Document:

<PAGE>

                                                                    EXHIBIT 10.3

                             APPLIED MATERIALS, INC.

                           RESTRICTED STOCK AGREEMENT

         Applied Materials, Inc. (the "Company") hereby grants you, Michael R.
Splinter (the "Employee"), a grant of restricted stock. The date of this
Agreement is May 20, 2003. Subject to the provisions of Appendix A (attached),
the principal features of this grant are as follows:

<TABLE>
<S>                                                <C>
NUMBER OF SHARES OF RESTRICTED STOCK: 300,000      PURCHASE PRICE PER SHARE: US $0.01
------------------------------------               ------------------------
</TABLE>

<TABLE>
<CAPTION>
SCHEDULED VESTING DATES/PERIOD OF RESTRICTION:     NUMBER OF SHARES
---------------------------------------------      ----------------
<S>                                                <C>
           October 1, 2003                              150,000
           October 1, 2004                              150,000
</TABLE>

                                   IMPORTANT:

         Your signature below indicates your agreement and understanding that
this grant is subject to all of the terms and conditions contained in Appendix
A. For example, important additional information on vesting and forfeiture of
the Shares covered by this grant is contained in Paragraphs 4 through 6 of
Appendix A. PLEASE BE SURE TO READ ALL OF APPENDIX A, WHICH CONTAINS THE
SPECIFIC TERMS AND CONDITIONS OF THIS AGREEMENT.

APPLIED MATERIALS, INC.                                  EMPLOYEE

/s/ JAMES C. MORGAN                                      /s/ MICHAEL R. SPLINTER
-------------------                                      -----------------------
James C. Morgan,                                         Michael R. Splinter
Chairman of the Board of Directors

Date: May 20, 2003                                       Date: May 20, 2003

<PAGE>

           APPENDIX A - TERMS AND CONDITIONS OF RESTRICTED STOCK GRANT

         1.       Definitions. As used herein, the following definitions will
apply:

                  (a)      "Affiliate" means any corporation or any other entity
(including, but not limited to, partnerships and joint ventures) controlling,
controlled by, or under common control with the Company.

                  (b)      "Board" means the Board of Directors of the Company.

                  (c)      "Committee" means the Human Resources and
Compensation Committee of the Board.

                  (d)      "Common Stock" means the Common Stock of the Company.

                  (e)      "Restricted Stock" means the Shares issued to the
Employee pursuant to this Agreement.

                  (f)      "Shares" means shares of Common Stock.

         2.       Grant. The Company hereby grants to the Employee the right to
purchase 300,000 Shares of Restricted Stock for $0.01 per Share, subject to all
of the terms and conditions in this Agreement. The Employee has until May 30,
2003 to make such purchase after which date he will have no further right to
purchase the Shares of Restricted Stock under this Agreement.

         3.       Shares Held in Escrow. Unless and until the Shares of
Restricted Stock will have vested in the manner set forth in paragraphs 4 or 5,
such Shares will be issued in the name of the Employee and held by the Secretary
of the Company as escrow agent (the "Escrow Agent"), and will not be sold,
transferred or otherwise disposed of, and will not be pledged or otherwise
hypothecated. The Company may instruct the transfer agent for its Common Stock
to place a legend on the certificates representing the Restricted Stock or
otherwise note its records as to the restrictions on transfer set forth in this
Agreement. The certificate or certificates representing such Shares will not be
delivered by the Escrow Agent to the Employee unless and until the Shares have
vested and all other terms and conditions in this Agreement have been satisfied.

         4.       Vesting Schedule. Except as provided in Section 5, and subject
to Section 6, 150,000 Shares subject to this grant will vest on October 1, 2003
and the remaining 150,000 Shares subject to this grant will vest on October 1,
2004. Vesting actually will occur only if the Company or an Affiliate employs
the Employee through the applicable vesting date.

         5.       Committee Discretion. The Committee, in its discretion, may
accelerate the vesting of the balance, or some lesser portion of the balance, of
the unvested Shares of Restricted Stock at any time. If so accelerated, such
Shares will be considered as having vested as of the date specified by the
Committee.

<PAGE>

         6.       Forfeiture. Notwithstanding any contrary provision of this
Agreement, the balance of the Shares of Restricted Stock that have not vested
pursuant to paragraphs 4 or 5 will thereupon be forfeited and automatically
transferred to and reacquired by the Company at no cost to the Company upon the
date the Employee's employment with the Company or an Affiliate terminates for
any reason. The Employee will not be entitled to a refund of the price paid for
any Shares returned to the Company pursuant to this paragraph 6. The Employee
hereby appoints the Escrow Agent with full power of substitution, as the
Employee's true and lawful attorney-in-fact with irrevocable power and authority
in the name and on behalf of the Employee to take any action and execute all
documents and instruments, including, without limitation, stock powers which may
be necessary to transfer the certificate or certificates evidencing such
unvested Shares to the Company upon such violation.

         7.       Death of Employee. Any distribution or delivery to be made to
the Employee under this Agreement will, if the Employee is then deceased, be
made to the Employee's designated beneficiary, or if no beneficiary survives the
Employee, to the administrator or executor of the Employee's estate. Any such
transferee must furnish the Company with (a) written notice of his or her status
as transferee, and (b) evidence satisfactory to the Company to establish the
validity of the transfer and compliance with any laws or regulations pertaining
to said transfer.

         8.       Withholding of Taxes. Notwithstanding any contrary provision
of this Agreement, no certificate representing the Shares may be released from
the escrow established pursuant to paragraph 3 unless and until satisfactory
arrangements (as determined by the Committee) will have been made by the
Employee with respect to the payment of income and employment taxes which the
Company determines must be withheld with respect to such Shares. The Committee,
in its sole discretion and pursuant to such procedures as it may specify from
time to time, may permit the Employee to satisfy such tax withholding
obligation, in whole or in part by (a) electing to have the Company withhold
otherwise deliverable Shares of Restricted Stock, or (b) delivering to the
Company already vested and owned Shares having a fair market value equal to the
minimum amount required to be withheld.

         9.       Rights as Stockholder. Neither the Employee nor any person
claiming under or through the Employee will have any of the rights or privileges
of a stockholder of the Company in respect of any Shares deliverable hereunder
unless and until certificates representing such Shares will have been issued,
recorded on the records of the Company or its transfer agents or registrars, and
delivered to the Employee or the Escrow Agent. Except as provided in Section 11,
after such issuance, recordation and delivery, the Employee will have all the
rights of a stockholder of the Company with respect to voting such Shares and
receipt of dividends and distributions on such Shares.

         10.      No Effect on Employment. The Employee's employment with the
Company and its Affiliates is on an at-will basis only. Accordingly, the terms
of the Employee's employment with the Company and its Affiliates will be
determined from time to time by the Company or the Affiliate employing the
Employee (as the case may be), and the Company or the Affiliate will have the
right, which is hereby expressly reserved, to terminate or change the terms of
the employment of the Employee at any time for any reason whatsoever, with or
without good cause.

                                      -2-

<PAGE>

         11.      Changes in Shares. In the event of any merger, reorganization,
consolidation, recapitalization, separation, liquidation, stock dividend,
split-up, Share combination, or other change in the corporate structure of the
Company affecting the Shares, the Shares will be increased, reduced or otherwise
changed, and by virtue of any such change the Employee will in his capacity as
owner of unvested Shares of Restricted Stock that have been awarded to him (the
"Prior Shares") be entitled to new or additional or different shares of stock,
cash or securities (other than rights or warrants to purchase securities); such
new or additional or different shares, cash or securities will thereupon be
considered to be unvested Restricted Stock and will be subject to all of the
conditions and restrictions which were applicable to the Prior Shares pursuant
to this Agreement. If the Employee receives rights or warrants with respect to
any Prior Shares, such rights or warrants may be held or exercised by the
Employee, provided that until such exercise any such rights or warrants and
after such exercise any shares or other securities acquired by the exercise of
such rights or warrants will be considered to be unvested Restricted Stock and
will be subject to all of the conditions and restrictions which were applicable
to the Prior Shares pursuant to this Agreement. The Committee in its absolute
discretion at any time may accelerate the vesting of all or any portion of such
new or additional shares of stock, cash or securities, rights or warrants to
purchase securities or shares or other securities acquired by the exercise of
such rights or warrants.

         12.      Address for Notices. Any notice to be given to the Company
under the terms of this Agreement will be addressed to the Company, in care of
Secretary of the Company, at Applied Materials, Inc., 2881 Scott Blvd., M/S
2064, Santa Clara, CA 95050, or at such other address as the Company may
hereafter designate in writing.

         13.      Grant is Not Transferable. Except to the limited extent
provided in paragraph 7 above, this grant and the rights and privileges
conferred hereby will not be transferred, assigned, pledged or hypothecated in
any way (whether by operation of law or otherwise) and will not be subject to
sale under execution, attachment or similar process. Upon any attempt to
transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any
right or privilege conferred hereby, or upon any attempted sale under any
execution, attachment or similar process, this grant and the rights and
privileges conferred hereby immediately will become null and void.

