Document:

EXECUTION COPY

                         COVENANT ASSET MANAGEMENT, INC.
                            COVENANT TRANSPORT, INC.

                                   $25,000,000

                7.39% Guaranteed Senior Notes due October 1, 2005

                                PPN: 22283# AA 6

                              AMENDED AND RESTATED
                             NOTE PURCHASE AGREEMENT

                             Dated December 13, 2000

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                                TABLE OF CONTENTS

Section                                                                     Page
-------                                                                     ----

1.   AMENDMENT AND RESTATEMENT OF AGREEMENT ...................................1

2.   THE NOTES.................................................................1

3.   EFFECTIVENESS.............................................................2

4.   CONDITIONS TO EFFECTIVENESS...............................................2
     4.1.   Representations and Warranties.....................................2
     4.2.   Performance; No Default............................................2
     4.3.   Secretary's Certificate............................................2
     4.4.   Opinions of Counsel................................................2
     4.5.   Payment of Purchasers' Counsel Fees................................3
     4.6.   Intercreditor Agreement............................................3
     4.7.   Bank Loan Agreement................................................3
     4.8.   Prior Bank Loan Agreement; Collateral..............................3
     4.9.   Transaction Fee....................................................3
     4.10.  Proceedings and Documents..........................................3

5.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY.............................4
     5.1.   Organization; Power and Authority..................................4
     5.2.   Authorization, etc.................................................4
     5.3.   Disclosure.........................................................4
     5.4.   Organization and Ownership of Shares of Subsidiaries; Affiliates...5
     5.5.   Financial Statements...............................................6
     5.6.   Compliance with Laws, Other Instruments, etc.......................6
     5.7.   Governmental Authorizations, etc...................................6
     5.8.   Litigation; Observance of Agreements, Statutes and Orders..........7
     5.9.   Taxes..............................................................7
     5.10.  Title to Property; Leases..........................................7
     5.11.  Licenses, Permits, etc.............................................8
     5.12.  Compliance with ERISA..............................................8
     5.13.  Private Offering by the Company....................................9
     5.14.  Use of Proceeds; Margin Regulations................................9
     5.15.  Existing Indebtedness; Future Liens................................9
     5.16.  Foreign Assets Control Regulations, etc...........................10
     5.17.  Status under Certain Statutes.....................................10
     5.18.  Environmental Matters.............................................10
     5.19.  Solvency..........................................................11

6.   REPRESENTATIONS OF THE PURCHASERS........................................11
     6.1.   Purchase for Investment...........................................11
     6.2.   Source of Funds...................................................11
     6.3.   Authorization, etc................................................13

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7.   INFORMATION AS TO COMPANY................................................13
     7.1.   Financial and Business Information................................13
     7.2.   Officer's Certificate.............................................16
     7.3.   Inspection........................................................16

8.   PREPAYMENT OF THE NOTES..................................................17
     8.1.   Required Prepayments..............................................17
     8.2.   Optional Prepayments with Make-Whole Amount.......................17
     8.3.   Allocation of Partial Prepayments.................................18
     8.4.   Maturity; Surrender, etc..........................................18
     8.5.   Purchase of Notes.................................................18
     8.6.   Make-Whole Amount.................................................18

9.   AFFIRMATIVE COVENANTS....................................................21
     9.1.   Compliance with Law...............................................21
     9.2.   Insurance.........................................................22
     9.3.   Maintenance of Properties.........................................22
     9.4.   Payment of Taxes and Claims.......................................22
     9.5.   Corporate Existence, etc..........................................22
     9.6.   Compliance with Parent Guarantee..................................23
10.  NEGATIVE COVENANTS.......................................................23
     10.1.  Transactions with Affiliates......................................23
     10.2.  Merger, Consolidation, etc........................................23
     10.3.  Sales of Assets...................................................24
     10.4.  Disposal of Ownership of a Subsidiary.............................25
     10.5.  Sale-and-Leaseback Transactions...................................25
     10.6.  Maintenance of Consolidated Tangible Net Worth....................26
     10.7.  Limitation on Total Debt; Limitation on Funded Debt Incurrence....26
     10.8.  Restricted Payments...............................................26
     10.9.  Restricted Investments............................................26
     10.10. Fixed Charges Coverage............................................27
     10.11. Liens.............................................................27
     10.12. Line of Business..................................................29
     10.13. Subsidiary Guaranty...............................................29

11.  EVENTS OF DEFAULT........................................................29

12.  REMEDIES ON DEFAULT, ETC.................................................32
     12.1.  Acceleration......................................................32
     12.2.  Other Remedies....................................................32
     12.3.  Rescission........................................................33
     12.4.  No Waivers or Election of Remedies, Expenses, etc.................33

13.  REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES............................33
     13.1.  Registration of Notes.............................................33
     13.2.  Transfer and Exchange of Notes....................................33

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     13.3.  Replacement of Notes..............................................34

14.  PAYMENTS ON NOTES........................................................34
     14.1.  Place of Payment..................................................34
     14.2.  Home Office Payment...............................................35

15.  EXPENSES, ETC............................................................35
     15.1.  Transaction Expenses..............................................35
     15.2.  Survival..........................................................36

16.  SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.............36

17.  AMENDMENT AND WAIVER.....................................................36
     17.1.  Requirements......................................................36
     17.2.  Solicitation of Holders of Notes..................................36
     17.3.  Binding Effect, etc...............................................37
     17.4.  Notes held by Company, etc........................................37

18.  NOTICES..................................................................37

19.  REPRODUCTION OF DOCUMENTS................................................38

20.  CONFIDENTIAL INFORMATION.................................................38

21.  SUBSTITUTION OF PURCHASER................................................39

22.  MISCELLANEOUS............................................................39
     22.1.  Successors and Assigns............................................39
     22.2.  Payments Due on Non-Business Days.................................40
     22.3.  Severability......................................................40
     22.4.  Construction......................................................40
     22.5.  Counterparts......................................................40
     22.6.  Governing Law.....................................................40

                                      iii

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SCHEDULE A        --    Information Relating To Purchasers

SCHEDULE B        --    Defined Terms

SCHEDULE 5.3      --    Disclosure Materials

SCHEDULE 5.4      --    Subsidiaries of the Company and Ownership of Subsidiary
                        Stock

SCHEDULE 5.5      --    Financial Statements

SCHEDULE 5.8      --    Certain Litigation

SCHEDULE 5.11     --    Patents, etc.

SCHEDULE 5.14     --    Use of Proceeds

SCHEDULE 5.15     --    Existing Indebtedness

SCHEDULE 10.9     --    Restricted Investments

SCHEDULE 10.11    --    Liens

EXHIBIT 1.2       --    Form of 7.39% Guaranteed Senior Note due October 1, 2005

EXHIBIT 4.11      --    Form of Subsidiary Guaranty

EXHIBIT 4.12      --    Form of Intercreditor Agreement

EXHIBIT 9.6       --    Parent Guarantee

                                       iv

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                         COVENANT ASSET MANAGEMENT, INC.
                           639 ISBELL ROAD, SUITE 390
                               RENO, NEVADA 89509

                7.39% GUARANTEED SENIOR NOTES DUE OCTOBER 1, 2005

                                                         Dated December 13, 2000

TO EACH OF THE PURCHASERS LISTED IN
         THE ATTACHED SCHEDULE A:

Ladies and Gentlemen:

         Reference  is  made  to the  Note  Purchase  Agreement  (the  "Original
Agreement")  dated as of May 15, 2000 among Covenant Asset  Management,  Inc., a
Nevada  corporation  (the  "Company"),  and Covenant  Transport,  Inc., a Nevada
corporation  (the  "Parent"),  and you pursuant to which  $25,000,000  aggregate
principal amount of the Company's 7.39%  Guaranteed  Senior Notes due October 1,
2005 (the  "Notes",  such term to include any such notes issued in  substitution
therefor pursuant to Section 13 of this Agreement) were issued and presently are
outstanding.  You are the holder of Notes in the aggregate  principal amount set
forth  opposite  your name in the attached  Schedule A. You,  together  with any
assignee or  transferee,  are  sometimes  referred to herein  individually  as a
"Holder" or "Purchaser"  and  collectively  with the other  purchasers  named in
Schedule A (the "Other Purchasers") as the "Holders" or the "Purchasers".

         Each of the Company and the Parent agrees with you as follows:

1.       AMENDMENT AND RESTATEMENT OF AGREEMENT.

         The  Company,  the Parent and the Holders now wish to amend and restate
the Original  Agreement to be in the form of this agreement  (the  "Agreement").
Subject  to  the  terms  and   conditions   hereof  and  on  the  basis  of  the
representations and warranties herein contained, the Company, the Parent and the
Holders  agree that the Original  Note  Agreement  shall be amended to be in the
form of this  Agreement.  Certain  capitalized  terms used in this Agreement are
defined in Schedule B;  references to a "Schedule" or an "Exhibit"  are,  unless
otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

2.       THE NOTES.

         On June 6, 2000 (the "Closing"), the Company issued and sold the Notes,
which are guaranteed by the Parent pursuant to the Parent  Guarantee and by each
of the Restricted  Subsidiaries  pursuant to the Subsidiary Guaranty.  The Notes
are secured, pari passu with the Debt outstanding under the Bank Loan Agreement,
by the Collateral  pursuant to the Security  Documents.  The  outstanding  Notes
shall not be  affected  by this  amendment,  and Notes  issued  in

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exchange or  substitution  therefor  shall be  substantially  in the form of the
attached Exhibit 1.2, with such changes therefrom, if any, as may be approved by
your and the Company.

3.       EFFECTIVENESS.

         This  Agreement  shall become  effective  following  its  execution and
delivery by the Company, the Parent and the Holders, and acknowledgement by each
Subsidiary party to the Subsidiary Guaranty, and upon satisfaction of all of the
conditions  set  forth in  Section 4 (the  "Effective  Time").  Delivery  of the
documents called for by Section 4 shall occur at the offices of Gardner,  Carton
& Douglas or at such other place as agreed upon by the Company and the Holders.

4.       CONDITIONS TO EFFECTIVENESS.

         The  effectiveness  of this Agreement is subject to the  fulfillment to
your  satisfaction,  prior  to  or at  the  Effective  Time,  of  the  following
conditions:

4.1.     Representations and Warranties.

         The  representations  and  warranties  of the Company and the Parent in
this Agreement  shall be correct when made and at the time of the Closing and at
the Effective Time.

4.2.     Performance; No Default.

         The Company and the Parent shall have  performed  and complied with all
agreements and conditions  contained in this Agreement  required to be performed
or  complied  with by them prior to or at the  Effective  Time and after  giving
effect to the  transactions  contemplated  hereby no Default or Event of Default
shall have occurred and be continuing.

4.3.     Secretary's Certificate.

         Each of the  Company  and the  Parent  shall  have  delivered  to you a
certificate certifying as to (a) the resolutions relating to this Agreement, the
transactions  contemplated  hereby,  and  the  Security  Documents  and  (b) the
incumbency  of officers  executing  this  Agreement  or  documents  contemplated
hereby.

4.4.     Opinions of Counsel.

         You shall have received an opinion in form and  substance  satisfactory
to you,  dated the  Effective  Date from Scudder Law Firm P.C.,  counsel for the
Company and the Parent,  covering the following matters (and each of the Company
and the Parent instructs its counsel to deliver such opinion to you):

                  (a) The execution, delivery and performance by the Company and
         the Parent of this Agreement and the Security  Documents have been duly
         authorized  by all  necessary  corporate  action and do not require any
         registration  with, consent or approval

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         of, notice to or action  by, any  Person  (including  any  Governmental
         Authority) in order to be effective and enforceable.

                  (b) This Agreement and the Security  Documents each constitute
         the legal, valid and binding obligations of the Company and the Parent,
         enforceable  against each of them in accordance  with their  respective
         terms,  except as such  enforceability may be limited by (i) applicable
         bankruptcy,  insolvency,  reorganization,  moratorium  or other similar
         laws affecting the enforcement of creditors'  rights generally and (ii)
         general principles of equity (regardless of whether such enforceability
         is considered in a proceeding in equity or at law).

4.5.     Payment of Purchasers' Counsel Fees.

         Without limiting the provisions of Section 15.1, the Company shall have
paid on or before the  Effective  Time the fees,  charges and  disbursements  of
Gardner, Carton & Douglas to the extent reflected in a statement of such counsel
rendered to the Company at least one Business Day prior to the Effective Time.

4.6.     Intercreditor Agreement.

         The  Bank  Lenders  and  the  Holders   shall  have  entered  into  the
Intercreditor Agreement.

4.7.     Bank Loan Agreement.

         The Company shall have  delivered to you a correct and complete copy of
the Bank Loan Agreement.

4.8.     Prior Bank Loan Agreement; Collateral.

         The Company shall have repaid all  Indebtedness  outstanding  under the
Prior Bank Loan Agreement,  and all Collateral  securing such Indebtedness shall
have been released to Bank of America,  N.A. in its capacity as Collateral Agent
(as such term is defined in the Intercreditor Agreement).

4.9.     Transaction Fee.

         The Company shall have paid a transaction  fee of $25,000 (0.01% of the
outstanding  principal amount of the Notes) in the aggregate to the Holders,  by
wire transfer of immediately available funds to Chase NYC/CTR/BNF=CIGNA  Private
Placements/AC=9009001802, ABA#021000021.

4.10.    Proceedings and Documents.

         All corporate and other proceedings in connection with the transactions
contemplated  by this  Agreement and all documents and  instruments  incident to
such transactions  shall be satisfactory to you, and you shall have received all
such counterpart originals or certified or other copies of such documents as you
or they may reasonably request.

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5.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         Each of the Company and the Parent represents and warrants to you that:

5.1.     Organization; Power and Authority.

         Each of the Company  and the Parent is a  corporation  duly  organized,
validly  existing and in good  standing  under the laws of its  jurisdiction  of
incorporation,  and is duly  qualified as a foreign  corporation  and is in good
standing in each  jurisdiction in which such  qualification  is required by law,
other than those  jurisdictions as to which the failure to be so qualified or in
good  standing  could  not,  individually  or in the  aggregate,  reasonably  be
expected to have a Material  Adverse Effect.  Each of the Company and the Parent
has the corporate  power and authority to own or hold under lease the properties
it purports to own or hold under  lease,  to transact  the business it transacts
and proposes to transact,  to execute and deliver this  Agreement  and the Notes
and to perform the provisions hereof and thereof.

5.2.     Authorization, etc.

         This Agreement and the Notes have been duly authorized by all necessary
corporate action on the part of each of the Company and the Parent, and

                 (a) this Agreement constitutes, and upon execution and delivery
         thereof  each  Note  will  constitute,   a  legal,  valid  and  binding
         obligation of the Company enforceable against the Company in accordance
         with its terms, and

                 (b) this Agreement, including the Parent Guarantee, constitutes
         a legal, valid and binding obligation of the Parent enforceable against
         the Parent in accordance with its terms,

except (in each case) as such  enforceability  may be limited by (i)  applicable
bankruptcy,  insolvency,  reorganization,   moratorium  or  other  similar  laws
affecting  the  enforcement  of  creditors'  rights  generally  and (ii) general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

         The  Subsidiary  Guaranty  has been duly  authorized  by all  necessary
corporate  action on the part of each  Restricted  Subsidiary and upon execution
and delivery thereof will constitute the legal,  valid and binding obligation of
each Restricted  Subsidiary,  enforceable against each Restricted  Subsidiary in
accordance with its terms,  except as such  enforceability may be limited by (i)
applicable bankruptcy, insolvency,  reorganization,  moratorium or other similar
laws affecting the enforcement of creditors'  rights  generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

5.3.     Disclosure.

         Except as disclosed in Schedule 5.3,  this  Agreement,  the  documents,
certificates  or other writings  delivered to you by or on behalf of the Company
in connection with the transactions  contemplated hereby (including the Parent's
annual report for the year ended December 31,

                                       4

<PAGE>

1999, its proxy statement for the 2000 annual meeting of  stockholders,  and all
forms 10-Q filed with the  Securities  and  Exchange  Commission  subsequent  to
December 31, 1999 and prior to the  Effective  Time),  taken as a whole,  do not
contain any untrue  statement  of a material  fact or omit to state any material
fact  necessary to make the  statements  therein not  misleading in light of the
circumstances  under  which they were made.  Except as  expressly  described  in
Schedule  5.3,  or in one of  the  documents,  certificates  or  other  writings
identified therein, or in the financial statements listed in Schedule 5.5, since
December  31,  1999,  there  has  been no  change  in the  financial  condition,
operations,  business, properties or prospects of the Company, the Parent or any
Subsidiary  except  changes  that  individually  or in the  aggregate  could not
reasonably be expected to have a Material Adverse Effect. There is no fact known
to the Company  that could  reasonably  be  expected to have a Material  Adverse
Effect that has not been set forth herein or in the  Memorandum  or in the other
documents,  certificates and other writings  delivered to you by or on behalf of
the  Company   specifically   for  use  in  connection  with  the   transactions
contemplated hereby.

5.4.     Organization and Ownership of Shares of Subsidiaries; Affiliates.

                 (a) Schedule 5.4 contains  (except as noted  therein)  complete
         and  correct  lists  (i)  of  the  Subsidiaries,  showing,  as to  each
         Subsidiary,   the  correct  name  thereof,   the  jurisdiction  of  its
         organization,  the  percentage  of shares of each class of its  capital
         stock or similar equity interests  outstanding  owned by the Parent (or
         the Company, as the case may be) and each other Subsidiary, (ii) of the
         Company's and the Parent's  Affiliates,  other than  Subsidiaries,  and
         (iii) of the Company's and the Parent's  directors and senior officers.
         Each  Subsidiary  listed in  Schedule  5.4 other than CVTI  Receivables
         Corp., a Nevada corporation,  is designated a Restricted  Subsidiary by
         the Company as of the Effective Time.

                 (b) All of the  outstanding  shares of capital stock or similar
         equity  interests  of each  Subsidiary  shown in Schedule  5.4 as being
         owned by the Company, the Parent and the Subsidiaries have been validly
         issued,  are fully paid and nonassessable and are owned by the Company,
         the Parent or another  Subsidiary free and clear of any Lien (except as
         otherwise disclosed in Schedule 5.4).

                 (c) Each Subsidiary identified in Schedule 5.4 is a corporation
         or other legal  entity duly  organized,  validly  existing  and in good
         standing under the laws of its  jurisdiction  of  organization,  and is
         duly qualified as a foreign corporation or other legal entity and is in
         good  standing  in each  jurisdiction  in which such  qualification  is
         required by law, other than those jurisdictions as to which the failure
         to be so qualified or in good standing  could not,  individually  or in
         the  aggregate,  reasonably  be  expected  to have a  Material  Adverse
         Effect.  Each such  Subsidiary  has the  corporate  or other  power and
         authority to own or hold under lease the  properties it purports to own
         or hold under  lease and to transact  the  business  it  transacts  and
         proposes to transact.

                 (d) No  Restricted  Subsidiary  is a  party  to,  or  otherwise
         subject to any legal  restriction  or any  agreement  (other  than this
         Agreement,   the  agreements  listed  on  Schedule  5.4  and  customary
         limitations imposed by corporate law statutes)  restricting the ability
         of such  Restricted  Subsidiary to pay dividends out of profits or make
         any other

                                       5

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         similar  distributions  of  profits  to   the  Company  or  any  of its
         Restricted  Subsidiaries that owns outstanding  shares of capital stock
         or similar equity interests of such Restricted Subsidiary.

5.5.     Financial Statements.

         The  Company  and  the  Parent  have  delivered  to you  copies  of the
consolidated  financial  statements of the Parent and its Subsidiaries listed on
Schedule  5.5.  All of said  financial  statements  (including  in each case the
related  schedules  and notes)  fairly  present  in all  material  respects  the
consolidated  financial  position of the Parent and its  Subsidiaries  as of the
respective  dates  specified in such  Schedule and the  consolidated  results of
their operations and cash flows for the respective periods so specified and have
been  prepared in  accordance  with GAAP  consistently  applied  throughout  the
periods involved except as set forth in the notes thereto (subject,  in the case
of any interim financial statements, to normal year-end adjustments).

5.6.     Compliance with Laws, Other Instruments, etc.

         The execution,  delivery and  performance by the Company and the Parent
of this  Agreement and the Notes will not (i)  contravene,  result in any breach
of, or  constitute  a default  under,  or result in the  creation of any Lien in
respect of any property of the Company,  the Parent or any Subsidiary under, any
indenture,  mortgage, deed of trust, loan, purchase or credit agreement,  lease,
corporate charter or by-laws,  or any other agreement or instrument to which the
Company,  the Parent or any  Subsidiary  is bound or by which the  Company,  the
Parent or any Subsidiary or any of their  respective  properties may be bound or
affected,  (ii)  conflict  with  or  result  in a  breach  of any of the  terms,
conditions or provisions of any order, judgment, decree, or ruling of any court,
arbitrator or Governmental  Authority  applicable to the Company,  the Parent or
any  Subsidiary  or (iii)  violate any provision of any statute or other rule or
regulation of any Governmental  Authority  applicable to the Company, the Parent
or any Subsidiary.

         The execution,  delivery and performance by each Restricted  Subsidiary
of the Subsidiary Guaranty will not (i) contravene,  result in any breach of, or
constitute a default under,  or result in the creation of any Lien in respect of
any property of such Restricted  Subsidiary  under, any agreement,  or corporate
charter or by-laws,  to which such  Restricted  Subsidiary  is bound or by which
such  Restricted  Subsidiary or any of its  properties may be bound or affected,
(ii)  conflict  with or result in a breach of any of the  terms,  conditions  or
provisions of any order, judgment, decree, or ruling of any court, arbitrator or
Governmental Authority applicable to such Restricted Subsidiary or (iii) violate
any  provision of any statute or other rule or  regulation  of any  Governmental
Authority applicable to such Restricted Subsidiary.

