
                  on such day, set aside and hold in trust for the benefit of
                  the Purchasers, an amount, which expressed in U.S. Dollars
                  using the applicable exchange rate from the definition herein
                  of "Equivalent Amount", is equal to the U.S. Dollar Equivalent
                  of the Purchaser Obligations (exclusive of Investment) accrued
                  through such day and not so previously set aside. Subject to
                  Section 4.07, any such amounts received by the Servicer in
                  excess of the amounts required to be set aside for the payment
                  of such Purchaser Obligations shall first be applied against
                  any Seller Obligations that are then due and unpaid and to
                  such extent paid to the applicable Person to whom such Seller
                  Obligations are due, and the excess shall be (i) held for the
                  Seller as, and on account of payment for, a Reinvestment
                  Purchase or a Deferred Reinvestment Purchase or (ii) if no
                  Reinvestment Purchases or Deferred Reinvestment Purchases are
                  to occur on such date or on any date prior to the next
                  succeeding Payment Date, set aside and held in trust for the
                  benefit of the Purchasers for application on the next
                  succeeding Payment Date in accordance with Section 4.05.

Section 4.04      Collections Following Termination Date. On the Termination
Date and on each day thereafter, the Servicer shall set aside and hold in trust,
for the benefit of the Purchasers, (i) the Purchasers' Portion of all
Collections received on such day, and (ii) all other Collections received on
such day (which other Collections are held pursuant to the rights of the Agent
and the Purchasers under Sections 4.09 and 14.15), which amounts shall be held
for application on the next succeeding Payment Date in accordance with Section
4.05.

Section 4.05      Application of Collections. On each Payment Date, the Servicer
shall, out of Collections set aside for the benefit of the Purchasers during the
most recently ended Settlement Period, pursuant to Section 4.03 or 4.04, pay or
remit the following amounts to the following Persons in the following order of
priority (and to the extent any of such following amounts are expressed in U.S.
Dollars, the amount of such Collections to be applied thereto shall be such
amount, which, when converted to U.S. Dollars using the applicable rate of
exchange in the definition herein of "Equivalent Amount", is equal to such U.S.
Dollar amount):

         first, if AGCO U.S. or one of its Affiliates is not then acting as the
         Servicer, pay to the Servicer on behalf of the Purchasers any accrued
         and unpaid Servicer Fee and any applicable taxes thereon, to the extent
         not paid by the Seller as required under Section 4.01,

         second, remit to the Purchasers, ratably in accordance with the amounts
         owing to each, any accrued and unpaid Swap Costs of the type described
         in clause (a) of the definition thereof (to the extent greater than
         zero) for such Payment Date,

<PAGE>   27
                                      -27-

         third, remit to the Purchasers, ratably in accordance with the amounts
         owing to each, the accrued and unpaid Yield for their respective
         Ownership Interests,

         fourth, remit to the Purchasers and the Administrators, ratably in
         accordance with the amounts owing to each, the accrued and unpaid fees
         then due and payable under the Fee Letters and any applicable taxes
         thereon, to the extent not paid by the Seller as required under Section
         4.01,

         fifth, remit to the Purchasers and the Administrators, rateably in
         accordance with the amounts owing to each, any Currency Deficiency for
         such Payment Date,

         sixth, if the Termination Date has occurred or no Reinvestment
         Purchases or Deferred Reinvestment Purchases are to occur (and, if any
         such Reinvestment Purchases or Deferred Reinvestment Purchases are to
         occur, following such Purchases), remit to the Purchasers, ratably in
         accordance with the Investment held by each, an amount (which shall be
         applied to reduce each such Investment) equal to the lesser of (i) the
         aggregate Investment then outstanding with respect to all Ownership
         Interests and (ii) the product of (x) the total Collections received in
         respect of the Dealer Receivables since the immediately preceding
         Payment Date, net of the portion of such Collections distributed
         pursuant to clauses first through fifth above and (y) the aggregate
         percentage interest represented by the Ownership Interests,

         seventh, remit to the Custodian, the Agent, the Purchasers and the
         Administrators, ratably in accordance with the amounts owing to each,
         the amount of all other Purchaser Obligations (including Swap Costs not
         provided for under Second above to the extent greater than zero, but
         other than the Servicer Fee) then outstanding,

         eighth, if AGCO U.S. or one of its Affiliates is then acting as the
         Servicer, pay to the Servicer, but subject to Section 4.09 and 14.15,
         the accrued and unpaid Servicer Fee and any applicable taxes thereon,
         and

         ninth, after all Purchaser Obligations have been indefeasibly paid or
         reduced to zero, pay to the Seller any remaining amounts (subject to
         Section 4.09 and 14.15) first on account of any other Collections
         referred to in Section 4.04 (to the extent such payment is made after
         the Termination Date) and secondly, as additional purchase price for
         the Ownership Interests Transferred to the applicable Purchasers.

Collections applied to the payment of Unpaid Obligations shall be distributed in
accordance with the aforementioned provisions, and, giving effect to each of the
priorities set forth in this Section 4.05, shall be shared ratably (within each
priority) among the Agent or the Administrators, as the case may be, and the
Purchasers in accordance with the amount of such Unpaid Obligations owing to
each of them in respect of each such priority.

Section 4.06      Payment Requirements. All amounts to be paid or deposited by
the Seller or the Servicer pursuant to any provision of this Agreement shall be
paid or deposited in accordance with the terms hereof and in the applicable
currency no later than 12:00 p.m. (New York time)

<PAGE>   28
                                      -28-

on the day when due in immediately available funds, and if not received before
12:00 p.m. (New York time) shall be deemed to be received on the next succeeding
Business Day. If such amounts are payable to a Purchaser in a Related Group,
they shall be paid to the Administrator for such Related Group, for the account
of such Purchaser, to such account as may be specified from time to time by such
Administrator in a written notice delivered to the Seller and the Servicer. All
computations of Yield, Swap Costs and per annum fees hereunder and under the Fee
Letters shall be made on the basis of a year of 360 days for the actual number
of days elapsed. For purposes of the Interest Act (Canada), the annual rate to
which any such rate (or any other rate which is determined hereunder on the
basis of a year of 360 days) is equivalent or the annual fee to which any fee
determined in accordance with the foregoing is equivalent, is such rate or fee,
as applicable, multiplied by the actual number of days in the year in question,
divided by 360. If any amount hereunder shall be payable on a day which is not a
Business Day, such amount shall be payable on the next succeeding Business Day.

Section 4.07      Collection Account.

         (a)      The Servicer has established, and during the term of this
                  Agreement shall maintain, the Collection Account. If, at any
                  time, the bank at which the Collection Account is maintained
                  ceases to be an Eligible Bank, the Servicer shall within 30
                  days of acquiring knowledge that such bank is no longer an
                  Eligible Bank establish a new Collection Account with an
                  Eligible Bank reasonably satisfactory to the Agent and shall
                  transfer any cash and any investments held in the old
                  Collection Account to such new Collection Account. Prior to
                  establishing any new Collection Account with an Eligible Bank,
                  the Servicer shall obtain from such Eligible Bank a fully
                  executed Deposit Account Agreement covering such new
                  Collection Account.

         (b)      If at any time the Servicer's long-term corporate or senior
                  implied rating shall not be at least Ba2 by Moody's and at
                  least BB by S&P, then, on the last Business Day of each
                  calendar week, the Servicer shall cause all Collections
                  received during such week to be deposited into the Collection
                  Account until the amount on deposit therein is equal to the
                  greater of (i) the product of the Carrying Cost Reserve
                  Percentage in effect as of such day and the Eligible
                  Receivables Balance as of such day and (ii) the amount of
                  Collections required to be set aside and held in trust for the
                  benefit of the Purchasers pursuant to Section 4.03 or 4.04, as
                  applicable.

Section 4.08      Payment Rescission. No payment of any of the Unpaid
Obligations shall be considered paid or applied hereunder to the extent that, at
any time, all or any portion of such payment or application is rescinded by
application of law or judicial authority, or must otherwise be returned or
refunded for any reason. The Seller shall remain obligated for the amount of any
payment or application so rescinded, returned or refunded, and shall promptly
pay to the Agent (for application to the Person or Persons who suffered such
rescission, return or refund) the full amount thereof, plus interest on such
amount at a per annum rate equal to the Base Rate plus 2.0% from the date of any
such rescission, return or refunding.

<PAGE>   29
                                      -29-

Section 4.09      Setoff.

         (a)      The Seller and the Servicer each hereby irrevocably and
                  unconditionally waives all rights of setoff or deduction that
                  it may have under contract (including this Agreement),
                  applicable law, in equity or otherwise with respect to any
                  funds or monies of any Purchaser held by it or in its
                  possession, and all rights to any counterclaim or other
                  defence to payment of amounts owing to any Purchaser, the
                  Agent or the Custodian in respect of this Agreement. The
                  obligation of the Seller and the Servicer to make the payments
                  and deposits contemplated by this Agreement is absolute and
                  unconditional, and the Seller and the Servicer shall make all
                  such payments and deposits in full, without setoff,
                  counterclaim or deduction of any nature whatsoever except as
                  expressly permitted hereunder.

         (b)      The Purchasers, the Agent and the Custodian may set-off and
                  apply against, or deduct from, any amount payable to the
                  Seller or the Servicer by any Purchaser (or by the Agent, the
                  Custodian or a Servicer on its behalf), any amounts then due
                  and owing by the Seller or the Servicer hereunder or in
                  connection herewith to any Purchaser or to the Agent, the
                  Custodian or any other Indemnified Party (whether or not owing
                  by the party from whom such setoff is to be applied), and may
                  instruct any Servicer to do so on its behalf out of any
                  amounts then or thereafter held by such Servicer that
                  otherwise would have been paid to the Seller or the Servicer
                  on behalf of a Purchaser or the Agent or the Custodian. For
                  greater certainty, the Agent may set off against amounts owing
                  to the Seller, amounts owing by the Servicer, and
                  correspondingly may set off against amounts owing to the
                  Servicer, amounts owing by the Seller.

                                    ARTICLE V
                                 YIELD AND FEES

Section 5.01      Yield Payments. On each Payment Date, the Servicer shall remit
to each Administrator (for the benefit of the Purchasers in its Related Group)
an aggregate amount in U.S. Dollars equal to the accrued and unpaid Yield for
all Ownership Interests held by the members of such Related Group, such payment
to be made out of Collections available for such purpose pursuant to Section
4.05.

Section 5.02      Suspension of the Adjusted Eurodollar Rate. If any Purchaser
notifies the Agent that it has determined in good faith that funding its portion
of the Investment at an Adjusted Eurodollar Rate would violate any applicable
law, rule, regulation, or directive of any governmental or regulatory authority,
whether or not having the force of law, or that (i) deposits of a type and
maturity appropriate to match fund its Ownership Interests at such Adjusted
Eurodollar Rate are not available or (ii) such Adjusted Eurodollar Rate does not
accurately reflect the cost of acquiring or maintaining an Ownership Interest at
such Adjusted Eurodollar Rate, then the Agent shall suspend the availability of
such Adjusted Eurodollar Rate and require the Seller to select the Base Rate for
any Ownership Interest accruing Yield at such Adjusted Eurodollar Rate.

<PAGE>   30
                                      -30-

Section 5.03      Fees. The Seller shall pay all fees set forth in each Fee
Letter on the dates and in the amounts set forth therein, including any
applicable taxes, provided that to the extent the Seller fails to pay any such
amounts, such payment shall be made out of Collections available for such
purpose pursuant to Section 4.05.

Section 5.04      Break Costs. In the event that any Purchaser shall incur any
loss or expense (including any swap termination payments or other amounts
required to be paid in connection with the early termination of any Currency
Protection Agreement, and any loss or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such
Purchaser to make or maintain any funding with respect to its Investment) as a
result of (i) any reduction to the Investment on any day other than the
scheduled last day of a Settlement Period, or (ii) any Purchase not being made
in accordance with a request therefor under Section 3.02 (whether because of the
failure of the conditions precedent with respect to such Purchase to be
satisfied or for any other reason, other than default by the relevant
Purchaser), then the Seller shall, upon written demand, pay to such Purchaser
the amount of such loss or expense as and by way of indemnity. Such written
demand (which shall include calculations in reasonable detail) shall, in the
absence of demonstrable error, be conclusive and binding upon the Seller.

Section 5.05      Settlement of Currency Protection Agreements.

         (a)      On or prior to each Payment Date (and the initial purchase
                  date) on which the Investments are expressed in U.S. Dollars,
                  the Agent shall, on behalf of the Purchasers, enter into a
                  Currency Protection Agreement providing for the forward sale
                  on the Payment Date immediately following such Payment Date of
                  that amount of Canadian Dollars (for any such following
                  Payment Date, the "Required Canadian Dollar Amount") which,
                  when converted to U.S. Dollars at the rate of exchange
                  provided for in such Currency Protection Agreement, is equal
                  to the sum of the aggregate Investments, and all such other
                  Unpaid Obligations which are due in U.S. Dollars and which the
                  Agent determines will be paid on the such following Payment
                  Date out of Collections ("Applicable Unpaid Obligations");
                  provided that if, at the time of entering into any such
                  Currency Protection Agreement, the Agent does not yet know the
                  amount of any such Unpaid Obligations, it may estimate such
                  amount using such approach (including incorporating such
                  cushions) as it considers reasonable, and provided further
                  that if any Purchaser does not then fund or maintain its
                  Investment through the issuance of Commercial Paper Notes, the
                  Agent may determine whether or not to enter into any such
                  Currency Protection Agreement. To the extent that the actual
                  such Unpaid Obligations differ from the amount so estimated,
                  the parties shall make such appropriate adjustments as the
                  Agent shall advise are required. If on any Payment Date
                  Collections are insufficient to provide for the payment in
                  full of any additional Yield resulting from the Agent making
                  any such estimates, as provide of in the definition herein of
                  "Yield", the amount of such insufficiency shall constitute a
                  Seller Obligation and the Seller shall pay same to the Agent
                  for the benefit of the Purchasers promptly on demand.

<PAGE>   31
                                      -31-

         (b)      On each Payment Date on which there is a maturing Currency
                  Protection Agreement entered into as provided under Section
                  5.05(a), the Agent shall determine the sum of (i) the
                  aggregate Canadian Dollars which the Agent or any Purchaser
                  has purchased with the proceeds of the Funding Commercial
                  Paper Notes issued on such date, plus (ii) the Canadian Dollar
                  Equivalent (using the exchange rate provided for in the
                  Currency Protection Agreements closing on such Date) of all
                  Yield, Swap Costs and other Applicable Unpaid Obligations for
                  such Payment Date. The amount, if any, by which such amount is
                  less than the Required Canadian Dollar Amount for such date is
                  referred to herein as the "Currency Deficiency" and the
                  amount, if any, by which such amount is greater than the
                  Required Canadian Dollar Amount is referred to herein as the
                  "Currency Excess". Any Currency Deficiency for a Payment Date
                  shall constitute a Purchaser Obligation due on such date;
                  provided that to the extent that available Collections are
                  insufficient to provide for the full amount thereof, taking
                  into account the application of funds under Section 4.05, such
                  amount shall constitute a Seller Obligation and the Seller
                  shall pay such amount to the Agent on such Payment Date, as
                  and by way of indemnity and as additional recourse hereunder
                  for the Dealer Receivables and for the rateable benefit of the
                  Purchasers. Subject to the foregoing, to the extent that the
                  Swap Costs for any Payment Date are less than zero or there is
                  any Currency Excess for a Payment Date, the amount thereof
                  shall be applied to the Purchasers' Portion of the Collections
                  received on such Payment Date.

                                   ARTICLE VI
                         REPRESENTATIONS AND WARRANTIES

Section 6.01      Representations and Warranties of the Seller. The Seller
hereby represents and warrants to the Agent, the Custodian, the Administrators
and the Purchasers that:

         (a)      Corporate Existence and Power. The Seller is a corporation
                  duly amalgamated, validly existing and in good standing under
                  the laws of Saskatchewan, is duly qualified to do business and
                  is in good standing as a foreign corporation, and has and
                  holds all corporate power and all governmental licenses,
                  authorizations, consents and approvals required to carry on
                  its business in each jurisdiction in which its business is
                  conducted, except where the absence of any such governmental
                  license, authorization, consent or approval would not have a
                  Material Adverse Effect.

         (b)      Power and Authority; Due Authorization Execution and Delivery.
                  The execution and delivery by the Seller of this Agreement and
                  each other Transaction Document to which it is a party, and
                  the performance of its obligations hereunder and thereunder
                  and the Seller's use of the proceeds of purchases made
                  hereunder, are within its corporate powers and authority and
                  have been duly authorized by all necessary corporate action on
                  its part. This Agreement and each other Transaction Document
                  to which the Seller is a party has been duly executed and
                  delivered by the Seller.

<PAGE>   32
                                      -32-

         (c)      No Conflict. The execution and delivery by the Seller of this
                  Agreement and each other Transaction Document to which it is a
                  party, and the performance of its obligations hereunder and
                  thereunder do not contravene or violate (i) its certificate or
                  articles of amalgamation or by-laws, (ii) any law, rule or
                  regulation applicable to it the violation or contravention of
                  which would have a Material Adverse Effect, (iii) any
                  restrictions under any agreement, contract or instrument to
                  which it is a party or by which it or any of its property is
                  bound the violation or contravention of which would have a
                  Material Adverse Effect or (iv) any order, writ, judgment,
                  award, injunction or decree binding on or affecting it or its
                  property, and do not result in the creation or imposition of
                  any Adverse Claim on the assets of the Seller (except as
                  created hereunder) and no transaction contemplated hereby
                  requires compliance with any bulk sales act or similar law.

         (d)      Governmental Authorization. Other than the filing of the
                  financing statements required hereunder, no authorization or
                  approval or other action by, and no notice to or filing with,
                  any governmental authority or regulatory body is required for
                  the due execution and delivery by the Seller of this Agreement
                  and each other Transaction Document to which it is a party and
                  the performance of its obligations hereunder and thereunder
                  other than those which, if not obtained, would not have a
                  Material Adverse Effect.

         (e)      Actions, Suits. There are no actions, suits or proceedings
                  pending, or to the best of the Seller's knowledge, threatened,
                  against or affecting the Seller, or any of its properties, in
                  or before any court, arbitrator or other body, that could
                  reasonably be expected to have a Material Adverse Effect. The
                  Seller is not in default with respect to any order of any
                  court, arbitrator or governmental body.

         (f)      Binding Effect. This Agreement and each other Transaction
                  Document to which the Seller is a party constitute the legal,
                  valid and binding obligations of the Seller enforceable
                  against the Seller in accordance with their respective terms,
                  except as such enforcement may be limited by applicable
                  bankruptcy, insolvency, reorganization or other similar laws
                  relating to or limiting creditors' rights generally and by
                  general principles of equity (regardless of whether
                  enforcement is sought in a proceeding in equity or at law).

         (g)      Accuracy of Information. All information heretofore furnished
                  in writing by the Seller or any of its Affiliates to the Agent
                  or the Purchasers for purposes of or in connection with this
                  Agreement, any of the other Transaction Documents or any
                  transaction contemplated hereby or thereby is, and all such
                  information hereafter furnished in writing by the Seller or
                  any of its Affiliates to the Agent or the Purchasers will be,
                  true and accurate in every material respect on the date such
                  information is stated or certified and does not and will not
                  contain any material misstatement of fact or omit to state a
                  material fact or any fact necessary to make the statements
                  contained therein not materially misleading.

<PAGE>   33

                                      -33-

         (h)      Use of Proceeds. No proceeds of any purchase hereunder will be
                  used for a purpose that violates Regulations T, U or X
                  promulgated by the Board of Governors of the Federal Reserve
                  System from time to time.

         (i)      Good Title. Immediately prior to the date hereof, the Seller
                  shall be the legal and beneficial owner of the Dealer
                  Receivables and Related Security with respect thereto, free
                  and clear of any Adverse Claim, except as created by the
                  Transaction Documents. There have been duly filed all
                  financing statements or other similar instruments or documents
                  necessary under the UCC (or any comparable law) of all
                  appropriate jurisdictions to perfect the Seller's ownership
                  interest in each Dealer Receivable, its Collections and the
                  Related Security.

         (j)      Perfection. This Agreement, together with the filing of the
                  financing statements contemplated hereby, is effective to, and
                  shall, upon each Purchase hereunder, Transfer to the Agent for
                  the benefit of the relevant Purchaser or Purchasers (and the
                  Agent for the benefit of such Purchaser or Purchasers shall
                  acquire from the Seller) a valid and perfected first priority
                  undivided percentage ownership interest in each Dealer
                  Receivable subject to such Purchase and in the Related
                  Security and Collections with respect thereto, free and clear
                  of any Adverse Claim, except as created by the Transaction
                  Documents. There have been duly filed all financing statements
                  or other similar instruments or documents necessary under the
                  UCC (or any comparable law) of all appropriate jurisdictions
                  to perfect the Agent's (on behalf of the Purchasers) ownership
                  interest in the Dealer Receivables, the Related Security and
                  the Collections.

         (k)      Places of Business. The principal place of business, domicile
                  and chief executive office of the Seller and the offices where
                  it keeps all of its Records are located at the address(es)
                  listed on Schedule III or such other locations of which the
                  Agent has been notified in accordance with Section 8.02(a) in
                  jurisdictions where all action required by Section 14.04(a)
                  has been taken and completed. The Seller is registered for
                  GST, HST and QST purposes under the numbers set forth on
                  Schedule III. The Seller is a resident of Canada for purposes
                  of the Income Tax Act (Canada).