         14.      Binding Agreement. Subject to the limitation on the
transferability of this grant contained herein, this Agreement will be binding
upon and inure to the benefit of the heirs, legatees, legal representatives,
successors and assigns of the parties hereto.

         15.      Additional Conditions to Release from Escrow. If at any time
the Company will determine, in its discretion, that the listing, registration or
qualification of the Shares of Restricted Stock upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the release of
such Shares from the escrow established pursuant to paragraph 3, such release
will not occur unless and until such listing, registration, qualification,
consent or approval will have been effected or obtained free of any conditions
not acceptable to the Company. The Company will make all reasonable efforts to
meet the requirements of any such state or federal law or securities exchange
and to obtain any such consent or approval of any such governmental authority.

                                      -3-

<PAGE>

         16.      Committee Authority. The Committee will have the power and
discretion to interpret this Agreement and to adopt such rules for the
administration, interpretation and application of the Agreement as are
consistent herewith and to interpret or revoke any such rules (including, but
not limited to, the determination of whether or not any Shares of Restricted
Stock have vested). All actions taken and all interpretations and determinations
made by the Committee in good faith will be final and binding upon the Employee,
the Company and all other interested persons. No member of the Committee will be
personally liable for any action, determination or interpretation made in good
faith with respect to this Agreement.

         17.      Captions. Captions provided herein are for convenience only
and are not to serve as a basis for interpretation or construction of this
Agreement.

         18.      Agreement Severable. In the event that any provision in this
Agreement will be held invalid or unenforceable, such provision will be
severable from, and such invalidity or unenforceability will not be construed to
have any effect on, the remaining provisions of this Agreement.

         19.      Modifications to the Agreement. This Agreement constitutes the
entire understanding of the parties on the subjects covered. The Employee
expressly warrants that he is not accepting this Agreement in reliance on any
promises, representations, or inducements other than those contained herein.
Modifications to this Agreement can be made only in an express written contract
executed by a duly authorized officer of the Company.

         20.      Notice of Governing Law. This Agreement will be governed by,
and construed in accordance with, the laws of the State of California without
regard to principles of conflict of laws.

         21.      Additional Actions. The parties will execute such further
instruments and take such further action as may reasonably be necessary to carry
out the intent of this Agreement.

                                     o O o

                                       -4-<PAGE>

                                                                    EXHIBIT 10.4

               PROGRAM FOR ACCOUNTS RECEIVABLE TRANSFER AGREEMENT

THIS PROGRAM FOR ACCOUNTS RECEIVABLE TRANSFER AGREEMENT is made this 9th day of
April, 2003 between BANK OF AMERICA, N.A. (together with any successor, "BofA")
and APPLIED MATERIALS, INC., a Delaware corporation ("Client").

                                    Recitals

Client from time to time will own accounts receivable resulting from Client's,
or Client's wholly-owned subsidiaries', sale of products or services. Client
wishes to sell certain accounts receivable to BofA in accordance with the terms
hereof. For purposes hereof, terms defined in Annex I hereto shall have the
respective meanings assigned therein.

Therefore, for good and valuable consideration, the parties agree as follows:

         1.       Purchase of Receivables.

                  (a)      In connection with the execution and delivery of this
         Agreement, Client shall sell to BofA Receivables owned by Client, and
         BofA shall purchase such Receivables from Client, on the terms set
         forth herein and on the initial Schedule A hereto (such Schedule A and
         each other Schedule A hereto being incorporated herein by reference).
         After the date hereof, Client may from time to time (x) seek the right
         to sell to BofA other Receivables owned by Client and (y) submit a
         proposed related Schedule A, in form and substance satisfactory to
         BofA, executed by Client. Within 5 days after the initial tender of
         Receivables in connection with any proposed Schedule A, BofA shall
         notify Client if BofA wishes to accept the proposed Schedule A and
         purchase any or all of such Receivables. The purchase of any such
         Receivables by BofA shall be made pursuant to the terms hereof.

                  All Purchased Receivables shall be evidenced by invoices (in
         electronic or paper form), which invoices shall comport with the
         following as specified on the relevant Schedule A: (i) the tenors of
         the Minimum Invoice Tenor Period and Maximum Invoice Tenor Period, (ii)
         the Minimum Invoice Amount, and (iii) no grace period related thereto
         shall exceed the Past Due Grace Period. Without limiting the other
         terms of this Agreement, BofA's purchase of Receivables of an Approved
         Account Debtor shall be subject to the following conditions: (A) Client
         shall submit an executed Schedule A relating to such Receivables, which
         shall contain the relevant terms and conditions with respect thereto,
         (B) BofA shall sign such Schedule A and return it to Client, (C) the
         aggregate amount of such Receivables being purchased shall be equal to
         the relevant Required Amount, (D) the relevant Schedule A shall contain
         the Effective Date. All Receivables purchased by BofA shall be
         purchased on a non-recourse basis (other than with respect to the
         limited repurchase obligations provided herein). It is the express
         intention of the parties to this Agreement that the purchase of
         Receivables hereunder shall be, and shall be construed as, a true sale
         of such Receivables by Client to BofA. Client acknowledges that the
         representations and warranties made herein (including without
         limitation in Section 4) are a material inducement of BofA's purchase
         of the Receivables to be purchased hereunder.

                  On or prior to the date hereof, Client shall have furnished to
         BofA such authorizing corporate resolutions, corporate organizational
         documents and legal opinions (covering, at a minimum, (x) due
         authorization, execution and delivery, (y) enforceability and
         perfection and (z) true sale) as BofA may request.

                                       1

<PAGE>

                  (b)      The parties agree as follows with respect to
         Receivables that are being purchased by BofA pursuant to Schedule A-1
         and that BofA elects to purchase in connection with any other executed
         Schedule A submitted by Client to BofA:

                           (1)      The purchase price (the "Purchase Price")
                  for each Receivable purchased shall be the percentage of the
                  face value thereof as set forth on the relevant Schedule A
                  with respect to such Receivable.

                           (2)      The parties shall consummate Client's sale
                  of the subject Receivables as promptly as practicable after
                  BofA's election to purchase such Receivables. The parties
                  shall take the following actions to effect each such purchase
                  and sale:

                                    (i)      On each Effective Date, BofA shall
                           pay Client an amount equal to the aggregate Purchase
                           Price for the Receivables to be purchased on such
                           date, which shall be wired to the following account:
                           Bank: Mellon Bank N.A.; ABA: 043000261; Acct. No.:
                           020-8830; For: Applied Materials, Inc..

                                    (ii)     With respect to all Remittances of
                           cash required to be paid over to BofA pursuant to
                           Section 1(b)(4), Client shall make such payment in
                           the form of a wire transfer to the following account:
                           Bank: Bank of America, N.A., New York, NY; ABA: 026
                           009 593; Account No.: 6550-219386; For: Rate
                           Derivative Settlements - Attn: Chuck Linton.

                                    (iii)    Client shall execute and deliver to
                           BofA an assignment of or schedule of accounts with
                           respect to (or both) each Receivable to be purchased
                           in such form as BofA may require. In addition, Client
                           shall deliver to BofA with respect to the Receivables
                           to be purchased: (aa) if requested by BofA, a copy of
                           the purchase order signed by the applicable Account
                           Debtor; (bb) if requested by BofA, a valid invoice in
                           the form currently used by Client with regard to the
                           subject Receivables with evidence of shipment of
                           goods in accordance with any applicable purchase
                           order; and (cc) such other documents and certificates
                           as BofA may reasonably request.

                           (3)      From and after Client's sale and BofA's
                  purchase of any Receivable, BofA shall (i) have exclusive
                  control and shall be entitled to collect and receive all
                  amounts payable under the Purchased Receivable and (ii) have a
                  first claim to any rights under a policy of insurance relating
                  to the Purchased Receivable. BofA shall from and after such
                  time be vested with all of Client's rights in the Purchased
                  Receivable including without limitation: (i) Client's right of
                  replevin and reclamation with respect to the merchandise
                  underlying the Purchased Receivable; and (ii) subject only to
                  the rights assigned to Servicer under Section 6, Client's
                  right to extend the time for payment under, or make any
                  compromise, adjustment or modification with respect to, the
                  Purchased Receivable. Without limiting the foregoing, Client
                  hereby assigns to BofA all rights of Client under each
                  Contract underlying a Purchased Receivable relating to the
                  collectibility of payments thereunder, security interests and
                  other liens created in connection therewith and the
                  enforcement thereof, but BofA does not and shall not thereby
                  assume any obligations of Client under any such Contract.
                  Notwithstanding the foregoing, (i) Client shall perform all of
                  its obligations (if any) pursuant to any contract or agreement
                  relating to any Purchased Receivables to the same extent as if
                  such Purchased Receivables had not been transferred hereunder
                  (and the exercise by BofA of its rights hereunder shall not
                  relieve Client from such obligations), (ii) Client shall pay
                  when due any taxes payable by Client under applicable law,
                  including any sales taxes payable in connection with Purchased
                  Receivables and their creation and satisfaction, and (iii)
                  BofA shall not have any obligation or liability with respect
                  to any Purchased Receivable or any security or document or
                  agreement related thereto, nor shall BofA be obligated to
                  perform any of the obligations of Client or any Account Debtor
                  under any of the foregoing.