5.7.     Governmental Authorizations, etc.

         No consent,  approval or authorization  of, or registration,  filing or
declaration with, any Governmental  Authority is required in connection with the
execution,  delivery  or  performance  by the  Company  and the  Parent  of this
Agreement  or the  Notes  or the  execution,  delivery  or  performance  by each
Restricted Subsidiary of the Subsidiary Guaranty.

                                       6

<PAGE>

5.8.     Litigation; Observance of Agreements, Statutes and Orders.

                 (a) Except as disclosed in Schedule 5.8,  there are no actions,
         suits or proceedings pending or, to the knowledge of the Company or the
         Parent,  threatened against or affecting the Company, the Parent or any
         Subsidiary or any property of the Company, the Parent or any Subsidiary
         in any court or before any  arbitrator  of any kind or before or by any
         Governmental  Authority that,  individually or in the aggregate,  could
         reasonably be expected to have a Material Adverse Effect.

                 (b) None of the Company,  the Parent and any  Subsidiary  is in
         default  under any term of any agreement or instrument to which it is a
         party or by which it is bound, or any order, judgment, decree or ruling
         of any court,  arbitrator or Governmental  Authority or is in violation
         of any applicable law, ordinance, rule or regulation (including without
         limitation  Environmental  Laws) of any Governmental  Authority,  which
         default  or  violation,   individually  or  in  the  aggregate,   could
         reasonably be expected to have a Material Adverse Effect.

5.9.     Taxes.

         The  Parent,  the  Company  and their  Subsidiaries  have filed all tax
returns that are required to have been filed in any jurisdiction,  and have paid
all taxes  shown to be due and  payable on such  returns and all other taxes and
assessments levied upon them or their properties,  assets, income or franchises,
to the extent such taxes and assessments  have become due and payable and before
they have become delinquent, except for any taxes and assessments (i) the amount
of which is not  individually  or in the aggregate  Material or (ii) the amount,
applicability or validity of which is currently being contested in good faith by
appropriate  proceedings and with respect to which the Company,  the Parent or a
Subsidiary,  as the case may be, has established adequate reserves in accordance
with GAAP.  Neither the Company nor the Parent  knows of any basis for any other
tax or assessment that could  reasonably be expected to have a Material  Adverse
Effect.  The charges,  accruals  and  reserves on the books of the Company,  the
Parent and the Subsidiaries in respect of Federal,  state or other taxes for all
fiscal periods are adequate.  The Federal  income tax  liabilities of the Parent
have been  determined  by the Internal  Revenue  Service and paid for all fiscal
years up to and including the fiscal year ended December 31, 1996.

5.10.    Title to Property; Leases.

         The Company,  the Parent and the Subsidiaries  have good and sufficient
title to their respective  properties that  individually or in the aggregate are
Material,  including all such  properties  reflected in the most recent  audited
balance  sheet  referred to in Section 5.5 or purported to have been acquired by
the  Company,  the Parent or any  Subsidiary  after said date (except as sold or
otherwise disposed of in the ordinary course of business), in each case free and
clear of Liens prohibited by this Agreement.  All leases that individually or in
the  aggregate are Material are valid and  subsisting  and are in full force and
effect in all material respects.

                                       7

<PAGE>

5.11.    Licenses, Permits, etc.

         Except as disclosed in Schedule 5.11,

                 (a) the Company, the Parent and the Subsidiaries own or use all
         licenses, permits,  franchises,  authorizations,  patents,  copyrights,
         service marks,  trademarks  and trade names,  or rights  thereto,  that
         individually  or in the aggregate are Material,  without known conflict
         with the rights of others;

                 (b) to the best  knowledge  of the Company  and the Parent,  no
         product of the Company or the Parent or their Subsidiaries infringes in
         any material  respect any license,  permit,  franchise,  authorization,
         patent, copyright,  service mark, trademark,  trade name or other right
         owned by any other Person; and

                 (c) to the best knowledge of the Company and the Parent,  there
         is no Material violation by any Person of any right of the Company, the
         Parent  or  any  of  the  Subsidiaries  with  respect  to  any  patent,
         copyright,  service mark, trademark, trade name or other right owned or
         used by the Company, the Parent or any of the Subsidiaries.

5.12.    Compliance with ERISA.

                 (a) The  Company,  the  Parent and each  ERISA  Affiliate  have
         operated and  administered  each Plan in compliance with all applicable
         laws except for such instances of noncompliance as have not resulted in
         and could not  reasonably  be expected to result in a Material  Adverse
         Effect.  Neither the Company or the Parent nor any ERISA  Affiliate has
         incurred  any  liability  pursuant  to  Title I or IV of  ERISA  or the
         penalty or excise  tax  provisions  of the Code  relating  to  employee
         benefit  plans  (as  defined  in  Section  3 of  ERISA),  and no event,
         transaction  or condition has occurred or exists that could  reasonably
         be expected to result in the  incurrence  of any such  liability by the
         Company, the Parent or any ERISA Affiliate, or in the imposition of any
         Lien on any of the rights,  properties  or assets of the  Company,  the
         Parent or any ERISA Affiliate, in either case pursuant to Title I or IV
         of ERISA or to such  penalty  or excise  tax  provisions  or to Section
         401(a)(29) or 412 of the Code,  other than such liabilities or Liens as
         would not be individually or in the aggregate Material.

                 (b) The  present  value of the  aggregate  benefit  liabilities
         under  each of the Plans  (other  than  Multiemployer  Plans),  if any,
         determined as of the end of such Plan's most  recently  ended plan year
         on the  basis  of  the  actuarial  assumptions  specified  for  funding
         purposes in such Plan's most recent actuarial valuation report, did not
         exceed the aggregate current value of the assets of such Plan allocable
         to such benefit  liabilities.  The term "benefit  liabilities"  has the
         meaning  specified  in  section  4001 of ERISA and the  terms  "current
         value" and "present  value" have the meaning  specified in section 3 of
         ERISA.

                 (c) The Company,  the Parent and the ERISA  Affiliates have not
         incurred  withdrawal  liabilities  (and are not  subject to  contingent
         withdrawal  liabilities) under

                                       8

<PAGE>

         section 4201 or 4204  of ERISA in respect of  Multiemployer  Plans that
         individually or in the aggregate are Material.

                 (d) The expected  postretirement benefit obligation (determined
         as of the last day of the Company's  most recently ended fiscal year in
         accordance with Financial Accounting Standards Board Statement No. 106,
         without regard to liabilities  attributable  to  continuation  coverage
         mandated by section  4980B of the Code) of the Company,  the Parent and
         the Subsidiaries is not Material.

                 (e)  The  execution  and  delivery  of this  Agreement  and the
         issuance  and  sale  of  the  Notes  hereunder  will  not  involve  any
         transaction that is subject to the prohibitions of section 406 of ERISA
         or in connection with which a tax could be imposed  pursuant to section
         4975(c)(1)(A)-(D) of the Code. The representation by the Company in the
         first  sentence of this  Section  5.12(e) is made in reliance  upon and
         subject to the accuracy of your representation in Section 6.2 as to the
         sources of the funds used to pay the purchase  price of the Notes to be
         purchased by you.

5.13.    Private Offering by the Company.

         Neither the  Company nor the Parent nor anyone  acting on behalf of the
Company or the Parent has offered the Notes or any similar  securities  for sale
to, or solicited any offer to buy any of the same from, or otherwise  approached
or negotiated in respect  thereof with,  any person other than you and the Other
Purchasers.  Neither the  Company nor the Parent nor anyone  acting on behalf of
the Company or the Parent has taken, or will take, any action that would subject
the issuance or sale of the Notes to the registration  requirements of Section 5
of the Securities Act.

5.14.    Use of Proceeds; Margin Regulations.

         The  Company  will apply the  proceeds  of the sale of the Notes as set
forth in  Schedule  5.14.  No part of the  proceeds  from the sale of the  Notes
hereunder  will be used,  directly or  indirectly,  for the purpose of buying or
carrying  any margin  stock  within the meaning of  Regulation U of the Board of
Governors  of the  Federal  Reserve  System (12 CFR 221),  or for the purpose of
buying or carrying or trading in any securities  under such  circumstances as to
involve the Company in a violation of Regulation X of said Board (12 CFR 224) or
to involve any broker or dealer in a violation of Regulation T of said Board (12
CFR 220).  Margin stock does not constitute any of the value of the consolidated
assets of the Company  and its  Subsidiaries  and the Company  does not have any
present  intention  that margin stock will  constitute  any of the value of such
assets. As used in this Section, the terms "margin stock" and "purpose of buying
or carrying" shall have the meanings assigned to them in said Regulation U.

5.15.    Existing Indebtedness; Future Liens.

                 (a) Except as  described  therein,  Schedule  5.15 sets forth a
         complete  and  correct  list  of all  outstanding  Indebtedness  of the
         Company,  the  Parent and the  Subsidiaries  as of the  Effective  Time
         (giving effect to the borrowings  under the Bank Loan Agreement and the
         Permitted Receivables  Securitization  Transaction contemplated by this
         Agreement),  since which date there has been no Material  change in the
         amounts,

                                       9

<PAGE>

         interest rates,  sinking funds,  installment  payments or maturities of
         the  Indebtedness  of the  Company or  its  Subsidiaries.  Neither  the
         Company or the Parent nor any  Subsidiary  is in default and (except as
         contemplated by the  Intercreditor  Agreement) no  waiver of default is
         currently  in effect,  in the payment of any  principal  or interest on
         any Indebtedness of the Company,  the Parent or such  Subsidiary and no
         event or  condition  exists  with  respect to any  Indebtedness  of the
         Company,  the  Parent or any Subsidiary that would permit (or that with
         notice  or  the  lapse of  time,  or both,  would  permit)  one or more
         Persons to cause such  Indebtedness  to  become due and payable  before
         its  stated  maturity  or  before  its  regularly  scheduled  dates  of
         payment.

                 (b) Except as disclosed in Schedule 5.15,  neither the Company,
         the Parent nor any  Subsidiary  have  agreed or  consented  to cause or
         permit in the future (upon the happening of a contingency or otherwise)
         any of their property,  whether now owned or hereafter acquired,  to be
         subject to a Lien not permitted by Section 10.11.

5.16.    Foreign Assets Control Regulations, etc.

         Neither the sale of the Notes by the Company  hereunder  nor its use of
the proceeds thereof will violate the Trading with the Enemy Act, as amended, or
any of the foreign  assets  control  regulations  of the United States  Treasury
Department  (31  CFR,  Subtitle  B,  Chapter  V,  as  amended)  or any  enabling
legislation or executive order relating thereto.

5.17.    Status under Certain Statutes.

         None of the  Company,  the  Parent  or any  Subsidiary  is  subject  to
regulation  under the  Investment  Company Act of 1940,  as amended,  the Public
Utility  Holding  Company Act of 1935, as amended,  or the Federal Power Act, as
amended.

5.18.    Environmental Matters.

         None of the Company,  the Parent or any Subsidiary has knowledge of any
claim or has  received  any  notice of any  claim,  and no  proceeding  has been
instituted  raising  any claim  against  the  Company,  the Parent or any of the
Subsidiaries  or any of their  respective real properties now or formerly owned,
leased or operated by any of them or other  assets,  alleging  any damage to the
environment or violation of any Environmental  Laws,  except, in each case, such
as could not reasonably be expected to result in a Material Adverse Effect.

                 (a) None of the  Company,  the  Parent  or any  Subsidiary  has
         knowledge  of any facts which  would give rise to any claim,  public or
         private,   of  violation  of  Environmental   Laws  or  damage  to  the
         environment  emanating from, occurring on or in any way related to real
         properties now or formerly owned,  leased or operated by any of them or
         to other assets or their use,  except,  in each case, such as could not
         reasonably be expected to result in a Material Adverse Effect.

                 (b) None of the Company,  the Parent or any  Subsidiary has (i)
         stored any  Hazardous  Materials  on real  properties  now or  formerly
         owned, leased or operated by any of them (ii) disposed of any Hazardous
         Materials in a manner contrary to any

                                       10

<PAGE>

         Environmental  Laws, in  each case in any manner that could  reasonably
         be expected to result in a Material Adverse Effect.

                 (c) All buildings on all real  properties now owned,  leased or
         operated by the Company, the Parent or any Subsidiary are in compliance
         with  applicable  Environmental  Laws,  except where  failure to comply
         could not  reasonably  be  expected  to result  in a  Material  Adverse
         Effect.

5.19.    Solvency.

         The Parent,  the Company and each Restricted  Subsidiary  (after giving
due  consideration  to any rights of contribution  among such Persons) have each
received fair  consideration and reasonably  equivalent value for the incurrence
of its obligations  hereunder or as contemplated  hereby. After giving effect to
the transactions  contemplated  herein, (i) the fair value of the assets of each
of the  Parent,  the  Company  and  each  Restricted  Subsidiary  (both  at fair
valuation and at present fair saleable value) exceeds its liabilities, (ii) each
of the Parent, the Company and each Restricted Subsidiary is able to and expects
to be able to pay its debts as they  mature,  and (iii) each of the Parent,  the
Company and each  Restricted  Subsidiary has capital  sufficient to carry on its
business as conducted and as proposed to be conducted.

6.       REPRESENTATIONS OF THE PURCHASERS.

6.1.     Purchase for Investment.

         You represent that you have purchased the Notes for your own account or
for one or more separate accounts maintained by you or for the account of one or
more  pension or trust  funds and not with a view to the  distribution  thereof,
provided that the  disposition  of your or their  property shall at all times be
within  your or their  control.  You  understand  that the  Notes  have not been
registered  under the Securities Act and similar State  securities laws, and may
be resold only if registered  pursuant to the  provisions of the  Securities Act
and such State laws or if an exemption from  registration  is available,  except
under  circumstances  where neither such  registration  nor such an exemption is
required by law, and that the Company is not required to register the Notes. You
represent that you are an "accredited investor" as defined in Regulation 230.501
issued pursuant to the Securities Act.

6.2.     Source of Funds.

         You  represent  that at least  one of the  following  statements  is an
accurate  representation  as to each source of funds (a "Source") used by you to
pay the purchase price of the Notes to be purchased by you hereunder:

                 (a)  the  Source  does  not  include  assets  allocated  to any
         separate  account  maintained by you in which any employee benefit plan
         (or its related trust) has any interest,  other than a separate account
         that is  maintained  solely in connection  with your fixed  contractual
         obligations under which the amounts payable, or credited,  to such plan
         and to any  participant  or  beneficiary  of such plan  (including  any
         annuitant) are not affected in any manner by the investment performance
         of the separate account

                                       11

<PAGE>

                 (b) the Source is an  "insurance  company  general  account" as
         such term is defined in the Department of Labor Prohibited  Transaction
         Exemption  ("PTE") 95-60 (issued July 12, 1995) ("PTE 95-60") and as of
         the date of this  Agreement  there is no "employee  benefit  plan" with
         respect  to  which  the  aggregate  amount  of such  general  account's
         reserves and liabilities for the contracts held by or on behalf of such
         employee  benefit plan and all other employee  benefit plans maintained
         by the same  employer  (and  affiliates  thereof  as defined in Section
         V(a)(1) of PTE  95-60) or by the same  employee  organization  (in each
         case determined in accordance with the provisions of PTE 95-60) exceeds
         10% of the total reserves and  liabilities of such general  account (as
         determined under PTE 95-60) (exclusive of separate account liabilities)
         plus  surplus as set forth in the  National  Association  of  Insurance
         Commissioners Annual Statement filed with your state of domicile; or

                 (c) the  Source  is  either  (i) an  insurance  company  pooled
         separate  account,  within the meaning of PTE 90-1 (issued  January 29,
         1990), or (ii) a bank collective investment fund, within the meaning of
         PTE 91-38 (issued July 12, 1991) and,  except as you have  disclosed to
         the  Company in writing  pursuant  to this  paragraph  (b), no employee
         benefit  plan or group  of plans  maintained  by the same  employer  or
         employee  organization  beneficially  owns more than 10% of all  assets
         allocated  to such pooled  separate  account or  collective  investment
         fund; or

                 (d) the  Source  constitutes  assets  of an  "investment  fund"
         (within  the  meaning  of Part V of the QPAM  Exemption)  managed  by a
         "qualified professional asset manager" or "QPAM" (within the meaning of
         Part V of the QPAM  Exemption),  no employee benefit plan's assets that
         are included in such investment  fund, when combined with the assets of
         all other employee benefit plans  established or maintained by the same
         employer or by an affiliate  (within the meaning of Section  V(c)(1) of
         the  QPAM   Exemption)  of  such  employer  or  by  the  same  employee
         organization  and managed by such QPAM,  exceed 20% of the total client
         assets managed by such QPAM, the conditions of Part I(c) and (g) of the
         QPAM Exemption are satisfied, neither the QPAM nor a person controlling
         or  controlled  by the QPAM  (applying  the  definition of "control" in
         Section V(e) of the QPAM  Exemption)  owns a 5% or more interest in the
         Company  and (i) the  identity  of such  QPAM and (ii) the names of all
         employee  benefit  plans whose assets are  included in such  investment
         fund have been  disclosed  to the  Company in writing  pursuant to this
         paragraph (c); or

                 (e) the Source is a governmental plan; or

                 (f) the  Source is one or more  employee  benefit  plans,  or a
         separate  account  or  trust  fund  comprised  of one or more  employee
         benefit  plans,  each of which has been  identified  to the  Company in
         writing pursuant to this paragraph (e); or

                 (g) the  Source is the assets of one or more  employee  benefit
         plans that are managed by an "in-house  asset manager," as that term is
         defined  in PTE 96-23 and such  purchase  and  holding  of the Notes is
         exempt under PTE 96-23; or

                                       12

<PAGE>

                 (h) the Source does not include assets of any employee  benefit
         plan, other than a plan exempt from the coverage of ERISA.

As used in this Section 6.2, the terms  "employee  benefit plan",  "governmental
plan",  "party in interest" and  "separate  account"  shall have the  respective
meanings assigned to such terms in Section 3 of ERISA.

6.3.     Authorization, etc.

         This  Agreement has been duly  authorized  by all  necessary  corporate
action  by you,  and this  Agreement  constitutes  a legal,  valid  and  binding
obligation  of you  enforceable  against  the you in  accordance  with its terms
except as such  enforceability  may be  limited  by (i)  applicable  bankruptcy,
insolvency,  reorganization,  moratorium  or other  similar laws  affecting  the
enforcement of creditors' rights generally and (ii) general principles of equity
(regardless  of whether such  enforceability  is  considered  in a proceeding in
equity or at law).

7.       INFORMATION AS TO COMPANY.

7.1.     Financial and Business Information.

         The  Parent  shall   deliver  to  each  holder  of  Notes  that  is  an
Institutional  Investor (if any),  provided that the Parent (as the case may be)
shall have been  notified  of the  identity  of such  holder and shall have been
provided the proper address for notice:

                 (a)  Quarterly  Statements  -- within 60 days  after the end of
         each  quarterly  fiscal period in each fiscal year of the Parent (other
         than the last  quarterly  fiscal  period  of each  such  fiscal  year),
         duplicate copies of,

                      (i) a  consolidated  balance  sheet of the  Parent and its
                 Subsidiaries as at the end of such quarter, and

                      (ii)  consolidated   statements  of  income,   changes  in
                 stockholders'  equity  and  cash  flows of the  Parent  and its
                 Subsidiaries  for such  quarter  and (in the case of the second
                 and third  quarters)  for the portion of the fiscal year ending
                 with such quarter,

         setting  forth in each case in  comparative  form the  figures  for the
         corresponding  periods in the previous  fiscal year,  all in reasonable
         detail,  prepared  in  accordance  with GAAP  applicable  to  quarterly
         financial  statements  generally,  and certified by a Senior  Financial
         Officer as fairly presenting,  in all material respects,  the financial
         position  of the  companies  being  reported  on and their  results  of
         operations and cash flows,  subject to changes  resulting from year-end
         adjustments,  provided that delivery  within the time period  specified
         above of copies of the Parent's  Quarterly Report on Form 10-Q prepared
         in  compliance  with  the  requirements  therefor  and  filed  with the
         Securities  and  Exchange  Commission  shall be deemed to  satisfy  the
         requirements of this Section 7.1(a) with respect to the Parent;

                                       13

<PAGE>

                 (b) Annual  Statements -- within 100 days after the end of each
         fiscal year of the Company and the Parent, duplicate copies of,

                      (i) a  consolidated  balance  sheet of the  Parent and its
                 Subsidiaries, as at the end of such year, and

                      (ii)  consolidated   statements  of  income,   changes  in
                 shareholders'  equity  and  cash  flows of the  Parent  and its
                 Subsidiaries, for such year,

         setting  forth in each case in  comparative  form the  figures  for the
         previous fiscal year, all in reasonable detail,  prepared in accordance
         with GAAP, and accompanied

                      (A) by an opinion thereon of independent  certified public
                 accountants  of  recognized  national  standing,  which opinion
                 shall state that such financial  statements  present fairly, in
                 all material respects,  the financial position of the companies
                 being  reported upon and their  results of operations  and cash
                 flows and have been prepared in conformity  with GAAP, and that
                 the  examination of such  accountants  in connection  with such
                 financial statements has been made in accordance with generally
                 accepted  auditing  standards,  and that such audit  provides a
                 reasonable basis for such opinion in the circumstances, and