         (l)      Collections. The conditions and requirements set forth in
                  Section 8.03(g) and Section 9.02 save where, in the context of
                  Section 9.02 only, the failure to so duly perform would not
                  have a Material Adverse Effect, have at all times been
                  satisfied and duly performed. The names and addresses of all
                  Deposit Account Banks, together with the account numbers of
                  the Deposit Accounts of the Seller at each Deposit Account
                  Bank and the post office box number of each Lock-Box, are
                  listed on Schedule I, as such Schedule may be updated from
                  time to time by the Servicer.

         (m)      Ownership of the Seller. AGCO U.S. owns, directly or
                  indirectly, 100% of the issued and outstanding shares and
                  capital stock of the Seller, free and clear of any Adverse
                  Claim, other than under or in connection with the Credit
                  Agreement.

<PAGE>   34

                                      -34-

                  Such shares and capital stock are validly issued, fully paid
                  and nonassessable, and there are no options, warrants or other
                  rights to acquire securities of the Seller.

         (n)      Not a Holding Company or an Investment Company. The Seller is
                  not a "holding company" or a "subsidiary holding company" of a
                  "holding company" within the meaning of the Public Utility
                  Holding Company Act of 1935, as amended, or any successor
                  statute. The Seller is not an "investment company" within the
                  meaning of the Investment Company Act of 1940, as amended, or
                  any successor statute.

         (o)      Compliance with Law. The Seller has complied in all respects
                  with all applicable laws, rules, regulations, orders, writs,
                  judgments, injunctions, decrees or awards to which it may be
                  subject, except where the failure to comply would not have a
                  Material Adverse Effect. Each Dealer Receivable, together with
                  the Contracts related thereto, does not contravene any laws,
                  rules or regulations applicable thereto (including, without
                  limitation, laws, rules and regulations relating to truth in
                  lending, cost of borrowing disclosure, fair credit billing,
                  fair credit reporting, equal credit opportunity, fair debt
                  collection practices and privacy), and no part of such
                  Contracts are in violation of any such law, rule or
                  regulation, except where such contravention or violation, as
                  the case may be, would not have a Material Adverse Effect.

         (p)      Names. In the past five years preceding the date hereof, the
                  Seller has not used any corporate names or any names in any
                  other language other than the name in which it has executed
                  this Agreement and the names listed in Schedule V hereto.

         (q)      Compliance with Credit and Collection Policy. The Seller has
                  complied in all material respects with the Credit and
                  Collection Policy with regard to each Dealer Receivable and
                  the related Contract, and has not made any change to such
                  Credit and Collection Policy, other than as permitted under
                  Section 8.02(c), and in compliance with the notification
                  requirements in Section 8.01(a)(i).

         (r)      Material Adverse Effect. The consolidated balance sheet of
                  AGCO U.S. and its consolidated subsidiaries (including the
                  Seller) as of December 31, 2000, and the related statements of
                  income and retained earnings of AGCO U.S. and its consolidated
                  subsidiaries for the fiscal year then ended, certified by
                  Arthur Andersen LLP, independent public accountants, fairly
                  present in all material respects the consolidated financial
                  condition of AGCO U.S. and its consolidated subsidiaries as at
                  such date and the consolidated results of the operations of
                  AGCO U.S. and its consolidated subsidiaries for the period
                  ended on such date, all in accordance with generally accepted
                  accounting principles, consistently applied. Since December
                  31, 2000, no event has occurred that would have a material
                  adverse effect on the financial condition or operations of the
                  Seller or AGCO U.S. and its consolidated subsidiaries or the
                  ability of the Seller or AGCO U.S. to perform its obligations
                  under this Agreement.

<PAGE>   35

                                      -35-

         (s)      Eligible Receivables. Each Dealer Receivable at any time
                  included in the Eligible Receivables Balance as an Eligible
                  Receivable was an Eligible Receivable at such time.

         (t)      Enforceability of Contracts. Each Contract with respect to
                  each Dealer Receivable is effective to create, and has
                  created, a legal, valid and binding obligation of the related
                  Obligor to pay the Outstanding Balance of the Dealer
                  Receivable created thereunder and any accrued interest
                  thereon, enforceable against the Obligor in accordance with
                  its terms, except as such enforcement may be limited by
                  applicable bankruptcy, insolvency, reorganization or other
                  similar laws relating to or limiting creditors' rights
                  generally and by general principles of equity (regardless of
                  whether enforcement is sought in a proceeding in equity or at
                  law).

         (u)      Solvency. The Seller is not an insolvent person, in insolvent
                  circumstances or on the eve of insolvency, as applicable,
                  within the meaning of any of the Insolvency Statutes (as
                  defined below). The Seller will not become an insolvent person
                  or be put in insolvent circumstances within the meaning of any
                  of the Insolvency Statutes by entering into, or immediately
                  after completion of the transactions contemplated by, this
                  Agreement. The Seller has entered into this Agreement for the
                  purpose of Transferring the Ownership Interests to the Agent
                  on behalf of the Purchasers and receiving from the Purchasers
                  the consideration therefor specified in this Agreement, and
                  not for the purpose of defeating, hindering, delaying,
                  defrauding or oppressing the rights and claims of creditors or
                  others against the Seller or for any other purpose relating in
                  any way to the claims of creditors or others against the
                  Seller. For the purposes hereof, "Insolvency Statutes" means
                  the Bankruptcy and Insolvency Act (Canada), the Companies'
                  Creditors Arrangement Act (Canada), the Winding-Up and
                  Restructuring Act (Canada), the Assignment and Preferences Act
                  (Ontario), the Fraudulent Conveyances Act (Ontario), The
                  Fraudulent Preferences Act (Saskatchewan) and The Statute of
                  Elizabeth, 1571.

Section 6.02      Representations and Warranties of the Servicer. The Servicer
hereby represents and warrants to the Agent, the Custodian and the Purchasers
that:

         (a)      Corporate Existence and Power. The Servicer is a corporation
                  duly organized, validly existing and in good standing under
                  the laws of its state of incorporation, and is duly qualified
                  to do business and is in good standing as a foreign
                  corporation, and has and holds all corporate power and all
                  governmental licenses, authorizations, consents and approvals
                  required to carry on its business in each jurisdiction in
                  which its business is conducted, except where the absence of
                  any such governmental license, authorization, consent or
                  approval would not have a Material Adverse Effect.

         (b)      Power and Authority; Due Authorization Execution and Delivery.
                  (i) The execution and delivery by the Servicer of this
                  Agreement and each other

<PAGE>   36

                                      -36-

                  Transaction Document to which it is a party, and the
                  performance of its obligations hereunder and thereunder, are
                  within its corporate powers and authority and have been duly
                  authorized by all necessary corporate action on its part, and
                  (ii) this Agreement and each other Transaction Document to
                  which the Servicer is a party has been duly executed and
                  delivered by the Servicer, except in the case of both clauses
                  (i) and (ii), where any such deviation from the
                  representations and warranties set out in both clauses (i) and
                  (ii) would not have a Material Adverse Effect.

         (c)      No Conflict. The execution and delivery by the Servicer of
                  this Agreement and each other Transaction Document to which it
                  is a party, and the performance of its obligations hereunder
                  and thereunder do not contravene or violate (i) its
                  certificate or articles of incorporation or by-laws, (ii) any
                  law, rule or regulation applicable to it, (iii) any
                  restrictions under any material agreement, contract or
                  instrument to which it is a party or by which it or any of its
                  property is bound, or (iv) any order, writ, judgment, award,
                  injunction or decree binding on or affecting it or its
                  property, except, in the case of each of clauses (i), (ii) and
                  (iv) where such contravention or violation would not have a
                  Material Adverse Effect.

         (d)      Governmental Authorization. No authorization or approval or
                  other action by, and no notice to or filing with, any
                  governmental authority or regulatory body is required for the
                  due execution and delivery by the Servicer of this Agreement
                  and each other Transaction Document to which it is a party and
                  the performance of its obligations hereunder and thereunder
                  other than those which, if not obtained, would not have a
                  Material Adverse Effect.

         (e)      Actions, Suits. There are no actions, suits or proceedings
                  pending, or to the best of the Servicer's knowledge,
                  threatened, against or affecting the Servicer, or any of its
                  properties, in or before any court, arbitrator or other body,
                  that could reasonably be expected to have a Material Adverse
                  Effect. The Servicer is not in default in any material respect
                  with respect to any order of any court, arbitrator or
                  governmental body.

         (f)      Binding Effect. This Agreement and each other Transaction
                  Document to which the Servicer is a party constitute the
                  legal, valid and binding obligations of the Servicer
                  enforceable against the Servicer in accordance with their
                  respective terms, except as such enforcement may be limited by
                  applicable bankruptcy, insolvency, reorganization or other
                  similar laws relating to or limiting creditors' rights
                  generally and by general principles of equity (regardless of
                  whether enforcement is sought in a proceeding in equity or at
                  law).

         (g)      Accuracy of Information. All information heretofore furnished
                  in writing by the Servicer or any of its Affiliates to the
                  Agent or the Purchasers for purposes of or in connection with
                  this Agreement, any of the other Transaction Documents or any
                  transaction contemplated hereby or thereby is, and all such
                  information hereafter furnished, in writing, by the Servicer
                  or any of its Affiliates to the Agent

<PAGE>   37

                                      -37-

                  or the Purchasers will be, true and accurate in every material
                  respect on the date such information is stated or certified
                  and does not and will not contain any material misstatement of
                  fact or omit to state a material fact or any fact necessary to
                  make the statements contained therein not misleading in any
                  material respect.

         (h)      Collections. The conditions and requirements set forth in
                  Section 8.03(g) and Section 9.02 save where, in the context of
                  Section 9.02 only, the failure to so duly perform would not
                  have a Material Adverse Effect, have at all times been
                  satisfied and duly performed. The names and addresses of all
                  Deposit Account Banks, together with the account numbers of
                  the Deposit Accounts of the Seller at each Deposit Account
                  Bank and the post office box number of each Lock-Box, are
                  listed on Schedule I, as such Schedule may from time to time
                  hereafter be updated by the Servicer.

         (i)      Material Adverse Effect. The consolidated balance sheets of
                  the Servicer and its consolidated subsidiaries as at
                  December 31, 2000, and the related statements of income and
                  retained earnings of the Servicer and its consolidated
                  subsidiaries for the fiscal year then ended, certified by
                  Arthur Andersen LLP, independent public accountants, copies of
                  which have been furnished to each Administrator, fairly
                  present in all material respects the consolidated financial
                  condition of the Servicer and its consolidated subsidiaries as
                  at such date and the consolidated results of the operations of
                  the Servicer and its consolidated subsidiaries for the period
                  ended on such date, all in accordance with generally accepted
                  accounting principals, consistently applied. Since December
                  31, 2000, no event has occurred that would have a material
                  adverse effect on the financial condition or operations of the
                  Servicer and its Subsidiaries or the ability of the Servicer
                  or the Seller to perform its obligations under this Agreement.

         (j)      Not a Holding Company or an Investment Company. The Servicer
                  is not a "holding company" or a "subsidiary holding company"
                  of a "holding company" within the meaning of the Public
                  Utility Holding Company Act of 1935, as amended, or any
                  successor statute. The Servicer is not an "investment company"
                  within the meaning of the Investment Company Act of 1940, as
                  amended, or any successor statute.

         (k)      Compliance with Law. The Servicer has complied in all respects
                  with all applicable laws, rules, regulations, orders, writs,
                  judgments, injunctions, decrees or awards to which it may be
                  subject, except where failure to comply would not have a
                  Material Adverse Effect.

         (l)      Compliance with Credit and Collection Policy. The Servicer has
                  complied in all material respects with the Credit and
                  Collection Policy with regard to each Dealer Receivable and
                  the related Contract, and has not made any change to such
                  Credit and Collection Policy, other than as permitted under
                  Section 8.04(b), and in compliance with the notification
                  requirements in Section 8.03(a)(vii).

<PAGE>   38

                                      -38-

Section 6.03      Representations and Warranties of the Purchasers. Each of the
Purchasers generally (each with respect to itself only) represents and warrants
to, and agrees with, the Seller that:

         (a)      Such Purchaser is duly organized, validly existing and in good
                  standing under the laws of the jurisdiction of its
                  organization, has the power and authority and is duly
                  authorized to enter into and perform this Agreement and has
                  duly executed and delivered this Agreement;

         (b)      This Agreement constitutes the valid and binding obligation of
                  such Purchaser, enforceable in accordance with its terms,
                  subject to bankruptcy, insolvency, reorganization,
                  receivership and other laws relating to, or affecting
                  generally the enforcement of creditors' rights and remedies as
                  the same may be applied in the event of the bankruptcy,
                  insolvency, reorganization, receivership or liquidation or
                  similar event of such Purchaser or a moratorium applicable to
                  such Purchaser and to general principles of equity (regardless
                  of whether such enforceability is in a proceeding of law or in
                  equity); and

         (c)      No registration with, consent or approval of or other action
                  by any federal, state of governmental authority or regulatory
                  body having jurisdiction over such Purchaser is required in
                  connection with the execution, delivery or performance by such
                  Purchaser of this Agreement.

                                  ARTICLE VII
                             CONDITIONS OF PURCHASES

Section 7.01      Conditions Precedent to Initial Purchase. The initial purchase
of an Ownership Interest under this Agreement is subject to the conditions
precedent that (a) the Agent shall have received on or before the date of such
purchase those documents listed on Schedule IV and (b) the Agent shall have
received all fees and expenses required to be paid on such date pursuant to the
terms of this Agreement and the Fee Letter to which Nieuw Amsterdam is a party.

Section 7.02      Conditions Precedent to All Purchases and Reinvestment
Purchases. Each purchase of an Ownership Interest and each Reinvestment Purchase
shall be subject to the further conditions precedent that (a) in the case of
each such purchase or Reinvestment Purchase the Servicer shall have delivered to
the Agent on or prior to the date of such purchase, in form and substance
satisfactory to the Agent, all Monthly Reports as and when due under Section
9.05; and (b) on the date of each such purchase or Reinvestment Purchase, the
following statements shall be true (and acceptance of the proceeds of such
purchase or Reinvestment Purchase shall be deemed a representation and warranty
by the Seller that such statements are then true):

         (i)      the representations and warranties set forth in Sections 6.01
                  and 6.02 are true and correct in all material respects on and
                  as of the date of such purchase or Reinvestment Purchase as
                  though made on and as of such date (except to the extent any
                  such representation and warranty specifically relates to a
                  prior date, in which case such representation and warranty

<PAGE>   39

                                      -39-

                  shall be true and correct in all material respects on and as
                  of such prior date);

         (ii)     no event has occurred and is continuing, or would result from
                  such purchase or Reinvestment Purchase, that will constitute
                  an Early Amortization Event, and no event has occurred and is
                  continuing, or would result from such purchase or Reinvestment
                  Purchase, that would constitute a Potential Early Amortization
                  Event;

         (iii)    the Liquidity Termination Date shall not have occurred;

         (iv)     immediately after giving effect to such Purchase or
                  Reinvestment Purchase, the Net Eligible Receivables Balance
                  shall be at least equal to the sum of (i) the aggregate
                  Investment of all Ownership Interests, plus (ii) the Credit
                  Enhancement; and

         (v)      in connection with such purchase or Reinvestment Purchase, the
                  Agent shall have entered into a Currency Protection Agreement
                  in accordance with the provisions of Section 5.05;

and (c) the Agent shall have received such other approvals, opinions or
documents (including conveyance documents) as it may reasonably request to
demonstrate compliance with the requirements of this Section 7.02 and
effectiveness of the related transactions. It is expressly understood that each
Reinvestment Purchase shall, unless otherwise directed by the Agent or any
Purchaser, occur automatically on each day that the Servicer shall receive any
Collections without the requirement that any further action be taken on the part
of any Person and notwithstanding the failure of the Seller to satisfy any of
the foregoing conditions precedent in respect of such Reinvestment Purchase. The
failure of the Seller to satisfy any of the foregoing conditions precedent in
respect of any Reinvestment Purchase shall give rise to a right of the Agent and
the Purchasers, which right may be exercised at any time on demand of the Agent,
to rescind the related purchase and direct the Seller to pay to the Agent for
the benefit of the Purchasers an amount equal to the Collections that shall have
been applied to effect such Reinvestment Purchase.

                                  ARTICLE VIII
                                    COVENANTS

Section 8.01      Affirmative Covenants of the Seller and AGCO U.S. Until the
date on which all Unpaid Obligations have been indefeasibly paid in full or
reduced to zero (including the indefeasible reduction to zero of all
Investments) and this Agreement terminates in accordance with its terms:

         (a)      Notices. The Seller will, unless otherwise stated, promptly
                  upon learning of the occurrence thereof, provide to each
                  Administrator notice of the following events, which notice, in
                  the case of clause (iii) will include a description of the
                  relevant events and the steps, if any, being taken with
                  respect thereto:

<PAGE>   40

                                      -40-

                  (i)      Change in Credit and Collection Policy. At least ten
                           (10) days prior to the effectiveness of any material
                           change in or amendment to the Credit and Collection
                           Policy, a notice describing in reasonable detail such
                           change or amendment.

                  (ii)     Other Information. Promptly, from time to time, such
                           other information, documents, records or reports
                           relating to the Dealer Receivables or the condition
                           or operations, financial or otherwise, of the Seller
                           as the Agent or any Administrator may from time to
                           time reasonably request.

                  (iii)    Early Amortization Events or Potential Early
                           Amortization Events. The occurrence of each Early
                           Amortization Event and each Potential Early
                           Amortization Event, by a statement of an Authorized
                           Officer of the Seller.

                  (iv)     Material Adverse Effect. The occurrence of any event
                           or condition that, has, or could reasonably be
                           expected to have, a Material Adverse Effect.

                  (v)      Downgrade of the Seller or the Servicer. Any
                           downgrade in the rating of any Indebtedness of the
                           Seller or AGCO U.S. by S&P or by Moody's or by any
                           recognized Canadian rating agency, including DBRS,
                           setting forth the Indebtedness affected and the
                           nature of such change.

                  (vi)     Judgment and Proceedings. The entry of any judgment
                           or decree against the Seller or any of its Affiliates
                           if the aggregate amount of all judgments and decrees
                           then outstanding against the Seller or any of its
                           Affiliates exceeds U.S. $10,000,000 or the Canadian
                           Dollar Equivalent thereof or the institution of any
                           litigation, arbitration proceeding or governmental
                           proceeding against the Seller which has or could be
                           expected to have a Material Adverse Effect on the
                           Seller.

                  (vii)    Defaults Under Other Agreements. The occurrence of
                           any payment default of U.S. $10,000,000 or the
                           Canadian Dollar Equivalent thereof or more or any
                           other event of default in either case under the terms
                           of any other financing arrangement pursuant to which
                           the Seller is a debtor or an obligor.

         (b)      Compliance with Laws and Preservation of Corporate Existence.
                  The Seller will comply in all material respects with all
                  applicable laws, rules, regulations, orders, writs, judgments,
                  injunctions, decrees or awards to which it may be subject,
                  except where the failure to comply would not be reasonably
                  likely to have a Material Adverse Effect. The Seller will
                  preserve and maintain its corporate existence, rights,
                  franchises and privileges in the jurisdiction of its
                  incorporation, and qualify and remain qualified in good
                  standing as a foreign corporation in each jurisdiction where
                  its business is conducted, except where its failure to be so
                  qualified and in good standing could not reasonably be
                  expected to have a Material Adverse Effect.

<PAGE>   41

                                      -41-

         (c)      Audits. The Seller will furnish to each Administrator from
                  time to time such information with respect to it and the
                  Dealer Receivables as such Administrator may reasonably
                  request. The Seller will, from time to time during regular
                  business hours as requested by any Administrator upon
                  reasonable notice and at the sole cost of the Seller, permit
                  such Administrator, or its agents or representatives, (i) to
                  examine and make copies of and abstracts from all Records in
                  the possession or under the control of the Seller relating to
                  the Dealer Receivables and the Related Security, including,
                  without limitation, the related Contracts, and (ii) to visit
                  the offices and properties of the Seller for the purpose of
                  examining such materials described in clause (i) above, and to
                  discuss matters relating to the Seller's financial condition
                  or the Dealer Receivables and the Related Security or the
                  Seller's performance under any of the Transaction Documents or
                  performance under the Contracts and, in each case, with any of
                  the officers or employees of the Seller having knowledge of
                  such matters, provided that (x) the Administrators of all
                  Related Groups shall coordinate with each other so as to
                  jointly arrange and conduct the visits contemplated in clause
                  (ii) and (y) in no single calendar year will the total number
                  of such visits exceed two.

         (d)      Keeping and Marking of Records and Books.

                  (i)      The Seller will maintain and implement administrative
                           and operating procedures (including, without
                           limitation, an ability to recreate records evidencing
                           Dealer Receivables, Related Security and Collections
                           in the event of the destruction of the originals
                           thereof), and keep and maintain all documents, books,
                           records and other information reasonably necessary
                           for the collection of all Dealer Receivables and the
                           enforcement of all Related Security (including,
                           without limitation, records adequate to permit the
                           prompt identification of each new Dealer Receivable
                           and all Collections of and adjustments to each
                           existing Dealer Receivable). The Seller will give the
                           Agent (or its assigns) notice of any material change
                           in the administrative and operating procedures
                           referred to in the previous sentence.