                                       2

<PAGE>

                           (4)      All amounts received by Client with respect
                  to Purchased Receivables shall be tracked (separately from
                  amounts received by Client on Receivables of the same Account
                  Debtor that do not constitute Purchased Receivables) and held
                  in trust by Client for BofA, and Client (or Servicer, if
                  different from Client) will deliver to BofA all amounts
                  received with respect to Purchased Receivables (collectively,
                  "Remittances"). BofA assumes no responsibility in the
                  acceptance of checks or other forms of exchange in payment of
                  the Purchased Receivables. Irrespective of whether or not a
                  Termination Date has occurred, Client and/or Servicer will use
                  commercially reasonable efforts to remit promptly to BofA all
                  Remittances received on, or on account of, Purchased
                  Receivables, but in no event later than 10 days after receipt.

                           (5)      BofA shall not be obligated to purchase any
                  Receivable hereunder unless and until: (i) BofA accepts the
                  Receivable for sale in accordance with the terms hereof; and
                  (ii) all other terms and conditions set forth herein with
                  respect to such purchase shall have been satisfied. BofA's
                  purchase of any Receivable or Receivables on one occasion
                  shall not obligate BofA to purchase any other Receivable on
                  any future occasion.

                           (6)      All invoices relating to the Receivables to
                  be purchased shall be in a form substantially similar to the
                  form of invoice with respect to such Receivables initially
                  reviewed and approved by BofA prior to the relevant Effective
                  Date (or in such other form as BofA may from time to time
                  approve).

                           (7)      If an Approved Account Debtor, after
                  receiving and accepting goods or services rendered (subject to
                  all representations and warranties herein), has failed to pay
                  a Purchased Receivable solely because of such Account Debtor's
                  Financial Inability To Pay, BofA shall bear any loss thereon.
                  If nonpayment is due to any other reason, however, each
                  affected Purchased Receivable shall be subject to repurchase
                  as provided in Section 9(a). Specifically, a Receivable shall
                  be required to be repurchased by Client (i) if nonpayment is
                  because of the assertion of any claim or dispute by an Account
                  Debtor based on or arising out of its commercial dealings or
                  transactions with Client, including without limitation,
                  disputes, denial of a claim, lack of adequate delivery,
                  quantity, quality, or other deficiency relating to the goods
                  and services, or the exercise of any counterclaim or offset
                  (whether or not such claim, dispute, counterclaim or offset
                  relates to the specific Purchased Receivable), which claim,
                  dispute, counterclaim or offset has resulted or in Client's
                  good faith opinion is reasonably likely to result in a
                  reduction of the amount receivable in respect of such
                  Purchased Receivable, or (ii) if any representation or
                  warranty made by Client to BofA with respect to such Purchased
                  Receivable has been breached.

                  (c)      The sale or other transfer or conveyance of Purchased
         Receivables do not create, nor are they intended to create, an
         assumption by BofA of any of Client's obligations in connection with
         such Receivables or any agreement or instrument relating thereto,
         including, without limitation, any obligation to any Account Debtor.
         Notwithstanding the foregoing, it is the further intention of the
         parties to this Agreement that, if a court of competent jurisdiction
         were to determine that such transfer of Purchased Receivables is not a
         sale, such transfer shall be deemed a grant of a first priority
         security interest in such Purchased Receivables to secure a debt
         (Client's return to BofA of the Purchase Price paid by BofA for the
         Purchased Receivables) or any of Client's obligations to BofA under
         this Agreement.

         2.       Term.

                  (a)      The Client may, upon 60 days written notice to BofA,
         terminate this Agreement whereupon BofA shall have no further
         obligation to purchase, and Client shall have no further

                                       3

<PAGE>

         obligation to sell any Receivable hereunder (but this Agreement shall
         remain effective as to Receivables purchased prior to such termination
         date).

                  (b)      With respect to any Purchased Receivable, all
         Remittances in respect thereof shall be paid to BofA in accordance with
         the terms of Section 1(b)(4).

         3.       [INTENTIONALLY OMITTED.]

         4.       Representations and Warranties.

                  (a)      Each Client and Servicer represents and warrants to
         BofA on the date hereof, on each applicable Effective Date and at each
         time Client submits to BofA a request that BofA purchase any Receivable
         that: (i) it is duly organized and validly existing and in good
         standing under the laws of the jurisdiction of its organization with
         the corporate power and authority to carry on its activities as now
         conducted and as contemplated under this Agreement, and to execute,
         deliver, perform and secure its obligations under this Agreement in
         accordance with its terms; (ii) the execution, delivery and performance
         by it of this Agreement (aa) have been duly authorized by all necessary
         action, and (bb) do not and will not conflict with, or result in a
         violation of, any applicable provision of existing law, rule or
         regulation applicable to it, any judgment, order or decree applicable
         to or binding on it, its charter or bylaws or any indenture, contract,
         agreement, mortgage, deed of trust or other instruments to which Client
         is a party or by which it or its property is bound; (iii) this
         Agreement has been duly authorized, executed and delivered by it, and
         is a legal, valid and binding obligation of it enforceable against it
         in accordance with its terms, except to the extent, if any, that the
         enforceability thereof may be limited by (aa) the effect of any
         applicable bankruptcy, insolvency, reorganization, moratorium, debt
         adjustment or other similar law or enactment now or hereafter enacted
         affecting the enforcement of creditors' rights generally and (bb)
         general principles of equity (regardless of whether such enforceability
         is considered in a proceeding in equity or at law); (iv) all
         authorizations, permits, consents, approvals, licenses or exemptions
         from, registrations or filings with, or reports to, any governmental or
         regulatory unit or other party or entity necessary for it to enter into
         this Agreement and to perform its obligations hereunder have been
         obtained and remain in full force and effect, and no other such
         authorizations, permits, consents, approvals, licenses, exemptions,
         registrations, filings or reports are necessary for the due execution,
         delivery and performance by it of this Agreement; (v) no agreement
         exists between Client and any Account Debtor that could interfere with
         such Account Debtor's payment of and performance under the Receivables
         in accordance with the relevant invoices; (vi) each Contract underlying
         a Purchased Receivable, by its terms, is freely transferable; (vii)
         each Contract underlying a Purchased Receivable is governed according
         to the laws of a state of the United States of America; and (viii) each
         Contract underlying a Purchased Receivable contains (Y) no material
         restrictions or limitations on Client's (or its assignee's) ability to
         pursue collection of such Receivables and enforcement of such Contract
         and (Z) no mandatory arbitration provisions.

                  (b)      Client acknowledges that as to each Receivable sold
         hereunder that it expressly represents, warrants, agrees (and
         furthermore acknowledges that BofA is expressly relying thereon) that
         immediately prior to the purchase of such Receivable by BofA pursuant
         to Section 1 hereof: (i) Client is the lawful owner of each such
         Receivable; (ii) each such Receivable shall be sold and assigned to
         BofA as absolute owner free and clear of all liens, claims and security
         interests; (iii) each such Receivable is for a certain, definite,
         undisputed and liquidated amount and represents an amount owed to
         Client as a result of a bona fide sale in the ordinary course of
         business of a product or service to an Approved Account Debtor who is
         not affiliated with Client; (iv) complete deliveries have been made
         under any agreement, representation or understanding with the
         applicable Account Debtor with respect to each such Receivable, and any
         contracts or agreements relating to each such Receivable have been
         delivered to BofA ; (v) no such Receivable is past due (i.e., unpaid
         beyond the applicable Maximum Invoice Tenor Period) or for a face value
         less than the applicable Minimum Invoice Amount; (vi) the applicable
         Account Debtor is not, and will not be, entitled to any offset,
         deduction, counterclaim, contra account and/or other

                                       4

<PAGE>

         credit with respect to such Receivable or will be subject to any
         dispute or claim by an Account Debtor including, but not limited to,
         with respect to price, terms, quality, quantity or delay in shipment;
         (vii) no such Receivable is or shall otherwise be subject to, any
         offset, counterclaim, contra account or any defense of any kind or
         character with respect to any such Receivable; (viii) Client does not
         have any knowledge of any fact that could reasonably be expected to
         affect the validity or collectibility of any such Receivable; (ix) no
         such Receivable represents a delivery of merchandise upon
         "consignment," "guaranteed sale," "sale or return," "payment on
         reorder" or similar terms; (x) the names of the Account Debtors and the
         amounts owing on the due dates of each such Receivable are correctly
         stated in all instruments of assignment, schedules, invoices or other
         documentation furnished by Client to BofA; (xi) no such Receivable has
         a due date that is more than the Maximum Invoice Tenor Period unless
         otherwise approved by BofA; (xii) no other sale, assignment or grant of
         a security interest or lien of any kind whatsoever presently exists or
         will thereafter be created in favor of any person or entity with
         respect to any such Receivable; (xiii) any and all information
         furnished by Client to BofA in connection with the sale of each such
         Receivable is and will be true and correct in all material respects at
         the time that such information is furnished to BofA; (xiv) Client has
         strictly complied with all applicable laws and regulations in
         connection with Client's sale of products or services giving rise to
         each such Receivable; (xv) all proceeds from the sale of such
         Receivables will be used by Client in accordance with requirements of
         law, and will not be used, directly or indirectly, to purchase or carry
         margin stock (within the meaning of Regulation U of the Board of
         Governors of the Federal Reserve System) or to extend credit to others
         for the purpose of purchasing or carrying margin stock or to refund
         indebtedness originally incurred for such purpose; (xvi) each such
         Receivable is and will be payable in United States dollars; (xvii) each
         such Receivable constitutes an "account" as defined in Section 9-106 of
         the Uniform Commercial Code as in effect in the state of Client's
         formation and in the state of Client's principal place of business; and
         (xviii) the payment terms for each such Receivable require the relevant
         Account Debtor to pay such Receivable on or prior to the Stated
         Termination Date. Client acknowledges that the representations and
         warranties made herein are a material inducement to BofA's purchase of
         the Receivables to be purchased hereunder.