                      (B) a certificate  of such  accountants  stating that they
                 have reviewed this Agreement and stating  further  whether,  in
                 making their audit,  they have become aware of any condition or
                 event that then  constitutes  a Default or an Event of Default,
                 and,  if they are aware that any such  condition  or event then
                 exists,  specifying  the  nature  and  period of the  existence
                 thereof (it being understood that such accountants shall not be
                 liable,  directly  or  indirectly,  for any  failure  to obtain
                 knowledge  of any  Default  or Event  of  Default  unless  such
                 accountants should have obtained knowledge thereof in making an
                 audit in accordance with generally  accepted auditing standards
                 or did not make such an audit),

         provided that the delivery  within the time period  specified  above of
         the Parent's  Annual Report on Form 10-K for such fiscal year (together
         with the  Parent's  annual  report to  shareholders,  if any,  prepared
         pursuant to Rule 14a-3 under the Exchange  Act)  prepared in accordance
         with the  requirements  therefor  and  filed  with the  Securities  and
         Exchange  Commission,   together  with  the  accountant's   certificate
         described  in  clause  (B)  above,  shall  be  deemed  to  satisfy  the
         requirements of this Section 7.1(b);

                 (c) SEC and Other  Reports  --  promptly  upon  their  becoming
         available, one copy of (i) each financial statement,  report, notice or
         proxy  statement  sent by the Parent or any  Restricted  Subsidiary  to
         public securities holders generally,  and (ii) each regular or periodic
         report,  each  registration   statement  (without  exhibits  except  as
         expressly  requested  by such  holder),  and  each  prospectus  and all
         amendments  thereto filed by the Company,  the Parent or any Restricted
         Subsidiary with the Securities and Exchange Commission and of all press
         releases and other statements made available  generally by

                                       14

<PAGE>

         the Company,  the Parent or  any  Restricted  Subsidiary  to the public
         concerning developments that are Material;

                 (d) Notice of Default or Event of Default --  promptly,  and in
         any  event  within  five  Business  Days  after a  Responsible  Officer
         becoming  aware of the  existence of any Default or Event of Default or
         that any Person has given any notice or taken any action  with  respect
         to a claimed default  hereunder or that any Person has given any notice
         or taken any  action  with  respect  to a claimed  default  of the type
         referred to in Section 11(f),  a written  notice  specifying the nature
         and period of  existence  thereof  and what  action the  Company or the
         Parent  (as  applicable)  is taking or  proposes  to take with  respect
         thereto;

                 (e) ERISA  Matters --  promptly,  and in any event  within five
         days  after  a  Responsible  Officer  becoming  aware  of  any  of  the
         following,  a written  notice  setting forth the nature thereof and the
         action, if any, that the Parent or an ERISA Affiliate  proposes to take
         with respect thereto:

                      (i) with respect to any Plan,  any  reportable  event,  as
                 defined  in  section  4043(b)  of  ERISA  and  the  regulations
                 thereunder,  for  which  notice  thereof  has not  been  waived
                 pursuant to such  regulations  as in effect on the date hereof;
                 or

                      (ii) the taking by the PBGC of steps to institute,  or the
                 threatening  by the  PBGC of the  institution  of,  proceedings
                 under  section  4042 of ERISA  for the  termination  of, or the
                 appointment  of a  trustee  to  administer,  any  Plan,  or the
                 receipt by the Company,  the Parent or any ERISA Affiliate of a
                 notice  from a  Multiemployer  Plan that such  action  has been
                 taken by the PBGC with respect to such Multiemployer Plan; or

                      (iii) any  event,  transaction  or  condition  that  could
                 result in the  incurrence of any liability by the Parent or any
                 ERISA  Affiliate  pursuant  to  Title I or IV of  ERISA  or the
                 penalty  or  excise  tax  provisions  of the Code  relating  to
                 employee benefit plans, or in the imposition of any Lien on any
                 of the rights,  properties or assets of the Parent or any ERISA
                 Affiliate pursuant to Title I or IV of ERISA or such penalty or
                 excise  tax  provisions,  if  such  liability  or  Lien,  taken
                 together  with  any  other  such   liabilities  or  Liens  then
                 existing,  could  reasonably  be  expected  to have a  Material
                 Adverse Effect;

                 (f) Notices from Governmental Authority -- promptly, and in any
         event  within 30 days of receipt  thereof,  copies of any notice to the
         Parent,  the Company or any Restricted  Subsidiary  from any Federal or
         state Governmental  Authority relating to any order, ruling, statute or
         other law or  regulation  that could  reasonably  be expected to have a
         Material Adverse Effect;

                 (g) Requested Information -- with reasonable  promptness,  such
         other  data  and  information  relating  to the  business,  operations,
         affairs,  financial condition,  assets or properties of the Parent, the
         Company or any  Subsidiary  or relating to the ability of the Parent or
         the Company to perform its obligations hereunder and under the Notes as
         from time to time may be  reasonably  requested  by any such  holder of
         Notes;

                                       15

<PAGE>

                 (h) Rule  144A  Information  --  promptly  upon  request,  such
         financial  and other  information  as such  Institutional  Investor may
         reasonably determine to be necessary in order to permit compliance with
         the information  requirements of Rule 144A under the Securities Act (or
         any successor  provision)  in connection  with the resale of the Notes,
         except  at  such  times  as the  Parent  is  subject  to the  reporting
         requirements of Section 13 or 15(d) of the Exchange Act; and

                  (i)  Unrestricted  Subsidiaries  -- at the time of delivery of
         any  financial  statements  pursuant  to  Section  7.1(a)  or  (b),  an
         unaudited  balance sheet for all Unrestricted  Subsidiaries  taken as a
         whole as of the end of the fiscal  period  included  in such  financial
         statements   and  the   related   unaudited   statements   of   income,
         shareholders' equity and cash flows for such Unrestricted  Subsidiaries
         for  such  period,  together  with  consolidating  statements  or other
         reconciliations reflecting all eliminations or adjustments necessary to
         reconcile such group financial statements to the consolidated financial
         statements of the Company and its Subsidiaries.

7.2.     Officer's Certificate.

         Each  set of  financial  statements  delivered  to a  holder  of  Notes
pursuant  to  Section  7.1(a)  or  Section  7.1(b)  shall  be  accompanied  by a
certificate  of a Senior  Financial  Officer  of the Parent (as the case may be)
setting forth:

                 (a) Covenant Compliance -- the information  (including detailed
         calculations)  required in order to establish whether the Parent was in
         compliance with the  requirements of Section 10 during the quarterly or
         annual period covered by the statements then being furnished (including
         with respect to each such Section,  where applicable,  the calculations
         of the maximum or minimum amount, ratio or percentage,  as the case may
         be,  permissible under the terms of such Sections,  and the calculation
         of the amount, ratio or percentage then in existence); and

                 (b) Event of  Default  -- a  statement  that such  officer  has
         reviewed the relevant  terms hereof and has made, or caused to be made,
         under  his  or her  supervision,  a  review  of  the  transactions  and
         conditions  of the Parent,  the Company and the  Subsidiaries  from the
         beginning of the quarterly or annual period  covered by the  statements
         then  being  furnished  to the date of the  certificate  and that  such
         review shall not have disclosed the existence during such period of any
         condition  or event that  constitutes  a Default or an Event of Default
         or, if any such  condition or event  existed or exists  (including  any
         such event or condition  resulting from the failure of the Parent,  the
         Company  or any  Subsidiary  to  comply  with any  Environmental  Law),
         specifying  the nature and period of existence  thereof and what action
         the Parent shall have taken or proposes to take with respect thereto.

7.3.     Inspection.

         Each of the Parent and the Company shall permit the  representatives of
each holder of Notes that is an Institutional Investor:

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<PAGE>

                 (a) No  Default  -- if no  Default  or  Event of  Default  then
         exists,  at the expense of such holder and upon reasonable prior notice
         to the Parent to visit the principal executive office of the Parent and
         the  Company,  to discuss the  affairs,  finances  and  accounts of the
         Parent,  the Company and the  Subsidiaries  with the  Parent's  and the
         Company's officers,  and (with the consent of the Parent, which consent
         will  not  be   unreasonably   withheld)   their   independent   public
         accountants,  and (with the consent of the Parent,  which  consent will
         not be unreasonably withheld) to visit the other offices and properties
         of the Parent, the Company and each Subsidiary,  all at such reasonable
         times and as often as may be reasonably requested in writing; and

                 (b) Default -- if a Default or Event of Default then exists, at
         the  expense of the Parent to visit and  inspect  any of the offices or
         properties of the Parent, the Company or any Subsidiary, to examine all
         their respective books of account,  records,  reports and other papers,
         to make copies and extracts therefrom,  and to discuss their respective
         affairs,  finances  and  accounts  with their  respective  officers and
         independent  public  accountants  (and by  this  provision  the  Parent
         authorizes  said  accountants  to discuss  the  affairs,  finances  and
         accounts of the Parent, the Company and the Subsidiaries),  all at such
         reasonable business times and as often as may be reasonably requested.

8.       PREPAYMENT OF THE NOTES.

8.1.     Required Prepayments.

         On October 1, 2001 and on each  October 1 thereafter  to and  including
October 1, 2004 the Company  will prepay  $5,000,000  principal  amount (or such
lesser  principal  amount as shall then be  outstanding) of the Notes at par and
without payment of the Make-Whole Amount or any premium,  provided that upon any
partial  prepayment  of the Notes  pursuant  to Section  8.2 or  Section  8.7 or
purchase  of the Notes  permitted  by Section 8.5 the  principal  amount of each
required  prepayment  of the Notes  becoming  due under this  Section 8.1 on and
after the date of such  prepayment  or  purchase  shall be  reduced  in the same
proportion as the aggregate unpaid principal amount of the Notes is reduced as a
result of such prepayment or purchase.

8.2.     Optional Prepayments with Make-Whole Amount.

         The Company may, at its option,  upon notice as provided below,  prepay
at any time all,  or from time to time any part of, the Notes,  in an amount not
less than  $1,000,000  in aggregate  principal  amount of Notes in the case of a
partial  prepayment,  at 100% of the  principal  amount  so  prepaid,  plus  the
Make-Whole  Amount  determined  for the  prepayment  date with  respect  to such
principal  amount.  The Company will give each holder of Notes written notice of
each  optional  prepayment  under this  Section 8.2 not less and 20 days and not
more than 60 days prior to the date fixed for such prepayment.  Each such notice
shall  specify  such date,  the  aggregate  principal  amount of the Notes to be
prepaid on such date,  the principal  amount of each Note held by such holder to
be prepaid  (determined in accordance  with Section 8.3), and the interest to be
paid on the prepayment date with respect to such principal amount being prepaid,
and shall be accompanied by a certificate  of a Senior  Financial  Officer as to
the  estimated   Make-Whole  Amount  due  in  connection  with  such  prepayment
(calculated  as if the date of such  notice  were  the date of the  prepayment),
setting forth the details of such  computation.  Two Business Days

                                       17

<PAGE>

prior to such  prepayment,  the Company  shall deliver to each holder of Notes a
certificate of a Senior  Financial  Officer  specifying the  calculation of such
Make-Whole Amount as of the specified prepayment date.

8.3.     Allocation of Partial Prepayments.

         In the case of each  partial  prepayment  of the Notes,  the  principal
amount of the Notes to be prepaid  shall be allocated  among all of the Notes at
the time outstanding in proportion, as nearly as practicable,  to the respective
unpaid principal amounts thereof not theretofore called for prepayment.

8.4.     Maturity; Surrender, etc.

         In the case of each prepayment of Notes pursuant to this Section 8, the
principal  amount of each Note to be  prepaid  shall  mature  and become due and
payable on the date fixed for such  prepayment,  together  with interest on such
principal amount accrued to such date and the applicable  Make-Whole  Amount, if
any.  From and after  such  date,  unless  the  Company  shall  fail to pay such
principal  amount  when so due and  payable,  together  with  the  interest  and
Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall
cease to accrue.  Any Note paid or prepaid in full shall be  surrendered  to the
Company and cancelled and shall not be reissued,  and no Note shall be issued in
lieu of any prepaid principal amount of any Note.

8.5.     Purchase of Notes.

         The Company  will not and will not permit any  Affiliate  to  purchase,
redeem,  prepay  or  otherwise  acquire,  directly  or  indirectly,  any  of the
outstanding  Notes  except  upon  the  payment  or  prepayment  of the  Notes in
accordance  with the terms of this  Agreement  and the Notes.  The Company  will
promptly  cancel  all Notes  acquired  by it or any  Affiliate  pursuant  to any
payment,  prepayment  or purchase of Notes  pursuant  to any  provision  of this
Agreement  and no Notes may be issued in  substitution  or exchange for any such
Notes.

8.6.     Make-Whole Amount.

         The term "Make-Whole Amount" means, with respect to any Note, an amount
equal to the excess, if any, of the Discounted Value of the Remaining  Scheduled
Payments  with  respect to the Called  Principal of such Note over the amount of
such Called  Principal,  provided that the Make-Whole  Amount may in no event be
less than zero.  For the purposes of  determining  the  Make-Whole  Amount,  the
following terms have the following meanings:

         "Called  Principal"  means,  with respect to any Note, the principal of
such Note that is to be  prepaid  pursuant  to  Section  8.2 or has become or is
declared to be  immediately  due and payable  pursuant to Section  12.1,  as the
context requires.

         "Discounted  Value" means,  with respect to the Called Principal of any
Note, the amount obtained by discounting all Remaining  Scheduled  Payments with
respect to such Called  Principal from their  respective  scheduled due dates to
the Settlement  Date with respect to such Called

                                       18

<PAGE>

Principal,  in  accordance  with accepted  financial  practice and at a discount
factor  (applied  on the same  periodic  basis as that on which  interest on the
Notes is payable)  equal to the  Reinvestment  Yield with respect to such Called
Principal.

         "Reinvestment Yield" means, with respect to the Called Principal of any
Note, 0.50% over the yield to maturity implied by (i) the yields reported, as of
10:00  A.M.  (New York City  time) on the  second  Business  Day  preceding  the
Settlement Date with respect to such Called Principal, on the display designated
as the "PX  Screen" on the  Bloomberg  Financial  Market  Service (or such other
display as may replace the PX Screen on Bloomberg  Financial Market Service) for
actively  traded  U.S.  Treasury  securities  having  a  maturity  equal  to the
Remaining  Average Life of such Called  Principal as of such Settlement Date, or
(ii) if such yields are not  reported as of such time or the yields  reported as
of such time are not ascertainable, the Treasury Constant Maturity Series Yields
reported,  for the latest day for which such  yields have been so reported as of
the second  Business Day  preceding  the  Settlement.  Date with respect to such
Called  Principal,  in Federal  Reserve  Statistical  Release H.15 (519) (or any
comparable  successor  publication) for actively traded U.S. Treasury securities
having a constant  maturity  equal to the Remaining  Average Life of such Called
Principal as of such Settlement Date. Such implied yield will be determined,  if
necessary,  by (a) converting U.S.  Treasury bill quotations to  bond-equivalent
yields in accordance  with  accepted  financial  practice and (b)  interpolating
linearly  between  (1) the  actively  traded  U.S.  Treasury  security  with the
Remaining  Average Life closest to and greater than the  Remaining  Average Life
and (2) the actively traded U.S.  Treasury security with the duration closest to
and less than the Remaining Average Life.

         "Remaining  Average Life" means,  with respect to any Called Principal,
the number of years  (calculated  to the nearest  one-twelfth  year) obtained by
dividing (i) such Called Principal into (ii) the sum of the products obtained by
multiplying (a) the principal component of each Remaining Scheduled Payment with
respect to such Called  Principal by (b) the number of years  (calculated to the
nearest  one-twelfth  year) that will elapse  between the  Settlement  Date with
respect to such Called  Principal and the  scheduled due date of such  Remaining
Scheduled Payment.

         "Remaining  Scheduled  Payments"  means,  with  respect  to the  Called
Principal  of any Note,  all  payments of such  Called  Principal  and  interest
thereon that would be due after the Settlement  Date with respect to such Called
Principal  if no  payment  of such  Called  Principal  were  made  prior  to its
scheduled due date, provided that if such Settlement Date is not a date on which
interest  payments  are due to be made  under the terms of the  Notes,  then the
amount of the next succeeding  scheduled interest payment will be reduced by the
amount of interest  accrued to such  Settlement  Date and required to be paid on
such Settlement Date pursuant to Section 8.2 or 12.1.

         "Settlement  Date" means,  with respect to the Called  Principal of any
Note,  the date on which such  Called  Principal  is to be prepaid  pursuant  to
Section  8.2 or has become or is  declared  to be  immediately  due and  payable
pursuant to Section 12.1, as the context requires.

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<PAGE>

8.7.     Change in Control.

                 (a) Notice of Change in Control or Control  Event.  The Company
         will,  within  five  Business  Days after any  Responsible  Officer has
         knowledge of the  occurrence of any Change in Control or Control Event,
         give written  notice of such Change in Control or Control Event to each
         holder of Notes.  In the case that a Change in  Control  has  occurred,
         such notice shall  contain and  constitute  an offer to prepay Notes as
         described  in  subparagraph  (b) of  this  Section  8.7  and  shall  be
         accompanied by the certificate  described in  subparagraph  (e) of this
         Section 8.7.

                 (b)  Offer  to  Prepay   Notes.   The  offer  to  prepay  Notes
         contemplated by subparagraph  (a) of this Section 8.7 shall be an offer
         to prepay, in accordance with and subject to this Section 8.7, all, but
         not less than all,  the Notes  held by each  holder (in this case only,
         "holder" in respect of any Note registered in the name of a nominee for
         a disclosed  beneficial  owner shall mean such  beneficial  owner) on a
         date specified in such offer (the "Proposed  Prepayment  Date") that is
         not less than 10 days and not more than 30 days  after the date of such
         offer (if the Proposed  Prepayment  Date shall not be specified in such
         offer,  the  Proposed  Prepayment  Date shall be the 30th day after the
         date of such offer).

                 (c) Rejection. A holder of Notes may accept the offer to prepay
         made  pursuant  to  this  Section  8.7 by  causing  a  notice  of  such
         acceptance  to be  delivered to the Company at least five days prior to
         the Proposed Prepayment Date. A failure by a holder of Notes to respond
         to an offer to prepay made pursuant to this Section 8.7 shall be deemed
         to constitute a rejection of such offer by such holder.

                 (d) Prepayment.  Prepayment of the Notes to be prepaid pursuant
         to this  Section 8.7 shall be at 100% of the  principal  amount of such
         Notes,  together  with  interest  on such Notes  accrued to the date of
         prepayment.  The  prepayment  shall be made on the Proposed  Prepayment
         Date.

                 (e)  Officer's  Certificate.  Each  offer to  prepay  the Notes
         pursuant to this  Section 8.7 shall be  accompanied  by a  certificate,
         executed  by a Senior  Financial  Officer of the  Company and dated the
         date of such offer, specifying:  (i) the Proposed Prepayment Date; (ii)
         that  such  offer is made  pursuant  to this  Section  8.7;  (iii)  the
         principal amount of each Note offered to be prepaid;  (iv) the interest
         that would be due on each Note  offered to be  prepaid,  accrued to the
         Proposed  Prepayment  Date; (v) that the conditions of this Section 8.7
         have been fulfilled; and (vi) in reasonable detail, the nature and date
         of the Change in Control.

                 (f) "Change in Control" Defined.  "Change in Control" means any
         of the following events or  circumstances:  if any person (as such term
         is used in section 13(d) and section 14(d)(2) of the Exchange Act as in
         effect on the date of the Closing) or related  persons  constituting  a
         group (as such term is used in Rule  l3d-5  under  the  Exchange  Act),
         other than the Parker Family, either (i) become the "beneficial owners"
         (as such term is used in Rule l3d-3 under the Exchange Act as in effect
         on the date of the Closing),  directly or indirectly,  of more than 50%
         of the  total  voting  power of all  classes

                                       20

<PAGE>

         then  outstanding of the Company's or the Parent's voting stock or (ii)
         shall have  acquired substantially all the assets of the Company or the
         Parent.

                 (g) "Control  Event" Defined.  "Control  Event" means:  (i) the
         execution by the Company,  the Parent or any of their  Subsidiaries  or
         Affiliates  of any  agreement  or letter of intent with  respect to any
         proposed  transaction  or event or  series  of  transactions  or events
         which,  individually or in the aggregate, may reasonably be expected to
         result  in a Change  in  Control,  (ii) the  execution  of any  written
         agreement  which,  when fully performed by the parties  thereto,  would
         result in a Change in Control, or (iii) the making of any written offer
         by any  person  (as such  term is used in  section  13(d)  and  section
         14(d)(2) of the  Exchange  Act as in effect on the date of the Closing)
         or related  persons  constituting a group (as such term is used in Rule
         l3d-5 under the  Exchange  Act as in effect on the date of the Closing)
         to the holders of the common stock of the Company or the Parent (as the
         case may be),  which  offer,  if  accepted by the  requisite  number of
         holders, would result in a Change in Control.

                 (h) "Parker  Family"  Defined.  "Parker  Family" means David R.
         Parker  (President  and Chairman of the Board of the Parent on the date
         of Closing),  Jacqueline Parker and Clyde M. Fuller (collectively,  the
         "Founders"),  in respect of any  individual,  (i) the heirs,  legatees,
         descendants and blood relatives to the third-degree of consanguinity of
         the Founders and (ii) any trusts for the  exclusive  benefit of, or any
         corporation,  partnership or limited  partnership  that is wholly-owned
         by, any such  individual  referred to in clause (i), and his/her spouse
         and lineal  descendants,  so long as such  individual has the exclusive
         right to control each such trust,  corporation,  partnership or limited
         partnership.

All calculations contemplated in this Section 8.7 involving the capital stock of
any Person, shall be made with the assumption that all convertible Securities of
such Person then  outstanding and all convertible  Securities  issuable upon the
exercise of any warrants, options and other rights outstanding at such time were
converted  at such time and that all  options,  warrants  and similar  rights to
acquire shares of capital stock of such Person were exercised at such time.