                  (ii)     The Seller will (x) on or prior to the date hereof,
                           mark its master data processing records and other
                           books and records relating to the Ownership Interests
                           with a legend describing the Ownership Interests and
                           (y) upon the request of any Administrator following
                           the occurrence of an Early Amortization Event (A)
                           mark each such Contract constituting chattel paper
                           under the UCC with a legend describing the Ownership
                           Interests and (B) deliver to the Agent all Contracts
                           (including, without limitation, all multiple
                           originals of any such Contract) relating to the
                           Dealer Receivables.

         (e)      Compliance with Contracts and Credit and Collection Policy.
                  The Seller will timely and fully (i) perform and comply with
                  all provisions, covenants and other promises required to be
                  observed by it under the Contracts related to the Dealer

<PAGE>   42

                                      -42-

                  Receivables, and (ii) comply in all respects with the Credit
                  and Collection Policy in regard to each Dealer Receivable and
                  the related Contract, in the case of both (i) and (ii) except
                  to any extent which would not in any way materially impair the
                  ability of the Servicer to ultimately collect all amounts
                  payable in respect of the Dealer Receivables. The Seller will
                  pay when due any taxes payable in connection with the Dealer
                  Receivables unless contested in good faith.

         (f)      Financial Reporting. AGCO U.S. will maintain, for itself and
                  each of its Subsidiaries, a system of accounting established
                  and administered in accordance with generally accepted
                  accounting principles, and AGCO U.S. and/or the Seller, as
                  applicable, will furnish to the Agent (or its assigns):

                  (i)      Annual Reporting. Within 100 days after the close of
                           each of its respective fiscal years, audited,
                           unqualified consolidated financial statements (which
                           shall include balance sheets, statements of income
                           and retained earnings and a statement of cash flows)
                           for AGCO U.S. and its consolidated subsidiaries for
                           such fiscal year certified in a manner reasonably
                           acceptable to the Agent (or its assigns) by Arthur
                           Andersen or other independent public accountants
                           reasonably acceptable to the Agent (or its assigns).

                  (ii)     Quarterly Reporting. Within 45 days after the close
                           of the first three (3) quarterly periods of each of
                           its respective fiscal years, consolidated balance
                           sheets of AGCO U.S. as at the close of each such
                           period and statements of income and retained earnings
                           and a statement of cash flows for AGCO U.S. and its
                           consolidated subsidiaries for the period from the
                           beginning of such fiscal year to the end of such
                           quarter, all duly certified by an Authorized Officer.

                  (iii)    Compliance Certificate. Together with the financial
                           statements required hereunder, a compliance
                           certificate in substantially the form of Exhibit E
                           signed by an Authorized Officer of the Seller and
                           dated the date of such annual financial statement or
                           such quarterly financial statement, as the case may
                           be.

                  (iv)     Shareholders Statements and Reports. Promptly upon
                           the furnishing thereof to the shareholders of AGCO
                           U.S. or any of its Affiliates, copies of all
                           financial statements, reports and proxy statements so
                           furnished.

                  (v)      SEC Filings. Promptly upon the filing thereof, copies
                           of all registration statements and annual, quarterly,
                           monthly or other regular reports which AGCO U.S. or
                           any of its Affiliates filed with the Securities and
                           Exchange Commission or any other securities or
                           similar commission in any jurisdiction.

<PAGE>   43

                                      -43-

                  (vi)     Change in Credit and Collection Policy. At least ten
                           (10) days prior to the effectiveness of any material
                           change in or amendment to the Credit and Collection
                           Policy, a notice indicating such change or amendment.

                  (vii)    Other Information. Promptly, from time to time, such
                           other information, documents, records or reports
                           relating in any way to the Dealer Receivables or the
                           condition or operations, financial or otherwise, of
                           the Seller as the Custodian or the Agent (or their
                           respective assigns) may from time to time reasonably
                           request in order to protect the interests of the
                           Agent (and its assigns) under or as contemplated by
                           this Agreement.

         (g)      Ownership. The Seller shall take all necessary action to
                  establish and maintain, in favour of the Agent, for the
                  benefit of the Purchasers, a valid and perfected first
                  priority undivided percentage ownership interest in all Dealer
                  Receivables, Related Security and Collections to the full
                  extent contemplated herein, free and clear of any Adverse
                  Claims other than Adverse Claims in favour of the Agent for
                  the benefit of the Purchasers (including, without limitation,
                  the filing of all financing statements or other similar
                  instruments or documents necessary under the UCC (or any
                  comparable law) of all appropriate jurisdictions to perfect
                  the Agent's (for the benefit of the Purchasers) interest in
                  such Dealer Receivables, Related Security and Collections and
                  such other action as may be reasonably required to perfect,
                  protect or more fully evidence the interest of the Agent for
                  the benefit of the Purchasers as the Agent may reasonably
                  request). The Seller shall also take all such similar action
                  as required to perfect the interests of the Custodian
                  hereunder.

         (h)      Collections. The Seller shall cause (1) all proceeds from all
                  Lock-Boxes to be directly deposited by a Deposit Account Bank
                  into a Deposit Account and (2) each Lock-Box and Deposit
                  Account to be subject at all times to a Deposit Account
                  Agreement that is in full force and effect. In the event any
                  payments relating to Dealer Receivables are remitted directly
                  to the Seller or any Affiliate of the Seller, the Seller shall
                  remit (or shall cause all such payments to be remitted)
                  directly to a Deposit Account Bank and deposited into a
                  Deposit Account within two (2) Business Days following receipt
                  thereof and, at all times prior to such remittance, the Seller
                  shall itself hold or, if applicable, shall cause such payments
                  to be held in trust for the exclusive benefit of the Agent and
                  the Purchasers to the extent of their Ownership Interests
                  therein. The Seller shall maintain exclusive ownership,
                  dominion and control (subject to the terms of this Agreement)
                  of each Lock-Box and Deposit Account and shall not grant the
                  right to take dominion and control of any Lock-Box or Deposit
                  Account at a future time or upon the occurrence of a future
                  event to any Person, except to the Agent as contemplated by
                  this Agreement.

         (i)      Taxes. The Seller shall file all tax returns and reports
                  required by law to be filed by it and shall promptly pay all
                  taxes and governmental charges at any time owing (including,
                  without limitation, sales taxes and goods and services taxes),
                  except

<PAGE>   44

                                      -44-

                  any such taxes which are not yet delinquent or are being
                  diligently contested in good faith by appropriate proceedings
                  and for which adequate reserves in accordance with generally
                  accepted accounting principles shall have been set aside on
                  its books.

Section 8.02      Negative Covenants of the Seller. Until the date on which the
Unpaid Obligations have been indefeasibly paid in full or reduced to zero
(including the indefeasible reduction to zero of all Investments) and this
Agreement terminates in accordance with its terms, the Seller hereby covenants
that:

         (a)      Name Change, Offices and Records. The Seller will not change
                  its name, identity or corporate structure (within the meaning
                  of Section 9-402(7) of any applicable enactment of the UCC in
                  the United States) or relocate its principal place of
                  business, domicile, chief executive office or any office where
                  Records are kept unless it shall have: (i) given each
                  Administrator at least thirty (30) days' prior written notice
                  thereof and (ii) delivered to the Agent all financing
                  statements, instruments and other documents reasonably
                  requested by the Agent in connection with such change or
                  relocation.

         (b)      Change in Payment Instructions to Obligors. The Seller will
                  not add or terminate any bank as a Deposit Account Bank, or
                  make any change in the instructions to Obligors regarding
                  payments to be made to any Lock-Box or Deposit Account in
                  respect of Dealer Receivables, unless the Agent shall have
                  received, at least ten (10) days before the proposed effective
                  date therefor, (i) written notice of such addition,
                  termination or change and (ii) with respect to the addition of
                  a Deposit Account Bank or a Deposit Account or Lock-Box, an
                  executed Deposit Account Agreement with respect to the new
                  Deposit Account or Lock-Box; provided, however, that the
                  Seller may make changes in instructions to Obligors regarding
                  payments on Dealer Receivables if such new instructions
                  require such Obligor to make payments to another existing
                  Deposit Account or Lock-Box.

         (c)      Modifications to Contracts and Credit and Collection Policy.
                  The Seller will not make, or consent to, any material change
                  to the Credit and Collection Policy that could reasonably be
                  expected to adversely affect the timely collectibility of the
                  Dealer Receivables other than those which (i) have been
                  approved in writing by each Administrator (such approval not
                  to be unreasonably withheld) or (ii) are required by
                  applicable law. Except as provided in Section 9.02(d), the
                  Seller will not, and will not consent to, any extension,
                  amendment or other modification to the terms of any Dealer
                  Receivable or any Contract related thereto other than in
                  accordance with the Credit and Collection Policy.

         (d)      Sales, Liens. The Seller shall not Transfer (by operation of
                  law or otherwise) or otherwise dispose of, or grant any option
                  with respect to, or create or suffer to exist any Adverse
                  Claim upon (including, without limitation, the filing of any
                  financing statement) or with respect to, any Dealer
                  Receivable, Related Security or Collections or other Pool
                  Asset, or upon or with respect to any Contract under

<PAGE>   45

                                      -45-

                  which any Dealer Receivable arises, or any Lock-Box or Deposit
                  Account, or assign any right to receive income with respect
                  thereto (other than, in each case, the creation of the
                  interests therein in favour of the Custodian, the Agent and
                  the Purchasers provided for herein), and the Seller shall
                  defend the right, title and interest of the Custodian, the
                  Agent and the Purchasers in, to and under any of the foregoing
                  property, against all claims of third parties claiming through
                  or under the Seller. The Seller shall not create or suffer to
                  exist any Adverse Claim on any of its inventory, unless an
                  intercreditor agreement in form satisfactory to the Agent is
                  in force between the Agent on behalf of the Purchasers and any
                  other Person holding any such Adverse Claim.

         (e)      Merger. The Seller shall not amalgamate, merge or consolidate
                  with or into, or convey, Transfer, lease or otherwise dispose
                  of (whether in one transaction or in a series of transactions,
                  and except as otherwise contemplated herein) all or any
                  material part of its assets (whether now owned or hereafter
                  acquired) to, or acquire all or any material part of the
                  assets of, any Person.

         (f)      Accounting. The Seller will not, and will ensure that none of
                  its Affiliates (including AGCO U.S.) will, account for or
                  treat (whether in financial statements, for tax purposes or
                  otherwise) the transactions contemplated hereby in any manner
                  other than the sale of Receivables by the Seller to the
                  Purchasers.

Section 8.03      Affirmative Covenants of the Servicer. Until the date on
which the Unpaid Obligations have been indefeasibly paid in full or reduced to
zero (including the indefeasible reduction to zero of all Investments) and this
Agreement terminates in accordance with its terms, the Servicer hereby covenants
as set forth below:

         (a)      Financial Reporting. The Servicer will maintain, for itself
                  and each of its Subsidiaries (including, without limitation,
                  the Seller), a system of accounting established and
                  administered in accordance with generally accepted accounting
                  principles, and furnish to each Administrator:

                  (i)      Annual Reporting. Within 100 days after the close of
                           each of its fiscal years, audited, consolidated
                           financial statements (which shall include balance
                           sheets, statements of income and retained earnings
                           and a statement of cash flows) for the Servicer and
                           its consolidated subsidiaries for such fiscal year
                           certified without qualification by Arthur Andersen or
                           other independent public accountants acceptable to
                           each Administrator.

                  (ii)     Quarterly Reporting. Within 45 days after the close
                           of the first three (3) quarterly periods of each of
                           its fiscal years, consolidated balance sheets of the
                           Servicer as at the close of each such period and
                           statements of income and retained earnings and a
                           statement of cash flows for the Servicer and its
                           consolidated subsidiaries for the period from the
                           beginning of such fiscal year to the end of such
                           quarter, all certified by an Authorized Officer of
                           the Servicer.

<PAGE>   46

                                      -46-

                  (iii)    Compliance Certificate. Together with the financial
                           statements required hereunder, a compliance
                           certificate in substantially the form of Exhibit E
                           signed by the Servicer's Authorized Officer and dated
                           the date of such annual financial statement or such
                           quarterly financial statement, as the case may be.

                  (iv)     Shareholders Statements and Reports. Promptly upon
                           the furnishing thereof to the shareholders of the
                           Servicer copies of all financial statements, reports
                           and proxy statements so furnished.

                  (v)      S.E.C. Filings. Promptly upon the filing thereof,
                           copies of all registration statements and annual,
                           quarterly, monthly or other regular reports which the
                           Servicer or any of its Subsidiaries files with the
                           Securities and Exchange Commission.

                  (vi)     Change in Credit and Collection Policy. At least ten
                           (10) days prior to the effectiveness of any material
                           change in or amendment to the Credit and Collection
                           Policy, a notice indicating such change or amendment.

                  (vii)    Other Information. Promptly, from time to time, such
                           other information, documents, records or reports
                           relating to the Dealer Receivables or the condition
                           or operations, financial or otherwise, of the
                           Servicer as any Administrator may from time to time
                           reasonably request.

         (b)      Notices. The Servicer will notify each Administrator in
                  writing of any of the following promptly upon learning of the
                  occurrence thereof, describing the same and, if applicable,
                  the steps being taken with respect thereto:

                  (i)      Early Amortization Events or Potential Early
                           Amortization Events. The occurrence of each Early
                           Amortization Event and each Potential Early
                           Amortization Event, by a statement of an Authorized
                           Officer of the Servicer.

                  (ii)     Servicer Default. The occurrence of any Servicer
                           Default.

                  (iii)    Material Adverse Effect. The occurrence of any event
                           or condition that, has, or could reasonably be
                           expected to have, a Material Adverse Effect.

         (c)      Compliance with Laws and Preservation of Corporate Existence.
                  The Servicer will comply in all material respects with all
                  applicable laws, rules, regulations, orders, writs, judgments,
                  injunctions, decrees or awards to which it may be subject,
                  other than where failure would not result in a Material
                  Adverse Effect. The Servicer will preserve and maintain its
                  corporate existence, rights, franchises and privileges in the
                  jurisdiction of its incorporation, and qualify and remain
                  qualified in good standing as a foreign corporation in each
                  jurisdiction where its

<PAGE>   47

                                      -47-

                  business is conducted other than where failure to so qualify
                  would not have a Material Adverse Effect.

         (d)      Audits. The Servicer will, from time to time during regular
                  business hours as requested by any Administrator upon
                  reasonable notice and at the sole cost of the Servicer, permit
                  any Administrator, or its agents or representatives, (i) to
                  examine and make copies of and abstracts from all Records in
                  the possession or under the control of the Servicer relating
                  to the Dealer Receivables and the Related Security, including,
                  without limitation, the related Contracts, and (ii) to visit
                  the offices and properties of the Servicer for the purpose of
                  examining such materials described in clause (i) above, and to
                  discuss matters relating to the Servicer's financial condition
                  or the Dealer Receivables and the Related Security or the
                  Servicer's performance under any of the Transaction Documents
                  or performance under the Contracts, in each case, with any of
                  the officers or employees of the Servicer having knowledge of
                  such matters; provided that they will not interfere with the
                  conducting of Servicer's business and, provided further, (x)
                  the Administrators of all Related Groups shall coordinate with
                  each other so as to jointly arrange and conduct the visits
                  contemplated in clause (ii) and (y) in no single calendar year
                  will the total number of such visits exceed two.

         (e)      Keeping and Marking of Records and Books.

                  (i)      The Servicer will maintain and implement
                           administrative and operating procedures (including,
                           without limitation, an ability to recreate records
                           evidencing Dealer Receivables in the event of the
                           destruction of the originals thereof), and keep and
                           maintain all documents, books, records and other
                           information reasonably necessary for the collection
                           of all Dealer Receivables (including, without
                           limitation, records adequate to permit the prompt
                           identification of each new Dealer Receivable and all
                           Collections of and adjustments to each existing
                           Dealer Receivable). The Servicer will give each
                           Administrator notice of any material change in the
                           administrative and operating procedures referred to
                           in the previous sentence.

                  (ii)     The Servicer will (A) on or prior to the date hereof,
                           mark its master data processing records and other
                           books and records relating to the Ownership Interests
                           with a legend describing the Ownership Interests and
                           (B) upon the request of any Administrator following
                           the occurrence of an Early Amortization Event (x)
                           mark each Contract constituting chattel paper under
                           the UCC with a legend describing the Ownership
                           Interests and (y) deliver to the Agent all such
                           Contracts (including, without limitation, all
                           multiple originals of any such Contract) relating to
                           the Dealer Receivables.

         (f)      Compliance with Contracts and Credit and Collection Policy.
                  The Servicer will timely (i) perform and comply with all
                  provisions, covenants and other promises

<PAGE>   48

                                      -48-

                  required to be observed by it under the Contracts related to
                  the Dealer Receivables, and (ii) comply in all respects with
                  the Credit and Collection Policy in regard to each Dealer
                  Receivable and the related Contract except where, in the case
                  of each of both clauses (i) and (ii) such failure to perform
                  or comply would not have a Material Adverse Effect.

         (g)      Collections. The Servicer shall cause (1) all proceeds from
                  all Lock-Boxes to be directly deposited by a Deposit Account
                  Bank into a Deposit Account and (2) each Lock-Box and Deposit
                  Account to be subject at all times to a Deposit Account
                  Agreement that is in full force and effect. In the event any
                  payments relating to Dealer Receivables are remitted directly
                  to the Servicer or any Affiliate of the Servicer, the Servicer
                  shall remit (or shall cause all such payments to be remitted)
                  directly to a Deposit Account Bank and deposited into a
                  Deposit Account within two (2) Business Days following receipt
                  thereof and, at all times prior to such remittance, the
                  Servicer shall itself hold or, if applicable, shall cause such
                  payments to be held in trust for the exclusive benefit of the
                  Agent and the Purchasers to the extent of their interests
                  therein.

         (h)      Taxes. The Servicer shall file all tax returns required by law
                  to be filed by it and shall promptly pay all taxes and
                  governmental charges at any time owing (including, without
                  limitation, sales taxes and goods and services taxes), except
                  any such taxes which are not yet delinquent or are being
                  diligently contested in good faith by appropriate proceedings
                  and for which adequate reserves in accordance with generally
                  accepted accounting principles shall have been set aside on
                  its books.

Section 8.04      Negative Covenants of the Servicer. Until the date on which
the Unpaid Obligations have been indefeasibly paid in full or reduced to zero
(including the indefeasible reduction to zero of all Investments) and this
Agreement terminates in accordance with its terms, the Servicer hereby covenants
that:

         (a)      Change in Payment Instructions to Obligors. The Servicer will
                  not add or terminate any bank as a Deposit Account Bank, or
                  make any change in the instructions to Obligors regarding
                  payments to be made to any Lock-Box or Deposit Account in
                  respect of Dealer Receivables, unless the Agent shall have
                  received, at least ten (10) days before the proposed effective
                  date therefor, (i) written notice of such addition,
                  termination or change and (ii) with respect to the addition of
                  a Deposit Account Bank or a Deposit Account or Lock-Box, an
                  executed Deposit Account Agreement with respect to the new
                  Deposit Account or Lock-Box; provided, however, that the
                  Servicer may make changes in instructions to Obligors
                  regarding payments on Dealer Receivables if such new
                  instructions require such Obligor to make payments to another
                  existing Deposit Account or Lock-Box.

         (b)      Modifications to Contracts and Credit and Collection Policy.
                  The Servicer will not make any material change to the Credit
                  and Collection Policy that could

<PAGE>   49

                                      -49-

                  reasonably be expected to adversely affect the timely
                  collectibility of the Dealer Receivables other than those
                  which (i) have been approved in writing by each Administrator
                  (such approval not to be unreasonably withheld) or (ii) are
                  required by applicable law. Except as provided in Section
                  9.02(d), the Servicer will not extend, amend or otherwise
                  modify the terms of any Dealer Receivable or any Contract
                  related thereto other than in accordance with the Credit and
                  Collection Policy.

                                   ARTICLE IX
                          ADMINISTRATION AND COLLECTION

Section 9.01      Designation of Servicer.

         (a)      The servicing, administration and collection of the Dealer
                  Receivables shall be conducted by such Person (the "Servicer")
                  so designated from time to time in accordance with this
                  Section 9.01. AGCO U.S. is hereby designated as, and hereby
                  agrees to perform the duties and obligations of, the Servicer
                  pursuant to the terms of this Agreement. The Agent may at any
                  time following the occurrence of a Servicer Default designate
                  as Servicer, and direct the Custodian to designate (and the
                  Custodian will do so upon such direction) any Person to
                  succeed AGCO U.S. or any successor Servicer.