                  (c)      Client authorizes BofA to represent and warrant to
         any subsequent transferee or assignee of any Receivable that at the
         date of purchase of the Receivable by BofA the Receivable represented a
         legally valid indebtedness of the applicable Account Debtor for the
         amount of such Receivable and that there were no known defaults, or
         counterclaims with respect to such Receivable. Client shall indemnify
         BofA from and against any liability incurred by BofA, or any claims
         made against BofA, as a result of any such representation or warranty
         by BofA.

         5.       Covenants of Client. Client and, to the extent applicable,
Servicer shall comply with each of the following covenants during the term of
this Agreement:

                  (a)      Client shall deliver to BofA in form and detail
         satisfactory to BofA (but only to the extent Client is no longer
         subject to the public filing requirements of the Securities and
         Exchange Commission):

                           (i)      as soon as available, but not later than 95
                  days after the end of each fiscal year, a copy of the audited
                  consolidated balance sheet of Client as at the end of such
                  year and the related consolidated statements of income or
                  operations, shareholders' equity and cash flows for such
                  fiscal year, setting forth in each case in comparative form
                  the figures for the previous fiscal year, and accompanied by
                  the opinion of a nationally-recognized independent public
                  accounting firm, which opinion shall state that such
                  consolidated financial statements present fairly, in all
                  material respects, the financial position for the periods
                  indicated in conformity with Generally Accepted Accounting
                  Principles applied on a basis consistent with prior years
                  (except for changes agreed upon by Client and such auditors
                  which are disclosed and described in such statements). Such
                  opinion shall not be qualified or limited because of a
                  restricted or limited examination by such accountant of any
                  material portion of the records of Client; and

                                       5

<PAGE>

                           (ii)     as soon as available, but not later than 50
                  days after the end of each of the first three fiscal quarters
                  of each fiscal year, a copy of the unaudited consolidated
                  balance sheet of Client as of the end of such quarter and the
                  related consolidated statements of income and cash flows for
                  the period commencing on the first day and ending on the last
                  day of such quarter, and certified by any responsible
                  financial officer of Client as being complete and correct and
                  fairly presenting in all material respects, in accordance with
                  Generally Accepted Accounting Principles, the financial
                  position and the results of the operations of Client.

                  (b)      Client and Servicer each shall do or cause to be done
         all things necessary to preserve and keep in full force and effect its
         existence, rights and privileges as a corporation or partnership, as
         the case may be, under the laws of its state of organization.

                  (c)      Neither Client nor Servicer will create, incur,
         assume or suffer to exist any lien or other encumbrance (other than
         those arising hereunder and except for such non-consensual encumbrances
         as may arise in the ordinary course of Client's business) on: (i) the
         Purchased Receivables (whether now existing or hereafter arising) or
         (ii) any proceeds of the Purchased Receivables.

                  (d)      [INTENTIONALLY OMITTED.]

                  (e)      In connection with each Purchased Receivable and at
         its own expense, Client and Servicer each shall (i) on the applicable
         date of sale to BofA, indicate or cause to be indicated clearly and
         unambiguously in its accounting records and mark or cause to be marked
         on any paper invoice or the electronic ledger for any electronic
         invoice that such Receivable has been sold to BofA pursuant to this
         Agreement; (ii) ensure that its balance sheet indicates that the
         Purchased Receivables have been sold to BofA; (iii) not mislead any
         creditor with respect to BofA's ownership of the Purchased Receivables;
         (iv) inform any person or entity that may inquire that the Purchased
         Receivables have been sold to BofA without recourse; (v) not hold out
         the Purchased Receivables as being able to satisfy any obligation owed
         or that may be owed to any creditor or potential creditor of Client;
         and (vi) promptly (and in any event within five (5) days) upon the
         request of BofA, provide BofA with a list of, an accounts receivable
         aging report for and any other similar financial or accounting document
         relating to all Purchased Receivables.

                  (f)      Client and Servicer each shall notify BofA in the
         event any of the following events occur as promptly as practical (but
         in any event within five (5) days) after a Responsible Officer of
         Client or Servicer, as applicable, becomes aware that such event has
         occurred or is reasonably likely to occur, and, with respect to clause
         (ii) below, deliver to BofA any related written correspondence:

                           (i)      a Bankruptcy has occurred with respect to
                  any Approved Account Debtor; or

                           (ii)     the assertion of any dispute with respect to
                  any Purchased Receivable by any Approved Account Debtor which
                  dispute has resulted in or in Client's good faith opinion is
                  reasonably likely to result in a reduction of the amount
                  receivable in respect of such Purchased Receivable; or

                           (iii)    a Servicer Default.

                  (g)      Client and Servicer each shall do or cause to be done
         all things necessary or reasonably requested by BofA under any foreign
         laws applicable to an Approved Account Debtor to (i) ensure that BofA
         has and continues to have good title to the Purchased Receivables, and
         (ii) ensure that BofA has and continues to have the ability to enforce
         all rights purported to be transferred to BofA hereunder with respect
         to the Purchased Receivables.

                                       6

<PAGE>

                  (h)      Client shall make no material change in its credit
         and collections procedures that would adversely affect the validity,
         enforceability or collectibility of the Purchased Receivables or
         materially adversely affect the ability of Client to perform its
         obligations hereunder without the prior written consent of BofA.

                  (i)      Without the prior written consent of BofA, Client
         will not amend, modify or waive any term or condition of any Contract
         underlying any Purchased Receivable, which amendment, modification or
         waiver would adversely affect the validity, enforceability or
         collectibility of such Receivable or adversely affect BofA's right to
         collect any Purchased Receivable.

         6.       Servicing.

                  (a)      Until BofA gives notice to Client of the designation
         of a new Servicer as provided herein, Client is hereby designated as,
         and hereby agrees to perform the duties and obligations of, the
         servicer pursuant to the terms hereof (the "Servicer") with respect to
         the Purchased Receivables; provided that, with respect to any group of
         Purchased Receivables, Client (solely in its capacity as Servicer) may,
         at any time, upon prior written notice to BofA, designate any affiliate
         of Client as sub-servicer hereunder; provided, however, that such
         affiliate shall not become Servicer and, notwithstanding any such
         delegation, Client shall remain liable for the performance of the
         duties and obligations of Servicer in accordance with the terms of this
         Agreement without diminution of such liability by virtue of such
         delegation and to the same extent and under the same terms and
         conditions as if Client alone were performing such duties and
         obligations. Client acknowledges that BofA has relied on the agreement
         of Client to act as Servicer hereunder in making its decision to
         execute and deliver this Agreement. Accordingly, Client agrees that it
         shall not voluntarily resign as Servicer. If an Event of Default or
         Servicer Default occurs hereunder, BofA may designate as Servicer with
         respect to all or any portion of the Purchased Receivables any person
         (including BofA or any of its affiliates) to succeed Client or any
         successor Servicer, on the condition in each case that any such person
         so designated shall agree to perform the duties and obligations of
         Servicer pursuant to the terms hereof, and Client agrees that it shall
         reimburse BofA for all costs, expenses or fees incurred by it as a
         result of, or in connection with, such designation; provided that the
         maximum amount of such costs, expenses or fees reimbursable by Client
         shall not exceed an amount, determined and payable monthly, **********
         being serviced by the designated person on the first day of each month.