9.       AFFIRMATIVE COVENANTS.

         Each of the Parent and the Company (as the case may be) covenants  that
so long as any of the Notes are outstanding:

9.1.     Compliance with Law.

         The  Company  and  the  Parent  will  and  will  cause  each  of  their
Subsidiaries  to  comply  with all laws,  ordinances  or  governmental  rules or
regulations  to which each of them is subject,  including,  without  limitation,
Environmental  Laws,  and will  obtain  and  maintain  in effect  all  licenses,
certificates,   permits,   franchises  and  other  governmental   authorizations
necessary to the ownership of their  respective  properties or to the conduct of
their respective businesses, in each case to the extent necessary to ensure that
non-compliance  with such laws,  ordinances or governmental rules or regulations
or  failures  to  obtain or  maintain  in effect  such  licenses,

                                       21

<PAGE>

certificates,  permits,  franchises and other governmental  authorizations could
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

9.2.     Insurance.

         The Company and the Parent will and will cause each of their Restricted
Subsidiaries  to  maintain,  with  financially  sound  and  reputable  insurers,
insurance with respect to their  respective  properties  and businesses  against
such  casualties  and  contingencies,  of such types,  on such terms and in such
amounts (including  deductibles,  co-insurance and  self-insurance,  if adequate
reserves are  maintained  with  respect  thereto) as is customary in the case of
entities of established  reputations  engaged in the same or a similar  business
and similarly situated.

9.3.     Maintenance of Properties.

         The Company and the Parent will and will cause each of their Restricted
Subsidiaries  to maintain and keep,  or cause to be maintained  and kept,  their
respective  properties in good repair,  working order and condition  (other than
ordinary wear and tear), so that the business carried on in connection therewith
may be properly  conducted at all times,  provided  that this Section  shall not
prevent the Company, the Parent or any Restricted  Subsidiary from discontinuing
the  operation  and  the   maintenance   of  any  of  its   properties  if  such
discontinuance  is  desirable  in the conduct of its business and the Company or
the Parent (as the case may be) has  concluded  that such  discontinuance  could
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

9.4.     Payment of Taxes and Claims.

         The  Company  and  the  Parent  will  and  will  cause  each  of  their
Subsidiaries  to file all tax returns  required to be filed in any  jurisdiction
and to pay and  discharge  all taxes shown to be due and payable on such returns
and all other taxes,  assessments,  governmental  charges,  or levies imposed on
them or any of their  properties,  assets,  income or franchises,  to the extent
such taxes and  assessments  have  become due and  payable  and before they have
become delinquent and all claims for which sums have become due and payable that
have or might become a Lien on properties  or assets of the Company,  the Parent
or any Subsidiary,  provided that the Company, the Parent or any Subsidiary need
not pay any such tax or assessment or claims if (i) the amount, applicability or
validity thereof is contested by the Company,  the Parent or such Subsidiary (as
the case may be) on a timely basis in good faith and in appropriate proceedings,
and the  Company,  the  Parent  or such  Subsidiary  (as  the  case  may be) has
established  adequate  reserves therefor in accordance with GAAP on the books of
the  Company,  the  Parent or such  Subsidiary  (as the case may be) or (ii) the
nonpayment  of all  such  taxes  and  assessments  in the  aggregate  could  not
reasonably be expected to have a Material Adverse Effect.

9.5.     Corporate Existence, etc.

         The Company and the Parent will at all times  preserve and keep in full
force and effect its corporate existence.  Subject to Sections 10.2 through 10.5
(inclusive),  the Company and the Parent will at all times  preserve and keep in
full  force  and  effect  the  corporate  existence  of each  of its  Restricted
Subsidiaries  (unless merged into the Company or a Restricted  Subsidiary of the

                                       22

<PAGE>

Company)  and all  rights  and  franchises  of the  Company,  the Parent and the
Restricted Subsidiaries unless, in the good faith judgment of the Company or the
Parent (as the case may be), the  termination of or failure to preserve and keep
in full force and effect such corporate existence, right or franchise could not,
individually or in the aggregate, have a Material Adverse Effect.

9.6.     Compliance with Parent Guarantee.

         The  Parent  will at all  times  comply  with the  terms of the  Parent
Guarantee.

10.      NEGATIVE COVENANTS.

         Each of the Company and the Parent covenants that so long as any of the
Notes are outstanding:

10.1.    Transactions with Affiliates.

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

10.2.    Merger, Consolidation, etc.

         Each of the Company and the Parent will not, and will not permit any of
the  Restricted  Subsidiaries  to,  consolidate  with or merge  with  any  other
corporation or convey,  transfer or lease  substantially  all of its assets in a
single  transaction  or series of  transactions  to any  Person  (except  that a
Restricted Subsidiary (other than the Company) may (x) consolidate with or merge
with, or convey,  transfer or lease  substantially all of its assets in a single
transaction or series of transactions to, a Wholly-Owned  Restricted  Subsidiary
of the Company or the Parent and (y) consolidate  with or merge with, or convey,
transfer or lease  substantially  all of its assets in a single  transaction  or
series of  transactions  to, any Person in  compliance  with the  provisions  of
Section  10.3,  treating  a  consolidation  or  merger  as a  Transfer  for such
purpose);  provided  that  the  foregoing  restriction  does  not  apply  to the
consolidation  or merger of the Company or the Parent with,  or the  conveyance,
transfer  or lease of  substantially  all of the  assets of the  Company  or the
Parent in a single  transaction or series of transactions to, any Person so long
as:

                 (a) the successor formed by such  consolidation or the survivor
         of such merger or the Person that acquires by  conveyance,  transfer or
         lease  substantially  all of the assets of the Company or the Parent as
         an entirety, as the case may be (the "Successor Corporation"), shall be
         a solvent  corporation  organized  and  existing  under the laws of the
         United  States  of  America,  any  State  thereof  or the  District  of
         Columbia;

                                       23

<PAGE>

                 (b) if the  Company or the  Parent,  as the case may be, is not
         the Successor  Corporation,  such  corporation  shall have executed and
         delivered  to  each  holder  of  Notes  its  assumption  of the due and
         punctual  performance  and observance of each covenant and condition of
         this Agreement and the Notes (if applicable); and

                 (c)  immediately  after giving  effect to such  transaction  no
         Default or Event of Default would exist.

No such conveyance,  transfer or lease of substantially all of the assets of the
Company or the Parent shall have the effect of releasing the Company, the Parent
or any  Successor  Corporation  from its liability  under this  Agreement or the
Notes.

10.3.    Sales of Assets.

         The Company and the Parent will not, and will not permit any Restricted
Subsidiary to, make any Transfer,  provided that the foregoing  restriction does
not apply to a Transfer if:

                 (a)  the  property   that  is  the  subject  of  such  Transfer
         constitutes  either (i)  inventory  held for sale,  or (ii)  equipment,
         fixtures,  supplies or materials no longer required in the operation of
         the business of the Parent,  the Company or such Restricted  Subsidiary
         or that is  obsolete,  and, in the case of any  Transfer  described  in
         clause (i) or clause (ii),  such Transfer is in the ordinary  course of
         business (an "Ordinary Course Transfer");

                 (b) either (i) such Transfer is from a Restricted Subsidiary to
         the Company or the Parent or to a Wholly-Owned  Restricted  Subsidiary,
         or  (ii)  such  Transfer  is  from  the  Company  or  the  Parent  to a
         Wholly-Owned  Restricted Subsidiary,  so long as immediately before and
         immediately  after  the  consummation  of such  transaction,  and after
         giving effect  thereto,  no Default or Event of Default exists or would
         exist (each such Transfer, an "Intergroup Transfer"); and

                 (c) such  Transfer  is not an  Ordinary  Course  Transfer or an
         Intergroup  Transfer  (such  transfers   collectively  referred  to  as
         "Excluded  Transfers"),  and all of the following conditions shall have
         been satisfied with respect  thereto (the date of the  consummation  of
         such  Transfer of property  being  referred to herein as the  "Property
         Disposition Date"): (i)(A) such Transfer does not involve a Substantial
         Portion of the property of the Parent and its Restricted  Subsidiaries,
         (B) in the good  faith  opinion  of the  Company  and the  Parent,  the
         Transfer is in exchange for  consideration  with a Fair Market Value at
         least  equal  to that of the  property  exchanged,  and is in the  best
         interests  of the  Company and the Parent,  and (C)  immediately  after
         giving effect to such  transaction no Default or Event of Default would
         exist or (ii)(A) such Transfer is a disposition of accounts  receivable
         in connection with a Permitted Receivables  Securitization  Transaction
         and (B) after  giving  effect  thereto,  no Default or Event of Default
         exists or would exist.

         "Substantial Portion" means, with respect to any Transfer of  property,
any portion of property of the Parent and its  Restricted  Subsidiaries,  if the
Disposition  Value of such property,

                                       24

<PAGE>

when added to the Disposition  Value of all other property of the Parent and its
Restricted  Subsidiaries  that was subject to a Transfer (other than an Excluded
Transfer) during the period  commencing on the date of Closing and ending on and
including the Property Disposition Date of such property exceeds an amount equal
to 10% of Consolidated Assets determined as of the end of the then most recently
ended fiscal quarter of the Parent.

10.4.     Disposal of Ownership of a Subsidiary.

         The Company and the Parent will not, and will not permit any Restricted
Subsidiary to, sell or otherwise  dispose of any shares of Subsidiary Stock, nor
will the Company or the Parent permit any such  Restricted  Subsidiary to issue,
sell or otherwise  dispose of any shares of its own Subsidiary  Stock,  provided
that the foregoing restrictions do not apply to:

                 (a) the  issue  of  directors'  qualifying  shares  by any such
         Restricted Subsidiary;

                 (b) any such  Transfer  of  Subsidiary  Stock  constituting  an
         Intergroup Transfer;

                 (c)  any   Distribution  of  Subsidiary  Stock  that  does  not
         constitute a Restricted Payment; and

                 (d) the Transfer of all of the Subsidiary Stock of a Restricted
         Subsidiary  of the  Company or the Parent  owned by the  Company or the
         Parent, as the case may be, and their other Restricted Subsidiaries if:
         (i) such Transfer  satisfies the requirements of Section 10.3(c),  (ii)
         in  connection  with  such  Transfer  the  entire  Investment  (whether
         represented by stock,  Debt, claims or otherwise) of the Company or the
         Parent  and their  other  Restricted  Subsidiaries  in such  Restricted
         Subsidiary is sold,  transferred  or otherwise  disposed of to a Person
         other  than (A) the  Company  or the  Parent,  (B)  another  Restricted
         Subsidiary not being  simultaneously  disposed of, or (C) an Affiliate,
         and (iii) the Restricted Subsidiary being disposed of has no continuing
         Investment in any other Restricted  Subsidiary not being simultaneously
         disposed of or in the Company or the Parent.

10.5.    Sale-and-Leaseback Transactions.

         The Company and the Parent will not, and will not permit any Restricted
Subsidiary  to,  enter  into  any  Sale-and-Leaseback   Transaction  other  than
Sale-and-Leaseback  Transactions  entered into in connection  with the truck and
trailer leasing program in an aggregate  amount not to exceed in any fiscal year
the sum of

                 (a) $25,000,000 plus

                 (b) an aggregate amount equal to 50% of Consolidated Net Income
         for each  fiscal  quarter  commencing  with the  fiscal  quarter  ended
         September 30, 2000 (or minus 100% of  Consolidated  Net Income for such
         period if Consolidated Net Income for such period is a loss).

                                       25

<PAGE>

10.6.    Maintenance of Consolidated Tangible Net Worth.

         The Company and the Parent will not permit  Consolidated  Tangible  Net
Worth at any time to be less than the sum of

                 (a) $136,000,000 plus

                 (b) an aggregate amount equal to 50% of Consolidated Net Income
         (but,  in each case,  only if a  positive  number)  for each  completed
         fiscal year, beginning with the fiscal year ended 1999.

10.7.    Limitation on Total Debt; Limitation on Funded Debt Incurrence.

         The Company  and the Parent  will not permit the ratio of  Consolidated
Total Debt to Consolidated EBITDAR to exceed 3.0 to 1.0 at any time.

10.8.    Restricted Payments.

                 (a) The Company  and the Parent  will not,  and will not permit
         any Restricted  Subsidiary  to, at any time,  declare or make, or incur
         any  liability  to  declare or make,  any  Restricted  Payment,  unless
         immediately after giving effect to such action:

                      (i) the  aggregate  amount of  Restricted  Payments of the
                 Company, the Parent and the Restricted Subsidiaries declared or
                 made during the period  commencing on the date of Closing,  and
                 ending on the date such Restricted Payment is declared or made,
                 inclusive, would not exceed the sum of

                      (A) $25,000,000, plus

                      (B) 50% of Consolidated Net Income for each fiscal quarter
                 commencing   after   December   31,  1999  (or  minus  100%  of
                 Consolidated Net Income for such fiscal quarter if Consolidated
                 Net Income for such fiscal quarter is a loss); and

                      (ii) no Default or Event of Default would exist.

                 (b) The Company  and the Parent will not,  nor will they permit
         any Restricted  Subsidiary to,  authorize a Restricted  Payment that is
         not payable within 60 days of authorization.

10.9.    Restricted Investments.

         The Company and the Parent will not, and will not permit any Restricted
Subsidiary to, make any Restricted Investment, except that the Parent may invest
in Transplace.com,  directly or through a newly-created Restricted Subsidiary of
the Parent, not more than $7,000,000 in the form of cash and the non-asset based
transportation   logistics  business   (consisting  of  customer  lists,  office
furniture,  computer  hardware and  software,  lease,  trade names,  trademarks,
goodwill,

                                       26

<PAGE>

know-how  and  employee   relationships)  of  Terminal  Truck  Broker,  Inc.,  a
Wholly-Owned Restricted Subsidiary of Parent.

10.10.   Fixed Charges Coverage.

         The Company and the Parent will not permit the Fixed  Charges  Coverage
Ratio to be less than 1.5 to 1.0 at any time.

10.11.   Liens.

         The Company and the Parent will not, and will not permit any Restricted
Subsidiary to, directly or indirectly create,  incur,  assume or permit to exist
(upon the happening of a contingency  or otherwise)  any Lien on or with respect
to any property or asset  (including  any document or  instrument  in respect of
goods or accounts  receivable) of the Company, the Parent or any such Restricted
Subsidiary,  whether now owned or held or hereafter  acquired,  or any income or
profits  therefrom  (whether or not  provision is made for the equal and ratable
securing of the Notes in  accordance  with the last  paragraph  of this  Section
10.11),  or assign or otherwise  convey any right to receive  income or profits,
except:

                 (a)  Liens  (i)  existing  on the  date of this  Agreement  and
         securing Debt of the Parent and its Restricted Subsidiaries (other than
         Debt outstanding under the Bank Loan Agreement) referred to in item (a)
         of Schedule 10.11 and (ii) securing Debt of not more than  $120,000,000
         outstanding under the Bank Loan Agreement;

                 (b) Liens for taxes,  assessments or other governmental charges
         the payment of which is not at the time required by Section 9.4;

                 (c)  statutory  Liens  of  landlords  and  Liens  of  carriers,
         warehousemen,  mechanics,  materialmen and other similar Liens, in each
         case,  incurred in the ordinary course of business for sums not yet due
         or the payment of which is not at the time required by Section 9.4;

                 (d) Liens  (other than any Lien  imposed by ERISA)  incurred or
         deposits made in the ordinary course of business (i) in connection with
         workers' compensation, unemployment insurance and other types of social
         security  or  retirement  benefits,  or (ii) to  secure  (or to  obtain
         letters of credit that secure) the  performance  of tenders,  statutory
         obligations,  surety bonds, appeal bonds (not in excess of $5,000,000),
         bids, leases (other than Capital Leases),  performance bonds, purchase,
         construction or sales contracts and other similar obligations,  in each
         case not incurred or made in  connection  with the  borrowing of money,
         the  obtaining  of advances  or credit or the  payment of the  deferred
         purchase price of property;

                 (e) any  attachment  or judgment  Lien,  unless the judgment it
         secures  (i) shall not,  within 30 days after the entry  thereof,  have
         been discharged or execution  thereof stayed pending  appeal,  or shall
         not have been  discharged  within 30 days after the  expiration  of any
         such stay or (ii) exceeds $2,500,000;

                                       27

<PAGE>

                 (f)  leases  or   subleases   granted  to  others,   easements,
         rights-of-way,  restrictions and other similar charges or encumbrances,
         in each case  incidental  to, and not  interfering  with,  the ordinary
         conduct  of the  business  of the  Company,  the  Parent  or any of the
         Restricted  Subsidiaries,  provided  that  such  Liens  do not,  in the
         aggregate, materially detract from the value of such property;

                 (g) Liens on property or assets of the Company or the Parent or
         any  Restricted  Subsidiary  securing  Debt owing to the  Company,  the
         Parent or to any Wholly-Owned Restricted Subsidiary;

                 (h) any Lien existing on property of a Person immediately prior
         to its being  consolidated with or merged into the Company,  the Parent
         or a Restricted Subsidiary or its becoming a Restricted Subsidiary,  or
         any Lien existing on any property  acquired by the Company,  the Parent
         or any  Restricted  Subsidiary at the time such property is so acquired
         (whether  or not the Debt  secured  thereby  shall have been  assumed),
         provided  that (i) no such Lien shall  have been  created or assumed in
         contemplation of such consolidation or merger or such Person's becoming
         a Restricted Subsidiary or such acquisition of property,  and (ii) each
         such  Lien  shall  extend  solely to the item or items of  property  so
         acquired  and, if required  by the terms of the  instrument  originally
         creating such Lien,  other  property  which is an  improvement to or is
         acquired for specific use in connection with such acquired property;

                 (i)  any  Lien  renewing,   extending  or  refunding  any  Lien
         permitted by paragraphs (a) or (h) of this Section 10.11, provided that
         (i) the principal amount of Debt secured by such Lien immediately prior
         to  such  extension,  renewal  or  refunding  is not  increased  or the
         maturity thereof  reduced,  (ii) such Lien is not extended to any other
         property,  and (iii)  immediately  after  such  extension,  renewal  or
         refunding no Default or Event of Default would exist;

                 (j) a Lien on the  headquarters  building  and the real  estate
         upon which such building is situated  which Lien is confined  solely to
         such assets and secures Debt  permitted to be incurred as  Headquarters
         Financing Debt pursuant to Section 10.7(a); and

                 (k) other  Liens not  otherwise  permitted  by  paragraphs  (a)
         through (j),  provided that immediately after giving effect to any such
         other Lien, the sum of (i) the amount  secured by the additional  Liens
         under this paragraph (k) plus (ii) the amount of Debt then  outstanding
         of the  Restricted  Subsidiaries  (exclusive of Debt of any  Restricted
         Subsidiary  owed to the  Company,  the  Parent  or to any  Wholly-Owned
         Restricted   Subsidiary),   shall  not  at  such  time  exceed  40%  of
         Consolidated Tangible Net Worth.

For the  purposes  of this  Section  10.11,  any Person  becoming  a  Restricted
Subsidiary after the date of this Agreement shall be deemed to have incurred all
of its then  outstanding  Liens at the time it becomes a Restricted  Subsidiary,
and any Person  extending,  renewing or  refunding  any Debt secured by any Lien
shall be  deemed  to have  incurred  such  Lien at the  time of such  extension,
renewal or refunding.

                                       28

<PAGE>

         If,  notwithstanding  the  prohibition  contained  herein,  either  the
Company or the Parent shall create,  assume or permit to exist any Lien upon any
of its  property  or  assets,  or  the  property  or  assets  of any  Restricted
Subsidiary,  whether now owned or hereafter acquired, other than those permitted
by the provisions of paragraphs  (a) through (j) of this Section 10.11,  it will
make or cause to be made effective  provision  whereby the Notes will be secured
equally and ratably with any and all other  obligations  thereby  secured,  such
security to be pursuant to agreements  reasonably  satisfactory  to the Required
Holders and, in any such case, the Notes shall have the benefit,  to the fullest
extent that, and with such priority as, the holders of the Notes may be entitled
under  applicable law, of an equitable Lien on such property.  Such violation of
this Section 10.11 will constitute an Event of Default, whether or not provision
is made for an equal and ratable Lien pursuant to this Section 10.11,  provided,
however,  that an Event of Default shall not occur if the holder of such Lien is
a party to the  Intercreditor  Agreement  and provision for an equal and ratable
Lien shall have been made to the holders of Notes as  contemplated  by the terms
of the Intercreditor Agreement.

10.12.   Line of Business.

         Each of the Company and the Parent will not, and will not permit any of
the  Restricted  Subsidiaries  to,  engage in any business if, as a result,  the
general  nature  of the  business  in which  the  Company,  the  Parent  and the
Restricted  Subsidiaries,  taken  as a whole,  would  then be  engaged  would be
substantially  changed  from the  general  nature of the  business  in which the
Company,  the  Parent and the  Restricted  Subsidiaries,  taken as a whole,  are
engaged on the date of this Agreement.

10.13.   Subsidiary Guaranty.

         The  Company  will not  create or  acquire  any  Restricted  Subsidiary
unless,  immediately upon such creation or acquisition,  the Company causes such
Restricted Subsidiary to become a signatory to the Subsidiary Guaranty.