         (b)      Without the prior written consent of each Administrator and
                  the Majority Purchasers (which consent shall not be
                  unreasonably withheld), AGCO U.S. shall not be permitted to
                  delegate any of its duties or responsibilities as Servicer to
                  any Person other than (i) the Seller (but subject to Section
                  9.01(d)) and (ii) with respect to certain Defaulted
                  Receivables, outside collection agencies in accordance with
                  its customary practices. The Seller shall not be permitted to
                  further delegate to any other Person any of the duties or
                  responsibilities of the Servicer delegated to it by AGCO U.S.
                  If at any time the Agent shall, in accordance with the
                  provisions hereof, designate as Servicer any Person other than
                  AGCO U.S., all duties and responsibilities theretofore
                  delegated by AGCO U.S. to the Seller may, at the discretion of
                  the Agent, be terminated forthwith on notice given by the
                  Agent to AGCO U.S. and to the Seller.

         (c)      Notwithstanding the foregoing subsection (b), (i) so long as
                  it is Servicer hereunder, AGCO U.S. shall be and remain
                  primarily liable to the Agent and the Purchasers for the full
                  and prompt performance of all duties and responsibilities of
                  the Servicer hereunder and (ii) the Agent and the Purchasers
                  shall be entitled to deal exclusively with AGCO U.S. in
                  matters relating to the discharge by the Servicer of its
                  duties and responsibilities hereunder. The Agent and the
                  Purchasers shall not be required to give notice, demand or
                  other communication to any Person other than AGCO U.S. in
                  order for communication to the Servicer and its sub-Servicer
                  or other delegate with respect thereto to be accomplished.
                  AGCO U.S., at all times that it is the Servicer, shall be
                  responsible for providing

<PAGE>   50

                                      -50-

                  any sub-Servicer or other delegate of the Servicer with any
                  notice given to the Servicer under this Agreement.

         (d)      Notwithstanding anything else contained herein, the Servicer
                  may not delegate to the Seller the right to, and the Seller
                  shall not (and has no authority to) contract for, or conclude
                  contracts in the name of, any Purchaser and neither the
                  Servicer nor the Seller is permitted to (nor has authority to)
                  establish an office or other fixed place of business of any
                  Purchaser in Canada. To the extent any responsibilities of the
                  Servicer hereunder involve or require the Servicer to contract
                  for, or conclude a contract in the name of, any Purchaser,
                  such servicing responsibility shall be fulfilled solely by the
                  Servicer (and not by the Seller) and the Servicer is
                  authorized to take such action, but only from a place of
                  business in the United States. The Servicer may not, directly
                  or indirectly, delegate such responsibility to any Person
                  (including the Seller) which is a resident of Canada or has a
                  permanent establishment in Canada for purposes of the Income
                  Tax Act (Canada), except upon consent of the Agent, and in any
                  event, any such Person to whom the Servicer delegates any such
                  responsibility, may only carry out such delegated
                  responsibility from a place of business in the United States
                  and shall not, in any manner whatsoever, carry out any such
                  delegated responsibility in Canada. None of the functions,
                  obligations or authority of the Servicer shall be carried out
                  in Canada.

Section 9.02      Duties of Servicer.

         (a)      The Servicer shall take or cause to be taken such actions as
                  may be reasonably necessary to collect each Dealer Receivable
                  from time to time, all in accordance with applicable laws,
                  rules and regulations, with reasonable care and diligence, and
                  in accordance with the Credit and Collection Policy.

         (b)      The Servicer will instruct all Obligors to pay all Collections
                  directly to a Lock-Box or Deposit Account. The Servicer shall
                  maintain in full force and effect a Deposit Account Agreement
                  substantially in the form of Exhibit B with each bank party to
                  a Deposit Account at any time. In the case of any remittances
                  received in any Lock-Box or Deposit Account that shall have
                  been identified, to the reasonable satisfaction of the
                  Servicer, to not constitute Collections or other proceeds of
                  the Dealer Receivables or the Related Security, the Servicer
                  shall promptly remit such items to the Person identified to it
                  as being the owner of such remittances. From and after the
                  date the Agent delivers to any Deposit Account Bank a
                  Collection Notice pursuant to Section 9.03, the Agent may
                  request that the Servicer, and the Servicer thereupon promptly
                  shall instruct all Obligors with respect to the Dealer
                  Receivables, to remit all payments thereon to a new depositary
                  account specified by the Agent and, at all times thereafter,
                  the Seller and the Servicer shall not deposit or otherwise
                  credit, and shall not permit any other Person to deposit or
                  otherwise credit to such new depositary account any cash or
                  payment item other than Collections.

<PAGE>   51

                                      -51-

         (c)      The Servicer shall administer the Collections in accordance
                  with the procedures described herein and in Article IV. The
                  Servicer shall set aside and hold in trust for the account of
                  the Seller and the Purchasers their respective shares of the
                  Collections of Dealer Receivables in accordance with
                  Article IV. The Servicer shall, upon the request of any
                  Administrator, segregate, in a manner reasonably acceptable to
                  such Administrator, all cash, checks and other instruments
                  received by it from time to time constituting Collections from
                  the general funds of the Servicer or the Seller prior to the
                  remittance thereof in accordance with Article IV. If the
                  Servicer shall be required to segregate Collections pursuant
                  to the preceding sentence, the Servicer shall segregate and
                  deposit with a bank designated by the Agent such allocable
                  share of Collections of Dealer Receivables set aside for the
                  Purchasers on the first Business Day following receipt by the
                  Servicer of such Collections, duly endorsed or with duly
                  executed instruments of transfer.

         (d)      The Servicer may, in accordance with the Credit and Collection
                  Policy, extend the maturity of any Dealer Receivable or adjust
                  the outstanding balance of any Dealer Receivable as the
                  Servicer determines to be appropriate to maximize Collections
                  thereof. Notwithstanding anything herein to the contrary, from
                  and after the Termination Date until this Agreement is
                  terminated, neither the Seller nor the Servicer shall, without
                  the consent of the Agent, grant any discount or take any other
                  action the effect of which would be to reduce the outstanding
                  balance of any Dealer Receivable or modify the obligation of
                  any Obligor to pay the full outstanding balance of any Dealer
                  Receivable or extend the maturity thereof.

         (e)      The Servicer shall hold in trust for the Seller and the
                  Purchasers to the extent of their interests therein all
                  Records that (i) evidence or relate to the Dealer Receivables,
                  the related Contracts and Related Security or (ii) are
                  otherwise necessary or desirable to collect the Dealer
                  Receivables and shall, as soon as reasonably practicable upon
                  demand of the Agent, make available to the Agent all such
                  Records, at the offices of the Servicer. The Servicer shall,
                  as soon as practicable following receipt thereof turn over to
                  the Seller or other owner thereof any cash collections or
                  other cash proceeds received with respect to Indebtedness
                  owing to the Seller not constituting Dealer Receivables. The
                  Servicer shall, from time to time at the reasonable request of
                  any Purchaser, furnish to such Purchaser (promptly after any
                  such request) a calculation of the amount set aside for the
                  Purchaser pursuant to Article IV.

         (f)      Any payment by an Obligor in respect of any indebtedness owed
                  by it to the Seller shall, except as otherwise specified by
                  such Obligor or otherwise required by contract or law and
                  unless otherwise instructed by the Agent, be applied in
                  accordance with the methodology set out in for the application
                  of such payments in the Credit and Collection Policy.

         (g)      Upon receipt of any cash collections or other cash proceeds of
                  any Dealer Receivable, the Servicer shall determine the
                  portion thereof which relate to

<PAGE>   52

                                      -52-

                  interest, yield, finance charges or similar amounts payable
                  and provided for under the related Contract (but, for greater
                  certainty, not including any discount on the principal balance
                  thereof applied in connection herewith) and ascertain the
                  amount of any withholding tax payable in respect of such
                  portion. The Servicer shall remit all such withholding taxes
                  to the applicable governmental authority within all time
                  requirements imposed by applicable law, and shall provide such
                  receipts or other evidence of such remittances as the Agent
                  may request from time to time.

Section 9.03      Collection Notices. The Agent is authorized at any time after
the occurrence and during the continuation of a Cash Control Event to date and
to deliver to the Deposit Account Banks the Collection Notices. The Seller
hereby Transfers to the Agent for the benefit of the Purchasers, effective when
the Agent delivers such notice, the exclusive ownership and control of each
Lock-Box and the Deposit Accounts. In case any authorized signatory of the
Seller whose signature appears on a Deposit Account Agreement shall cease to
have such authority before the delivery of such notice, such Collection Notice
shall nevertheless be valid as if such authority had remained in force. The
Seller hereby authorizes the Agent, and agrees that the Agent shall be entitled
at any time after the occurrence and during the continuation of a Cash Control
Event to (i) endorse the Seller's name on checks and other instruments
representing Collections, (ii) enforce the Dealer Receivables, the related
Contracts and the Related Security and (iii) take such action as shall be
necessary or desirable to cause all cash, checks and other instruments
constituting Collections of Dealer Receivables to come into the possession of
the Agent rather than the Seller.

Section 9.04      Responsibilities of the Seller. Anything herein to the
contrary notwithstanding, the exercise by the Agent, the Custodian, the
Administrators and the Purchasers of their rights hereunder shall not release
the Servicer or the Seller from any of their duties or obligations with respect
to any Dealer Receivables or under the related Contracts. None of the Agent, the
Custodian or the Purchasers shall have any obligation or liability with respect
to any Dealer Receivables or related Contracts, nor shall any of them be
obligated to perform the obligations of the Seller.

Section 9.05      Reports and Other Information. The Servicer shall prepare and
forward to each Administrator, on each Reporting Date and at such times as any
Administrator shall reasonably request, a duly completed Monthly Report
containing information accurate as of the last day of the calendar month then
most recently ended. The Servicer shall determine the Net Eligible Receivables
Balance, the aggregate Investment and the Credit Enhancement in connection with
each Purchase hereunder.

Section 9.06      Servicer Fees. In consideration of the agreement of AGCO U.S.
to act as Servicer hereunder, the Purchasers hereby agree that, so long as AGCO
U.S. shall continue to perform as Servicer hereunder, the Servicer shall be
entitled to retain out of Collections, a fee (the "Servicer Fee") on each
Payment Date equal to 1% per annum of the Outstanding Balance of the Dealer
Receivables at the beginning of the calendar month then most recently ended as
compensation for its servicing activities. The Servicer Fee shall be payable
solely out of Collections available for such purpose pursuant to Article IV. In
the event such Collections are insufficient to pay the

<PAGE>   53

                                      -53-

accrued and unpaid Servicer Fee in full, the Servicer shall have no claim
against the Seller, the Agent or any Administrator for such deficiency. In the
event the Agent shall, in accordance with the provisions hereof, designate as
Servicer any Person other than AGCO U.S., then the Servicer Fee payable to such
successor Servicer shall be such fee as shall be agreed in writing between such
successor Servicer and the Agent; provided that in no event shall such Servicer
Fee exceed 2% per annum on the average daily Outstanding Balance of the Dealer
Receivables.

Section 9.07      Servicer Defaults. The occurrence of any one or more of the
following events shall constitute a "Servicer Default":

         (a)      The Servicer shall fail to make any payment or deposit to the
                  Custodian, the Agent, any Purchaser or any Administrator
                  required under the provisions of Section 4.05 of this
                  Agreement when due and such failure shall continue for one (1)
                  Business Day after such due date;

         (b)      The Servicer shall fail to make any payment or deposit
                  required under the provisions hereof or of the other
                  Transaction Documents (other than those contemplated in (a)
                  hereinabove) when due and such failure shall continue for five
                  (5) Business Days after such due date;

         (c)      The Servicer shall fail to perform or observe any term,
                  covenant or agreement hereunder or under any other Transaction
                  Document (other than as referred to in paragraph (a) or (b))
                  and such failure shall continue for fifteen (15) days after
                  the earlier of (i) the date on which the Servicer obtains
                  knowledge thereof and (ii) the date on which written notice
                  thereof is given to the Servicer;

         (d)      Any representation, warranty, certification or statement made
                  by the Servicer in this Agreement, any other Transaction
                  Document or in any other document delivered pursuant hereto or
                  thereto shall prove to have been incorrect in any material
                  respect when made or deemed made and either (i) the failure of
                  such representation, warranty, certification or statement to
                  be true and correct shall have a Material Adverse Effect or
                  (ii) such representation, warranty, certification or statement
                  shall continue to be incorrect;

         (e)      (i) The Servicer or any of its Subsidiaries shall generally
                  not pay its debts as such debts become due or shall admit in
                  writing its inability to pay its debts generally or shall make
                  a general assignment for the benefit of creditors; or any
                  proceeding shall be instituted by or against any such Person
                  seeking to adjudicate it bankrupt or insolvent, or seeking
                  liquidation, winding up, reorganization, arrangement,
                  adjustment, protection, relief or composition of it or its
                  debts under any law relating to bankruptcy, arrangement,
                  insolvency or reorganization or relief of debtors, or seeking
                  the entry of an order for relief or the appointment of a
                  receiver, trustee or other similar official for it or any
                  substantial part of its property or any such Person shall be
                  appointed, whether under private right or pursuant to any such
                  proceeding, or (ii) any such Person shall take any corporate

<PAGE>   54

                                      -54-

                  action to authorize any of the actions set forth in clause (i)
                  above in this subsection (e);

         (f)      The Custodian ceases to hold the Pool Assets as agent and
                  bailee for the Seller and the Purchaser or the Agent for the
                  benefit of the Purchasers shall cease to have a valid and
                  perfected first priority ownership interest in the Dealer
                  Receivables, the Related Security, the Collections with
                  respect thereto and the Deposit Accounts;

         (g)      The long-term senior unsecured debt of AGCO U.S. shall not be
                  rated at least B+ by S&P and at least B1 by Moody's;

         (h)      A material adverse change shall have occurred in the
                  collectibility of the Dealer Receivables generally or of any
                  material portion of the Dealer Receivables; or

         (i)      One or more final judgments for the payment of money in excess
                  of U.S. $10,000,000 or the Canadian Dollar Equivalent thereof
                  shall be entered against the Servicer, and such judgment shall
                  continue unsatisfied and in effect for fifteen (15)
                  consecutive days without a stay of execution; or

         (j)      The failure of the Servicer to pay any Indebtedness when due
                  in excess of U.S. $10,000,000 or the Canadian Dollar
                  Equivalent thereof and the continuance of such failure after
                  the applicable grace period, if any, specified in the
                  agreement or instrument relating to such Indebtedness; or the
                  default by the Servicer in the performance of any term,
                  provision or condition contained in any agreement under which
                  any such Indebtedness was created or is governed, the effect
                  of which is to cause, or to permit the holder or holders of
                  such Indebtedness to cause, such Indebtedness to become due
                  prior to its stated maturity; or any such Indebtedness of the
                  Servicer shall be declared to be due and payable or required
                  to be prepaid (other than by a regularly scheduled payment)
                  prior to the date of maturity thereof;

provided, however, that notwithstanding the foregoing, a delay in or a failure
of performance referred to in clause (a) and (b) for a period of five (5)
Business Days, or referred to under clauses (c) or (d) for a period of fifteen
(15) days (in addition to any period provided in (a), (b), (c) or (d) (together,
the "Additional Grace Periods") shall not constitute a Servicer Default until
the expiration of such Additional Grace Periods, if such delay or failure could
not be prevented by the exercise of reasonable diligence by the Servicer and
such delay was caused by force majeure. For greater certainty, any reference in
this Section 9.07 to the Servicer includes AGCO U.S., whether or not acting in
its capacity as Servicer hereunder.

Section 9.08      Replacement of the Servicer. If AGCO U.S. is removed as
Servicer pursuant to Section 10.02 following the occurrence of an Early
Amortization Event, AGCO U.S. shall take all actions necessary, or that the
Agent may reasonably request, to facilitate the prompt and efficient transfer of
responsibilities of the Servicer to any successor Servicer designated by the
Agent, including without limitation, transferring to the Agent or such successor
all Records,

<PAGE>   55

                                      -55-

correspondence and documents (including computer software) requested by the
Agent or such successor and to permit the Agent and such successor to have
access to, and to copy, all software used by AGCO U.S. in the collection,
administration or monitoring of the Dealer Receivables, Related Security and
Collections. In connection therewith, the Agent may enter into a separate
servicing agreement with any such successor Servicer relating to the rights and
obligations of such successor as Servicer hereunder and, to the extent of any
inconsistency between such servicing agreement and this Agreement regarding such
rights and obligations, such servicing agreement shall control; provided that
the Agent shall use reasonable efforts to minimize any such inconsistency to the
extent such inconsistency would have a material adverse effect on the Seller.

                                   ARTICLE X
                            EARLY AMORTIZATION EVENTS

Section 10.01     Early Amortization Events. The occurrence of any one or more
of the following events shall constitute an "Early Amortization Event":

         (a)      The Seller shall fail to make any payment or deposit required
                  hereunder or under any other Transaction Document when due and
                  such failure shall remain unremedied for five (5) Business
                  Days;

         (b)      The Seller shall fail to perform or observe any term, covenant
                  or agreement hereunder or under any other Transaction Document
                  (other than as referred to in paragraph (a)) and such failure
                  shall continue for fifteen (15) days after the earlier of (i)
                  the date on which the Seller obtains knowledge thereof and
                  (ii) the date on which written notice thereof is given to the
                  Seller;

         (c)      Any representation, warranty, certification or statement made
                  by the Seller in this Agreement, any other Transaction
                  Document or in any other document delivered pursuant hereto or
                  thereto shall prove to have been incorrect in any material
                  respect when made or deemed made and either (i) the failure of
                  such representation, warranty, certification or statement to
                  be true and correct shall have a Material Adverse Effect or
                  (ii) such representation, warranty, certification or statement
                  shall continue to be incorrect;

         (d)      Any Servicer Default shall occur and be continuing;

         (e)      (i) The Seller or any of its Subsidiaries shall generally not
                  pay its debts as such debts become due or shall admit in
                  writing its inability to pay its debts generally or shall make
                  a general assignment for the benefit of creditors; or any
                  proceeding shall be instituted by or against any such Person
                  seeking to adjudicate it bankrupt or insolvent, or seeking
                  liquidation, winding up, reorganization, arrangement,
                  adjustment, protection, relief or composition of it or its
                  debts under any law relating to bankruptcy, arrangement,
                  insolvency or reorganization or relief of debtors, or seeking
                  the entry of an order for relief or the appointment of a
                  receiver, trustee or other similar official for it or any
                  substantial part of its

<PAGE>   56

                                      -56-

                  property or any such Person shall be appointed, whether under
                  private right or pursuant to any such proceeding, or (ii) any
                  such Person shall take any corporate action to authorize any
                  of the actions set forth in clause (i) above in this
                  subsection (e);

         (f)      The Custodian ceases to hold the Pool Assets as agent and
                  bailee for the Seller and the Purchaser or the Agent for the
                  benefit of the Purchasers shall cease to have a valid and
                  perfected first priority ownership interest in the Dealer
                  Receivables, the Related Security, the Collections with
                  respect thereto and the Deposit Accounts;

         (g)      The Seller shall be required to register as an "investment
                  company" by the provisions of the Investment Company Act of
                  1940, as amended;

         (h)      As at the end of any calendar month, (i) the Variable Dilution
                  Ratio shall exceed 5.0%, (ii) the average of the Planned
                  Dilution Ratios for the three most recently ended calendar
                  months shall exceed 20%, (iii) the average of the Payment
                  Rates for the three most recently ended calendar months shall
                  be less than (x) if such three calendar month period shall end
                  with the month of February, March, April or May, 4.0% and (y)
                  in all other cases, 9.0%, (iv) the average of the Default
                  Ratios for the three most recently ended calendar months shall
                  exceed 3% or (v) the Default Ratio shall exceed 5%;

         (i)      The aggregate Ownership Interests shall exceed 100% and shall
                  continue as such until the earlier of (i) two Business Days
                  following the date either the Seller or the Servicer has
                  actual knowledge thereof and (ii) the next Payment Date;

         (j)      Failure of the Seller to pay any Indebtedness when due in
                  excess of U.S. $10,000,000 or the Canadian Dollar Equivalent
                  thereof and the continuation of such failure after the
                  applicable grace period, if any, specified in the agreement or
                  instrument relating to such Indebtedness, or the default by
                  the Seller in the performance of any term, provision or
                  condition contained in any agreement under which any such
                  Indebtedness was created or is governed, the effect of which
                  is to cause, or to permit the holder or holders of such
                  Indebtedness to cause, such Indebtedness to become due prior
                  to its stated maturity; or any such Indebtedness of the Seller
                  shall be declared to be due and payable or required to be
                  prepaid (other than by a regularly scheduled payment) prior to
                  the date of maturity thereof;

         (k)      One or more final judgments for the payment of money in excess
                  of U.S. $10,000,000 or the Canadian Dollar Equivalent thereof
                  shall be entered against Seller and such judgment shall
                  continue unsatisfied and in effect for fifteen (15)
                  consecutive days without a stay of execution; or

         (l)      After the date hereof, any Purchaser or the Agent shall
                  determine, acting reasonably, that it has or is deemed to have
                  a permanent establishment within

<PAGE>   57

                                      -57-

                  Canada solely as a result of the transactions contemplated
                  hereby or any act or failure to act of the Seller or the
                  Servicer.