                  (b)      Servicer shall take or cause to be taken all such
         action as may be necessary or advisable to administer, service and
         collect each Purchased Receivable from time to time, all at the
         Servicer's expense and in accordance with this Agreement and all
         applicable laws, rules and regulations, with reasonable care and
         diligence, and in accordance with any credit and collection policy
         agreed to by Client and BofA with respect to a Purchased Receivable;
         provided, however, that Servicer shall not extend the maturity of any
         Purchased Receivable without BofA's prior consent, which consent shall
         not be unreasonably withheld. In addition, Servicer shall remit any and
         all Remittances received with respect to any Purchased Receivables to
         BofA in accordance with the terms of Section 1(b)(4), and shall
         likewise forward all other payments and fees owed to BofA pursuant to
         the terms hereof. Without BofA's consent, Client, in its capacity as
         Servicer, shall not take any action (or omit to take any action that it
         would customarily take in servicing Receivables) where such action (or
         inaction) with respect to any Purchased Receivable is reasonably likely
         to impair BofA's rights therein or the enforceability, value or
         collectibility thereof. Without limiting the foregoing, Client, in its
         capacity as Servicer, shall not take any action (or omit to take any
         action that it would customarily take in servicing Receivables) that
         results in preferential treatment for Receivables of an Approved
         Account Debtor that do not constitute Purchased Receivables. Servicer
         shall have the right to directly communicate with any Account Debtor
         with respect to Purchased Receivables (and, in the case of clause (ii),
         to commence collection proceedings with BofA's consent on BofA's
         behalf): (i) to obtain current information not already provided on such
         Account Debtor's financial condition and creditworthiness, and (ii) to
         determine if any portion of any Purchased Receivable is past due.
         Notwithstanding anything to

                                       7

<PAGE>

         the contrary contained herein, upon the occurrence and continuance of
         an Event of Default or to the extent any Purchased Receivable is
         Overdue, BofA may direct Servicer to commence or settle any legal
         action to enforce collection of any Purchased Receivable or to
         foreclose upon or repossess any underlying security related thereto.

                  (c)      If Client is not Servicer, then Client shall deliver
         to Servicer and Servicer shall hold for the benefit of Client and BofA
         in accordance with their respective interests, all records and
         documents (including computer tapes or disks) with respect to each
         Purchased Receivable. Servicer shall hold (and shall cause each
         sub-servicer to hold) in trust (and, during the continuance of an Event
         of Default, at the request of BofA, segregate) for BofA's benefit, any
         Remittances received by Servicer (or any sub-servicer) with respect to
         the Purchased Receivables, and distribute the same to BofA in
         accordance with Section 1(b)(4) or otherwise upon BofA's direction.
         Servicer agrees to make its records, files and books of account
         available to BofA on request, and to allow BofA and its agents and
         representatives to visit Servicer's premises upon reasonable notice and
         during normal business hours to examine such records, files and books
         of account, to make copies or extracts thereof, and to conduct such
         examinations as BofA deems necessary. In addition, on the first
         business day of each month, Servicer shall deliver to BofA a statement
         of its account showing all accountings relating to all Purchased
         Receivables that were within 7 days of becoming Overdue during the
         immediately preceding month.

                  (d)      For all Purchased Receivables which are within 7 days
         of becoming Overdue for any reason, including but not limited to those
         Purchased Receivables which are past due solely and exclusively as a
         result of an Account Debtor's Financial Inability To Pay, Servicer
         shall immediately notify BofA and provide to BofA, promptly (and in any
         event within one Business Day), each of the following: (i) a copy of
         the applicable Account Debtor's purchase order and/or a signed
         confirmation thereof; (ii) a copy of each outstanding invoice (in
         electronic or paper form) and all credit memoranda; (iii) a notarized
         statement of account; (iv) [reserved]; (v) a copy of Servicer's
         complete collection file on the applicable Account Debtor; (vi) all
         guarantees, collateral documents and security agreements relating to
         such Receivables, (vii) proof of delivery of goods or rendering of
         services relating to such Receivables, and (viii) such other documents
         and information that BofA may request relating to such Receivables.
         Further, with respect to any Purchased Receivable that is within 7 days
         of becoming Overdue, Servicer shall provide to BofA upon request
         (promptly, and in any event within one Business Day) (x) a true and
         complete copy of the Contract relating to such Receivable, together
         with any modifications or side letters related thereto, each written in
         English, and (y) any other evidence of nonpayment of such Receivable as
         may reasonably be requested by BofA. Upon any such Purchased Receivable
         becoming Overdue, Servicer shall immediately, on the date such
         Receivable becomes Overdue, provide to BofA (via telecopy, with an
         original to follow via overnight courier) a notarized certificate
         stating that such Receivable is in fact Overdue.

                  (e)      The occurrence of any one or more of the following
         events shall constitute a "Servicer Default" hereunder:

                           (1)      (a) Servicer shall fail to perform or
                  observe any term, covenant or agreement hereunder and such
                  failure shall remain unremedied for ten (10) days after notice
                  or discovery thereof or (b) Servicer shall fail to make any
                  payment or deposit to be made by it hereunder when due; or

                           (2)      any representation, warranty, certification
                  or statement made by the Servicer in this Agreement or in any
                  other document shall prove to have been incorrect in any
                  material respect when made or deemed made; or

                           (3)      an Event of Default.

                                       8

<PAGE>

                  (f)      Notwithstanding any other provision of this
         Agreement, during the continuance of Servicer Default, BofA may, by
         written notice to Client and/or Servicer (as applicable):

                           (1)      direct the applicable Account Debtor(s) that
                  payment of all amounts payable under any Purchased Receivable
                  be made directly to BofA or its designee;

                           (2)      instruct Client or Servicer (as applicable)
                  to give notice of the applicable Account Debtor(s), which
                  notice shall be given at Client's/Servicer's expense,
                  directing that payment of all amounts payable under any
                  Purchased Receivable be made directly to BofA or its designee;
                  and/or

                           (3)      terminate and replace Servicer.

                  (g)      Client shall provide to Servicer on a timely basis
         all information needed for the servicing, administration and collection
         obligations of Servicer, including notice of the occurrence of any
         Event of Default or any event specified in Section 5(f) hereof as
         promptly as practicable (but in any event within five (5) days) after
         Client becomes aware, such event has occurred or will likely occur.

                  (h)      If at any time (i) an Account Debtor remits payment
         to Client, in its capacity as Servicer hereunder, on account of
         Purchased Receivables prior to the applicable Grace Period Due Date of
         such Purchased Receivables, and Servicer in turn delivers such
         Remittances to BofA for receipt prior to such Grace Period Due Date, or
         (ii) Client remits to BofA the repurchase price in respect of any
         repurchased Receivable (such Receivable as repurchased pursuant to
         Section 1(b)(7) or Section 9(a)) prior to the applicable Grace Period
         Due Date for such repurchased Receivable, then in each case Servicer
         may deduct from such amount to be remitted an Incentive Servicing
         Credit as determined and provided by BofA. BofA shall calculate such
         Incentive Servicing Credit by multiplying (a) the dollar amount of the
         remittances to be received on such day times (b) a fraction, the
         numerator of which shall be determined by multiplying (x) BofA's
         referenced LIBOR rate then in effect, times (y) the number of days
         after such remittance day (on which such remittance will be received by
         BofA) until but not including the Grace Period Due Date, and the
         denominator of which shall be 360.

         7.       Attorney-in-Fact. Client hereby grants and conveys to BofA an
irrevocable power of attorney (coupled with an interest) authorizing and
permitting BofA, at its option, with or without notice to Client, to do any one
of the following: (a) endorsing the name of Client upon any checks or other
instruments that may come into BofA's possession in payment of Purchased
Receivables; (b) endorsing the name of Client on any freight or express bill or
bill of lading relating to any Purchased Receivables; (c) taking all action as
BofA deems appropriate, including without limitation the execution and filing of
financing statements, in the name of and on behalf of Client to perfect any of
the security interests granted to BofA herein; provided, however, that BofA
shall not exercise any such power until the occurrence and during the
continuance of an Event of Default. Client agrees that neither BofA nor the
attorney-in-fact will be liable for any acts of commission or omission nor for
any error of judgment or mistake of fact or law except to the extent the same
constitutes gross negligence or willful misconduct.

         8.       Waiver. The waiver by BofA of any particular breach by Client
of a provision of this Agreement, or BofA's failure to exercise a right granted
to it herein, shall not constitute a waiver of any subsequent breach or any
other right.

         9.       Indemnity and Repurchase Obligations.

                  (a)      BofA's purchase of a Receivable shall not relieve
         Client from any liability that might arise out of Client's breach of
         any representation, warranty, covenant or agreement hereunder, or out
         of any unauthorized or fraudulent acts of Client, its officers,
         employees or agents. In the event of (i) any breach of any
         representation and warranty set forth in Section 4

                                       9

<PAGE>

         with respect to a Purchased Receivable or any such unauthorized or
         fraudulent act with respect to a Purchased Receivable which remains
         uncured for ten (10) days after notice thereof or (ii) an Account
         Debtor's failure to pay a Purchased Receivable for any reason other
         than a Financial Inability To Pay, Client agrees upon BofA's request,
         to repurchase such Receivable at a price equal to the outstanding
         balance thereof.