11.      EVENTS OF DEFAULT.

         An "Event of Default" shall exist if any of the following conditions or
events shall occur and be continuing:

                 (a) the Company  defaults in the  payment of any  principal  or
         Make-Whole  Amount,  if any, on any Note when the same  becomes due and
         payable,  whether at maturity or at a date fixed for  prepayment  or by
         declaration or otherwise;

                 (b) the Company  defaults in the payment of any interest on any
         Note for more than five days after the same becomes due and payable;

                 (c) the Company or the Parent (as the case may be)  defaults in
         the  performance  of or compliance  with any term contained in Sections
         7.1(d) and 10.1 through 10.13 (inclusive);

                                       29

<PAGE>

                 (d) the Company or the Parent (as the case may be)  defaults in
         the performance of or compliance with any term contained  herein (other
         than those  referred to in paragraphs  (a), (b) and (c) of this Section
         11, but including  Section 9.6) and such default is not remedied within
         30 days after the earlier of (i) a Responsible Officer obtaining actual
         knowledge of such default and (ii) the Company or the Parent  receiving
         written  notice  of such  default  from any  holder of a Note (any such
         written  notice to be  identified as a "notice of default" and to refer
         specifically to this paragraph (d) of Section 11);

                 (e) any  representation  or  warranty  made in writing by or on
         behalf of the Company, the Parent or any Subsidiary,  or by any officer
         of the Company,  the Parent or any  Subsidiary in this  Agreement,  the
         Subsidiary  Guaranty or in any writing furnished in connection with the
         transactions contemplated hereby proves to have been false or incorrect
         in any material respect on the date as of which made;

                 (f) (i) the Company, the Parent or any Restricted Subsidiary is
         in  default  (as  principal  or as  guarantor  or other  surety) in the
         payment of any principal of or premium or make-whole amount or interest
         on any  Indebtedness  that is  outstanding  in an  aggregate  principal
         amount of at least $2,500,000  beyond any period of grace provided with
         respect  thereto,  or (ii) the  Company,  the Parent or any  Restricted
         Subsidiary is in default in the  performance of or compliance  with any
         term of any evidence of any  Indebtedness  in an aggregate  outstanding
         principal amount of at least  $2,500,000 or of any mortgage,  indenture
         or other agreement  relating thereto or any other condition exists, and
         as a consequence  of such default or condition  such  Indebtedness  has
         become,  or has been  declared  (or one or more Persons are entitled to
         declare such  Indebtedness  to be),  due and payable  before its stated
         maturity or before its regularly  scheduled dates of payment,  or (iii)
         as a  consequence  of the  occurrence or  continuation  of any event or
         condition (other than the passage of time or the right of the holder of
         Indebtedness to convert such Indebtedness into equity  interests),  (x)
         the  Company,  the  Parent  or any  Restricted  Subsidiary  has  become
         obligated to purchase or repay Indebtedness before its regular maturity
         or before its  regularly  scheduled  dates of  payment in an  aggregate
         outstanding principal amount of at least $2,500,000, or (y) one or more
         Persons  have the  right to  require  the  Company,  the  Parent or any
         Restricted Subsidiary so to purchase or repay such Indebtedness;

                 (g) the Company, the Parent or any Restricted Subsidiary (i) is
         generally  not paying,  or admits in writing its  inability to pay, its
         debts as they  become  due,  (ii)  files,  or  consents  by  answer  or
         otherwise  to the  filing  against  it of, a  petition  for  relief  or
         reorganization or arrangement or any other petition in bankruptcy,  for
         liquidation  or  to  take  advantage  of  any  bankruptcy,  insolvency,
         reorganization,  moratorium or other  similar law of any  jurisdiction,
         (iii)  makes an  assignment  for the  benefit  of its  creditors,  (iv)
         consents to the appointment of a custodian,  receiver, trustee or other
         officer with  similar  powers with respect to it or with respect to any
         substantial part of its property, (v) is adjudicated as insolvent or to
         be liquidated, or (vi) takes corporate action for the purpose of any of
         the foregoing;

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<PAGE>

                 (h) a court or governmental authority of competent jurisdiction
         enters an order appointing,  without consent by the Company, the Parent
         or any Restricted Subsidiary, a custodian,  receiver,  trustee or other
         officer with  similar  powers with respect to it or with respect to any
         substantial  part of its property,  or constituting an order for relief
         or  approving  a  petition  for relief or  reorganization  or any other
         petition in bankruptcy or for  liquidation  or to take advantage of any
         bankruptcy  or  insolvency  law of any  jurisdiction,  or ordering  the
         dissolution,  winding-up or liquidation  of the Company,  the Parent or
         any Restricted Subsidiary,  or any such petition shall be filed against
         the Company, the Parent or any Restricted  Subsidiary and such petition
         shall not be dismissed within 60 days;

                 (i) a final  judgment  or  judgments  for the  payment of money
         aggregating in excess of $2,500,000 are rendered against one or more of
         the  Company,  the Parent  and the  Restricted  Subsidiaries  and which
         judgments  are  not,  within  30  days  after  entry  thereof,  bonded,
         discharged or stayed pending  appeal,  or are not discharged  within 30
         days after the expiration of such stay; or

                 (j) if (i) any Plan shall fail to satisfy the  minimum  funding
         standards  of ERISA or the Code for any plan year or part  thereof or a
         waiver of such  standards or extension  of any  amortization  period is
         sought or  granted  under  section  412 of the  Code,  (ii) a notice of
         intent to terminate any Plan shall have been or is reasonably  expected
         to be filed with the PBGC or the PBGC shall have instituted proceedings
         under  ERISA  section  4042  to  terminate  or  appoint  a  trustee  to
         administer  any Plan or the PBGC shall have  notified the Company,  the
         Parent or any ERISA  Affiliate  that a Plan may become a subject of any
         such  proceedings,  (iii) the  aggregate  "amount of  unfunded  benefit
         liabilities" (within the meaning of section 4001(a)(18) of ERISA) under
         all Plans,  determined  in  accordance  with  Title IV of ERISA,  shall
         exceed $2,500,000,  (iv) the Company, the Parent or any ERISA Affiliate
         shall have  incurred or is  reasonably  expected to incur any liability
         pursuant  to  Title I or IV of  ERISA  or the  penalty  or  excise  tax
         provisions  of the Code  relating to employee  benefit  plans,  (v) the
         Company,   the  Parent  or  any  ERISA  Affiliate  withdraws  from  any
         Multiemployer  Plan, or (vi) the Company,  the Parent or any Subsidiary
         establishes or amends any employee  welfare  benefit plan that provides
         post-employment  welfare  benefits in a manner that would  increase the
         liability of the Company, the Parent or any Subsidiary thereunder;  and
         any such event or events  described  in clauses (i) through (vi) above,
         either  individually  or together  with any other such event or events,
         could reasonably be expected to have a Material Adverse Effect.

                 (k) any Restricted Subsidiary defaults in the performance of or
         compliance  with any term contained in the  Subsidiary  Guaranty or the
         Subsidiary  Guaranty  ceases to be in full force and effect as a result
         of acts taken by the Company,  the Parent or any Restricted  Subsidiary
         or is declared  to be null and void in whole or in  material  part by a
         court or other governmental or regulatory authority having jurisdiction
         or the validity or enforceability  thereof shall be contested by any of
         the Company,  the Parent or any  Restricted  Subsidiary  or any of them
         renounces  any of the  same  or  denies  that  it  has  any or  further
         liability thereunder.

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<PAGE>

As used in  Section  11(j),  the terms  "employee  benefit  plan" and  "employee
welfare benefit plan" shall have the respective  meanings assigned to such terms
in Section 3 of ERISA.

12.      REMEDIES ON DEFAULT, ETC.

12.1.    Acceleration.

                 (a) If an Event of Default  with  respect to the Company or the
         Parent  described in paragraph  (g) or (h) of Section 11 (other than an
         Event of Default  described in clause (i) of paragraph (g) or described
         in clause (vi) of paragraph  (g) by virtue of the fact that such clause
         encompasses  clause (i) of paragraph  (g)) has occurred,  all the Notes
         then  outstanding  shall  automatically   become  immediately  due  and
         payable.

                 (b)  If  any  other  Event  of  Default  has  occurred  and  is
         continuing,  any holder or holders of more than 50% in principal amount
         of the  Notes at the time  outstanding  may at any time at its or their
         option, by notice or notices to the Company or the Parent,  declare all
         the Notes then outstanding to be immediately due and payable.

                 (c) If any Event of Default  described in paragraph  (a) or (b)
         of Section 11 has occurred and is continuing,  any holder or holders of
         Notes at the time outstanding  affected by such Event of Default may at
         any time, at its or their  option,  by notice or notices to the Company
         or  the  Parent,  declare  all  the  Notes  held  by it or  them  to be
         immediately due and payable.

        Upon any Notes becoming due and payable under this Section 12.1, whether
automatically or by declaration, such Notes will forthwith mature and the entire
unpaid principal amount of such Notes,  plus (x) all accrued and unpaid interest
thereon and (y) the  Make-Whole  Amount  determined in respect of such principal
amount  (to  the  full  extent  permitted  by  applicable  law),  shall  all  be
immediately due and payable, in each and every case without presentment, demand,
protest or further notice,  all of which are hereby waived.  Each of the Company
and the Parent acknowledges, and the parties hereto agree, that each holder of a
Note has the right to maintain its  investment in the Notes free from  repayment
by the Company or the Parent  (except as herein  specifically  provided for) and
that the  provision  for  payment of a  Make-Whole  Amount by the Company or the
Parent  (as the case may be) in the  event  that the Notes  are  prepaid  or are
accelerated  as a  result  of an  Event  of  Default,  is  intended  to  provide
compensation for the deprivation of such right under such circumstances.

12.2.    Other Remedies.

         If any Default or Event of Default has occurred and is continuing,  and
irrespective of whether any Notes have become or have been declared  immediately
due and  payable  under  Section  12.1,  the  holder  of any  Note  at the  time
outstanding  may  proceed to protect and enforce the rights of such holder by an
action at law, suit in equity or other appropriate  proceeding,  whether for the
specific performance of any agreement contained herein or in any Note, or for an
injunction against a violation of any of the terms hereof or thereof,  or in aid
of the exercise of any power granted hereby or thereby or by law or otherwise.

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<PAGE>

12.3.    Rescission.

         At any time after any Notes have been declared due and payable pursuant
to  clause  (b) or (c) of  Section  12.1,  the  holders  of not less than 51% in
principal  amount  of the  Notes  then  outstanding,  by  written  notice to the
Company,  may rescind and annul any such declaration and its consequences if (a)
the Company or the Parent (as the case may be) has paid all overdue  interest on
the Notes, all principal of and Make-Whole Amount, if any, on any Notes that are
due and payable and are unpaid other than by reason of such declaration, and all
interest on such overdue  principal and Make-Whole  Amount,  if any, and (to the
extent  permitted  by  applicable  law) any  overdue  interest in respect of the
Notes,  at the Default Rate, (b) all Events of Default and Defaults,  other than
non-payment   of  amounts  that  have  become  due  solely  by  reason  of  such
declaration, have been cured or have been waived pursuant to Section 17, and (c)
no  judgment  or decree  has been  entered  for the  payment  of any  monies due
pursuant  hereto or to the Notes. No rescission and annulment under this Section
12.3 will  extend to or affect  any  subsequent  Event of  Default or Default or
impair any right consequent thereon.

12.4.    No Waivers or Election of Remedies, Expenses, etc.

         No course of dealing and no delay on the part of any holder of any Note
in exercising  any right,  power or remedy shall operate as a waiver  thereof or
otherwise prejudice such holder's rights, powers or remedies. No right, power or
remedy  conferred by this Agreement or by any Note upon any holder thereof shall
be exclusive of any other right,  power or remedy  referred to herein or therein
or now or  hereafter  available  at law,  in equity,  by  statute or  otherwise.
Without limiting the obligations of the Company and the Parent under Section 15,
the Company will pay to the holder of each Note on demand such further amount as
shall be  sufficient to cover all  reasonable  costs and expenses of such holder
incurred in any  enforcement  or  collection  under this Section 12,  including,
without limitation, reasonable attorneys' fees, expenses and disbursements.

13.      REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

13.1.    Registration of Notes.

         The Company shall keep at its principal executive office a register for
the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address
of each  transferee of one or more Notes shall be  registered in such  register.
Prior to due presentment for registration of transfer,  the Person in whose name
any Note shall be registered shall be deemed and treated as the owner and holder
thereof for all purposes  hereof,  and the Company  shall not be affected by any
notice or knowledge to the  contrary.  The Company shall give to any holder of a
Note  that is an  Institutional  Investor  promptly  upon  request  therefor,  a
complete and correct copy of the names and addresses of all  registered  holders
of Notes.

13.2.   Transfer and Exchange of Notes.

        Upon  surrender  of any Note at the  principal  executive  office of the
Company for registration of transfer or exchange (and in the case of a surrender
for  registration  of  transfer,

                                       33

<PAGE>

duly endorsed or accompanied  by a written  instrument of transfer duly executed
by the registered holder of such Note or his attorney duly authorized in writing
and  accompanied  by the address for notices of each  transferee of such Note or
part thereof),  the Company shall execute and deliver,  at the Company's expense
(except as provided  below),  one or more new Notes (as  requested by the holder
thereof) in exchange  therefor,  in an aggregate  principal  amount equal to the
unpaid  principal  amount of the  surrendered  Note. Each such new Note shall be
payable to such Person as such holder may request and shall be  substantially in
the form of Exhibit  1.2.  Each such new Note  shall be dated and bear  interest
from the date to which interest shall have been paid on the surrendered  Note or
dated  the date of the  surrendered  Note if no  interest  shall  have been paid
thereon.  The Company may require payment of a sum sufficient to cover any stamp
tax or  governmental  charge  imposed in respect of any such  transfer of Notes.
Notes  shall  not be  transferred  in  denominations  of less  than  $1,000,000,
provided that if necessary to enable the registration of transfer by a holder of
its entire  holding  of Notes,  one Note may be in a  denomination  of less than
$1,000,000.  Any transferee,  by its acceptance of a Note registered in its name
(or the name of its nominee),  shall be deemed to have made the  representations
set forth in Section 6.2.

13.3.    Replacement of Notes.

         Upon receipt by the Company of evidence  reasonably  satisfactory to it
of the ownership of and the loss,  theft,  destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor,  notice from
such Institutional Investor of such ownership and such loss, theft,  destruction
or mutilation), and

                 (a) in the case of loss,  theft or  destruction,  of  indemnity
         reasonably satisfactory to it (provided that if the holder of such Note
         is, or is a nominee for, an original  Purchaser or another  holder of a
         Note with a minimum net worth of at least  $50,000,000,  such  Person's
         own   unsecured   agreement  of   indemnity   shall  be  deemed  to  be
         satisfactory), or

                 (b) in the case of mutilation,  upon surrender and cancellation
         thereof,

the Company at its own expense shall execute and deliver, in lieu thereof, a new
Note, dated and bearing interest from the date to which interest shall have been
paid on such lost, stolen, destroyed or mutilated Note or dated the date of such
lost,  stolen,  destroyed or mutilated  Note if no interest shall have been paid
thereon.

14.      PAYMENTS ON NOTES.

14.1.    Place of Payment.

         Subject to Section 14.2,  payments of principal,  Make-Whole Amount, if
any,  and  interest  becoming  due and payable on the Notes shall be made in New
York,  New York at the  offices  of the  Purchasers  in such  jurisdiction.  The
Company may at any time, by notice to each holder of a Note, change the place of
payment  of the  Notes so long as such  place of  payment  shall be  either  the
principal office of the Company in such  jurisdiction or the principal office of
a bank or trust company in such jurisdiction.

                                       34

<PAGE>

14.2.    Home Office Payment.

         So long as you or your  nominee  shall be the  holder of any Note,  and
notwithstanding  anything  contained  in  Section  14.1 or in  such  Note to the
contrary,  the  Company  or the  Parent  (as the  case may be) will pay all sums
becoming due on such Note for principal, Make-Whole Amount, if any, and interest
by the method and at the address  specified  for such purpose below your name in
Schedule A, or by such other  method or at such other  address as you shall have
from time to time  specified  to the  Company or the Parent in writing  for such
purpose, without the presentation or surrender of such Note or the making of any
notation  thereon,  except  that  upon  written  request  of  the  Company  made
concurrently with or reasonably  promptly after payment or prepayment in full of
any Note, you shall surrender such Note for  cancellation,  reasonably  promptly
after any such request,  to the Company at its principal  executive office or at
the place of payment most recently designated by the Company pursuant to Section
14.1.  Prior to any sale or other  disposition  of any Note  held by you or your
nominee  you will,  at your  election,  either  endorse  thereon  the  amount of
principal paid thereon and the last date to which interest has been paid thereon
or  surrender  such  Note to the  Company  in  exchange  for a new Note or Notes
pursuant to Section  13.2.  The Company will afford the benefits of this Section
14.2 to any Institutional  Investor that is the direct or indirect transferee of
any  Note  purchased  by you  under  this  Agreement  and that has made the same
agreement relating to such Note as you have made in this Section 14.2.

15.      EXPENSES, ETC.

15.1.    Transaction Expenses.

         Whether or not the  transactions  contemplated  hereby are consummated,
the Company will pay all costs and  expenses  (including  reasonable  attorneys'
fees of a special counsel and, if reasonably  required,  local or other counsel)
incurred  by you and each  Other  Purchaser  or  subsequent  holder of a Note in
connection with such transactions and in connection with any amendments, waivers
or consents  under or in respect of this  Agreement or the Notes (whether or not
such amendment,  waiver or consent becomes effective),  including: (a) the costs
and expenses  incurred in enforcing or defending (or determining  whether or how
to enforce or defend) any rights under this Agreement, the Notes, the Subsidiary
Guaranty or the  Security  Documents or in  responding  to any subpoena or other
legal process or informal  investigative  demand issued in connection  with this
Agreement,  the Notes, the Subsidiary Guaranty or the Security Documents,  or by
reason of being a holder of any Note, and (b) the costs and expenses,  including
financial  advisors'  fees,  incurred  in  connection  with  the  insolvency  or
bankruptcy of the Company or any  Subsidiary or in connection  with any work-out
or restructuring of the transactions  contemplated  hereby and by the Notes. The
Company  will pay,  and will save you and each other  holder of a Note  harmless
from,  all claims in respect of any fees,  costs or  expenses if any, of brokers
and finders (other than those retained by you).

                                       35

<PAGE>

15.2.    Survival.

         The  obligations  of the Company under this Section 15 will survive the
payment or transfer of any Note,  the  enforcement,  amendment  or waiver of any
provision of this Agreement or the Notes, and the termination of this Agreement.

16.      SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

         All representations  and warranties  contained herein shall survive the
execution and delivery of this Agreement, the Notes, the Subsidiary Guaranty and
the Security  Documents,  the purchase or transfer by you of any Note or portion
thereof or interest  therein and the payment of any Note, and may be relied upon
by any subsequent holder of a Note,  regardless of any investigation made at any
time by or on  behalf  of you or any  other  holder  of a Note.  All  statements
contained in any  certificate or other  instrument  delivered by or on behalf of
the  Company  or  the  Parent   pursuant  to  this  Agreement  shall  be  deemed
representations and warranties of the Company or the Parent (as the case may be)
under this Agreement.  Subject to the preceding sentence, this Agreement and the
Notes embody the entire agreement and  understanding  among you, the Company and
the Parent and supersede all prior agreements and understandings relating to the
subject matter hereof.

17.      AMENDMENT AND WAIVER.

17.1.    Requirements.

         This Agreement,  the Subsidiary  Guaranty and the Notes may be amended,
and the observance of any term hereof or of the Subsidiary Guaranty or the Notes
may be waived (either retroactively or prospectively),  with (and only with) the
written consent of the Company, the Parent and the Required Holders, except that
(a) no amendment or waiver of any of the  provisions of Section 1, 2, 3, 4, 5, 6
or 21 hereof, or any defined term (as it is used therein),  will be effective as
to you unless  consented  to by you in writing,  and (b) no  amendment or waiver
may,  without  the  written  consent  of the  holder  of each  Note at the  time
outstanding  affected  thereby,  (i)  subject  to the  provisions  of Section 12
relating  to  acceleration  or  rescission,  change  the  amount  or time of any
prepayment  or payment of principal of, or reduce the rate or change the time of
payment or method of computation of interest or of the Make-Whole Amount on, the
Notes,  (ii)  change the  percentage  of the  principal  amount of the Notes the
holders of which are  required to consent to any such  amendment  or waiver,  or
(iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20.

17.2.    Solicitation of Holders of Notes.

                 (a)  Solicitation.  The Company will provide each holder of the
         Notes  (irrespective  of the  amount  of Notes  then  owned by it) with
         sufficient  information,  sufficiently  far in  advance  of the  date a
         decision is  required,  to enable  such holder to make an informed  and
         considered decision with respect to any proposed  amendment,  waiver or
         consent in respect of any of the provisions hereof or of the Notes. The
         Company or the Parent (as applicable) will deliver executed or true and
         correct copies of

                                       36

<PAGE>

         each amendment,  waiver or consent effected  pursuant to the provisions
         of this  Section  17 to  each  holder  of  outstanding  Notes  promptly
         following  the date on  which  it is  executed  and  delivered  by,  or
         receives the consent or approval of, the requisite holders of Notes.

                 (b) Payment.  Neither the Company nor the Parent will  directly
         or indirectly pay or cause to be paid any remuneration,  whether by way
         of supplemental or additional interest, fee or otherwise,  or grant any
         security,  to  any  holder  of  Notes  as  consideration  for  or as an
         inducement to the entering into by any holder of Notes or any waiver or
         amendment  of  any of the  terms  and  provisions  hereof  unless  such
         remuneration is concurrently paid, or security is concurrently granted,
         on the same  terms,  ratably to each  holder of Notes then  outstanding
         even if such holder did not consent to such waiver or amendment.

17.3.    Binding Effect, etc.

         Any  amendment  or waiver  consented  to as provided in this Section 17
applies  equally to all holders of Notes and is binding  upon them and upon each
future holder of any Note and upon the Company and the Parent  without regard to
whether such Note has been marked to indicate such amendment or waiver.  No such
amendment  or  waiver  will  extend  to  or  affect  any  obligation,  covenant,
agreement, Default or Event of Default not expressly amended or waived or impair
any right  consequent  thereon.  No course of dealing between the Company or the
Parent  and the  holder  of any Note  nor any  delay in  exercising  any  rights
hereunder  or under any Note  shall  operate  as a waiver  of any  rights of any
holder of such Note. As used herein,  the term "this  Agreement"  and references
thereto  shall  mean this  Agreement  as it may from time to time be  amended or
supplemented.