Section 10.02     Remedies. Upon the occurrence and during the continuation of
an Early Amortization Event, the Agent may, or upon the direction of the
Majority Purchasers shall, take any of the following actions: (i) replace and
instruct the Custodian to replace (and the Custodian shall do so upon such
instruction) the Person then acting as Servicer, (ii) declare the Termination
Date to have occurred, whereupon the Termination Date shall forthwith occur,
without demand, protest or further notice of any kind, all of which are hereby
expressly waived by each of the Seller and the Servicer; provided, however, that
upon the occurrence of an Early Amortization Event described in Section
10.01(e), or of an actual or deemed entry of an order for relief with respect to
the Seller or the Servicer under the Federal Bankruptcy Code, the Bankruptcy and
Insolvency Act (Canada) or any other applicable bankruptcy or insolvency
legislation, the Termination Date shall automatically occur, without demand,
protest or any notice of any kind, all of which are hereby expressly waived by
each of the Seller and the Servicer, (iii) to the fullest extent permitted by
applicable law, declare that the Yield Rate shall be equal to the Base Rate plus
2% for all outstanding Ownership Interests, (iv) deliver the Collection Notices
to the Deposit Account Banks, (v) enter into such Currency Protection Agreements
as the Agent, in its sole discretion, shall consider necessary or desirable in
the circumstances (and, notwithstanding the inclusion of Swap Costs as a
Purchaser Obligation, the Seller shall forthwith on demand by the Agent, pay to
the Agent all Swap Costs incurred in connection therewith) and (vi) notify
Obligors of the Custodian's and the Purchasers' interest in the Dealer
Receivables and require all Collections in connection with all Dealer
Receivables to be paid to the Agent or as may otherwise be designated by the
Agent. Further, in the event of a Potential Early Amortization Event arising as
a result of a Servicer Default under Section 9.07(a), (b), (c) or (d), during
the Additional Grace Periods applicable to such Servicer Defaults (and unless
the relevant actions or omissions are remedied prior to the expiration of the
applicable Additional Grace Periods) the Purchasers shall not be required to
make any Purchases, of whatever type, of any Dealer Receivables. If the Agent or
any Purchaser enters into any Currency Protection Agreement in connection
herewith, as provided in this Section 10.02, and any amounts are paid thereunder
to the Agent or any such Purchaser by the counterparty thereto, such amounts (to
the extent paid in connection herewith) shall be applied to the payment of all
Unpaid Obligations, including to the reduction to zero of all Investments, and
to the extent that there are any excess such amounts after all Unpaid
Obligations have been indefeasibly paid in full or reduced to zero, such excess
shall be paid to the Seller as additional purchase price for the Ownership
Interests. The aforementioned rights and remedies shall be in addition to all
other rights and remedies of the Custodian, the Agent and the Purchasers
available under this Agreement, by operation of law, at equity or otherwise, all
of which are hereby expressly preserved, including, without limitation, all
rights and remedies provided under the UCC, all of which rights shall be
cumulative.

<PAGE>   58

                                      -58-

                                   ARTICLE XI
                                 INDEMNIFICATION

Section 11.01     Indemnities.

         (a)      Seller Indemnities. Without limiting any other rights that the
                  Custodian, the Agent, any Administrator or any Purchaser may
                  have hereunder or under applicable law, the Seller hereby
                  agrees to indemnify the Custodian, the Agent, each
                  Administrator and each Purchaser and their respective assigns,
                  officers, directors, agents and employees (each an
                  "Indemnified Party") from and against any and all damages,
                  losses, claims, taxes, liabilities, costs, expenses and for
                  all other amounts payable, including reasonable attorneys' or
                  lawyers' fees (which attorneys or lawyers may be employees of
                  the Custodian, the Agent or such Purchaser) and disbursements
                  (on a solicitor and his own client basis) (all of the
                  foregoing being collectively referred to as "Indemnified
                  Amounts") awarded against or incurred by any of them arising
                  out of or as a result of this Agreement or the acquisition,
                  either directly or indirectly, by the Custodian, the Agent or
                  a Purchaser of an interest in the Dealer Receivables
                  excluding, however:

                  (A)      Indemnified Amounts to the extent a final judgment of
                           a court of competent jurisdiction holds that such
                           Indemnified Amounts resulted from gross negligence or
                           wilful misconduct on the part of the Indemnified
                           Party seeking indemnification;

                  (B)      Indemnified Amounts to the extent the same include
                           losses in respect of Dealer Receivables that are
                           uncollectible on account of the insolvency,
                           bankruptcy or lack of creditworthiness or other
                           failure to pay of the related Obligor where such
                           failure is not caused by any action or inaction on
                           the part of the Seller or AGCO U.S. in connection
                           with any Dealer Receivable or Dealer Agreement;

                  (C)      taxes (other than taxes imposed by Canada or any
                           jurisdiction thereof) imposed by the jurisdiction in
                           which such Indemnified Party is organized or in which
                           it is otherwise doing business on or measured by the
                           overall net income of such Indemnified Party;

provided, however, that nothing contained in this sentence shall limit the
liability of either the Seller or the Servicer or limit the recourse of the
Custodian, the Agent or the Purchasers to either the Seller or the Servicer for
amounts otherwise specifically provided to be paid by such Person under the
terms of this Agreement. Without limiting the generality of the foregoing
indemnification, the Seller shall indemnify each Indemnified Party for
Indemnified Amounts (including, without limitation, losses in respect of
uncollectible receivables, regardless of whether reimbursement therefor would
constitute recourse to the Seller or the Servicer) resulting from:

<PAGE>   59

                                      -59-

                           (i)      breach of any representation or warranty
                                    made by the Seller or the Servicer (or any
                                    officers of any such Person) under or in
                                    connection with this Agreement, any other
                                    Transaction Document or any other
                                    information or report delivered by any such
                                    Person pursuant hereto or thereto, which
                                    shall have been false or incorrect when made
                                    or deemed made;

                           (ii)     the failure by the Seller or the Servicer to
                                    comply with any applicable law, rule or
                                    regulation with respect to any Dealer
                                    Receivable or Contract related thereto, or
                                    the nonconformity of any Dealer Receivable
                                    or Contract included therein with any such
                                    applicable law, rule or regulation or any
                                    failure of the Seller to keep or perform any
                                    of its obligations, express or implied, with
                                    respect to any Contract;

                           (iii)    any failure of the Seller or the Servicer to
                                    perform its duties, covenants or other
                                    obligations in accordance with the
                                    provisions of this Agreement or any other
                                    Transaction Document;

                           (iv)     any products liability, personal injury or
                                    damage suit, or similar claim arising out of
                                    or in connection with merchandise, insurance
                                    or services that are the subject of any
                                    Contract or any Dealer Receivable;

                           (v)      any dispute, claim, offset or defense (other
                                    than discharge in bankruptcy of the Obligor)
                                    of the Obligor to the payment of any Dealer
                                    Receivable arising on or prior to the
                                    Termination Date (including, without
                                    limitation, a defense based on such Dealer
                                    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 service related to such
                                    Dealer Receivable or the furnishing or
                                    failure to furnish such merchandise or
                                    services;

                           (vi)     the commingling of Collections of Dealer
                                    Receivables at any time with other funds;

                           (vii)    any investigation, litigation or proceeding
                                    related to or arising from this Agreement or
                                    any other Transaction Document, the
                                    transactions contemplated hereby, the use of
                                    the proceeds of a purchase, the ownership of
                                    the Ownership Interests or any other
                                    investigation, litigation or proceeding
                                    relating to the Seller or the Servicer in
                                    which any Indemnified Party becomes involved
                                    as a result of any of the transactions
                                    contemplated hereby;

                           (viii)   any inability to litigate any claim against
                                    any Obligor in respect of any Dealer
                                    Receivable as a result of such Obligor being
                                    immune from civil and commercial law and
                                    suit on the grounds of sovereignty or
                                    otherwise from any legal action, suit or
                                    proceeding;

<PAGE>   60
                                     -60-

                  (ix)     any Early Amortization Event described in Section
                           10.01(d);

                  (x)      any failure of the Seller to have had (but for the
                           transactions contemplated hereby) legal and
                           equitable title to, and ownership of any Dealer
                           Receivable and the Related Security and Collections
                           with respect thereto, free and clear of any Adverse
                           Claim; or any failure of the Seller to have a first
                           priority perfected security (or equivalent) interest
                           in the Equipment the sale of which gave rise to any
                           Dealer Receivable;

                  (xi)     any failure to vest and maintain vested in the Agent
                           and the Purchasers, or to Transfer to the Agent and
                           the Purchasers, legal and equitable title to, and
                           ownership of, a first priority perfected undivided
                           percentage ownership interest (to the extent of the
                           Ownership Interests contemplated hereunder) in the
                           Dealer Receivables, the Related Security and the
                           Collections, free and clear of any Adverse Claim;

                  (xii)    the failure to have filed, or any delay in filing,
                           financing statements or other similar instruments or
                           documents under the UCC of any applicable
                           jurisdiction or other applicable laws with respect
                           to any Dealer Receivable, the Related Security and
                           Collections with respect thereto, and the proceeds
                           of any thereof, whether at the time of any
                           Incremental Purchase or Reinvestment Purchase or at
                           any subsequent time;

                  (xiii)   any action or omission by either the Seller or the
                           Servicer which reduces or impairs the rights of the
                           Custodian, the Agent or the Purchasers with respect
                           to any Dealer Receivable or the value of any such
                           Dealer Receivable;

                  (xiv)    any attempt by any Person to void any Incremental
                           Purchase or Reinvestment Purchase hereunder under
                           statutory provisions or common law or equitable
                           action;

                  (xv)     the failure of any Dealer Receivable treated as or
                           represented to be an Eligible Receivable at any time
                           by the Seller or the Servicer (including, without
                           limitation, for purposes of calculating the Net
                           Eligible Receivables Balance) to be an Eligible
                           Receivable as of such time; or

                  (xvi)    any tax or governmental fee or charge or impost of
                           any kind or nature whatsoever, including without
                           limitation, any sales, excise, transfer, goods and
                           services, business or property tax and customs
                           duties, and any instalment, penalty or interest in
                           respect of any thereof (but, for greater certainty,
                           not including any taxes to the extent excluded from
                           these indemnities pursuant to clause (iii) above in
                           this Section 11.1) which may be imposed on the Agent
                           or any Purchaser by reason of or in connection with
                           any of the transactions contemplated by this
                           Agreement including the purchase or ownership of any
                           Ownership Interest or any interest therein or

<PAGE>   61
                                     -61-

                           any merchandise which secure any Dealer Receivable
                           or Related Security or in connection with any other
                           rights or assets Transferred hereunder or the
                           entitlement to a receipt of any amount hereunder or
                           otherwise in connection herewith and including,
                           without limitation, any tax or other amounts which
                           any Obligor or any Servicer is obligated by law to
                           withhold from any amounts otherwise payable to the
                           Purchasers. For greater certainty, the Seller
                           acknowledges and agrees that it is the intention of
                           the parties that the Seller bear the risk, under
                           this Section 11.1, of any withholding tax on
                           Collections, other than any such withholding tax
                           which the Servicer is required to remit under
                           Section 9.02(g).

         (b)      Servicer Indemnities. Without limiting any other rights that
                  any Indemnified Party may have hereunder or under applicable
                  law, the Servicer hereby agrees to indemnify each Indemnified
                  Party from and against any and all Indemnified Amounts
                  relating to or resulting from:

                  (i)      any representation or warranty made by the Servicer
                           (or any officers of the Servicer) in writing under
                           or in connection with this Agreement, any other
                           Transaction Document or any other information or
                           report delivered by any such Person pursuant hereto
                           or thereto, which shall have been false or incorrect
                           when made or deemed made;

                  (ii)     the failure by the Servicer to comply with any
                           applicable law, rule or regulation with respect to
                           any Dealer Receivable or Contract related thereto;

                  (iii)    any failure of the Servicer to perform its duties,
                           covenants or other obligations in accordance with
                           the provisions of this Agreement or any other
                           Transaction Document;

                  (iv)     the commingling of Collections of Dealer Receivables
                           at any time with other funds;

                  (v)      any failure of the Seller to have had (but for the
                           transactions contemplated hereby) legal and
                           equitable title to, and ownership of any Dealer
                           Receivable and the Related Security and Collections
                           with respect thereto, free and clear of any Adverse
                           Claim (other than as created hereunder);

                  (vi)     any failure to have Transferred legal title to the
                           Pool Assets to the Custodian, or any failure to vest
                           and maintain vested in the Agent and the Purchasers,
                           or to Transfer to the Agent and the Purchasers,
                           legal and equitable title to, and ownership of, a
                           first priority perfected undivided percentage
                           ownership interest (to the extent of the Ownership
                           Interests contemplated hereunder) in the Dealer
                           Receivables arising on or prior to the Termination
                           Date and the Related Security and the Collections
                           with

<PAGE>   62
                                     -62-

                           respect thereto free and clear of any Adverse Claim
                           created by or arising as a result of a claim against
                           Servicer;

                  (vii)    the failure to have filed, or any delay in filing,
                           financing statements or other similar instruments or
                           documents under the UCC of any applicable
                           jurisdiction or other applicable laws with respect
                           to any Dealer Receivable, the Related Security and
                           Collections with respect thereto, and the proceeds
                           of any thereof, to the extent the Servicer is
                           required to file the same, whether at the time of
                           any Incremental Purchase or Reinvestment Purchase or
                           at any subsequent time;

                  (viii)   any action or omission by the Servicer (other than
                           in accordance with or as contemplated by this
                           Agreement or any other Transaction Document) which
                           reduces or impairs the rights of the Custodian, the
                           Agent or the Purchasers with respect to any Dealer
                           Receivable or the value of any such Dealer
                           Receivable; or

                  (ix)     the failure of any Dealer Receivable treated as or
                           represented to be an Eligible Receivable at any time
                           by the Servicer (including, without limitation, for
                           purposes of calculating the Net Eligible Receivables
                           Balance) to be an Eligible Receivable as of such
                           time.

Section 11.02     Increased Cost and Reduced Return.

         (a)      If, due to either (i) the introduction of or any change in or
                  in the interpretation of any law or regulation or (ii) the
                  compliance with any guideline or request from any central
                  bank or other governmental agency or authority (whether or
                  not having the force of law), there shall be any increase in
                  the cost to any Affected Party with respect to this Agreement
                  or any Conduit Funding Agreement or in connection with its
                  obligations under this Agreement or any Conduit Funding
                  Agreement related to this Agreement for which the Affected
                  Party is not entitled to payment hereunder, then the Seller
                  shall from time to time, upon demand by such Affected Party
                  (with a copy of such demand to the Agent), pay to such
                  Affected Party additional amounts sufficient to compensate
                  such Affected Party for such increased cost. A certificate
                  setting forth in reasonable detail the amount of such
                  increased cost submitted to the Seller by such Affected Party
                  shall be conclusive and binding for all purposes, absent
                  manifest error.

         (b)      Without duplication of (a), if either (i) the introduction
                  following the date of this Agreement of, or any change
                  following the date of this Agreement in or in the
                  interpretation of, any law or regulation or (ii) the
                  compliance by any Affected Party with any law or regulation
                  or any guideline or request or any written interpretation
                  from any central bank or other governmental authority issued
                  after the date of this Agreement (whether or not having the
                  force of law), affects the amount of capital required to be
                  maintained by such Affected Party or any corporation
                  controlling such Affected Party and the amount of such
                  capital is

<PAGE>   63
                                     -63-

                  increased by or based upon this Agreement or any Conduit
                  Funding Agreement related to this Agreement or an Affected
                  Party's obligations under this Agreement or a Conduit Funding
                  Agreement, then, upon demand by such Affected Party (with a
                  copy of such demand to be sent to the Agent related to this
                  Agreement), the Seller shall pay to such Affected Party, from
                  time to time as specified by such Affected Party, additional
                  amounts sufficient to compensate such Affected Party or such
                  controlling corporation in the light of such circumstances. A
                  certificate setting forth in reasonable detail such amounts
                  submitted to the Seller by such Affected Party shall be
                  conclusive and binding for all purposes, absent manifest
                  error.

         (c)      Notwithstanding anything herein to the contrary, the Seller
                  shall not be obligated to pay any amounts under Section
                  11.02(a) or (b), to the extent such amounts resulted from an
                  increased cost incurred or an increased capital requirement
                  imposed more than 90 days prior to the date of the
                  certificate in which such amounts were set forth; provided,
                  that, for purposes of the foregoing, any such increased cost
                  or increased capital requirement shall be deemed to have been
                  incurred or imposed, as applicable, on the date on which such
                  increased cost is actually incurred or such increased capital
                  requirement is actually imposed, whether or not such
                  increased cost or increased capital requirement relates back
                  to a period of time prior to such date.

         (d)      Each Affected Party shall use reasonable efforts (consistent
                  with its internal policy and legal and regulatory
                  restrictions) to reduce or eliminate any claim for
                  compensation pursuant to this Section 11.02, provided that
                  nothing contained herein shall obligate any Affected Party to
                  take any action which, in the opinion of such Affected Party,
                  is unlawful or otherwise disadvantageous to such Affected
                  Party.

Section 11.03     Taxes.

         (a)      Any and all payments by the Seller or the Servicer hereunder
                  shall be made free and clear of and without deduction for any
                  and all present or future taxes, levies, imposts, deductions,
                  charges or withholdings, and all liabilities with respect
                  thereto, excluding, in the case of each Purchaser, each
                  Administrator and the Agent, net income taxes and franchise
                  taxes that are imposed on such Purchaser or the Agent and, in
                  the case of each Purchaser, franchise taxes and net income
                  taxes that are imposed on such Purchaser (all such
                  non-excluded taxes, levies, imposts, deductions, charges,
                  withholdings and liabilities being hereinafter referred to as
                  "Taxes"). If the Seller shall be required by law to deduct
                  any Taxes from or in respect of any sum payable hereunder to
                  any Purchaser or the Agent, (i) the sum payable shall be
                  increased as may be necessary so that, after making all
                  required deductions (including deductions applicable to
                  additional sums payable under this Section 11.03), such
                  Purchaser or the Agent (as the case may be) receives an
                  amount equal to the sum it would have received had no such
                  deductions been made, (ii) the Seller shall make such
                  deductions and (iii) the

<PAGE>   64
                                     -64-

                  Seller shall pay the full amount deducted to the relevant
                  taxation authority or other authority in accordance with
                  applicable law.

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

         (c)      The Seller will indemnify each Purchaser and the Agent for
                  (i) the full amount of Taxes or Other Taxes (including,
                  without limitation, any Taxes or Other Taxes imposed by any
                  jurisdiction on amounts payable under this Section 11.03)
                  paid by such Purchaser or the Agent (as the case may be) and
                  (ii) any liability (including penalties, interest and
                  expenses) arising therefrom or with respect thereto other
                  than those resulting from such Purchaser's or the Agent's
                  wilful or negligent failure to pay such Taxes or Other Taxes;
                  provided that a Purchaser or the Agent, as appropriate,
                  making a demand for indemnity payment shall provide the
                  Seller, at its address referred to in Section 14.02, with a
                  certificate from the relevant taxing authority or from a
                  responsible officer of such Purchaser or the Agent stating or
                  otherwise evidencing that a Purchaser or the Agent has made
                  payment of such Taxes or Other Taxes and will provide a copy
                  of or extract from documentation, if available, furnished by
                  such taxing authority evidencing assertion or payment of such
                  Taxes or Other Taxes.

         (d)      Within 30 days after the date of any payment of Taxes, the
                  Seller will furnish to the Agent, at its address referred to
                  in Section 14.02, appropriate evidence of payment thereof.

         (e)      The Agent and each Purchaser that is not created or organized
                  under the laws of the United States or a political
                  subdivision thereof shall, to the extent that it may then do
                  so under applicable laws and regulations, deliver to the
                  Seller (with, in the case of each Purchaser, a copy to the
                  Agent) (i) within 15 days after the date hereof, or, if
                  later, the date on which such Purchaser becomes a Purchaser
                  pursuant to Section 13.01 hereof, two (or such other number
                  as may be from time to time prescribed by applicable laws or
                  regulations) duly completed copies of IRS Form 4224 or Form
                  1001 (or any successor forms or other certificates or
                  statements which may be required from time to time by the
                  relevant United States taxing authorities or applicable laws
                  or regulations), as appropriate, to permit the Seller to make
                  payments hereunder for the account of such Purchaser or the
                  Agent, as the case may be, without deduction or withholding
                  of United States federal income or similar taxes and (ii)
                  upon the obsolescence of or after the occurrence of any event
                  requiring a change in, any form or certificate previously
                  delivered pursuant to this Section 11.03(e), copies (in such
                  numbers as may from time to time be prescribed by applicable
                  laws or regulations) of such additional, amended or successor
                  forms, certificates or statements as may be required under
                  applicable laws or regulations to permit the Seller and the
                  Agent to make

<PAGE>   65
                                     -65-

                  payments hereunder for the account of such Purchaser or the
                  Agent, as the case may be, without deduction or withholding
                  of United States federal income or similar taxes.

         (f)      For any period with respect to which a Purchaser or the Agent
                  has failed to provide the Seller with the appropriate form,
                  certificate or statement described in Section 11.03(e) (other
                  than if such failure is due to a change in law occurring
                  after the date of this Agreement), such Purchaser or the
                  Agent, as the case may be, shall not be entitled to
                  indemnification under Section 11.03(a) or 11.03(c) with
                  respect to Taxes imposed by the United States.

         (g)      Within 30 days of the written request of the Seller therefor,
                  the Agent and each Purchaser, as appropriate, shall execute
                  and deliver to the Seller such certificates, forms or other
                  documents which can be furnished consistent with the facts
                  and which are reasonably necessary to assist the Seller in
                  applying for refunds of taxes remitted hereunder.