                  (b)      If Client at any time becomes aware of any fact or
         occurrence that in and of itself or with the passage of time would be
         grounds for requiring Client to repurchase any Purchased Receivable
         under (a) above, Client will as promptly as practicable (but in any
         event within five (5) days) after Client becomes aware of such fact or
         occurrence notify BofA and either cure the cause for repurchase within
         ten (10) days (to the extent capable of being cured) or repurchase the
         Purchased Receivable at the price specified in (a) above.

                  (c)      BofA will, upon payment by Client of all amounts due
         to BofA on account of any repurchased Purchased Receivable, transfer
         the Purchased Receivable and the rights thereto to Client. In the event
         Client repays BofA fully all amounts equating to the repurchase price
         plus any sum due BofA with respect to the Purchased Receivable, then
         any further payments received by BofA thereafter on such Receivable
         shall be remitted to Client.

                  (d)      Client agrees to indemnify BofA from and against all
         losses, damages, liabilities and costs, including attorneys fees and
         expenses (whether incurred in connection with trial or appellate
         proceedings or otherwise), incurred by BofA as a result of or in
         connection with: (i) any claim or defense which any Account Debtor or
         other person may have or assert against Client or BofA in connection
         with Purchased Receivables or this Agreement; or (ii) any breach of any
         of Client's representations, warranties, covenants or agreements
         contained herein, in each case except to the extent (A) resulting from
         BofA's gross negligence or willful misconduct or (B) arising solely out
         of BofA's hedging activities with respect to or assignment of Purchased
         Receivables unless otherwise expressly provided herein.

                  (e)      [INTENTIONALLY OMITTED.]

                  (f)      The remedies set forth in this Agreement or otherwise
         available under applicable law shall be cumulative, and no election by
         BofA to exercise any remedy shall preclude it from thereafter
         exercising any other remedy.

         10.      Default and Remedies. An event of default ("Event of Default")
shall be deemed to have occurred hereunder upon the occurrence of one or more of
the following:

                  (a)      Client shall fail to pay, (i) when and as required to
         be paid herein, any amount on account of repurchasing any Purchased
         Receivable, or (ii) within ten (10) days after the same shall become
         due, any other amount payable hereunder; or

                  (b)      Servicer (i) commences any insolvency proceeding with
         respect to itself; or (ii) takes any action to effectuate or authorize
         the foregoing; or

                  (c)      Any involuntary lien, garnishment, attachment or the
         like shall be issued against or shall attach to the Purchased
         Receivables, the Collateral or any portion thereof and the same is not
         released or Client fails to repurchase such Purchased Receivables
         within ten (10) days;

                  (d)      (i) Any involuntary insolvency proceeding is
         commenced or filed against Servicer; or any writ, judgment, warrant of
         attachment, execution or similar process, is issued or levied against a
         substantial part of Servicer's properties, and any such proceeding or
         petition shall not be dismissed, or such writ, judgment, warrant of
         attachment, execution or similar process shall not be released, vacated
         or fully bonded within 60 days after commencement, filing or levy; (ii)
         Servicer admits the material allegations of a petition against it in
         any insolvency proceeding, or an order for relief (or similar order
         under non-U.S. law) is ordered in any insolvency proceeding; or

                                       10

<PAGE>

         (iii) Servicer acquiesces in the appointment of a receiver, trustee,
         custodian, conservator, liquidator, mortgagee in possession (or agent
         therefor), or other similar person for itself or a substantial portion
         of its property or business; or

                  (e)      Client, including in its role as Servicer hereunder,
         shall breach any covenant or agreement set forth herein, or any
         warranty or representation set forth herein shall be untrue when made,
         and the same is not cured to BofA's reasonable satisfaction within ten
         (10) days after such breach or occurrence;

                  (f)      Any report, certificate, schedule, financial
         statement, profit and loss statement or other statement furnished by
         Servicer, or by any other person on behalf of Client, to BofA is not
         true and correct in any material respect as of the date given.

                  (g)      A material adverse change shall have occurred in
         Servicer's financial conditions, business or operations that would
         materially impair Servicer's ability to perform its obligations
         hereunder.

Upon the occurrence and during the continuance of any such Event of Default,
BofA (i) shall have no further obligation to take any action after Client's
tender of Receivables for purchase and (ii) may immediately exercise its rights
and remedies hereunder or pursuant to applicable law with respect to the
Purchased Receivables, including giving notice to each Approved Account Debtor
to remit payment of all amounts payable under any Purchased Receivable directly
to BofA or to an account identified by BofA; provided, however, that BofA will
hold all collections that are not Remittances in trust for Client and, subject
to the provisions of Section 5(d) hereof, will deliver such collections to
Client promptly.

         11.      Cumulative Rights; Waivers. All rights, remedies and powers
granted to BofA in this Agreement, or in any other instrument or agreement
between Client and BofA are cumulative and may be exercised singularly or
concurrently with such other rights as BofA may have. These rights may be
exercised from time to time as to all or any part of the Purchased Receivables
as BofA in its reasonable discretion may determine. In the event BofA deems it
necessary to seek equitable relief, including, but not limited to, injunctive or
receivership remedies, as a result of Client's default, Client waives any
requirement that BofA post or otherwise obtain or procure any bond.
Alternatively, in the event BofA, in its sole and exclusive discretion, desires
to procure and post a bond, BofA may procure and file with the court a bond in
an amount up to and not greater than $10,000,000.00 notwithstanding any common
or statutory law requirement to the contrary. Upon BofA's posting of such bond
it shall be entitled to all benefits as if such bond was posted in compliance
with state law. Client also waives any right it may be entitled to, including an
award of attorney's fees or costs, in the event any equitable relief sought by
and awarded to BofA is thereafter, for whatever reason(s), vacated, dissolved or
reversed.

         12.      Termination. No termination or cancellation (regardless of
cause or procedure) of the transactions or relationship contemplated under this
Agreement shall in any way affect or impair the obligations, duties and
liabilities of Client or the rights of BofA relating to any transaction or event
occurring prior to such termination or cancellation. All undertakings,
agreements, indemnifications, covenants, warranties and representations
contained herein shall survive such termination or cancellation.

         13.      Security Interest. It is the intention of the parties hereto
that Client's transfer of Receivables to BofA shall constitute a sale and
assignment, which sale and assignment shall be absolute, irrevocable and without
recourse (other than with respect to the limited repurchase obligations provided
herein) and shall provide BofA with the full benefits of ownership of the
Purchased Receivables. Notwithstanding the foregoing, to protect BofA in the
event that any transfer of Purchased Receivables is deemed by a court, contrary
to the express intent of the parties, to constitute a pledge rather than a sale
and assignment of such Purchased Receivables, Client does hereby grant to BofA a
security interest in and lien upon all of Client's right, title and interest in
and to the Purchased Receivables and all proceeds thereon (the "Collateral") to
secure a debt (Client's return to BofA of the Purchase Price paid by BofA for
the Purchased Receivables) or any of Client's obligations to BofA under this
Agreement. Client agrees to

                                       11

<PAGE>

comply with all appropriate laws in order to perfect BofA's security interest in
and to the Collateral, to execute any financing statements, continuations
thereof, amendment thereto or additional documents as BofA may require. Client
hereby authorizes BofA to prepare and file such financing statements (including
renewal statements) or amendments thereof or supplements thereto or other
instruments as BofA may from time to time deem necessary or appropriate in order
to perfect and maintain the security interests granted hereunder in accordance
with the UCC. Client shall not (a) alter its corporate existence or, in one
transaction or in a series of transactions, merge into or consolidate with any
other entity, or sell all or substantially all of its assets, (b) change its
state of incorporation or formation or (c) change its registered corporate name,
without, in each case, (i) providing 30 days prior written notice to BofA, (ii)
providing such information as BofA may reasonably require in order to allow BofA
to file appropriate amendments to any previously filed financing statements and
(iii) executing any such additional documents as BofA may reasonably require in
order to protect its rights and remedies hereunder. The occurrence and
continuation of any Event of Default shall entitle BofA to all of the default
rights and remedies (without limiting the other rights and remedies exercisable
by BofA either prior or subsequent to an Event of Default) as available to a
secured party under the Uniform Commercial Code in effect in any applicable
jurisdiction.

         14.      Agreement of Client. During the continuation of an Event of
Default, BofA is authorized to apply all funds received by it hereunder to
Client's obligations hereunder in such order as BofA may elect.

         15.      Notices. Any notice or other communication required or
permitted hereunder shall be in writing and shall be delivered by (a) personal
delivery; (b) courier; (c) telecopy, or (d) certified or registered mail,
postage prepaid to the address set forth below and shall be deemed given at the
time of personal delivery or, if by mail, as of the date of first attempted
delivery:

                  If to BofA, at:   Bank of America, N.A.
                                    100 North Tryon Street
                                    NC1-007-06-07
                                    Charlotte, NC 28255
                                    Attn: William D. Hobbs
                                    Telephone: 704-388-5914
                                    Telecopy: 704-388-3336

                  With a copy to:   Bank of America, N.A.
                                    9 W. 57th Street
                                    NY1-301-06-04
                                    New York, NY 10019
                                    Attn: Gabriella Morizio
                                    Telephone: 212-933-2730
                                    Telecopy: 212-933-2625

                  If to Client, at: Applied Materials, Inc.
                                    2881 Scott Boulevard
                                    M/S 2036
                                    Santa Clara, CA 95050
                                    Attn: Treasury Department
                                    Telephone: 408-235-6765
                                    Telecopy: 408-986-7825

                  With a copy to:   Applied Materials, Inc.
                                    2881 Scott Boulevard
                                    M/S 2062
                                    Santa Clara, CA 95050
                                    Attn: Legal Department
                                    Telephone: 408.563.4763

                                       12

<PAGE>

                          Telecopy: 408.986.2836 (fax)

         16.      Account Statements. Absent manifest error, BofA's books and
records shall be admissible in evidence without objection as prima facie
evidence of the status of the accounts between BofA and Client.