17.4.    Notes held by Company, etc.

         Solely  for the  purpose  of  determining  whether  the  holders of the
requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this
Agreement  or the Notes,  or have  directed  the  taking of any action  provided
herein  or in the  Notes to be taken  upon the  direction  of the  holders  of a
specified   percentage  of  the  aggregate   principal   amount  of  Notes  then
outstanding,  Notes directly or indirectly  owned by the Company,  the Parent or
any of their Affiliates shall be deemed not to be outstanding.

18.      NOTICES.

         All notices  and  communications  provided  for  hereunder  shall be in
writing  and  sent  (a) by  telecopy  if the  sender  on the  same  day  sends a
confirming  copy of such  notice  by a  recognized  overnight  delivery  service
(charges  prepaid),  or (b) by registered or certified  mail with return receipt
requested (postage prepaid),  or (c) by a recognized  overnight delivery service
(with charges prepaid). Any such notice must be sent:

                      (i) if to you or your nominee, to you or it at the address
                 specified  for such  communications  in  Schedule A, or at such
                 other address as you or it shall have  specified to the Company
                 in writing,

                                       37

<PAGE>

                      (ii) if to any other holder of any Note, to such holder at
                 such address as such other  holder shall have  specified to the
                 Company in writing, or

                      (iii) if to the Company or the Parent,  to the address set
                 forth at the  beginning  hereof to the  attention  of the Chief
                 Financial  Officer,  or at such other address as the Company or
                 the  Parent (as the case may be) shall  have  specified  to the
                 holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

19.      REPRODUCTION OF DOCUMENTS.

         This  Agreement  and all  documents  relating  thereto,  including  (a)
consents,  waivers  and  modifications  that  may  hereafter  be  executed,  (b)
documents received by you at the Closing (except the Notes themselves),  and (c)
financial statements, certificates and other information previously or hereafter
furnished to you, may be  reproduced  by you by any  photographic,  photostatic,
microfilm,  microcard,  miniature  photographic or other similar process and you
may destroy any  original  document so  reproduced.  Each of the Company and the
Parent agrees and stipulates  that, to the extent  permitted by applicable  law,
any such reproduction  shall be admissible in evidence as the original itself in
any  judicial or  administrative  proceeding  (whether or not the original is in
existence  and whether or not such  reproduction  was made by you in the regular
course of business) and any  enlargement,  facsimile or further  reproduction of
such  reproduction  shall  likewise be admissible  in evidence.  This Section 19
shall not  prohibit  the  Company,  the Parent or any other holder of Notes from
contesting  any such  reproduction  to the same extent that it could contest the
original, or from introducing evidence to demonstrate the inaccuracy of any such
reproduction.

20.      CONFIDENTIAL INFORMATION.

         For the purposes of this Section 20,  "Confidential  Information" means
information  delivered to you by or on behalf of the Company,  the Parent or any
Subsidiary  in connection  with the  transactions  contemplated  by or otherwise
pursuant to this  Agreement  that is  proprietary in nature and that was clearly
marked or labeled or otherwise  adequately  identified  when  received by you as
being confidential information of the Company or such Subsidiary,  provided that
such term does not include  information that (a) was publicly known or otherwise
known to you  prior to the time of such  disclosure,  (b)  subsequently  becomes
publicly  known  through no act or omission by you or any person  acting on your
behalf,  (c) otherwise becomes known to you other than through disclosure by the
Company,  the Parent or any Subsidiary or (d) constitutes  financial  statements
delivered to you under Section 7.1 that are otherwise  publicly  available.  You
will maintain the confidentiality of such Confidential information in accordance
with procedures adopted by you in good faith to protect confidential information
of third  parties  delivered to you,  provided  that you may deliver or disclose
Confidential  Information to (i) your directors,  officers,  employees,  agents,
attorneys and affiliates (to the extent such  disclosure  reasonably  relates to
the  administration  of the  investment  represented  by your Notes),  (ii) your
financial   advisors  and  other   professional   advisors  who  agree  to  hold
confidential the Confidential  Information  substantially in accordance with the
terms  of this  Section  20,  (iii)  any  other  holder  of any  Note,  (iv) any
Institutional  Investor to which you sell or offer to sell such Note or any part

                                       38

<PAGE>

thereof or any participation therein (if such Person has agreed in writing prior
to its receipt of such Confidential Information to be bound by the provisions of
this  Section  20), (v) any Person from which you offer to purchase any security
of the Company or the Parent (if such Person has agreed in writing  prior to its
receipt of such  Confidential  Information to be bound by the provisions of this
Section 20), (vi) any federal or state regulatory  authority having jurisdiction
over you,  (vii) the  National  Association  of Insurance  Commissioners  or any
similar  organization,  or any nationally recognized rating agency that requires
access to information about your investment portfolio or (viii) any other Person
to which such  delivery or  disclosure  may be necessary or  appropriate  (w) to
effect compliance with any law, rule, regulation or order applicable to you, (x)
in response to any subpoena or other legal process,  (y) in connection  with any
litigation  to which you are a party or (z) if an Event of Default has  occurred
and is continuing,  to the extent you may reasonably determine such delivery and
disclosure  to be  necessary  or  appropriate  in the  enforcement  or  for  the
protection of the rights and remedies under your Notes and this Agreement.  Each
holder of a Note, by its acceptance of a Note,  will be deemed to have agreed to
be bound by and to be entitled to the  benefits of this  Section 20 as though it
were a party to this  Agreement.  On  reasonable  request by the  Company or the
Parent in  connection  with the delivery to any holder of a Note of  information
required to be  delivered  to such holder  under this  Agreement or requested by
such  holder  (other  than a  holder  that is a party to this  Agreement  or its
nominee),  such  holder  will enter into an  agreement  with the  Company or the
Parent (as the case may be) embodying the provisions of this Section 20.

21.      SUBSTITUTION OF PURCHASER.

         You shall have the right to  substitute  any one of your  Affiliates as
the  purchaser  of the Notes  that you have  agreed to  purchase  hereunder,  by
written notice to the Company, which notice shall be signed by both you and such
Affiliate,  shall  contain  such  Affiliate's  agreement  to be  bound  by  this
Agreement and shall  contain a  confirmation  by such  Affiliate of the accuracy
with respect to it of the  representations  set forth in Section 6. Upon receipt
of such notice, wherever the word "you" is used in this Agreement (other than in
this Section 21),  such word shall be deemed to refer to such  Affiliate in lieu
of you.  In the event  that such  Affiliate  is so  substituted  as a  purchaser
hereunder and such Affiliate  thereafter  transfers to you all of the Notes then
held by such Affiliate,  upon receipt by the Company of notice of such transfer,
wherever  the word "you" is used in this  Agreement  (other than in this Section
21), such word shall no longer be deemed to refer to such  Affiliate,  but shall
refer to you,  and you shall  have all the rights of an  original  holder of the
Notes under this Agreement.

22.      MISCELLANEOUS.

22.1.    Successors and Assigns.

         All covenants and other agreements contained in this Agreement by or on
behalf  of any of the  parties  hereto  bind and inure to the  benefit  of their
respective successors and assigns (including, without limitation, any subsequent
holder of a Note) whether so expressed or not.

                                       39

<PAGE>

22.2.    Payments Due on Non-Business Days.

         Anything   in   this   Agreement   or  the   Notes   to  the   contrary
notwithstanding, any payment of principal of or Make-whole Amount or interest on
any Note that is due on a date other  than a  Business  Day shall be made on the
next  succeeding  Business Day without  including the additional days elapsed in
the computation of the interest payable on such next succeeding Business Day.

22.3.    Severability.

         Any provision of this Agreement that is prohibited or  unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such  prohibition  or  unenforceability   without   invalidating  the  remaining
provisions  hereof,  and  any  such  prohibition  or   unenforceability  in  any
jurisdiction  shall (to the full  extent  permitted  by law) not  invalidate  or
render unenforceable such provision in any other jurisdiction.

22.4.    Construction.

         Each  covenant  contained  herein  shall be construed  (absent  express
provision to the contrary) as being independent of each other covenant contained
herein,  so that  compliance  with any one  covenant  shall not (absent  such an
express  contrary  provision)  be  deemed to  excuse  compliance  with any other
covenant. Where any provision herein refers to action to be taken by any Person,
or which  such  Person  is  prohibited  from  taking,  such  provision  shall be
applicable whether such action is taken directly or indirectly by such Person.

22.5.    Counterparts.

         This Agreement may be executed in any number of  counterparts,  each of
which  shall be an  original  but all of which  together  shall  constitute  one
instrument.  Each  counterpart  may consist of a number of copies  hereof,  each
signed by less than all, but together signed by all, of the parties hereto.

22.6.    Governing Law.

         This Agreement shall be construed and enforced in accordance  with, and
the rights of the parties  shall be governed  by, the law of the State of Nevada
excluding  choice-of-law  principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.

                                    * * * * *

                      REMAINDER OF PAGE INTENTIONALLY BLANK

                                       40

<PAGE>

         If you are in  agreement  with the  foregoing,  please sign the form of
agreement on the accompanying counterpart of this Agreement and return it to the
Company,  whereupon the foregoing shall become a binding  agreement between you,
the Company and the Parent.

                                Very truly yours,

                                COMPANY:

                                COVENANT ASSET MANAGEMENT, INC.,
                                a Nevada corporation

                                By:    /s/ Joey B. Hogan
                                Name:  Joey B. Hogan
                                Title: Chief Financial Officer & Treasurer

                                PARENT:

                                COVENANT TRANSPORT, INC.,
                                a Nevada corporation

                                By:    /s/ Joey B. Hogan
                                Name:  Joey B. Hogan
                                Title: Chief Financial Officer & Treasurer

                                      S-1

<PAGE>

The foregoing is agreed
to as of the date thereof.

CONNECTICUT GENERAL LIFE INSURANCE COMPANY,
ON BEHALF OF ONE OR MORE SEPARATE ACCOUNTS

By:   CIGNA Investments, Inc.

      By:     /s/ Stephen A. Osborn
      Name:   Stephen A. Osborn
      Title:  Managing Director

CONNECTICUT GENERAL LIFE INSURANCE COMPANY

By:   CIGNA Investments, Inc.

      By:     /s/ Stephen A. Osborn
      Name:   Stephen A. Osborn
      Title:  Managing Director

 LIFE INSURANCE COMPANY OF NORTH AMERICA

 By:  CIGNA Investments, Inc.

      By:     /s/ Stephen A. Osborn
      Name:   Stephen A. Osborn
      Title:  Managing Director

                                      S-2

<PAGE>

         The  undersigned   Subsidiary  Guarantors   acknowledge  the  foregoing
Amendment.

COVENANT TRANSPORT, INC.
(a Tennessee corporation)

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

SOUTHERN REFRIGERATED TRANSPORT, INC.

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

TONY SMITH TRUCKING, INC.

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

HAROLD IVES TRUCKING CO.

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

TERMINAL TRUCK BROKER, INC.

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

COVENANT.COM, INC.

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

CIP, INC.

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

                                      S-3

<PAGE>

                                                                      SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased
-----------------------------                              ---------------------

CONNECTICUT GENERAL LIFE INSURANCE                                $5,000,000
  COMPANY, on behalf of one or more separate accounts              5,000,000

Nominee Name in which Notes are to be issued:  CIG & Co.

(1)   All payments by Federal Funds wire transfer of immediately available funds
      to:

                  Chase NYC/CTR/
                  BNF=CIGNA Private Placements/AC=9009001802
                  ABA# 021000021

      with the following accompanying information:

                  OBI=Covenant  Asset  Management,  Inc. 7.39% Guaranteed Senior
                  Notes due October 1, 2005;  PPN 22283# AA 6; [and  application
                  (as among principal, premium and interest of the payment being
                  made); contact name and phone]

(2)   Notices related to payments:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Securities Processing - S-206
                  900 Cottage Grove Road
                  Hartford, CT  06152-2309

      with a copy to:

                  Chase Manhattan Bank
                  Private Placement Servicing
                  P.O. Box 1508
                  Bowling Green Station
                  New York, NY 10081
                  Attention:  CIGNA Private Placements
                  Fax:  (212) 552-3107/1005

                                       1

                                   Schedule A

<PAGE>

(3)   All other communications:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Private Securities Division - S-307
                  900 Cottage Grove Road
                  Hartford, CT 06152-2307
                  Fax:  (860) 726-7203

Tax ID #13-3574027

                                       2

                                   Schedule A

<PAGE>

                                                                      SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased
-----------------------------                              ---------------------
CONNECTICUT GENERAL LIFE INSURANCE                               $5,000,000
  COMPANY                                                         5,000,000

Nominee Name in which Notes are to be issued:  CIG & Co.

(1)   All payments by Federal Funds wire transfer of immediately available funds
      to:

                  Chase NYC/CTR/
                  BNF=CIGNA Private Placements/AC=9009001802
                  ABA# 021000021

      with the following accompanying information:

                  OBI=Covenant  Asset  Management,  Inc. 7.39% Guaranteed Senior
                  Notes due October 1, 2005;  PPN 22283# AA 6; [and  application
                  (as among principal, premium and interest of the payment being
                  made); contact name and phone]

(2)   Notices related to payments:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Securities Processing - S-206
                  900 Cottage Grove Road
                  Hartford, CT  06152-2309

      with a copy to:

                  Chase Manhattan Bank
                  Private Placement Servicing
                  P.O. Box 1508
                  Bowling Green Station
                  New York, NY 10081
                  Attention:  CIGNA Private Placements
                  Fax:  (212) 552-3107/1005

                                       3

                                   Schedule A

<PAGE>

(3)   All other communications:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Private Securities Division - S-307
                  900 Cottage Grove Road
                  Hartford, CT 06152-2307
                  Fax:  (860) 726-7203

Tax ID #13-3574027

                                       4

                                   Schedule A

<PAGE>

                                                                      SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased
-----------------------------                              ---------------------

LIFE INSURANCE COMPANY OF NORTH AMERICA                         $5,000,000

Nominee Name in which Notes are to be issued:  CIG & Co.

(1)   All payments by Federal Funds wire transfer of immediately available funds
      to:

                  Chase NYC/CTR/
                  BNF=CIGNA Private Placements/AC=9009001802
                  ABA# 021000021

      with the following accompanying information:

                  OBI=Covenant  Asset  Management,  Inc. 7.39% Guaranteed Senior
                  Notes due October 1, 2005;  PPN 22283# AA 6; [and  application
                  (as among principal, premium and interest of the payment being
                  made); contact name and phone]

(2)   Notices related to payments:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Securities Processing - S-206
                  900 Cottage Grove Road
                  Hartford, CT  06152-2309

      with a copy to:

                  Chase Manhattan Bank
                  Private Placement Servicing
                  P.O. Box 1508
                  Bowling Green Station
                  New York, NY 10081
                  Attention:  CIGNA Private Placements
                  Fax:  (212) 552-3107/1005

                                       5

                                   Schedule A

<PAGE>

(3)   All other communications:

                  CIG & Co.
                  c/o CIGNA Investments, Inc.
                  Attention:  Private Securities Division - S-307
                  900 Cottage Grove Road
                  Hartford, CT 06152-2307
                  Fax:  (860) 726-7203

Tax ID #13-3574027

                                       6

                                   Schedule A

<PAGE>

                                                                      SCHEDULE B

                                  DEFINED TERMS

                  As used  herein,  the  following  terms  have  the  respective
meanings set forth below or set forth in the Section hereof following such term:

                  "Affiliate"  means,  at any  time,  and  with  respect  to any
Person,  (a) any other Person that at such time directly or  indirectly  through
one or more  intermediaries  Controls,  or is Controlled by, or, is under common
Control  with,  such first  Person,  and (b) any Person  beneficially  owning or
holding,  directly or  indirectly,  10% or more of any class of voting or equity
interests  of the  Company or any  Subsidiary  or any  corporation  of which the
Company  and  its  Subsidiaries  beneficially  own or  hold,  in the  aggregate,
directly or indirectly,  10% or more of any class of voting or equity interests.
As used  in  this  definition,  "Control"  means  the  possession,  directly  or
indirectly,  of the power to direct or cause the direction of the management and
policies of a Person,  whether  through the ownership of voting  securities,  by
contract  or  otherwise.  Unless the context  otherwise  clearly  requires,  any
reference to an "Affiliate" is a reference to an Affiliate of the Company.

                  "Bank Loan Agreement"  means the Credit  Agreement dated as of
December 13, 2000 by and among the Company,  as  borrower,  the Parent,  Bank of
America,  N.A., as agent and as lender,  and the lenders party thereto from time
to time, as such  agreement may be amended,  modified,  restated,  supplemented,
refinanced,  increased or reduced from time to time,  and any  successor  credit
agreement or similar facility.

                  "Bank  Lenders" means the banks from time to time party to the
Bank Loan Agreement.

                  "Business Day" means (a) for the purposes of Section 8.6 only,
any day other than a Saturday,  a Sunday or a day on which  commercial  banks in
New York City are required or authorized to be closed,  and (b) for the purposes
of any other  provision  of this  Agreement,  any day other than a  Saturday,  a
Sunday or a day on which commercial banks in New York, Connecticut or Nevada are
required or authorized to be closed.

                  "Capital  Lease"  means,  at any time, a lease with respect to
which the lessee is required  concurrently  to recognize the  acquisition  of an
asset and the incurrence of a liability in accordance with GAAP.

                  "Capital Lease  Obligation"  means, with respect to any Person
and a Capital  Lease,  the amount of the obligation of such Person as the lessee
under such  Capital  Lease which would,  in  accordance  with GAAP,  appear as a
liability on a balance sheet of such Person.

                  "Change in Control" has the meaning set forth in Section 8.7.

                  "Closing" is defined in Section 2.

                  "Code"  means the Internal  Revenue  Code of 1986,  as amended
from time to time, and the rules and  regulations  promulgated  thereunder  from
time to time.

                                       1

                                   Schedule B

<PAGE>

                  "Collateral" is defined in the Intercreditor Agreement.

                  "Company"  means  Covenant  Asset  Management,  Inc., a Nevada
corporation.

                  "Consolidated Assets" means the total assets of the Parent and
its  Restricted  Subsidiaries  that  would be shown as assets on a  consolidated
balance  sheet  of the  Company  and its  Restricted  Subsidiaries  prepared  in
accordance with GAAP,  after  eliminating all amounts  properly  attributable to
minority interests, if any, in the stock and surplus of Restricted Subsidiaries.

                  "Consolidated  Income  Available for Fixed Charges" means, for
any period,  Consolidated  EBITDAR for such period  less,  without  duplication,
taxes on income paid in cash during such period.

                  "Confidential Information" is defined in Section 20.

                  "Consolidated EBITDAR" means, for any period, Consolidated Net
Income  for such  period  plus,  to the  extent  deducted  in  determining  such
Consolidated  Net  Income,  (i)  Interest  Charges,  (ii)  depreciation,   (iii)
amortization,  (iv) Lease Rentals and (v) consolidated tax expense. In addition,
Consolidated  EBITDAR for any period shall  include the net income plus interest
charges, depreciation,  amortization,  lease rentals (other than Capital Leases)
and tax  expense of any entity  the  capital  stock,  assets  business  or other
ownership  interests  of  which  were  acquired  by  the  Parent  of  any of its
Restricted  Subsidiaries during such period (with pro forma adjustments from the
date of such acquisition).

                   "Consolidated  Net Income"  means,  for any  period,  the net
income (or loss) of the Parent and its Restricted  Subsidiaries  for such period
(taken as a cumulative  whole),  as determined in  accordance  with GAAP,  after
eliminating  all  offsetting  debits  and  credits  between  the  Parent and its
Restricted  Subsidiaries  and all other items  required to be  eliminated in the
course of the preparation of consolidated financial statements of the Parent and
its Restricted  Subsidiaries in accordance with GAAP,  provided that there shall
be excluded:

                  (a) the income (or loss) of any  Person  accrued  prior to the
date it becomes a Restricted  Subsidiary or is merged into or consolidated  with
the Parent or a Restricted  Subsidiary,  and the income (or loss) of any Person,
substantially  all of the  assets of which  have been  acquired  in any  manner,
realized by such other Person prior to the date of acquisition,

                  (b)  the  income  (or  loss)  of  any  Person  (other  than  a
Restricted  Subsidiary) in which the Parent or any Restricted  Subsidiary has an
ownership interest,  except to the extent that any such income has been actually
received  by the  Company  or such  Restricted  Subsidiary  in the  form of cash
dividends or similar cash distributions,

                  (c) the undistributed earnings of any Restricted Subsidiary to
the extent that the declaration or payment of dividends or similar distributions
by such  Restricted  Subsidiary is not at the time permitted by the terms of its
charter or any agreement,  instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to such Restricted Subsidiary,

                                       2

                                   Schedule B

<PAGE>

                  (d) any  restoration  to  income of any  contingency  reserve,
except to the extent  that  provision  for such  reserve  was made out of income
accrued during such period,

                  (e) excepted as permitted by GAAP, any aggregate net gain (but
not  any  aggregate  net  loss)  during  such  period  arising  from  the  sale,
conversion,  exchange  or other  disposition  of  capital  assets  (such term to
include,   without   limitation,   (i)  all  non-current   assets  and,  without
duplication,  (ii) the  following,  whether or not  current:  all fixed  assets,
whether  tangible or  intangible,  all inventory  sold in  conjunction  with the
disposition of fixed assets, and all Securities),

                  (f) except as permitted by GAAP, any gains  resulting from any
write-up of any assets (but not any loss  resulting  from any  write-down of any
assets),

                  (g) any net gain from the  collection  of the proceeds of life
insurance policies,

                  (h) any gain arising from the acquisition of any Security,  or
the  extinguishment,  under GAAP, of any Debt,  of the Parent or any  Restricted
Subsidiary,

                  (i) any deferred credit  representing  the excess of equity in
any  Restricted  Subsidiary  at the  date of  acquisition  over  the cost of the
investment in such Restricted Subsidiary,

                  (j) in the case of a successor to the Parent by  consolidation
or merger or as a  transferee  of its  assets,  any  earnings  of the  successor
corporation prior to such consolidation, merger or transfer of assets, and

                  (k) any  portion  of such net  income  that  cannot  be freely
converted into United States Dollars.