Section 11.04     Other Costs and Expenses. The Seller shall pay to the
Custodian, the Agent, each Administrator and each Purchaser on demand all
reasonable costs and out-of-pocket expenses in connection with the preparation,
execution, delivery and administration of this Agreement, the transactions
contemplated hereby and the other documents to be delivered hereunder,
including without limitation, (i) the cost of the Agent's or any
Administrator's auditors auditing the books, records and procedures of the
Seller, (ii) rating agency fees incurred by any Administrator or Purchaser in
connection with the transactions contemplated hereby, and (iii) reasonable fees
and out-of-pocket expenses of legal counsel for the Custodian, the Agent, each
Administrator and each Purchaser with respect thereto and with respect to
advising the Custodian, the Agent, such Administrator or such Purchaser as to
its rights and remedies under this Agreement (on a solicitor and his own client
basis). The Seller shall pay to the Custodian, the Agent, each Administrator
and each Purchaser on demand any and all reasonable costs and expenses of such
Person, if any, including reasonable counsel fees and expenses in connection
with the enforcement of this Agreement and the other documents delivered
hereunder and in connection with any restructuring or workout of this Agreement
or such documents, or the administration of this Agreement following an Early
Amortization Event.

Section 11.05     Foreign Currency Obligations The Seller and the Servicer will
each make payment relative to each Unpaid Obligation and other amount due by
them in the currency (the "Original Currency") in which such Unpaid Obligation
or other amount is expressed. If the Seller or the Servicer makes payment
relative to any Unpaid Obligation or other amount to the Agent in a currency
(the "Other Currency") other than the Original Currency (whether voluntarily or
pursuant to an order or judgment of a court or tribunal of any jurisdiction),
such payment will constitute a discharge of the liability of such party
hereunder in respect of such Unpaid Obligation or other amount only to the
extent of the amount of the Original Currency which the Agent is able to
purchase, using the applicable rate of exchange provided in the definition
herein of "Equivalent Amount", with the amount it receives on the date of
receipt. If the amount of the Original Currency which the Agent is able to
purchase is less than the amount of such currency originally due in respect to
the relevant Unpaid Obligation or other amount, the

<PAGE>   66
                                     -66-

Seller or the Servicer, as applicable, will indemnify and save the Agent
harmless from and against any loss or damage arising as a result of such
deficiency. This indemnity will constitute an obligation separate and
independent from the other obligations contained in this Agreement, will give
rise to a separate and independent cause of action, will apply irrespective of
any indulgence granted by the Agent and will continue in full force and effect
notwithstanding any judgment or order in respect of any amount due hereunder or
under any judgment or order.

Section 11.06     Commercial Paper Notes. Each Purchaser confirms that,
notwithstanding the definition herein of "Commercial Paper Notes", it is not
its current intention to issue Commercial Paper Notes having a term to maturity
in excess of 60 days.

                                  ARTICLE XII
                    THE AGENT, ADMINISTRATORS AND CUSTODIAN

Section 12.01     Authorization and Action of Agent. Each Purchaser hereby
appoints and authorizes the Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement and the other Transaction
Documents to which the Agent is a party, as are delegated to the Agent by the
terms hereof and thereof, together with such powers as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement, the Agent shall not be required to exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and shall
be fully protected in so acting or refraining from acting) upon the
instructions of the Majority Purchasers, and such instructions shall be binding
upon all the Purchasers; provided, however, that the Agent shall not be
required to take any action which exposes it to personal liability or which is
contrary to this Agreement or applicable law. The Agent agrees to give to each
Purchaser prompt notice of each notice given to it by the Seller or the
Servicer pursuant to the terms of this Agreement. Each Purchaser hereby
authorizes the Agent to execute any UCC financing statements or similar filings
or registrations in connection herewith. None of the functions, obligations or
authority of the Agent shall be carried out, directly or indirectly, in Canada.

Section 12.02     Agents' Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken
or omitted to be taken by it or them under or in connection with this
Agreement, except for the gross negligence or wilful misconduct of the Agent.
Without limiting the generality of the foregoing, the Agent: (i) may treat the
Purchaser that made any purchase as the holder of the Ownership Interest
related thereto until receipt of actual notice to the contrary; (ii) may
consult with legal counsel (including counsel for the Seller), independent
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; (iii) makes no warranty or
representation to any Purchaser and shall not be responsible to any Purchaser
for any statements, warranties or representations (whether written or oral)
made in or in connection with this Agreement or any other Transaction Document;
(iv) shall not have any duty to ascertain or to inquire as to the performance
or observance of any of the terms, covenants or conditions of this Agreement or
any other Transaction Document on the part of the Seller or to inspect the
property (including the books and records) of the Seller; (v) shall not be
responsible to any Purchaser for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, the other

<PAGE>   67
                                     -67-

Transaction Documents, or any other instrument or document furnished pursuant
hereto or thereto; and (vi) shall incur no liability under or in respect of
this Agreement by acting upon any notice, consent, certificate or other
instrument or writing (which may be by facsimile) reasonably believed by it to
be genuine and signed or sent by the proper party or parties.

Section 12.03     Rabobank and Affiliates. Rabobank shall have the same rights
and powers hereunder and with respect to the Ownership Interests held by it, if
any, as any other Purchaser and may exercise the same as though it were not the
Agent, the Custodian or acting in any other capacity under any Transaction
Document or Conduit Funding Agreement, and the term "Purchaser" or "Purchasers"
shall, unless otherwise expressly indicated, include Rabobank in its individual
capacity as a Purchaser hereunder. Rabobank and its Affiliates may accept
deposits from, lend money to, act as trustee under indentures of, enter into
currency protection and similar agreements with and generally engage in any
kind of business with, the Seller, any of its Affiliates, any Purchaser and any
Person who may do business with or own securities of the Seller or any such
Affiliate or such Purchaser, all as if Rabobank were not the Agent or the
Custodian or acting in any other capacity under any Transaction Document or
Conduit Funding Agreement, and without any duty to account therefor to the
Purchasers.

Section 12.04     Purchaser Credit Decision. Each Purchaser acknowledges that
it has, independently and without reliance upon the Agent or the Custodian or
any other Purchaser and based on such financial statements and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement and the other Transaction
Documents to which it is a party. Each Purchaser also acknowledges that it
will, independently and without reliance upon the Agent or the Custodian or any
other Purchaser and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement and such other Transaction Documents.

Section 12.05     Indemnification. The Purchasers agree to indemnify each of
the Agent, the Custodian and their respective directors, officers and employees
(to the extent not reimbursed by the Seller), ratably in proportion to their
respective Investments, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on,
incurred by or asserted against the Agent or the Custodian in any way relating
to or arising out of this Agreement, any of the other Transaction Documents or
the transactions contemplated hereby or thereby, or any action taken or omitted
by the Agent or the Custodian under this Agreement or any of the other
Transaction Documents, provided that no Purchaser shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the Agent's
or the Custodian's gross negligence or wilful misconduct. Without limitation to
the foregoing, each Purchaser agrees to reimburse the Agent and the Custodian
promptly upon demand for such Purchaser's ratable share (computed based on the
ratio which such Purchaser's Investment bears to the aggregate of the
Investments hereunder) of any out-of-pocket expenses (including reasonable
counsel fees, on a solicitor and his own client basis) incurred by the Agent or
the Custodian in connection with the preparation, execution, delivery,
administration, modification, amendment, waiver or enforcement (whether

<PAGE>   68
                                     -68-

through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement or any of the other
Transaction Documents, to the extent that such Agent or the Custodian is not
reimbursed for such expenses by the Seller. From and after the occurrence of
the Termination Date, the indemnification obligations of the Purchasers under
this Section 12.05 shall be calculated as if their respective Investments on
the day immediately prior to the Termination Date remained in effect.

Section 12.06     Successor Agent or Custodian. Rabobank may resign at any time
from its role as Agent or Custodian hereunder by giving written notice thereof
to the Purchasers and the Seller, and may be removed at any time with or
without cause by the Majority Purchasers upon written notice thereof to the
Agent and the Seller. Such resignation or removal shall become effective as set
forth below. The Majority Purchasers shall have the right to appoint a
successor Agent or Custodian, as applicable, provided that the Seller, the
Servicer and each Administrator shall have the right to approve the successor
Agent or Custodian, as applicable, which approval shall not be unreasonably
withheld. If no successor Agent or Custodian, as applicable, shall have been so
appointed by the Majority Purchasers and approved by the Seller, the Servicer
and each Administrator, and shall have accepted such appointment, within 30
days after the departing Agent's (or Custodian's) giving of notice of
resignation or the Majority Purchasers' removal of the departing Agent or
Custodian, as applicable, then the departing Agent (or Custodian, as
applicable) may, on behalf of the Purchasers, appoint a successor Agent (or
Custodian, as applicable), which successor Agent (or Custodian, as applicable)
shall have short-term debt ratings of at least A-1 from S&P and P-1 from
Moody's and shall be either a commercial bank having a combined capital and
surplus of at least U.S. $250,000,000 or an Affiliate of such an institution.
Upon the acceptance of any appointment as Agent or Custodian hereunder by a
successor Agent or Custodian, such successor Agent or Custodian shall thereupon
succeed to and become vested with all of the rights, powers, privileges and
duties of the departing Agent or Custodian, and the departing Agent or
Custodian shall be discharged from its duties and obligations under this
Agreement; provided that the appointment of such successor Agent or Custodian
shall not become effective until each Purchaser shall have received written
confirmation from each of the rating agencies then rating the Commercial Paper
Notes of such Purchaser that the rating of such Commercial Paper Notes would
not, as a result of such appointment, be reduced or withdrawn. Notwithstanding
anything contained to the contrary herein, until such time as such successor
Agent or Custodian shall have accepted such appointment as aforesaid, the
departing Agent or Custodian shall not be discharged from any of its duties and
obligations as the Agent or Custodian under this Agreement. After any departing
Agent's or Custodian's, as applicable, resignation or removal hereunder from
such role, the provisions of this Article XII shall inure to its benefit as to
any actions taken or omitted to be taken by it while it was such agent under
this Agreement.

Section 12.07     Authorization and Action of Administrator. Each Purchaser in
a Related Group hereby appoints and authorizes the Administrator for such
Related Group to take such action as agent on its behalf and to exercise such
powers under this Agreement and the other Transaction Documents to which such
Administrator is a party, as are delegated to such Administrator by the terms
hereof and thereof, together with such powers as are reasonably incidental
thereto. The Purchasers in a Related Group may at any time appoint a new
Administrator in accordance with

<PAGE>   69
                                     -69-

the terms of the applicable Administrator Agreement. Upon the acceptance of any
appointment as Administrator hereunder by a successor Administrator, such
successor Administrator shall thereupon succeed to and become vested with all
of the rights, powers, privileges and duties of the departing Administrator,
and the departing Administrator shall be discharged from its duties and
obligations under this Agreement. None of the functions, obligations or
authority of the Agent shall be carried out, directly or indirectly, in Canada.

Section 12.08     Duties of the Custodian.

         (a)      The Custodian undertakes to perform such duties and only such
                  duties as are specifically set forth in this Agreement and
                  any other agreements to which it has entered into in its
                  capacity as Custodian pursuant to the terms hereof.

         (b)      Notwithstanding any other provisions hereof:

                  (i)      the Custodian shall not be personally liable for an
                           error of judgment made in good faith by the
                           Custodian, unless it shall be proved that the
                           Custodian was grossly negligent in ascertaining the
                           pertinent facts;

                  (ii)     the Custodian shall not be personally liable with
                           respect to any action taken, suffered or omitted to
                           be taken by it in good faith in accordance with a
                           written direction from the Agent or the Purchasers
                           relating to the time of, method of and place of
                           conducting any proceeding for any remedy available
                           to the Custodian, or exercising any trust or power
                           conferred upon the Custodian under this Agreement
                           unless it shall be proved that the Custodian was
                           grossly negligent in ascertaining the pertinent
                           facts; and

                  (iii)    the Custodian shall not be charged with knowledge of
                           any Early Amortization unless the Custodian receives
                           written notice of such failure from the Servicer,
                           the Seller or the Agent.

         (c)      The Custodian shall not be required to expend or risk its own
                  funds or otherwise incur financial liability in the
                  performance of any of its duties hereunder, or in the
                  exercise of any of its rights or powers. None of the
                  provisions contained in this Agreement shall in any event
                  require the Custodian to perform, or be responsible for the
                  manner of performance of, any of the obligations of the
                  Servicer under this Agreement except during such time, if
                  any, as the Custodian shall agreed in writing to be the
                  successor to, and to be vested with the rights, duties,
                  powers and privileges of, the Servicer in accordance with the
                  terms of this Agreement.

         (d)      The Custodian hereby acknowledges that its appointment by the
                  Seller and the Purchasers as agent and bailee pursuant to
                  this Agreement, is and is intended to be a limited
                  appointment in the capacity of an agent and bailee of
                  independent status acting in the ordinary course of its
                  business and there are no implied duties or obligations
                  except as expressly provided herein. The Custodian
                  acknowledges

<PAGE>   70
                                     -70-

                  that its role in the transactions herein provided for is
                  limited to the functions specified in this Agreement and,
                  unless expressly stated to the contrary or otherwise required
                  by the context, all references in this Agreement to the
                  Custodian shall mean the Custodian acting as agent and bailee
                  for and on behalf of the Seller and the Purchasers. The
                  Custodian acknowledges that in such capacity it does not have
                  and agrees that it will not exercise or purport to exercise
                  any general power or general authority to conclude, enter
                  into or vary contracts collateral to this Agreement in the
                  name of or on behalf of the Seller or the Purchaser.

Section 12.09     Certain Matters Affecting the Custodian. Notwithstanding
anything else contained herein:

         (a)      the Custodian may rely on and shall be protected in acting
                  on, or in refraining from acting in accord with, this
                  Agreement, any Monthly Report or any other certificate,
                  statement, instrument, opinion, report, notice, request,
                  consent, order, appraisal, bond or other paper or document
                  believed by it to be genuine and to have been signed or
                  presented to it pursuant to this Agreement by the proper
                  party or parties;

         (b)      the Custodian may, following notice to the Seller and the
                  Agent, consult with counsel with respect to any questions as
                  to any of the provisions hereof or its duties hereunder, and
                  any opinion of counsel shall be full and complete
                  authorization and protection in respect of any action taken
                  or suffered or omitted by it hereunder and in good faith and
                  in accordance with such opinion of counsel. The reasonable
                  fees and expenses of such counsel shall be paid by the
                  Seller;

         (c)      the Custodian shall be under no obligation to exercise any of
                  the rights or powers vested in it by this Agreement or any
                  related agreements or instruments, or to institute, conduct
                  or defend any litigation hereunder or in relation hereto, at
                  the request, order or direction of any of the Purchasers or
                  the Seller, pursuant to the provisions of this Agreement,
                  unless such Persons shall have offered to the Custodian
                  reasonable security or indemnity reasonably satisfactory to
                  the Custodian against the costs, expenses and liabilities
                  which may be incurred therein or thereby;

         (d)      the Custodian shall not be personally liable for any action
                  taken, suffered or omitted by it in good faith and believed
                  by it to be authorized or within the rights or powers
                  conferred upon it by this Agreement or any related agreements
                  or instruments;

         (e)      the Custodian shall not be bound to make any investigation
                  into the facts of matters stated in any Monthly Report, or
                  any resolution, certificate, statement, instrument, opinion,
                  report, notice, request, consent, order, appraisal, bond or
                  other paper or document;

<PAGE>   71
                                     -71-

         (f)      the Custodian may execute any of the rights hereunder or
                  perform any duties hereunder either directly or by or through
                  agents or attorneys or a sub-custodian, and the Custodian
                  shall not be responsible for any misconduct or negligence on
                  the part of any such agent, attorney or custodian appointed
                  with due care by it hereunder;

         (g)      the Custodian shall not be required to make any initial or
                  periodic examination of any documents or records related to
                  the Pool Assets for the purpose of establishing the presence
                  or absence of defects, the compliance by the Seller with its
                  representations and warranties or for any other purpose; and

         (h)      the Custodian may employ such experts, advisers, agents and
                  other assistants as it may reasonably require for the proper
                  discharge of its duties hereunder and may pay reasonable
                  remuneration for all such services performed for it in the
                  discharge of its duties hereunder. The cost of such services
                  shall be paid by the Seller.

Section 12.10     Suits for Enforcement. Without limiting anything else
contained herein, if an Early Amortization Event shall occur and be continuing,
the Custodian may, in accordance with a written direction from the Agent,
proceed to protect and enforce its rights and the rights of the Seller and the
Agent, as co-owners, under this Agreement by a suit, action or proceeding in
equity or at law or otherwise, whether for the specific performance of any
covenant or agreement contained in this Agreement or in aid of the execution of
any power granted in this Agreement or for the enforcement of any other legal,
equitable or other remedy as the Custodian, being advised by counsel, shall
deem most effectual to protect and enforce any of the rights of the Custodian,
the Purchasers and the Seller.

                                 ARTICLE XIII
             ASSIGNMENTS; PARTICIPATIONS; ADDITIONAL RELATED GROUPS

Section 13.01     Assignments and Participations.

         (a)      Neither the Seller nor the Servicer nor any Purchaser shall
                  have the right to assign its rights or obligations under this
                  Agreement except to the extent otherwise provided herein. The
                  Seller hereby agrees and consents to the complete or partial
                  assignment by any Purchaser of all or any portion of its
                  rights under, interest in, title to and obligations under
                  this Agreement to (i) any member of its Related Group or any
                  Conduit Funding Source and (ii) any other Person approved by
                  the Seller (such approval not to be unreasonably withheld),
                  and upon such assignment, (x) the assignee thereunder shall
                  be a party hereto and, to the extent that rights and
                  obligations hereunder have been assigned to it pursuant to
                  such assignment, have the rights and obligations of a
                  Purchaser hereunder and (y) the Purchaser assignor thereunder
                  shall, to the extent that rights and obligations hereunder
                  have been assigned by it pursuant to such assignment,
                  relinquish its rights and be released from its obligations
                  under this Agreement (and, in the case of an assignment
                  covering all or the remaining portion of an assigning
                  Purchaser's

<PAGE>   72
                                     -72-

                  rights and obligations under this Agreement, such Purchaser
                  shall cease to be a party hereto).

         (b)      Nothing herein shall prohibit any Purchaser from pledging or
                  assigning as collateral any of its rights under this
                  Agreement to any Federal Reserve Bank in accordance with
                  applicable law and any such pledge or collateral assignment
                  may be made without compliance with this Section 13.01.

Section 13.02     Additional Related Groups. Upon the Seller's request, an
additional Related Group may be added to this Agreement at any time by the
execution and delivery of a Joinder Agreement by the members of such proposed
additional Related Group and each of the parties hereto, which execution and
delivery shall not be unreasonably refused by such parties. Upon the effective
date of such Joinder Agreement, (i) each Person specified therein as a
"Purchaser" shall become a party hereto as a Purchaser, entitled to the rights
and subject to the obligations of a Purchaser hereunder and (ii) each Person
specified therein as an "Administrator" shall become a party hereto as an
Administrator, entitled to the rights and subject to the obligations of an
Administrator hereunder. On or prior to the effective date of such Joinder
Agreement, the Seller, the new Purchaser and the new Administrator shall enter
into a fee letter for purposes of setting forth the fees payable to the members
of such Related Group in connection with this Agreement, which fee letter shall
be considered a "Fee Letter" for all purposes of this Agreement.

                                  ARTICLE XIV
                                 MISCELLANEOUS

Section 14.01     Waivers and Amendments.

         (a)      No failure or delay on the part of the Custodian, the Agent,
                  any Administrator or any Purchaser in exercising any power,
                  right or remedy under this Agreement shall operate as a
                  waiver thereof, nor shall any single or partial exercise of
                  any such power, right or remedy preclude any other further
                  exercise thereof or the exercise of any other power, right or
                  remedy. The rights and remedies herein provided shall be
                  cumulative and nonexclusive of any rights or remedies
                  provided by law. Any waiver of this Agreement shall be
                  effective only in the specific instance and for the specific
                  purpose for which given.

         (b)      No provision of this Agreement may be amended, supplemented,
                  modified or waived except in writing in accordance with the
                  provisions of this Section 14.01(b). The Seller, the
                  Servicer, the Agent, the Custodian, each Administrator and
                  the Majority Purchasers, may enter into written modifications
                  or waivers of any provisions of this Agreement, provided,
                  however, that no such modification or waiver shall:

                  (i)      without the consent of each affected Purchaser, (A)
                           extend the Liquidity Termination Date or the date of
                           any payment or deposit of Collections by the Seller
                           or the Servicer, (B) reduce the rate or extend the
                           time of payment of Yield (or any component thereof),
                           (C) reduce any fee payable

<PAGE>   73
                                     -73-

                           to any Administrator for the benefit of the
                           Purchasers in its Related Group, (D) except pursuant
                           to Article XIII hereof, change the amount of the
                           Investment of any Purchaser, (E) amend, modify or
                           waive any provision of the definition of Majority
                           Purchasers or this Section 14.01(b), (F) consent to
                           or permit the assignment or Transfer by the Seller
                           of any of its rights and obligations under this
                           Agreement, (G) change the definition of "Eligible
                           Receivable" or "Credit Enhancement", or (H) amend or
                           modify any defined term (or any defined term used
                           directly or indirectly in such defined term) used in
                           clauses (A) through (G) above in a manner that would
                           circumvent the intention of the restrictions set
                           forth in such clauses;

                  (ii)     without the written consent of the then Agent or
                           Custodian, as applicable, amend, modify or waive any
                           provision of this Agreement if the effect thereof is
                           to affect the rights or duties of such Agent or
                           Custodian; or

                  (iii)    without the consent of each affected Administrator,
                           modify or waive any provision of this Agreement if
                           the effect thereof is to affect the rights or duties
                           of such Administrator.