         17.      Confidential Information.

                  (a)      The parties agree that the negotiation, existence and
         terms of this Agreement shall constitute confidential information and
         each party shall keep the existence and terms of this Agreement
         confidential. Without limiting the foregoing, Client understands and
         acknowledges that the form and terms of this Agreement are proprietary
         trade products of BofA that BofA desires to keep confidential and
         Client agrees that except for disclosure on a confidential basis to
         Client's accountants, attorneys and other professional advisors
         retained by in connection with this Agreement or as may be required by
         law, the form and terms of this Agreement shall not be disclosed by
         Client in whole or in part to any other person or entity without BofA's
         prior written consent.

                  (b)      The parties further agree that the information
         furnished by Client to BofA regarding any Account Debtor, Client's
         relationship with such Account Debtor and the goods and services
         furnished by Client to such Account Debtor shall constitute
         confidential information. BofA agrees not to disclose such information
         in whole or in part to any other person or entity without Client's
         prior written consent, except for disclosure (i) on a confidential
         basis to BofA's accountants, attorneys and other professional advisors
         retained by BofA in connection with this Agreement or in any way
         related to the Purchased Receivables; (ii) as may be required by law;
         or (iii) of the name of such Account Debtor, the amount of the related
         Purchased Receivable, the Minimum and Maximum Invoice Tenor Period for
         such Purchased Receivable and the quantity of goods purchased as
         specified in the Contract underlying such Purchased Receivable (which
         disclosure may include delivery of the invoice underlying such
         Purchased Receivable as required by the relevant hedge counterparty, in
         such redacted form as approved by BofA and Client, such approvals not
         to be unreasonably withheld) to the extent necessary to carry out any
         hedging activity by BofA related to the Purchased Receivables or
         assignment by BofA of its rights under this Agreement or in respect of
         the Purchased Receivables.

         18.      Miscellaneous.

                  (a)      This Agreement shall be governed and construed in
         accordance with the laws of the State of New York without reference to
         the conflict of laws provisions thereof.

                  (b)      Client shall not assign this Agreement without the
         prior written consent of BofA. This Agreement shall be deemed to be one
         of financial accommodation and not assumable by any debtor, trustee or
         debtor-in-possession in any bankruptcy proceeding without BofA's
         express written consent and may be suspended in the event a petition in
         bankruptcy is filed by or against Client.

                  (c)      This Agreement shall be binding upon, and shall inure
         to the benefit of, the parties hereto and their respective heirs, legal
         representatives, successors and permitted assigns.

                  (d)      This Agreement contains the entire agreement between
         the parties hereto regarding the subject matter hereof, excepting only
         assignments and schedules thereto that may be executed from time to
         time. This Agreement shall not be modified except by written instrument
         signed by all of the parties hereto.

                                       13

<PAGE>

                  (e)      Client agrees to execute such further instruments as
         may be required by BofA to evidence the transactions contemplated
         herein. If any provision of this Agreement is found invalid, the
         remaining provisions of this Agreement shall not be affected thereby.

                  (f)      Nothing set forth herein or otherwise shall render
         the parties partners of one another.

                  (g)      Client acknowledges that there is no, and it will not
         seek or attempt to establish any, fiduciary relationship between BofA
         and Client on Client's behalf, and Client waives any right to assert,
         now or in the future, the existence or creation of any such fiduciary
         relationship between BofA and Client in any action or proceeding
         (whether by way of claim, counterclaim, crossclaim or otherwise) for
         damages.

                  (h)      BofA agrees that notwithstanding anything to the
         contrary set forth herein, unless and until such time as an Event of
         Default shall have occurred and be continuing or any Purchased
         Receivable shall be Overdue, BofA shall not, and shall not cause
         Servicer to, contact any Account Debtor directly for any reason with
         respect to any Purchased Receivable.

                  (i)      This Agreement may be executed in a number of
         identical counterparts, each of which shall be deemed an original for
         all purposes and all of which constitute, collectively, one agreement.

         19.      Jury Trial Waiver; Jurisdiction. BOFA AND CLIENT HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER MAY HAVE TO A
TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BASED ON THIS AGREEMENT OR ANY
TRANSACTIONS CONTEMPLATED HEREIN, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY RELATED DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO,
OR TO ANY RELATED DOCUMENT. THE PARTIES CONSENT TO JURISDICTION AND VENUE IN THE
STATE OR FEDERAL COURTS IN ANY CITY, COUNTY AND STATE OF NEW YORK. CLIENT
FURTHER AGREES TO WAIVE ANY RIGHT IT MAY HAVE TO SEEK A CHANGE OF VENUE BASED ON
INCONVENIENCE OF THE FORUM OR OTHERWISE. THIS PROVISION IS A MATERIAL INDUCEMENT
FOR THE PARTIES ENTERING INTO THE SUBJECT TRANSACTION.

                                       14

<PAGE>

         IN WITNESS WHEREOF, the undersigned have duly executed this Agreement
as of the date first above written.

      Bank of America, N.A..                Applied Materials, Inc.

      By:/s/ WILLIAM D. HOBBS               By: /s/ JOSEPH R. BROSON
      ---------------------------           -----------------------------------
      Printed Name: William D. Hobbs        Printed Name: Joseph R. Bronson

      Title: Senior Vice President          Title:   Executive Vice President,
                                            Global Executive Committee and Chief
                                            Financial Officer

                                            By: /s/ GEORGE S. DAVIS
                                            -----------------------------------
                                            Printed Name:    George S. Davis

                                            Title: Corporate Vice President and
                                            Treasurer

                                        1

<PAGE>

                                   DEFINITIONS

Account Debtor:                    Each person or entity obligated to pay any
                                   Receivable.

Agreement:                         The Program for Accounts Receivable Transfer
                                   Agreement to which this Annex I is attached
                                   (together with any applicable Schedule A), as
                                   amended, restated, extended, supplemented or
                                   otherwise modified in writing from time to
                                   time.

Approved Account Debtor:           Any Account Debtor listed on a Schedule A
                                   that has been executed by BofA.

Bankruptcy:                        An Account Debtor (a) is dissolved (other
                                   than pursuant to a consolidation,
                                   amalgamation or merger); (b) becomes
                                   insolvent or is unable to pay its debts or
                                   fails or admits in writing its inability
                                   generally to pay its debts as they become
                                   due; (c) makes a general assignment,
                                   arrangement or composition with or for the
                                   benefit of its creditors; (d) institutes or
                                   has instituted against it a proceeding
                                   seeking a judgment of insolvency or
                                   bankruptcy or any other relief under any
                                   bankruptcy or insolvency law or other similar
                                   law affecting creditors' rights, or a
                                   petition is presented for its winding-up or
                                   liquidation, and, in the case of any such
                                   proceeding or petition instituted or
                                   presented against it, such proceeding or
                                   petition (i) results in a judgment of
                                   insolvency or bankruptcy or the entry of an
                                   order for relief or the making of an order
                                   for its winding-up or liquidation or (ii) is
                                   not dismissed, discharged, stayed or
                                   restrained in each case within 30 days of the
                                   institution or presentation thereof; (e) has
                                   a resolution passed for its winding-up,
                                   official management or liquidation (other
                                   than pursuant to a consolidation,
                                   amalgamation or merger); (f) seeks or becomes
                                   subject to the appointment of an
                                   administrator, provisional liquidator,
                                   conservator, receiver, trustee, custodian or
                                   other similar official for it or for all or
                                   substantially all its assets; (g) has a
                                   secured party take possession of all or
                                   substantially all its assets or has a
                                   distress, execution, attachment,
                                   sequestration or other legal process levied,
                                   enforced or sued on or against all or
                                   substantially all its assets and such secured
                                   party maintains possession, or any such
                                   process is not dismissed, discharged, stayed
                                   or restrained, in each case within 30 days
                                   thereafter; or (h) causes or is subject to
                                   any event with respect to it which, under the
                                   applicable laws of any jurisdiction, has an
                                   analogous effect to any of the events
                                   specified in clauses (a) to (g) (inclusive).

BofA:                              As defined in the introductory paragraph of
                                   the Agreement.

Client:                            As defined in the introductory paragraph of
                                   the Agreement.

Collateral:                        As defined in Section 13 of the Agreement.