                  "Consolidated Tangible Net Worth" means, at any time,

                  (a)  the  total  assets  of  the  Parent  and  its  Restricted
Subsidiaries  that would be shown as assets on a  consolidated  balance sheet of
the  Parent  and  its  Restricted  Subsidiaries  as of  such  time  prepared  in
accordance with GAAP,  after  eliminating all amounts  properly  attributable to
minority interests, if any, in the stock and surplus of Restricted Subsidiaries,
minus

                  (b) the total  liabilities  of the Parent  and its  Restricted
Subsidiaries that would be shown as liabilities on a consolidated  balance sheet
of the  Parent  and its  Restricted  Subsidiaries  as of such time  prepared  in
accordance with GAAP, minus

                  (c) the net book  amount of all  assets of the  Parent and its
Restricted  Subsidiaries  (after deducting any reserves applicable thereto) that
would be shown as  intangible  assets  on a  consolidated  balance  sheet of the
Parent and its  Restricted  Subsidiaries  as of such time prepared in accordance
with GAAP.

                  "Consolidated   Total   Debt"   means,   as  of  any  date  of
determination,  the  total  of  all  Debt  of  the  Parent  and  its  Restricted
Subsidiaries  outstanding on such date, after  eliminating all offsetting debits
and credits  between the Parent and its  Restricted  Subsidiaries  and all other

                                       3

                                   Schedule B

<PAGE>

items required to be eliminated in the course of the preparation of consolidated
financial statements of the Parent and its Restricted Subsidiaries in accordance
with GAAP, provided, however, that Consolidated Total Debt shall not include the
first $13,000,000 of any Headquarters  Financing Debt that may be outstanding at
such time.

                  "Control Event" has the meaning set forth in Section 8.7.

                  "CTI" is defined in Section 1.1.

                  "Debt" means, with respect to any Person, without duplication,

                  (a) its liabilities for borrowed money;

                  (b) its liabilities evidenced by bonds,  debentures,  notes or
         other similar instruments;

                  (c)  its  liabilities  for  the  deferred  purchase  price  of
         property  or  services  acquired  by such  Person  (excluding  accounts
         payable  arising in the  ordinary  course of  business  and  payable on
         customary trade terms, but including all liabilities created or arising
         under any  conditional  sale or other title  retention  agreement  with
         respect to any such property);

                  (d) its Capital Lease Obligations;

                  (e) its  redemption  obligations  in  respect  of  mandatorily
         redeemable Preferred Stock;

                  (f) its  obligations to purchase  securities or other property
         that  arise  out of or in  connection  with  the  sale  of the  same or
         substantially similar securities or property;

                  (g) its obligations, whether fixed or contingent, to reimburse
         any other  Person for amounts  paid under a letter of credit or similar
         instrument;

                  (h) its  obligations  in respect of interest rate and currency
         swaps and similar obligations  obligating it to make payments,  whether
         periodically or upon the happening of a contingency, except that if any
         agreement  relating  to such  obligations  provides  for the netting of
         amounts  payable  by and  to  such  Person  thereunder  or if any  such
         agreement  provides for the  simultaneous  payment of amounts by and to
         such  Person,  then in each such case,  the amount of such  obligations
         shall be the net amount thereof;

                  (i) all  liabilities  for borrowed  money  secured by any Lien
         with  respect to any property  owned by such Person  (whether or not it
         has assumed or otherwise become liable for such liabilities);

                  (j) any  Guaranty  of such  Person  of  liabilities  of a type
         described in any of clauses (a) through (i) hereof; and

                                       4

                                   Schedule B

<PAGE>

Debt of any Person shall include all obligations of such Person of the character
described in clauses (a) through (j) to the extent such Person  remains  legally
liable in respect thereof  notwithstanding that any such obligation is deemed to
be extinguished under GAAP.

                  "Default"  means an  event  or  condition  the  occurrence  or
existence  of which  would,  with the  lapse of time or the  giving of notice or
both, become an Event of Default.

                  "Default  Rate"  means  that rate of  interest  that is 2% per
annum above the rate of interest  stated in clause (a) of the first paragraph of
the Notes.

                  "Disposition  Value" means,  at any time,  with respect to any
property

                  (a)  in  the  case  of  property  that  does  not   constitute
         Subsidiary  Stock,  the book value thereof,  valued at the time of such
         disposition in good faith by the Parent, and

                  (b) in the case of property that constitutes Subsidiary Stock,
         an amount equal to that  percentage  of book value of the assets of the
         Subsidiary  that issued such stock as is equal to the  percentage  that
         the book value of such Subsidiary Stock represents of the book value of
         all of the outstanding capital stock of such Subsidiary  (assuming,  in
         making such  calculations,  that all Securities  convertible  into such
         capital   stock  are  so  converted  and  giving  full  effect  to  all
         transactions  that would occur or be required in  connection  with such
         conversion)  determined at the time of the disposition thereof, in good
         faith by the Parent.

                  "Distribution"   means,   in  respect   of  any   corporation,
association or other business entity:

                  (a)  dividends or other  distributions  or payments on capital
         stock or other  equity  interest of such  corporation,  association  or
         other  business  entity  (except  distributions  in such stock or other
         equity interest); and

                  (b) the  redemption  or  acquisition  of such  stock  or other
         equity  interests or of warrants,  rights or other  options to purchase
         such stock or other  equity  interests  (except when solely in exchange
         for   such   stock   or   other   equity    interests)   unless   made,
         contemporaneously,  from the net  proceeds  of a sale of such  stock or
         other equity interests.

                  "Effective Time" is defined in Section 3.

                  "Environmental Laws" means any and all Federal,  state, local,
and foreign statutes, laws, regulations,  ordinances,  rules, judgments, orders,
decrees,  permits,  concessions,  grants,  franchises,  licenses,  agreements or
governmental  restrictions  relating  to  pollution  and the  protection  of the
environment or the release of any materials into the environment,  including but
not limited to those related to hazardous  substances  or wastes,  air emissions
and discharges to waste or public systems.

                                       5

                                   Schedule B

<PAGE>

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

                  "ERISA  Affiliate" means any trade or business (whether or not
incorporated)  that is treated  as a single  employer  together  with the Parent
under section 414 of the Code.

                  "Event of Default" is defined in Section 11.

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

                  "Excluded Transfer" is defined in Section 10.3.

                  "Fair Market Value" means, at any time and with respect to any
property,  the  sale  value  of such  property  that  would  be  realized  in an
arm's-length  sale at such time  between an informed  and  willing  buyer and an
informed and willing seller (neither being under a compulsion to buy or sell).

                  "Fixed Charges" means, with respect to any period,  the sum of
(a) Interest Charges for such period and (b) Lease Rentals for such period.

                  "Fixed Charges  Coverage  Ratio" means, at any time, the ratio
of (a)  Consolidated  Income  Available for Fixed Charges for the period of four
consecutive  fiscal  quarters of the Parent  ending on, or most  recently  ended
prior to, such time to (b) the sum of Fixed  Charges for such period plus 25% of
the  aggregate  principal  amount  of all Debt  outstanding  under the Bank Loan
Agreement.

                  "Funded Debt" means,  with respect to any Person,  all Debt of
such Person  that by its terms or by the terms of any  instrument  or  agreement
relating thereto matures,  or that is otherwise  payable or unpaid,  one year or
more from, or is directly or indirectly renewable or extendible at the option of
the obligor in respect  thereof to a date one year or more  (including,  without
limitation,  an option  of such  obligor  under a  revolving  credit or  similar
agreement obligating the lender or lenders to extend credit over a period of one
year or more) from, the date of the creation thereof,  provided that Funded Debt
shall include,  as at any date of  determination,  current  maturities of Funded
Debt.

                  "GAAP" means generally  accepted  accounting  principles as in
effect from time to time in the United States of America.

                  "Governmental Authority" means

                  (a)  the government of

                       (i) the  United  States of  America or any State or other
                  political subdivision thereof, or

                                       6

                                   Schedule B

<PAGE>

                       (ii)  any   jurisdiction  in  which  the  Parent  or  any
                  Subsidiary conducts all or any part of its business,  or which
                  asserts  jurisdiction over any properties of the Parent or any
                  Subsidiary, or

                  (b) any entity exercising  executive,  legislative,  judicial,
         regulatory or  administrative  functions of, or pertaining to, any such
         government.

                  "Guaranty" means,  with respect to any Person,  any obligation
(except  the  endorsement  in the  ordinary  course of  business  of  negotiable
instruments for deposit or collection) of such Person  guaranteeing or in effect
guaranteeing any Indebtedness,  dividend or other obligation of any other Person
in any manner,  whether directly or indirectly,  including (without  limitation)
obligations  incurred  through an agreement,  contingent  or otherwise,  by such
Person:

                  (a)  to  purchase  such  Indebtedness  or  obligation  or  any
         property constituting security therefor;

                  (b) to advance or supply funds (i) for the purchase or payment
         of such  indebtedness  or  obligation,  or (ii) to maintain any working
         capital  or other  balance  sheet  condition  or any  income  statement
         condition of any other Person or otherwise to advance or make available
         funds for the purchase or payment of such Indebtedness or obligation;

                  (c) to lease properties or to purchase  properties or services
         primarily for the purpose of assuring the owner of such Indebtedness or
         obligation  of the ability of any other  Person to make  payment of the
         Indebtedness or obligation; or

                  (d)  otherwise  to assure  the owner of such  Indebtedness  or
         obligation against loss in respect thereof.

In any computation of the Indebtedness or other liabilities of the obligor under
any Guaranty, the indebtedness or other obligations that are the subject of such
Guaranty shall be assumed to be direct obligations of such obligor.

                  "Hazardous  Material" means any and all  pollutants,  toxic or
hazardous  wastes or any other  substances that might pose a hazard to health or
safety,  the removal of which may be required  or the  generation,  manufacture,
refining, production,  processing, treatment, storage, handling, transportation,
transfer, use, disposal, release, discharge, spillage, seepage, or filtration of
which is or shall be  restricted,  prohibited or penalized by any applicable law
(including, without limitation,  asbestos, urea formaldehyde foam insulation and
polycholorinated biphenyls).

                  "Headquarters  Financing  Debt"  means  the Debt  incurred  to
finance the Headquarters Transaction:

                  (a)  in  a  single   transaction   (or  series  of  integrated
         transactions),

                  (b) prior to October 31, 1997,

                                       7

                                   Schedule B

<PAGE>

                  (c)  in an  aggregate  principal  amount  up  to  $15,000,000;
         provided  that only  $13,000,000  of such amount shall be excluded from
         the definition of "Consolidated Total Debt,"

                  (d) that (if unsecured) is subject to a Headquarters Financing
         Intercreditor Agreement, and

                  (e) no Default or Event of Default existed at the time of such
         incurrence or  immediately  after giving  effect to such  incurrence of
         Debt;

provided  that  any  Sale-and-Leaseback   Transaction  in  connection  with  the
Headquarters Transaction shall be deemed to be Headquarters Financing Debt.

                  For  purposes of this  definition  of  Headquarters  Financing
Debt,  the  term  "Headquarters  Financing  Intercreditor  Agreement"  means  an
intercreditor  agreement (in form and substance acceptable to the holders of the
Notes) among the holder(s) of such  Headquarters  Financing Debt and the holders
of  Notes,  the Bank  Lenders  and each  other  party  who may be a party to the
Intercreditor  Agreement at the time of the incurrence of Headquarters Financing
Debt,  provided,   however,  that  such  Headquarters  Financing   Intercreditor
Agreement shall not provide for the sharing of any collateral held by or for the
benefit of the  holders  of Notes,  the Bank  Lenders or any other  party to the
Intercreditor Agreement.

                  "Headquarters Transaction" means the financing of the Parent's
headquarters facility constructed at Highway 11 and New Cummings Road, Tiftonia,
Tennessee.

                  "Holder" means,  with respect to any Note, the Person in whose
name such Note is registered in the register  maintained by the Company pursuant
to Section 13.1.

                  "Indebtedness"  with respect to any Person means, at any time,
without duplication,

                  (a) its  liabilities  for  borrowed  money and its  redemption
         obligations in respect of mandatorily redeemable Preferred Stock;

                  (b)  its  liabilities  for  the  deferred  purchase  price  of
         property acquired by such Person (excluding accounts payable arising in
         the ordinary course of business but including all  liabilities  created
         or  arising  under  any  conditional  sale  or  other  title  retention
         agreement with respect to any such property);

                  (c)  all  liabilities   appearing  on  its  balance  sheet  in
         accordance with GAAP in respect of Capital Leases;

                  (d) all  liabilities  for borrowed  money  secured by any Lien
         with  respect to any property  owned by such Person  (whether or not it
         has assumed or otherwise become liable for such liabilities);

                                       8

                                   Schedule B

<PAGE>

                  (e) all its  liabilities  in  respect  of letters of credit or
         instruments  serving a similar  function  issued  or  accepted  for its
         account  by banks  and other  financial  institutions  (whether  or not
         representing obligations for borrowed money);

                  (f) Swaps of such Person; and

                  (g) any Guaranty of such Person with respect to liabilities of
         a type described in any of clauses (a) through (f) hereof.

Indebtedness  of any Person shall include all  obligations of such Person of the
character described in clauses (a) through (g) to the extent such Person remains
legally liable in respect  thereof  notwithstanding  that any such obligation is
deemed to be extinguished under GAAP.

                  "Institutional Investor" means (a) any original purchaser of a
Note, (b) any holder of a Note holding more than 10% of the aggregate  principal
amount of the Notes then outstanding,  and (c) any bank, trust company,  savings
and loan  association  or other  financial  institution,  any pension plan,  any
investment  company,  any insurance company,  any broker or dealer, or any other
similar financial institution or entity, regardless of legal form.

                  "Intercreditor   Agreement"   means  the  Second  Amended  and
Restated Master Collateral and Intercreditor Agreement in substantially the form
of the  attached  Exhibit  4.12,  as it may be  amended,  modified,  restated or
supplemented from time to time.

                  "Interest  Charges"  means,  for any period,  the sum (without
duplication) of the following (in each case,  eliminating all offsetting  debits
and credits  between the Parent and its  Restricted  Subsidiaries  and all other
items required to be eliminated in the course of the preparation of consolidated
financial statements of the Parent and its Restricted Subsidiaries in accordance
with GAAP): (a) all interest in respect of Debt of the Parent and its Restricted
Subsidiaries  (including imputed interest on Capital Lease Obligations) deducted
in  determining  Consolidated  Net Income  for such  period,  together  with all
interest  capitalized  or  deferred  during  such  period  and not  deducted  in
determining  Consolidated Net Income for such period,  and (b) all debt discount
and  expense and fees  appropriately  included in gross  interest  amortized  or
required to be amortized in the  determination  of  Consolidated  Net Income for
such period.

                  "Intergroup Transfer" is defined in Section 10.3.

                  "Investment" means any investment, made in cash or by delivery
of  property,  by the Parent or any of its  Restricted  Subsidiaries  (i) in any
Person,  whether by acquisition of stock,  indebtedness  or other  obligation or
Security, or by loan, Guaranty,  advance,  capital contribution or otherwise, or
(ii) in any property.

                  "Lease Rentals" means, with respect to any period,  the sum of
the rental and other  obligations  required to be paid during such period by the
Parent  or any  Restricted  Subsidiary  as lessee  under  all  leases of real or
personal property (other than Capital Leases),  excluding any amount required to
be paid by the lessee (whether or not therein designated as rental or additional
rental) on account of maintenance and repairs,  insurance,  taxes,  assessments,
water rates and similar charges, provided that, if at the date of determination,
any such rental or other obligations are contingent or not otherwise  definitely
determinable by the terms of the

                                       9

                                   Schedule B

<PAGE>

related lease,  the amount of such  obligations (i) shall be assumed to be equal
to the  prorated  amount of such  obligations  for the period of 12  consecutive
calendar months  immediately  preceding the date of determination or (ii) if the
related lease was not in effect during such preceding 12-month period,  shall be
the amount estimated by a Senior Financial  Officer on a reasonable basis and in
good faith.

                  "Lien" means, with respect to any Person, any mortgage,  lien,
pledge, charge, security interest or other encumbrance, or any interest or title
of any vendor,  lessor, lender or other secured party to or of such Person under
any conditional sale or other title retention  agreement or Capital Lease,  upon
or with respect to any property or asset of such Person  (including  in the case
of stock,  stockholder  agreements,  voting  trust  agreements  and all  similar
arrangements).
                  "Make-Whole Amount" is defined in Section 8.6.

                  "Material"   means  material  in  relation  to  the  business,
operations,  affairs,  financial condition,  assets, properties, or prospects of
the Parent and its Restricted Subsidiaries taken as a whole.

                  "Material  Adverse Effect" means a material  adverse effect on
(a) the business, operations, affairs, financial condition, assets or properties
of the  Parent  and its  Restricted  Subsidiaries  taken as a whole,  or (b) the
ability  of the  Company or the Parent to  perform  its  obligations  under this
Agreement  and the Notes,  or (c) the ability of any  Restricted  Subsidiary  to
perform its obligations  under the Subsidiary  Guaranty,  or (d) the validity or
enforceability of this Agreement, the Notes or the Subsidiary Guaranty.

                  "Multiemployer  Plan" means any Plan that is a  "multiemployer
plan" (as such term is defined in section 4001(a)(3) of ERISA).

                  "Notes"  is  defined  in the  introductory  paragraph  of this
Agreement.

                  "Officer's  Certificate"  means  a  certificate  of  a  Senior
Financial  Officer or of any other  officer of the Company or the Parent (as the
case  may be)  whose  responsibilities  extend  to the  subject  matter  of such
certificate.

                  "Ordinary  Course  Transfer"  has the  meaning  set  forth  in
Section 10.3.

                  "Original Agreement" is defined in the introductory  paragraph
to this Agreement.

                  "Other Purchasers" is defined in the introductory paragraph to
this Agreement.

                  "Parent" means Covenant Transport, Inc., a Nevada corporation.

                  "Parent  Guarantee"  means  the  guarantee  by the  Parent  in
accordance with the terms specified in Exhibit 9.6 to this Agreement.

                  "Parker Family" is defined in Section 8.7.

                                       10

                                   Schedule B

<PAGE>

                  "PBGC" means the Pension Benefit Guaranty Corporation referred
to and defined in ERISA or any successor thereto.

                  "Permitted  Receivables  Securitization  Transaction"  means a
transaction  or series  of  transactions  pursuant  to which  the  Company  or a
Restricted Subsidiary sells, in a true sale, receivables without or with limited
recourse to an Unrestricted Subsidiary that,  concurrently therewith,  uses such
receivables as security for one or more loans, the proceeds of which are used to
purchase  such  receivables;  provided  that the  Indebtedness  of  Unrestricted
Subsidiaries  incurred in connection with such transactions does not at any time
exceed $85,000,000 in the aggregate.

                  "Person"  means  an  individual,   partnership,   corporation,
limited liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof.

                  "Plan" means an "employee benefit plan" (as defined in section
3(3) of ERISA) that is or, within the preceding five years, has been established
or  maintained,  or to which  contributions  are or, within the  preceding  five
years,  have  been  made or  required  to be made,  by the  Parent  or any ERISA
Affiliate  or with respect to which the Parent or any ERISA  Affiliate  may have
any liability.

                  "Preferred  Stock"  means  any  class  of  capital  stock of a
corporation  that is  preferred  over any other  class of capital  stock of such
corporation  as to the  payment of  dividends  or the payment of any amount upon
liquidation or dissolution of such corporation.

                  "Prior Bank Loan  Agreement"  means the  Amended and  Restated
Credit Agreement,  dated as of June 18, 1999 between the Company, CTI, the banks
signatory  thereto  and ABN AMRO Bank NV, as Agent,  as  further  amended  by an
Amendment to Amended and Restated Credit  Agreement dated as of June 6, 2000, as
such agreement may thereafter have been amended or modified.

                  "property"   or   "properties"    means,    unless   otherwise
specifically  limited,  real or  personal  property  of any  kind,  tangible  or
intangible, choate or inchoate.

                  "Property Disposition Date" is defined in Section 10.3.

                  "QPAM Exemption" means Prohibited  Transaction Class Exemption
84-14 issued by the United States Department of Labor.

                  "Required Holders" means, at any time, the holders of at least
51% in principal amount of the Notes at the time outstanding (exclusive of Notes
then owned by the Parent or any of its Affiliates).

                  "Responsible  Officer" means any Senior Financial  Officer and
any other  officer of the Company or the Parent (as the context  requires)  with
responsibility for the administration of the relevant portion of this agreement.

                                       11

                                   Schedule B

<PAGE>

                  "Restricted  Investments"  means all  Investments  except  the
following:

                  (a) property to be used in the ordinary  course of business of
         the Parent and its Restricted Subsidiaries;

                  (b) current assets arising from the sale of goods and services
         in the  ordinary  course of business  of the Parent and its  Restricted
         Subsidiaries;

                  (c) Investments in one or more Restricted  Subsidiaries or any
         Person that concurrently
         with such Investment becomes a Restricted Subsidiary;

                  (d)  Investments  existing  on the  date  of the  Closing  and
         disclosed in Schedule 10.9;

                  (e)  Investments  in United  States  Governmental  Securities,
         provided that such obligations  mature within 365 days from the date of
         acquisition thereof;

                  (f)  Investments  in  certificates  of  deposit  issued  by an
         Acceptable Bank,  provided that such obligations mature within 365 days
         from the date of acquisition thereof;

                  (g)  Investments in commercial  paper given the highest rating
         by a credit rating agency of recognized  national standing and maturing
         not more than 270 days from the date of creation thereof;

                  (h) Investments in Repurchase Agreements;

                  (i) Investments in tax-exempt  obligations of any state of the
         United States of America,  or any  municipality  of any such state,  in
         each case  rated "A" or better by S&P,  "A2" or better by Moody's or an
         equivalent  rating  by any other  credit  rating  agency of  recognized
         national  standing,  provided that such  obligations  mature within 365
         days from the date of acquisition thereof;

                  (j) Investments in fuel hedging agreements entered into in the
         ordinary course of business solely for the purpose of hedging  exposure
         to fuel costs;

                  (k) Loans by the Company or any  Restricted  Subsidiary to the
         Parent or to a Wholly-Owned Restricted Subsidiary; and

                  (l)  Other   Investments   in  the  aggregate  not  more  than
         $5,000,000 (valued at the time of such Investment).