Any modification or waiver made in accordance with this Section 14.01 shall
apply to each of the Purchasers equally and shall be binding upon the Seller,
the Purchasers, the Custodian, the Administrators and the Agent.
Notwithstanding anything herein to the contrary, (i) no amendment to this
Agreement shall become effective unless and until each rating agency then
rating any of the Commercial Paper Notes of the Purchasers hereunder confirms
that such amendment will not result in the reduction, withdrawal or suspension
of the then current rating of such Commercial Paper Notes and (ii) no waiver of
any of Section 10.01(h)(iii) or Section 10.01(h)(iv) for two consecutive months
shall become effective without the prior written consent of each rating agency
then rating any of the Commercial Paper Notes of the Purchasers hereunder.

Section 14.02 Notices.     Except as provided below, all communications and
notices provided for hereunder shall be in writing (including bank wire,
telecopy or electronic facsimile transmission or similar writing) and shall be
given to the other parties hereto at their respective addresses or telecopy
numbers set forth on the signature pages hereof or at such other address or
telecopy number as such Person may hereafter specify for the purpose of notice
to each of the other parties hereto. Each such notice or other communication
shall be effective (i) if given by telecopy, upon the receipt thereof, (ii) if
given by mail, three (3) Business Days after the time such communication is
deposited in the mail with first class postage prepaid (provided that no party
hereto shall give any such notice or other communication by mail at a time when
there is, to their knowledge, any actual or apprehended disruption of postal
services in the applicable jurisdictions) or (iii) if given by any other means,
when received at the address specified in this Section 14.02. The Seller hereby
authorizes each Administrator to effect purchases and Settlement Period and
Alternative Rate selections based on telephonic notices made by any Person whom
such Administrator in good faith believes to be acting on behalf of the Seller.
The Seller agrees to deliver promptly to each Administrator a written
confirmation of each telephonic notice signed by an Authorized Officer of the
Seller; however, the absence of such confirmation

<PAGE>   74
                                     -74-

shall not affect the validity of such notice. If the written confirmation
differs from the action taken by an Administrator, the records of such
Administrator shall govern absent manifest error.

Section 14.03     Ratable Payments. If any Purchaser, whether by setoff or
otherwise, has payment made to it with respect to any portion of the Unpaid
Obligations owing to such Purchaser (other than payments received pursuant to
Section 11.02 or 11.03) in a greater proportion than that received by any other
Purchaser entitled to receive a ratable share of such Unpaid Obligations, such
Purchaser agrees, promptly upon demand, to purchase for cash without recourse
or warranty a portion of such Unpaid Obligations held by the other Purchasers
so that after such purchase each Purchaser will hold its ratable proportion of
such Unpaid Obligations; provided that if all or any portion of such excess
amount is thereafter recovered from such Purchaser, such purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but
without interest.

Section 14.04     Protection of Ownership Interests of the Purchasers.

         (a)      The Seller agrees that from time to time, at its expense, it
                  will promptly execute and deliver all instruments and
                  documents, and take all actions, that may be necessary or
                  that the Agent or any Administrator may reasonably request,
                  to perfect, protect or more fully evidence the Ownership
                  Interests, or to enable the Custodian, the Agent, the
                  Administrators or the Purchasers to exercise and enforce
                  their rights and remedies hereunder. At any time following
                  the occurrence and during the continuation of a Cash Control
                  Event, the Agent may, or the Agent may direct the Seller or
                  the Servicer to, notify the Obligors of Dealer Receivables in
                  which the Seller has an interest, at the Seller's expense, of
                  the Ownership Interests of the Purchasers under this
                  Agreement and the Custodian's right and may also direct that
                  payments of all amounts due or that become due under any or
                  all Dealer Receivables in which the Seller has an interest be
                  made directly to the Agent or its designee. The Seller or the
                  Servicer (as applicable) shall, at any Purchaser's request,
                  withhold the identity of such Purchaser in any such
                  notification.

         (b)      If either the Seller or the Servicer fails to perform any of
                  its obligations hereunder, the Agent, any Administrator or
                  any Purchaser may (but shall not be required to) perform, or
                  cause performance of, such obligation, and the Agent's, such
                  Administrator's or such Purchaser's costs and expenses
                  incurred in connection therewith shall be payable by the
                  Seller as provided in Section 11.04. Each of the Seller and
                  the Servicer irrevocably authorizes the Agent at any time and
                  from time to time in the sole discretion of the Agent, and
                  appoints the Agent as its attorney-in-fact, to act on its
                  behalf (i) to execute on behalf of the Seller as debtor and
                  to file financing statements necessary in the Agent's sole
                  discretion to perfect and to maintain the perfection and
                  priority of the interest of the Agent and/or of the
                  Purchasers in the Dealer Receivables and (ii) to file a
                  carbon, photographic or other reproduction of this Agreement
                  or any financing statement with respect to the Dealer
                  Receivables as a financing statement in such offices as the
                  Agent in its sole discretion deems necessary or desirable to
                  perfect and to

<PAGE>   75
                                     -75-

                  maintain the perfection and priority of the interests of the
                  Purchasers in the Dealer Receivables. This appointment is
                  coupled with an interest and is irrevocable.

Section 14.05     Confidentiality.

         (a)      Each of the Seller and the Servicer, the Agent, each
                  Administrator and Purchaser shall maintain and shall cause
                  each of its employees, directors and officers to maintain the
                  confidentiality of this Agreement and the other confidential
                  proprietary information with respect to the Agent, the
                  Custodian, the Administrators and the Purchasers, the Seller
                  and the Servicer and their respective businesses obtained by
                  it or them in connection with the structuring, negotiating
                  and execution of the transactions contemplated herein, except
                  that the Seller, the Servicer and each Purchaser and its
                  officers, directors and employees may disclose such
                  information to such Person's officers, directors and external
                  accountants and attorneys and lawyers and as required by any
                  applicable law, rule, direction, request or order of any
                  judicial, administrative or regulatory body or any stock
                  exchange, issued during any proceeding or otherwise.

         (b)      Anything herein to the contrary notwithstanding, each of the
                  Seller and the Servicer hereby consents to the disclosure of
                  any nonpublic information with respect to it (i) to the
                  Agent, the Custodian, the Administrators and the Purchasers
                  by each other, (ii) by the Agent, the Administrators or the
                  Purchasers to any prospective or actual assignee or
                  participant of any of them, (iii) by the Agent or any
                  Administrator to any rating agency or (iv) by the Agent or
                  any Administrator to any Commercial Paper Note dealer or
                  provider of a surety, guaranty or credit or liquidity
                  enhancement to a Purchaser or any entity organized for the
                  purpose of purchasing, or making loans secured by, financial
                  assets for which such Administrator acts as the
                  administrative or servicing agent and to any officers,
                  directors, employees, outside accountants and attorneys or
                  lawyers of any of the foregoing, provided each such Person is
                  informed of the confidential nature of such information and,
                  in the case of a Person described in clause (ii) or clause
                  (iv), agrees to maintain the confidentiality of such
                  information on the terms and conditions set forth in this
                  Section 14.05. In addition, the Purchasers, the
                  Administrators and the Agent may disclose any such nonpublic
                  information pursuant to any law, rule, regulation, direction,
                  request or order of any judicial, administrative or
                  regulatory authority or proceedings (whether or not having
                  the force or effect of law).

<PAGE>   76
                                     -76-

Section 14.06     Bankruptcy Petition.

         (a)      The Seller, the Servicer, the Agent, each Administrator and
                  each Purchaser hereby covenants and agrees that, prior to the
                  date that is one year and one day after the latest maturing
                  Commercial Paper Note issued by any Purchaser (whether or not
                  issued to fund the purchase or maintenance of the Ownership
                  Interests of such Purchaser hereunder), it will not institute
                  against, or join any other Person in instituting against,
                  such Purchaser any bankruptcy, reorganization, arrangement,
                  insolvency or liquidation proceedings or other similar
                  proceeding under the laws of the United States or any state
                  of the United States or any other applicable jurisdiction.

         (b)      Notwithstanding any provisions contained in this Agreement to
                  the contrary, no Purchaser shall be obligated to pay any
                  amount pursuant to this Agreement unless (i) such Purchaser
                  has received funds which may be used to make such payment and
                  which funds are not required to repay the Commercial Paper
                  Notes of such Purchaser when due and (ii) after giving effect
                  to such payment, either (x) there is sufficient liquidity
                  availability (determined in accordance with the program
                  documents governing such Purchaser's securitization program)
                  under all of such Purchaser's liquidity facilities to pay the
                  face amount of all outstanding Commercial Paper Notes of such
                  Purchaser when due or (y) all Commercial Paper Notes of such
                  Purchaser are paid in full. Any amount which a Purchaser does
                  not pay pursuant to the operation of the preceding sentence
                  shall not constitute a claim (as defined inss.101 of the
                  Bankruptcy Code) against or corporate obligation of such
                  Purchaser for any such insufficiency unless and until such
                  Purchaser satisfies the provisions of clauses (i) and (ii)
                  above. Failure of a Purchaser to make a payment for any
                  purchase of an Ownership Interest hereunder shall be deemed
                  to be an election of such Purchaser not to purchase such
                  Ownership Interest.

Section 14.07     Limitation of Liability. Except with respect to any claim
arising out of the wilful misconduct or gross negligence of a Purchaser, an
Administrator, the Custodian or the Agent, no claim may be made by either the
Seller or the Servicer or any other Person against any Purchaser, any
Administrator, the Custodian or the Agent or any of their respective
Affiliates, directors, officers, managers, employees, attorneys or agents for
any special, indirect, consequential or punitive damages in respect of any
claim for breach of contract or any other theory of liability arising out of or
related to the transactions contemplated by this Agreement, or any act,
omission or event occurring in connection therewith; and each of the Seller and
the Servicer hereby waives, releases, and agrees not to sue upon any claim for
any such damages, whether or not accrued and whether or not known or suspected
to exist in its favour.

<PAGE>   77
                                     -77-

Section 14.08     GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF OBJECTION
TO VENUE. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE PROVINCE OF ONTARIO, CANADA. EACH OF THE PARTIES HERETO
HEREBY AGREES TO THE JURISDICTION OF ANY FEDERAL COURT LOCATED IN NEW YORK, NEW
YORK. EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON
CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY
OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

Section 14.09     WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREBY.

Section 14.10     Power of Attorney. The Seller and the Custodian each hereby
grants to the Agent and any officer or agent thereof (including any successor
Servicer appointed in accordance herewith), an irrevocable power of attorney,
with full power of substitution (including the power to delegate to any Person
from time to time), coupled with an interest, in the name of the Seller, the
Custodian or in the Agent's own name or in all or any of such names, to take
any and all appropriate action and to execute any and all documents and
instruments which may be necessary or desirable to take all such action
contemplated by Section 8.03 or 13.04(b) and, without limiting the generality
thereof, to take all such action following the occurrence of a Servicer Default
(i) to endorse, negotiate or otherwise realize on any writing, bill of
exchange, negotiable instrument or other right of any kind held or owned by the
Seller or the Custodian or transmitted to or received by the Agent or the
Purchasers or any Person acting on behalf thereof as payment on account or
otherwise in respect of any Dealer Receivables, (ii) to request or obtain any
consent or acknowledgement required for the Transfer to the Purchasers of the
Ownership Interests in any Dealer Receivable or Related Security or interest
therein which had not theretofore been obtained, or (iii) to sue any Obligor.
The Seller and the Custodian each hereby ratifies all that said attorneys will
lawfully do or cause to be done by virtue of this Section 14.10.

Section 14.11     Integration; Binding Effect; Survival of Terms.

         (a)      This Agreement, each Deposit Account Agreement and the Fee
                  Letters contain the final and complete integration of all
                  prior expressions by the parties hereto with respect to the
                  subject matter hereof and shall constitute the entire
                  agreement among the parties hereto with respect to the
                  subject matter hereof, superseding all prior oral or written
                  understandings.

<PAGE>   78
                                     -78-

         (b)      This Agreement shall be binding upon and inure to the benefit
                  of the parties hereto and their respective successors and
                  permitted assigns (including any trustee in bankruptcy). 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 all
                  Investment hereunder together with all interest, fees,
                  indemnities and other amounts due hereunder have been paid or
                  repaid in full, as the case may be.

Section 14.12     Counterparts; Severability; Section References. This Agreement
may be executed in any number of counterparts and by 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. Any provisions of this Agreement which are prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. Unless otherwise expressly indicated, all references herein
to "Article," "Section," "Schedule" or "Exhibit" shall mean articles and
sections of, and schedules and exhibits to, this Agreement.

Section 14.13     Roles. Each of the Purchasers acknowledges that Rabobank and
its Affiliates act, or may in the future act, (i) as administrative agent for
Nieuw Amsterdam, (ii) as issuing and paying agent for the Commercial Paper
Notes of Nieuw Amsterdam, (iii) to provide credit or liquidity enhancement for
the timely payment for the Commercial Paper Notes of Nieuw Amsterdam, (iv) act
as counterparty under any Currency Protection Agreements entered into in
connection herewith and (v) to provide other services from time to time for
Nieuw Amsterdam (collectively, the "Rabobank Roles"). Without limiting the
generality of this Section 14.12, each Purchaser hereby acknowledges and
consents to any and all Rabobank Roles and agrees that in connection with any
Rabobank Role, Rabobank may take, or refrain from taking, any action that it,
in its discretion, deems appropriate, including, without limitation, in its
role as administrative agent for Nieuw Amsterdam.

Section 14.14     Further Assurances. The Seller agrees from time to time, at
the Agent's request and at the Seller's expense, to promptly execute and
deliver all further instruments and documents, and to take all further actions,
that may be necessary or desirable, or that may be reasonably requested, to
perfect, protect or more fully evidence the Transfer of the Pool Assets to the
Custodian and the Purchase by the Agent on behalf of the Purchasers of the
Ownership Interests under this Agreement, or to enable the Custodian, the
Purchasers or the Servicer to exercise and enforce their respective rights and
remedies hereunder. Without limiting the foregoing, the Seller will, upon the
request of the Custodian or the Agent, execute and file such financing or
continuation statements, or amendments thereto, and such other instruments and
documents, that may be necessary or desirable, or that the Custodian or the
Purchasers may reasonably request, to perfect, protect, vest or evidence the
Transfer to the Custodian of the Pool Assets and the sale to the Agent on
behalf of the Purchasers of the Ownership Interests. The Seller authorizes the
Custodian and the Agent to file financing, financing change or continuation
statements, and amendments thereto and assignments thereof, against the Seller
relating to the

<PAGE>   79
                                     -79-

Transfer to the Custodian of the Pool Assets and the sale and assignment of the
Ownership Interests to the Purchasers without the signature of the Seller where
permitted by law.

Section 14.15     Characterization; Grant of Security Interest.

         (a)      It is the intention of the parties hereto that each Purchase
                  hereunder and each Transfer under Section 3.06 shall
                  constitute and be treated as an absolute and irrevocable
                  sale, which shall provide the applicable Purchaser with the
                  full benefits of ownership of the applicable Ownership
                  Interest and that the Seller and the Purchaser are joint
                  owners of the Pool Assets, as tenants in common. Except as
                  specifically provided in this Agreement, each sale of an
                  Ownership Interest hereunder is made without recourse to the
                  Seller; provided, however, that (i) the Seller shall be
                  liable to each Purchaser, each Administrator, the Custodian
                  and the Agent for all representations, warranties and
                  covenants made by the Seller pursuant to the terms of this
                  Agreement, and (ii) such sale does not constitute and is not
                  intended to result in an assumption by any Purchaser, any
                  Administrator, the Custodian or the Agent or any assignee
                  thereof of any obligation of the Seller or the Servicer or
                  any other Person arising in connection with the Dealer
                  Receivables, the Related Security, or the related Contracts,
                  or any other obligations of the Seller or the Servicer.

         (b)      In addition to any Ownership Interest which the Agent and/or
                  the Custodian may from time to time acquire pursuant hereto,
                  the Seller hereby grants to the Agent for the ratable benefit
                  of the Purchasers a valid security interest in all of the
                  Seller's right, title and interest in, to and under all
                  Dealer Receivables now existing or hereafter arising, the
                  Collections, each Deposit Account, all Related Security, all
                  other rights and payments relating to such Dealer Receivables
                  and all proceeds of any thereof prior to all other liens on
                  and security interests therein to secure the prompt and
                  complete payment of the Seller Obligations and all
                  obligations of all Obligors; provided, however, that the
                  Agent and the Purchasers hereby agree that no security
                  interest is granted in any cash collections or other property
                  included in any Deposit Account to the extent such cash
                  collections or other property does not constitute Dealer
                  Receivables, Related Security or Collections, and the
                  Servicer shall dispose of such cash collections or other
                  property as provided in Section 9.02(e) hereof. After an
                  Early Amortization Event, the Agent and the Purchasers shall
                  have, in addition to the rights and remedies that they may
                  have under this Agreement, all other rights and remedies
                  provided to a secured creditor after default under the UCC
                  and other applicable law, which rights and remedies shall be
                  cumulative.

Section 14.16     Limitation on Payments. Notwithstanding any provisions
contained in this Agreement to the contrary, none of the Purchasers or the
Agent shall, or shall be obligated to, pay any amount to the Seller or the
Servicer pursuant to this Agreement unless (i) such Purchaser or the Agent, as
applicable, has received Collections hereunder which may be used to make such
payment and which Collections are not required to repay the Commercial Paper
Notes of any Purchaser when due and (ii) after giving effect to such payment,
either (x) there is sufficient

<PAGE>   80
                                     -80-

liquidity availability (determined in accordance with the program documents
governing each Purchaser's securitization program) under all of the Purchasers'
liquidity facilities to pay the Face Amount of all such outstanding Commercial
Paper Notes when due or (y) all such Commercial Paper Notes are paid in full;
provided, however, that the foregoing limitations on payments by any Purchaser
or the Agent shall not apply to any distributions of any amounts out of
Collections pursuant to Section 4.03 or 4.05. Any amount which any Purchaser or
the Agent does not pay pursuant to the operation of the preceding sentence
shall not constitute a claim (as defined in ss.101 of the United States
Bankruptcy Reform Act of 1978 (11 U.S.C. ss. 101, et seq.), as amended from
time to time) against or corporate obligation of such Purchaser or the Agent
for any such insufficiency unless and until such Purchaser or the Agent, as
applicable, satisfies the provisions of clauses (i) and (ii) above.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed and delivered by their duly authorized officers as of the date
hereof.

                                    AGCO CANADA, LTD.

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

                                    c/o AGCO Corporation
                                    4205 River Green Parkway
                                    Duluth, GA  30096
                                    Attention:  David Williams
                                    Fax:  (770) 813-6070

                                    AGCO CORPORATION

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

                                    AGCO Corporation
                                    4205 River Green Parkway
                                    Duluth, GA  30096
                                    Attention:  David Williams
                                    Fax:  (770) 813-6070

                            First Signature Page to
                         Receivables Purchase Agreement

<PAGE>   81
                                     -81-

                                    COOPERATIEVE CENTRALE RAIFFEISEN-
                                    BOERENLEENBANK B.A., "RABOBANK
                                    INTERNATIONAL", NEW YORK BRANCH, as an
                                    Administrator, Agent and as Custodian

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

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

                                    Rabobank International
                                    245 Park Avenue, 38th Floor
                                    New York, New York  10167
                                    Attention:  Wing Ng
                                    Fax:  (212) 309-5120

                                    NIEUW AMSTERDAM RECEIVABLES
                                    CORPORATION, as a Purchaser

                                    By:   GLOBAL SECURITIZATION SERVICES, LLC,
                                          its Attorney-in-Fact

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

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

                                    Global Securitization Services, LLC
                                    114 West 47th Street
                                    Suite 1715
                                    New York, New York  10036
                                    Attention:  Tony Wong

                            Second Signature Page to
                         Receivables Purchase Agreement

<PAGE>   82

                                   EXHIBIT A

                             FORM OF MONTHLY REPORT

                                   (Attached)

<PAGE>   83

                                   EXHIBIT B

                       FORM OF DEPOSIT ACCOUNT AGREEMENT

                                   (Attached)

<PAGE>   84

                                   EXHIBIT C

                            [INTENTIONALLY DELETED]

                                   (Attached)

<PAGE>   85

                                   EXHIBIT D

                            FORM OF PURCHASE NOTICE

                                     [DATE]

Cooperatieve Centrale Raiffeisen-Boerenleenbank
B.A., "Rabobank International", New York Branch,
as Agent
245 Park Avenue
New York, NY  10167
Attention: Wing Ng

         Re:      Receivables Purchase Agreement

Ladies and Gentlemen:

         Reference is hereby made to the Receivables Purchase Agreement, dated
as of -, 2001 (as amended or otherwise modified from time to time, the
"Receivables Purchase Agreement") by and among AGCO Canada, Ltd., as seller
(the "Seller"), AGCO Corporation, as servicer (in such capacity, the
"Servicer"), the "Purchasers" parties thereto, the "Administrators" parties
thereto and Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., "Rabobank
International", New York Branch, as agent and custodian (in its capacity as
agent, the "Agent"). Capitalized terms used herein shall have the meanings
assigned to such terms in the Receivables Purchase Agreement.