Contract:                          An agreement pursuant to which an Approved
                                   Account Debtor agrees to pay money to Client
                                   for products sold or services rendered by
                                   Client in the ordinary course of its
                                   business.

                                       1

<PAGE>

Credit Rating:                     With respect to Client or any Account Debtor,
                                   such person's issuer or counterparty credit
                                   rating as assigned by S&P, Moody's or any
                                   other nationally recognized ratings agency.
                                   To the extent applicable, the respective
                                   Credit Ratings of Client and the relevant
                                   Account Debtor as of the Effective Date are
                                   set forth on the applicable Schedule A.

Effective Date:                    The date set forth after such term on the
                                   applicable Schedule A, which represents the
                                   effective date of BofA's initial purchase of
                                   the subject Receivables.

Event of Default:                  As defined in Section 10 of the Agreement.

Financial Inability To Pay:        An Account Debtor's failure to pay a
                                   Purchased Receivable for any reason other
                                   than one of the circumstances enumerated in
                                   Section 1(b)(7)(i) or such Account Debtor (A)
                                   (i) is dissolved (other than pursuant to a
                                   consolidation, amalgamation or merger); (ii)
                                   becomes insolvent or is unable to pay its
                                   debts or fails or admits in writing its
                                   inability generally to pay its debts as they
                                   become due; (iii) makes a general assignment,
                                   arrangement or composition with or for the
                                   benefit or its creditors; (iv) institutes or
                                   has instituted against it a proceeding
                                   seeking judgment of insolvency or bankruptcy
                                   or any other relief under any bankruptcy or
                                   insolvency law or other similar law affecting
                                   creditor's rights, or a petition is presented
                                   for its winding-up or liquidation, and, in
                                   the case of any such proceeding or petition
                                   instituted or presented against it, such
                                   proceeding or petition (aa) results in a
                                   judgment of insolvency or bankruptcy or the
                                   entry of an order for relief or the making of
                                   an order for its winding-up or liquidation or
                                   (bb) is not dismissed, discharged, stayed or
                                   restrained in each case within thirty (30)
                                   days of the institution or presentation
                                   thereof; (v) has a resolution passed for its
                                   winding-up, official management or
                                   liquidation; (vi) seeks or becomes subject to
                                   the appointment of an administrator,
                                   provisional liquidation, conservator,
                                   receiver, trustee, custodian or other similar
                                   official for it or for all or substantially
                                   all its assets; (vii) has a secured party
                                   take possession of all or substantially all
                                   its assets or has a distress, execution,
                                   attachment, sequestration or other legal
                                   process levied, enforced or sued on or
                                   against all or substantially all its assets
                                   and such secured party maintains possession,
                                   or any such process is not dismissed,
                                   discharged, stayed or restrained, in each
                                   case within 30 days thereafter; (viii) causes
                                   or is subject to any event with respect to it
                                   which, under the applicable laws of any
                                   jurisdiction, has an analogous effect to any
                                   of the events specified in clauses (i) to
                                   (vii) (inclusive); or (ix) takes any action
                                   in furtherance of, or indicating its consent
                                   to, approval of, or acquiescence in, any of
                                   the foregoing acts; or (B) also fails, after
                                   giving effect to any applicable grace period
                                   of the relevant obligation(s) of an Account
                                   Debtor (other than such Purchased
                                   Receivable), to make, when due, any payments
                                   equal to or exceeding $10,000,000.00 under
                                   such obligations.

Grace Period Due Date:             The last day of the applicable Past Due Grace
                                   Period, and the last day on which BofA shall
                                   receive payment of the Required Amount in
                                   respect of a Purchased Receivable, as set
                                   forth in the applicable Schedule A.

Incentive Servicing Credit:        The credit given to Servicer, as determined
                                   by BofA, pursuant to Section 9(h) of the
                                   Agreement.

                                       2

<PAGE>

Maximum Invoice Tenor Period:      The time period set forth after such term on
                                   the applicable Schedule A, which represents,
                                   in connection with Receivables that BofA has
                                   approved for purchase with respect to a
                                   specific Approved Account Debtor, the maximum
                                   payment terms (i.e., the time period
                                   following the invoice date within which the
                                   Account Debtor must pay the relevant invoice)
                                   afforded such Account Debtor in any invoice
                                   evidencing such Receivables.

Minimum Invoice Amount:            The amount set forth after such term on the
                                   applicable Schedule A, which represents, in
                                   connection with Receivables that BofA has
                                   approved for purchase with respect to a
                                   specific Approved Account Debtor, the minimum
                                   payment amount specified in any invoice
                                   evidencing such Receivables.

Minimum Invoice Tenor Period:      The time period set forth after such term on
                                   the applicable Schedule A, which represents,
                                   in connection with Receivables that BofA has
                                   approved for purchase with respect to a
                                   specific Approved Account Debtor, the minimum
                                   payment terms (i.e., the time period
                                   following the invoice date within which the
                                   Account Debtor must pay the relevant invoice)
                                   afforded such Account Debtor in any invoice
                                   evidencing such Receivables.

Moody's:                           Moody's Investors Service, Inc. or any
                                   successor.

Overdue:                           The status of any Purchased Receivable that
                                   remains unpaid following its Grace Period Due
                                   Date.

Past Due Grace Period:             The time period set forth after such term on
                                   the applicable Schedule A, which represents,
                                   in connection with Receivables that BofA has
                                   approved for purchase with respect to a
                                   specific Approved Account Debtor, the maximum
                                   past due grace period (i.e., the time period
                                   following the invoice due date within which
                                   Client will accept payment on the relevant
                                   invoice without affording Client the ability
                                   to charge the Account Debtor a late fee,
                                   interest or other penalties) afforded such
                                   Account Debtor in any invoice evidencing such
                                   Receivables.

Purchase Price:                    As defined in Section 1(b)(1) of the
                                   Agreement.

Purchased Receivable:              Any Receivable purchased by BofA pursuant to
                                   the Agreement.

Receivables:                       All receivables, instruments, accounts,
                                   chattel paper, payment intangibles, notes,
                                   contract rights and general intangibles
                                   resulting from Client's sale of products or
                                   services before, on or after the date hereof.

Remittances:                       As defined in Section 1(b)(4) of the
                                   Agreement.

Required Amount:                   The amount set forth after such term on the
                                   applicable Schedule A, which represents the
                                   stated value of Receivables that BofA has
                                   approved for purchase with respect to a
                                   specific Approved Account Debtor.

Responsible Officer:               The assistant treasurer in charge of Client's
                                   Global Credit and Collections Department, or
                                   any equivalent officer with credit and
                                   collection responsibilities.

S&P:                               Standard & Poor's Ratings Services, a
                                   division of The McGraw-Hill Companies, Inc.,
                                   or any successor.

                                       3

<PAGE>

Schedule A:                        Any applicable Schedule A (which may be
                                   denoted Schedule A-1, etc.), in substantially
                                   the form of Annex II to the Agreement,
                                   attached and/or executed in connection with
                                   the Agreement, as such schedule is amended,
                                   restated, extended, supplemented or otherwise
                                   modified in writing from time to time.

Servicer:                          As defined in Section 6(a) of the Agreement.

Servicer Default:                  As defined in Section 6(e) of the Agreement.

Termination Date:                  With respect to Purchased Receivables under a
                                   particular Schedule A, the earlier of (a) the
                                   applicable Stated Termination Date and (b)
                                   the date specified in a writing from BofA to
                                   Client (which date may be the date of such
                                   writing).

                                       4

<PAGE>

                              FORM OF SCHEDULE A-__

 Subject to Program for Accounts Receivable Transfer Agreement executed or to be
  executed by Client and Bank of America, N.A., the terms of which are hereby
                           incorporated by reference

            Subject to credit approval and satisfactory documentation

    Client signature below mandates Bank of America to initiate Due Diligence

Effective Date: [_________]

Stated Termination Date:        [_________]

Grace Period Due Date:          [_________]

Client/Initial Servicer:        [_________]

Client's Credit Rating:         [_________]

Account Debtor:                 [_________]

Account Debtor's Credit Rating: [_________]

Account Debtor's Country
of Organization:                [_________]

Receivables:

         Required Amount:              [__]
         Minimum Invoice Tenor Period: [__] days
         Maximum Invoice Tenor Period: [__] days
         Minimum Invoice Amount:       $[__]
         Past Due Grace Period:        [__] days

Purchase Price:                 [_________]%

Due Diligence Expenses:         For the account of Client/Initial Servicer

ACCEPTED AND AGREED:

Bank of America, N.A.                                 Applied Materials, Inc.

By: ____________________                              By: ______________________
Name: __________________                              Name: ____________________
Title: _________________                              Title: ___________________

Prospective counterparties should conduct a thorough and independent review of
the legal, tax and accounting aspects of any proposed transaction to determine
its suitability in light of their particular circumstances. Although the
indicative information set forth above is reflective of the terms, as of the
specified date, under which Bank of America believes a contract might be
structured, no assurance can be given that such a contract will in fact be
executed.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]