         The Seller hereby requests the following Incremental Purchase (the
"Proposed Purchase"):

<TABLE>
------------------------------------------------------------ ---------------------------------------------------------
<S>                                                          <C>
Requested increase in Investment (i.e.: Purchase Price)      [U.S./CDN $]
------------------------------------------------------------ ---------------------------------------------------------
Business Day of Proposed Purchase
------------------------------------------------------------ ---------------------------------------------------------

------------------------------------------------------------ ---------------------------------------------------------
</TABLE>

         The proceeds of the Proposed Purchase should be remitted to the Seller
by wire transfer in accordance with the following instructions:

                  [ACCOUNT NAME]
                  [ACCOUNT NO.]
                  [BANK NAME & ADDRESS]
                  [ABA #]
                  Reference:
                  Telephone advice to: [NAME] @ Tel. No. ()

         The Seller hereby certifies that the conditions precedent in Section
7.02 of the Receivables Purchase Agreement are satisfied with respect to the
Proposed Purchase including,

<PAGE>   86
                                      -2-

without limitation, that the following statements will be true on the date of
the Proposed Purchase (before and after giving effect to the Proposed
Purchase):

         (i)      the representations and warranties set forth in Sections 6.01
         and 6.02 of the Receivables Purchase Agreement are true and correct in
         all material respects on and as of the date of the Proposed Purchase
         as though made on and as of such date;

         (ii)     no event has occurred and is continuing, or would result from
         the Proposed Purchase, that will constitute an Early Amortization
         Event or Potential Early Amortization Event;

         (iii)    the Liquidity Termination Date has not occurred; and

         (iv)     immediately after giving effect to the Proposed Purchase, the
         Net Eligible Receivables Balance shall be at least equal to the sum of
         (i) the aggregate Investment of all Ownership Interests, plus (ii) the
         Credit Enhancement;

                                    Very truly yours,

                                    AGCO CANADA, LTD.

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

<PAGE>   87

                                   EXHIBIT E

                         FORM OF COMPLIANCE CERTIFICATE

To:      Cooperatieve Centrale Raiffeisen-Boerenleenbank
         B.A., "Rabobank International", New York Branch, as Agent

         This Compliance Certificate is furnished pursuant to the Receivables
Purchase Agreement, dated as of -, 2001 (as amended or otherwise modified from
time to time, the "Receivables Purchase Agreement") by and among AGCO Canada,
Ltd., as seller (the "Seller"), AGCO Corporation, as servicer (in such
capacity, the "Servicer"), the "Purchasers" parties thereto, the
"Administrators" parties thereto and Cooperatieve Centrale
Raiffeisen-Boerenleenbank B.A., "Rabobank International", New York Branch, as
agent and Custodian (in its capacity as agent, the "Agent"). Capitalized terms
used herein shall have the meanings assigned to such terms in the Receivables
Purchase Agreement.

         THE UNDERSIGNED HEREBY CERTIFIES THAT:

         1.       I am the duly elected __________ of the Servicer.

         2.       I have reviewed the terms of the Receivables Purchase
Agreement and I have made, or have caused to be made under my supervision, a
detailed review of the transactions and conditions of the Servicer and the
Seller during the accounting period covered by the attached financial
statements.

         3.       The examinations described in paragraph 2 did not disclose,
and I have no knowledge of, the existence of any condition or event which
constitutes an Amortization Event or Potential Amortization Event during or at
the end of the accounting period covered by the attached financial statements
or as of the date of this Certificate[, except as set forth in paragraph 4
below].

         [4.      Described below are the exceptions, if any, to paragraph 3 by
listing, in detail, the nature of the condition or event, the period during
which it has existed and the action which the Seller and/or the Servicer has
taken, is taking, or proposed to take with respect to each such condition or
event:]

         The foregoing certifications, together with the financial statements
delivered with this Certificate in support hereof, are made and delivered this
___ day of _________________, _____________.

<PAGE>   88

                                   EXHIBIT F

                            FORM OF DEALER AGREEMENT

                                   (Attached)

<PAGE>   89

                                   EXHIBIT G

                    FORM OF SELLER'S COUNSEL OPINION LETTER

                                   (Attached)

<PAGE>   90

                                   EXHIBIT H

                   FORM OF SERVICER'S COUNSEL OPINION LETTER

                                   (Attached)

<PAGE>   91

                                   SCHEDULE I

               LIST OF DEPOSIT ACCOUNTS AND DEPOSIT ACCOUNT BANKS

                        LOCK BOXES WITH BANK OF MONTREAL
                      DEPOSITED TO ACCOUNT #0002-1400-281

<TABLE>
               <S>                          <C>
               LOCK BOX #                     MAILING ADDRESS
               ----------                     ---------------
                  0079                       AGCO Canada, Ltd.
                                               P.O. Box 5600
                                               Station Main
                                               Unit No.0079
                                            Burlington, Ontario
                                                  L7R 4X3
</TABLE>

<PAGE>   92

                                  SCHEDULE II

                          SPECIAL CONCENTRATION LIMITS

         None.

<PAGE>   93

                                  SCHEDULE III

                PRINCIPAL PLACE OF BUSINESS OF SELLER; DOMICILE,
               LOCATION OF RECORDS; QST/HST/GST NUMBERS OF SELLER

         1.       Principal Place of Business, Domicile and Chief Executive
                  Office of Seller:

                  515 Dewdney Avenue
                  Regina, Saskatchewan
                  S4P 343

                  4205 River Green Parkway
                  Duluth, Georgia  30019

         2.       Locations of Records:

                  None, except the places of business specified in paragraph 1
                  above.

         3.       Tax Numbers:

                  GST:     135739381 RT0001

                  HST:     135739381 RT0001

                  QST:     1015816020 TQ0001

<PAGE>   94

                                  SCHEDULE IV

                           LIST OF CLOSING DOCUMENTS

1.       Purchase Notice dated as of the date of the initial purchase (the
         "Initial Closing Date").

2.       Written notification from the Agent as to whether the Purchasers
         intend to make the purchase specified in the Purchase Notice.

3.       Copies of search reports of all relevant searches conducted against
         the Seller and its predecessor names in Ontario, Quebec and
         Saskatchewan.

4.       Certificates of Status (or of Compliance) of the Seller for the
         jurisdiction of its chief executive office and each other jurisdiction
         where it conducts business.

5.       Certificate of Good Standing of the Servicer.

6.       Certificate of the Secretary or Assistant Secretary of the Seller
         attaching its

         (a)      Certificate and Articles of Incorporation;
         (b)      By-laws;
         (c)      Resolution of the board of directors of the Seller
                  authorizing the execution, delivery and performance of this
                  Agreement and the other Transaction Documents; and
         (d)      an incumbency certificate with the names and signatures of
                  the Authorized Officers of the Seller.

7.       Certificate of the Secretary or Assistant Secretary of the Servicer
         attaching its

         (a)      Certificate and Articles of Incorporation;
         (b)      By-laws;
         (c)      Resolution of the board of directors of the Servicer
                  authorizing the execution, delivery and performance of this
                  Agreement and the other Transaction Documents; and
         (d)      an incumbency certificate with the names and signatures of
                  the Authorized Officers of the Servicer.

8.       Monthly Report dated as of June 26, 2001.

9.       Compliance Certificates dated as of June 26, 2001.

10.      Copies of all consents, waivers and amendments to existing credit
         facilities that are necessary in connection with this Agreement.

11.      A favourable opinion of legal counsel for the Seller dated the Initial
         Closing Date and substantially in the form of Exhibit G.

<PAGE>   95
                                      -2-

12.      A favourable opinion of legal counsel for the Servicer dated the
         Initial Closing Date and substantially in the form of Exhibit H.

13.      A favourable opinion of counsel to the Purchasers dated the date of
         the Initial Closing Date in form acceptable to the Purchaser.

14.      Two originally executed copies of this Agreement, the Assignment
         Agreement and the Fee Letter in each case duly executed by or on
         behalf of the Seller.

15.      Two originally executed copies of the Deposit Account Agreements
         entered into amongst the Seller, the Agent and each Deposit Bank in
         respect of each Lock-Box and Deposit Account established and
         maintained by the Seller in accordance with this Agreement.

16.      A certificate executed by Authorized Officers of the Seller, dated the
         Initial Closing Date, to the effect as follows, and the following
         shall be true and correct as at such time (i) the representations and
         warranties made herein are true and correct as of the Initial Closing
         Date, as if made on such date; (ii) the Seller and the Servicer are
         each in compliance with all of their obligations under this Agreement;
         and (iii) no Early Amortization Event or Potential Amortization Event
         has occurred and is continuing, or would result from the Transfer of
         the Ownership Interest on such date, and also addressing certain other
         matters, as reasonably required by the Agent, including the solvency
         of the Seller and that the Eligible Receivables Balance as of the day
         immediately prior to the Initial Closing date is not less than the
         Eligible Receivables Balance as of June 26, 2001.

17.      Original copies of all registrations filed on or prior to the Initial
         Closing Date, with respect to Ontario, Saskatchewan and Quebec and as
         may be necessary or, in the reasonable opinion of the Agent, desirable
         under the laws of each such jurisdiction to preserve, perfect and
         protect the Purchasers' ownership interest in the Ownership Interest
         being Transferred hereunder together with favourable registration and
         search reports, of local counsel to the Agent in the Province of
         Quebec in form and substance acceptable to the Agent.

18.      Executed copies of all discharges, releases or subordination
         agreements, if any, which the Agent requests with respect to
         registrations or Adverse Claims of any Person in any Pool Assets,
         together with copies of the relevant financing change statements or
         other discharge or release statements with the registration
         particulars stamped thereon, and copies of any estoppel letters which
         the Agent shall reasonably request to confirm that any registration
         made in favour of any Person, does not and will not be relied upon to
         perfect or protect an adverse claim in any Pool Assets.

<PAGE>   96

                                   SCHEDULE V

                                  SELLER NAMES

AGCO Canada, Ltd.

<PAGE>   97

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

                         RECEIVABLES PURCHASE AGREEMENT

                           dated as of June 26, 2001

                                     among

                               AGCO CANADA, LTD.,
                                   as Seller,

                               AGCO CORPORATION,
                                  as Servicer,

                          THE PURCHASERS PARTY HERETO

                        THE ADMINISTRATORS PARTY HERETO

                                      and

             COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
                   "RABOBANK INTERNATIONAL", NEW YORK BRANCH,
                             as Agent and Custodian

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

<PAGE>   98

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>                                                                                                            <C>
ARTICLE I           DEFINITIONS..................................................................................1

Section 1.01        Certain Defined Terms........................................................................1

Section 1.02        Other Terms.................................................................................20

ARTICLE II          TRANSFER TO CUSTODIAN.......................................................................20

Section 2.01        Deposit with Custodian......................................................................20

Section 2.02        Acceptance by Custodian.....................................................................20

Section 2.03        Appointment of Custodian....................................................................20

Section 2.04        Power of Custodian..........................................................................21

ARTICLE III         PURCHASE FACILITY...........................................................................21

Section 3.01        Purchase Facility...........................................................................21

Section 3.02        Incremental Purchases.......................................................................21

Section 3.03        Reinvestment Purchases......................................................................22

Section 3.04        Investment Reductions and Reductions in Maximum Program Amount..............................22

Section 3.05        Maximum Ownership Interests.................................................................23

Section 3.06        Transfers...................................................................................23

Section 3.07        Denomination of Investment..................................................................24

ARTICLE IV          PAYMENTS AND COLLECTIONS....................................................................24

Section 4.01        Seller Obligations..........................................................................24

Section 4.02        Collections Received by Seller; Deemed Collections..........................................25

Section 4.03        Collections Prior to Termination Date.......................................................25

Section 4.04        Collections Following Termination Date......................................................26

Section 4.05        Application of Collections..................................................................26

Section 4.06        Payment Requirements........................................................................27

Section 4.07        Collection Account..........................................................................28

Section 4.08        Payment Rescission..........................................................................28

Section 4.09        Setoff......................................................................................28

ARTICLE V           YIELD AND FEES..............................................................................29

Section 5.01        Yield Payments..............................................................................29

Section 5.02        Suspension of the Adjusted Eurodollar Rate..................................................29

Section 5.03        Fees........................................................................................29
</TABLE>

                                      -i-
<PAGE>   99

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>                                                                                                            <C>
Section 5.04        Break Costs.................................................................................29

Section 5.05        Settlement of Currency Protection Agreements................................................30

ARTICLE VI          REPRESENTATIONS AND WARRANTIES..............................................................31

Section 6.01        Representations and Warranties of the Seller................................................31

         (a)        Corporate Existence and Power...............................................................31

         (b)        Power and Authority; Due Authorization Execution and Delivery...............................31

         (c)        No Conflict.................................................................................31

         (d)        Governmental Authorization..................................................................32

         (e)        Actions, Suits..............................................................................32

         (f)        Binding Effect..............................................................................32

         (g)        Accuracy of Information.....................................................................32

         (h)        Use of Proceeds.............................................................................32

         (i)        Good Title..................................................................................32

         (j)        Perfection..................................................................................33

         (k)        Places of Business..........................................................................33

         (l)        Collections.................................................................................33

         (m)        Ownership of the Seller.....................................................................33

         (n)        Not a Holding Company or an Investment Company..............................................33

         (o)        Compliance with Law.........................................................................34

         (p)        Names.......................................................................................34

         (q)        Compliance with Credit and Collection Policy................................................34

         (r)        Material Adverse Effect.....................................................................34

         (s)        Eligible Receivables........................................................................34

         (t)        Enforceability of Contracts.................................................................34

         (u)        Solvency....................................................................................35

Section 6.02        Representations and Warranties of the Servicer..............................................35

         (a)        Corporate Existence and Power...............................................................35

         (b)        Power and Authority; Due Authorization Execution and Delivery...............................35

         (c)        No Conflict.................................................................................36

         (d)        Governmental Authorization..................................................................36
</TABLE>

                                     -ii-
<PAGE>   100

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>                                                                                                            <C>
         (e)        Actions, Suits..............................................................................36

         (f)        Binding Effect..............................................................................36

         (g)        Accuracy of Information.....................................................................36

         (h)        Collections.................................................................................37

         (i)        Material Adverse Effect.....................................................................37

         (j)        Not a Holding Company or an Investment Company..............................................37

         (k)        Compliance with Law.........................................................................37

         (l)        Compliance with Credit and Collection Policy................................................37

Section 6.03        Representations and Warranties of the Purchasers............................................38

ARTICLE VII         CONDITIONS OF PURCHASES.....................................................................38

Section 7.01        Conditions Precedent to Initial Purchase....................................................38

Section 7.02        Conditions Precedent to All Purchases and Reinvestment Purchases............................38

ARTICLE VIII        COVENANTS...................................................................................39

Section 8.01        Affirmative Covenants of the Seller and AGCO U.S............................................39

         (a)        Notices.....................................................................................39

         (b)        Compliance with Laws and Preservation of Corporate Existence................................40

         (c)        Audits......................................................................................41

         (d)        Keeping and Marking of Records and Books....................................................41

         (e)        Compliance with Contracts and Credit and Collection Policy..................................41

         (f)        Financial Reporting.........................................................................42

         (g)        Ownership...................................................................................43

         (h)        Collections.................................................................................43

         (i)        Taxes.......................................................................................43

Section 8.02        Negative Covenants of the Seller............................................................44

         (a)        Name Change, Offices and Records............................................................44

         (b)        Change in Payment Instructions to Obligors..................................................44

         (c)        Modifications to Contracts and Credit and Collection Policy.................................44

         (d)        Sales, Liens................................................................................44

         (e)        Merger......................................................................................45

         (f)        Accounting..................................................................................45
</TABLE>

                                     -iii-
<PAGE>   101

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>                                                                                                            <C>
Section 8.03        Affirmative Covenants of the Servicer.......................................................45

         (a)        Financial Reporting.........................................................................45

         (b)        Notices.....................................................................................46

         (c)        Compliance with Laws and Preservation of Corporate Existence................................46

         (d)        Audits......................................................................................47

         (e)        Keeping and Marking of Records and Books....................................................47

         (f)        Compliance with Contracts and Credit and Collection Policy..................................47

         (g)        Collections.................................................................................48

         (h)        Taxes.......................................................................................48

Section 8.04        Negative Covenants of the Servicer..........................................................48

         (a)        Change in Payment Instructions to Obligors..................................................48

         (b)        Modifications to Contracts and Credit and Collection Policy.................................48

ARTICLE IX          ADMINISTRATION AND COLLECTION...............................................................49

Section 9.01        Designation of Servicer.....................................................................49

Section 9.02        Duties of Servicer..........................................................................50

Section 9.03        Collection Notices..........................................................................52

Section 9.04        Responsibilities of the Seller..............................................................52

Section 9.05        Reports and Other Information...............................................................52

Section 9.06        Servicer Fees...............................................................................52

Section 9.07        Servicer Defaults...........................................................................53

Section 9.08        Replacement of the Servicer.................................................................54

ARTICLE X           EARLY AMORTIZATION EVENTS...................................................................55

Section 10.01       Early Amortization Events...................................................................55

Section 10.02       Remedies....................................................................................57

ARTICLE XI          INDEMNIFICATION.............................................................................58

Section 11.01       Indemnities.................................................................................58

         (a)        Seller Indemnities..........................................................................58

         (b)        Servicer Indemnities........................................................................61

Section 11.02       Increased Cost and Reduced Return...........................................................62

Section 11.03       Taxes.......................................................................................63
</TABLE>

                                      -iv-
<PAGE>   102

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>                                                                                                            <C>
Section 11.04       Other Costs and Expenses....................................................................65

Section 11.05       Foreign Currency Obligations................................................................65

Section 11.06       Commercial Paper Notes......................................................................66

ARTICLE XII         THE AGENT, ADMINISTRATORS AND CUSTODIAN.....................................................66

Section 12.01       Authorization and Action of Agent...........................................................66

Section 12.02       Agents' Reliance, Etc.......................................................................66

Section 12.03       Rabobank and Affiliates.....................................................................67

Section 12.04       Purchaser Credit Decision...................................................................67

Section 12.05       Indemnification.............................................................................67

Section 12.06       Successor Agent or Custodian................................................................68

Section 12.07       Authorization and Action of Administrator...................................................68

Section 12.08       Duties of the Custodian.....................................................................69

Section 12.09       Certain Matters Affecting the Custodian.....................................................70

Section 12.10       Suits for Enforcement.......................................................................71

ARTICLE XIII        ASSIGNMENTS; PARTICIPATIONS; ADDITIONAL RELATED GROUPS......................................71

Section 13.01       Assignments and Participations..............................................................71

Section 13.02       Additional Related Groups...................................................................72

ARTICLE XIV         MISCELLANEOUS...............................................................................72

Section 14.01       Waivers and Amendments......................................................................72

Section 14.02       Notices.....................................................................................73

Section 14.03       Ratable Payments............................................................................74

Section 14.04       Protection of Ownership Interests of the Purchasers.........................................74

Section 14.05       Confidentiality.............................................................................75

Section 14.06       Bankruptcy Petition.........................................................................76

Section 14.07       Limitation of Liability.....................................................................76

Section 14.08       GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF OBJECTION TO VENUE........................77

Section 14.09       WAIVER OF JURY TRIAL........................................................................77

Section 14.10       Power of Attorney...........................................................................77

Section 14.11       Integration; Binding Effect; Survival of Terms..............................................77
</TABLE>

                                      -v-
<PAGE>   103

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>                                                                                                            <C>
Section 14.12       Counterparts; Severability; Section References..............................................78

Section 14.13       Roles.......................................................................................78

Section 14.14       Further Assurances..........................................................................78

Section 14.15       Characterization; Grant of Security Interest................................................79

Section 14.16       Limitation on Payments......................................................................79
</TABLE>

EXHIBITS

Exhibit A         Form of Monthly Report
Exhibit B         Form of Deposit Account Agreement
Exhibit C         [intentionally deleted]
Exhibit D         Form of Purchase Notice
Exhibit E         Form of Compliance Certificate
Exhibit F         Form of Dealer Agreement
Exhibit G         Form of Seller's Counsel Opinion Letter
Exhibit H         Form of Servicer's Counsel Opinion Letter

SCHEDULES
Schedule I        List of Deposit Accounts and Deposit Account Banks
Schedule II       Special Concentration Limits
Schedule III      Principal Place of Business of Seller; Locations of Records
Schedule IV       List of Closing Documents
Schedule V        Seller Names

                                     -vi-

<PAGE>   104

An extra section break has been inserted above this paragraph. Do not delete
this section break if you plan to add text after the Table of
Contents/Authorities. Deleting this break will cause Table of
Contents/Authorities headers and footers to appear on any pages following the
Table of Contents/Authorities.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]