For purposes of this Agreement,  an Investment  shall be valued at the lesser of
(i) cost and (ii) the value at which such Investment is to be shown on the books
of the Company and its Restricted Subsidiaries in accordance with GAAP.

         As used in this definition of "Restricted Investments":

                                       12

                                   Schedule B

<PAGE>

         "Acceptable Bank" means any bank or trust company (i) that is organized
         under the laws of the United  States of  America or any State  thereof,
         (ii) that has capital,  surplus and undivided  profits  aggregating  at
         least   $100,000,000,   and  (iii)  whose   long-term   unsecured  debt
         obligations  (or the long-term  unsecured debt  obligations of the bank
         holding  company  owning all of the capital stock of such bank or trust
         company)  shall have been given a rating of "A" or better by S&P,  "A2"
         or better by Moody's or an equivalent rating by any other credit rating
         agency of recognized national standing.

         "Acceptable Broker-Dealer" means any Person other than a natural person
         (i) which is registered as a broker or dealer  pursuant to the Exchange
         Act and (ii) whose long-term unsecured debt obligations shall have been
         given a rating of "A" or better by S&P, "A2" or better by Moody's or an
         equivalent  rating  by any other  credit  rating  agency of  recognized
         national standing.

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

         "Repurchase Agreement" means any written agreement.

                           (a) that provides for (i) the transfer of one or more
                  United   States   Governmental   Securities  in  an  aggregate
                  principal  amount at least equal to the amount of the transfer
                  price  to  the  Parent  or any of  its  Subsidiaries  from  an
                  Acceptable  Bank  or an  Acceptable  Broker-Dealer  against  a
                  transfer of funds (the "Transfer Price") by the Parent or such
                  Subsidiary   to   such    Acceptable    Bank   or   Acceptable
                  Broker-Dealer, and (ii) a simultaneous agreement by the Parent
                  or such Subsidiary, in connection with such transfer of funds,
                  to   transfer   to  such   Acceptable   Bank   or   Acceptable
                  Broker-Dealer the same or substantially  similar United States
                  Governmental Securities for a price not less than the Transfer
                  Price plus a reasonable  return  thereon at a date certain not
                  later than 365 days after such transfer of funds,

                           (b) in respect of which the Parent or such Subsidiary
                  shall  have the right,  whether by  contract  or  pursuant  to
                  applicable   law,  to  liquidate   such   agreement  upon  the
                  occurrence of any default thereunder, and

                           (c) in  connection  with  which  the  Parent  or such
                  Subsidiary,  or an agent thereof,  shall have taken all action
                  required by applicable law or regulations to perfect a Lien in
                  such United States Governmental Securities.

         "S&P" means Standard & Poor's Ratings Group, a division of McGraw Hill,
         Inc.

         "United States  Governmental  Security" means any direct obligation of,
         or  obligation  guaranteed  by, the United  States of  America,  or any
         agency controlled or supervised by or acting as an  instrumentality  of
         the  United  States of America  pursuant  to  authority  granted by the
         Congress of the United States of America, so long as such obligation or
         guarantee  shall  have the  benefit of the full faith and credit of the
         United  States of America  which  shall have been  pledged  pursuant to
         authority granted by the Congress of the United States of America.

                                       13

                                   Schedule B

<PAGE>

                  "Restricted  Payment" means any Distribution in respect of the
Parent or any  Restricted  Subsidiary  of the Parent  (other  than on account of
capital stock or other equity  interests of a Restricted  Subsidiary of Parent),
including  any  Distribution  resulting  in the  acquisition  by the  Parent  of
Securities that would constitute treasury stock,  provided that any Distribution
of  shares  of  Transplace.com  or of  any  Subsidiary  Stock  (where  the  only
substantial  asset  of  such  Restricted   Subsidiary  is  equity  interests  of
Transplace.com)  to  stockholders of the Parent shall not be deemed a Restricted
Payment.  For purposes of this Agreement,  the amount of any Restricted  Payment
made in  property  shall be the  greater  of (x) the Fair  Market  Value of such
property (as  determined in good faith by the board of directors (or  equivalent
governing  body) of the Person making such  Restricted  Payment) and (y) the net
book value  thereof on the books of such Person,  in each case  determined as of
the date on which such Restricted Payment is made.

                  "Restricted  Subsidiary"  means any Subsidiary  that is not an
Unrestricted Subsidiary.

                  "Sale-and-Leaseback Transaction" means a transaction or series
of transactions  pursuant to which the Parent or any Restricted Subsidiary shall
sell  or  transfer  to  any  Person  (other  than  the  Parent  or a  Restricted
Subsidiary) any property,  whether now owned or hereafter acquired, and, as part
of the same transaction or series of transactions,  the Parent or any Restricted
Subsidiary  shall  rent or lease as lessee  (other  than  pursuant  to a Capital
Lease), or similarly acquire the right to possession or use of, such property or
one or more properties  which it intends to use for the same purpose or purposes
as such property, provided, however, that the Headquarters Transaction shall not
be included as a "Sale-and-Leaseback Transaction".

                  "Securities  Act" means the Securities Act of 1933, as amended
from time to time.

                  "Security(ies)"  has the meaning set forth in section  2(l) of
the Securities Act of 1933, as amended.

                  "Security Documents" means the Intercreditor Agreement and any
security agreements, pledge agreements, financing statements or other agreements
or  documents  entered  into  by the  Company,  the  Parent  or  any  Restricted
Subsidiary  creating  Liens  securing  obligations  payable by the Company,  the
Parent or any Restricted  Subsidiary to holders of the Notes or the Bank Lenders
pursuant to this Agreement or the Bank Loan Agreement.

                  "Senior Financial  Officer" means the chief financial officer,
principal  accounting  officer,  treasurer or  comptroller of the Company or the
Parent (as the context requires).

                  "Subsidiary"   means,  as  to  any  Person,  any  corporation,
association or other business  entity in which such Person or one or more of its
Subsidiaries or such Person and one or more of its Subsidiaries  owns sufficient
equity or voting interests to enable it or them (as a group) ordinarily,  in the
absence of  contingencies,  to elect a majority  of the  directors  (or  Persons
performing similar functions) of such entity, and any limited liability company,
partnership  or joint  venture  if more than a 50%  interest  in the  profits or
capital  thereof is owned by such Person

                                       14

                                   Schedule B

<PAGE>

or one or  more  of its  Subsidiaries  or  such  Person  and  one or more of its
Subsidiaries  (unless  such  partnership  can and  does  ordinarily  take  major
business actions without the prior approval of such Person or one or more of its
Subsidiaries). Unless the context otherwise clearly requires, any reference to a
"Subsidiary" is a reference to a Subsidiary of the Company or the Parent.

                  "Subsidiary   Guaranty"  means  the  Subsidiary   Guaranty  in
substantially the form of the Attached Exhibit 4.11.

                  "Subsidiary  Stock"  means,  with  respect to any Person,  the
stock  (or any  options  or  warrants  to  purchase  stock or  other  Securities
exchangeable for or convertible into stock) of any Subsidiary of such Person.

                  "Successor Corporation" is defined in Section 10.2.

                  "Substantial Portion" is defined in Section 10.3.

                  "Swap" means, with respect to any Person,  payment obligations
with  respect to interest  rate swaps,  currency  swaps and similar  obligations
obligating  such  Person  to make  payments,  whether  periodically  or upon the
happening of a contingency.  For the purposes of this  Agreement,  the amount of
the obligation under any Swap shall be the amount  determined in respect thereof
as of the end of the then most  recently  ended  fiscal  quarter of such Person,
based on the assumption  that such Swap had terminated at the end of such fiscal
quarter,  and in making such  determination,  if any agreement  relating to such
Swap  provides  for  the  netting  of  amounts  payable  by and to  such  Person
thereunder or if any such  agreement  provides for the  simultaneous  payment of
amounts  by and to such  Person,  then in each  such  case,  the  amount of such
obligation shall be the net amount so determined.

                  "Transfer" means, with respect to any Person,  any transaction
in which such Person sells, conveys,  transfers or leases (as lessor) any of its
property,  including,  without limitation,  Subsidiary Stock, provided, however,
that the Headquarters Transaction shall not be included as a "Transfer".

                  "Unrestricted  Subsidiary"  means CVTI  Receivables  Corp.,  a
Nevada  corporation,  provided  that it only engages in activities in connection
with a Permitted Receivables Securitization  Transaction,  and any other special
purpose  entity  formed for the purpose of  engaging in a Permitted  Receivables
Securitization and designated as an Unrestricted Subsidiary.

                  "Wholly-Owned  Restricted  Subsidiary"  means  any  Restricted
Subsidiary  of the  Parent,  all of the  equity  securities  (except  director's
qualifying  shares) of which are owned by the Parent  and/or the Parent's  other
Wholly-Owned Restricted Subsidiaries.

                                       15

                                   Schedule B

<PAGE>

                                                                    SCHEDULE 5.3

                              Disclosure Materials

None.

                                       1

                                  Schedule 5.3

<PAGE>

                                                                    SCHEDULE 5.4

          Subsidiaries of the Company and ownership of Subsidiary Stock

         (a)(i)  Subsidiaries  of  the  Parent,  the  Company,  and  each  other
Subsidiary and Ownership of Subsidiary Stock

The Parent,  Covenant Transport,  Inc., a Nevada  corporation,  owns 100% of the
issued and outstanding  capital stock of the following  Subsidiaries (and 90% of
the issued and  outstanding  capital stock of CVTI  Receivables  Corp., a Nevada
corporation):

                 Covenant Transport, Inc., a Tennessee corporation;
                 Southern Refrigerated Transport, Inc., an Arkansas corporation;
                 Tony Smith Trucking, Inc., an Arkansas corporation; and
                 Covenant Asset Management, Inc., a Nevada corporation

                 The  Company,   Covenant  Asset  Management,   Inc.,  a  Nevada
corporation,  owns  100% of the  issued  and  outstanding  capital  stock of the
following subsidiaries:

                 None.

                 Covenant Transport, Inc., a Tennessee corporation, owns 100% of
the issued and outstanding capital stock of the following subsidiaries:

                 Harold Ives Trucking Co., an Arkansas corporation;
                 Terminal Truck Broker, Inc., an Arkansas corporation;
                 Covenant.com, Inc., a Nevada corporation; and
                 CIP, Inc., a Nevada corporation

                 Southern Refrigerated Transport, Inc., an Arkansas corporation,
owns 10% of the issued and outstanding  capital stock of CVTI Receivables Corp.,
a Nevada corporation.

         (a)(ii)  Affiliates  of the  Company  other  than  the  Parent  and its
Subsidiaries (none) and the Parent other than its Subsidiaries (listed below)

                 David R. Parker
                 Jacqueline F. Parker
                 Michael W. Miller
                 R.H. Lovin, Jr.
                 Joey B. Hogan
                 Ronald B. Pope
                 William T. Alt
                 Hugh O. Maclellan, Jr.
                 Mark A. Scudder
                 Robert E. Bosworth
                 Clyde M. Fuller
                 Dimensional Fund Advisors Inc.

                                       1

                                  Schedule 5.4

<PAGE>

         (a)(iii) Directors and Officers of the Company and the Parent

Company                                          Parent
-------                                          ------
Directors:                                       Directors:
    David R. Parker                                  David R. Parker
    Joey B. Hogan                                    Michael W. Miller
    Doris J. Krick                                   R. H. Lovin, Jr.
                                                     William T. Alt
                                                     Hugh O. Maclellan, Jr.
                                                     Mark A. Scudder
                                                     Robert Bosworth

Officers:                                        Officers:
    David R. Parker, Chairman of the                 David R. Parker, Chairman
    Board, President and Chief Executive             of the Board, President and
    Officer                                          Chief Executive Officer

    R. H. Lovin, Jr., Vice President and             R. H. Lovin, Jr., Vice
    Secretary                                        President of Administration
                                                     and Secretary

    Joey B. Hogan, Treasurer and Chief               Michael W. Miller,
    Financial Officer                                Executive Vice President
                                                     and Chief Operating Officer

    Janice C. George, Assistant Secretary            Ronald B. Pope, Vice  and
    and  Assistant Treasurer                         President of Sales and
                                                     Marketing

    Mary Roseman, Assistant Treasurer                Joey B. Hogan, Treasurer,
                                                     Chief Financial Officer and
                                                     Assistant Secretary

    (b)      Liens on Stock of Company

    The Parent has pledged the stock of the Company (and the  Subsidiaries)
to the Bank Lenders under the Bank Loan Agreement.

    (c)      Restrictions on Dividends

    The Bank Loan Agreement contains restrictions on dividends.

                                       2

                                  Schedule 5.4

<PAGE>

                                                                    SCHEDULE 5.5

                              Financial Statements

The  consolidated  financial  statements  of the Parent and the  Company for the
periods listed below are included in the annual report, and Forms 10-Q that have
been delivered to the Purchasers:

         1997
         1998
         1999
         1st Quarter 2000
         2nd Quarter 2000
         3rd Quarter 2000

                                       1

                                  Schedule 5.5

<PAGE>

                                                                    SCHEDULE 5.8

                               Certain Litigation

None.

                                       1

                                  Schedule 5.8

<PAGE>
                                                                   SCHEDULE 5.11

                                  Patents, Etc.

None.

                                        1

                                  Schedule 5.11

<PAGE>

                                                                   SCHEDULE 5.14

                                 Use of Proceeds

The proceeds will be used to repay the Company's 7.39%  Guaranteed  Senior Notes
due October 1, 2005 that are  outstanding in the aggregate  principal  amount of
$25,000,000.

                                       1

                                  Schedule 5.14

<PAGE>

                                                                   SCHEDULE 5.15
                              Existing Indebtedness

(a)      Existing Indebtedness:

1.       Parent:  None

2.       Company:

           Lender                                      Amount at 12/13/00
           ------                                      ------------------

           Bank of America                                 $55,000,000
           CIGNA                                            25,000,000

3.       Subsidiaries:
           a. Covenant Transport, Inc., a Tennessee corporation

           Lender                                      Amount at 12/13/00
           ---------                                   ------------------

           Tony Smith                                        3,000,000
           Transroad                                           350,000
           JS                                                   90,000
           Associates                                          418,379
           Associates                                          620,455
           Associates                                           26,735
           Sun Trust                                           499,576
           Sun Trust                                           660,085
           Sun Trust                                           434,319
           Sun Trust                                           422,272
           Paccar                                              194,265
           Paccar                                              126,305

b.       Southern Refrigerated Transport, Inc.

           Lender                                      Amount at 12/13/00
           ------                                      ------------------

           Geofuel                                             $20,000

c.       CVTI Receivables Corp.

           Lender                                      Amount at 12/13/00
           ------                                      ------------------

           SunTrust Bank                                   $62,000,000

(b)      Future or Contingent Liens

The Bank  Loan  Agreement  contains  a  "springing  lien"  that  will  attach to
substantially  all of the  Company's  and the  Parent's  assets  if an  Event of
Default occurs under such agreement.

                                        1

                                  Schedule 5.15
<PAGE>

                                                                   SCHEDULE 10.9
                                   Investments

None.

                                       1

                                 Schedule 10.9

<PAGE>

                                                                  SCHEDULE 10.11
                                      Liens
(a)      Existing Liens:

1.       Parent:  None

2.       Company:

         Lender                                               Amount at 11/30/00
         CIGNA                                                    25,000,000

3.       Restricted Subsidiaries:
a.       Covenant Transport, Inc., a Tennessee corporation

         Lender                                               Amount at 11/30/00
         Ford Motor Credit                                             2,659
         Ford Motor Credit                                            10,747
         ARI                                                           2,139
         ARI                                                           3,755
         ARI                                                           1,912
         Enterprise                                                   16,862
         Enterprise                                                   11,043
         Enterprise                                                   16,461
         Enterprise                                                   17,380
         Enterprise                                                   14,417
         MM Collins-New Jersey                                        42,371
         Jimmy Robinson-French Camp                                  128,470
         CCA Financial-Computer lease                              1,396,838
         Lanier Imaging-system                                       161,137
         Amsouth                                                   1,937,922
         Associates                                                2,348,422
         Bank of America                                           2,032,588
         Bank of America                                           5,766,562
         Bank of America                                           1,985,301
         Bank of America                                           4,698,998
         Bank One                                                  1,311,389
         Bank One                                                  1,312,274
         Bank One                                                    530,610
         Bank One                                                    529,733
         Bank One                                                    591,159
         Bank One                                                    591,159
         Bank One                                                    709,195
         Bank One                                                  3,607,886
         Caroleasing                                                 388,197
         First Union                                                 982,903
         First Union                                               3,258,455
         First Union                                               4,135,723

                                       1

                                 Schedule 10.11

<PAGE>

         First Union                                                 879,582
         Fleet Capital                                               980,581
         Fleet Capital                                             1,255,780
         Fleet Capital                                             1,023,699
         Fleet Capital                                               818,959
         Fleet Capital                                             1,312,274
         Fleet Capital                                             3,889,960
         Fleet Capital                                               631,153
         Sun Trust                                                 2,810,457
         Sun Trust                                                 1,797,484
         Sun Trust                                                   872,980
         Sun Trust                                                 8,714,931
         Sun Trust                                                 2,575,690
         The Vaughn Group                                          3,493,761
         Fleet Bank                                                2,679,097
         ABN                                                      14,360,178

b.       Southern Refrigerated Transport, Inc.

         Lender                                               Amount at 11/30/00
         Bank of America                                           4,281,918
         Bank of America                                           1,089,723
         Bank of America                                           1,202,866
         Bank One                                                    963,419
         First American Bank                                       1,007,237
         First American Bank                                       1,594,372
         First Fleet                                               1,858,138
         First Union                                                 590,168

                                       2

                                 Schedule 10.11

<PAGE>

                                                                     EXHIBIT 1.2

                                 [FORM OF NOTE]

                         COVENANT ASSET MANAGEMENT, INC.

                7.39% GUARANTEED SENIOR NOTE DUE OCTOBER 1, 2005

No. R-                                                                    [Date]
$[_________]                                                    PPN: 22283# AA 6

         FOR VALUE RECEIVED,  the undersigned,  COVENANT ASSET MANAGEMENT,  INC.
(herein called the  "Company"),  a corporation  organized and existing under the
laws of the State of Nevada,  hereby promises to pay to CIG & Co., or registered
assigns, the principal sum of [____________________________]  DOLLARS on October
1, 2005, with interest (computed on the basis of a 360-day year of twelve 30-day
months)  (a) on the unpaid  balance  thereof at the rate of 7.39% per annum from
the date hereof, payable semiannually,  on the first day of October and April in
each year, commencing with the April or October next succeeding the date hereof,
until the  principal  hereof shall have become due and  payable,  and (b) to the
extent  permitted  by  law  on  any  overdue  payment   (including  any  overdue
prepayment)  of  principal,  any  overdue  payment of  interest  and any overdue
payment of any  Make-Whole  Amount (as defined in the Note  Purchase  Agreements
referred to below),  payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate per annum time equal to 9.39%.

         Payments of principal of,  interest on and any  Make-Whole  Amount with
respect  to this Note are to be made in  lawful  money of the  United  States of
America at the address shown in the register  maintained by the Company for such
purpose,  in the manner  provided in the Note  Purchase  Agreements  referred to
below.

         This Note (a),  is  entitled to the  benefits  of Parent  Guarantee  by
Covenant  Transport,  Inc., a Nevada  corporation (the "Parent"),  in accordance
with the terms of the Note  Purchase  Agreements  referred to below,  and (b) is
subject to the terms of the Intercreditor Agreement.

         This Note is one of a series of Guaranteed  Senior Notes (herein called
the "Notes") issued pursuant to separate Note Purchase  Agreements,  dated as of
May 15, 2000 (as from time to time  amended,  the "Note  Purchase  Agreements"),
between  and among the Company and the  Parent,  and the  respective  Purchasers
named therein and is entitled to the benefits thereof.  Each holder of this Note
will  be  deemed,  by  its  acceptance   hereof,  (i)  to  have  agreed  to  the
confidentiality  provisions  set  forth  in  Section  20 of  the  Note  Purchase
Agreements and (ii) to have made the  representation set forth in Section 6.2 of
the Note Purchase Agreements.

         This Note is  registered  with the Company and, as provided in the Note
Purchase  Agreements,  upon surrender of this Note for registration of transfer,
duly endorsed, or accompanied by a written instrument of transfer duly executed,
by the  registered  holder hereof or such holder's  attorney duly  authorized in
writing,  a new  Note  for a like  principal  amount  will  be  issued  to,  and
registered  in the  name  of,  the  transferee.  Prior  to due  presentment  for
registration  of  transfer,  the Company may treat the person in whose name this
Note is registered as the owner

                                       1

                                   Exhibit 1

<PAGE>

hereof for the purpose of receiving payment and for all other purposes,  and the
Company will not be affected by any notice to the contrary.

         The Company will make  required  prepayments  of principal on the dates
and in the amounts specified in the Note Purchase Agreements.  This Note is also
subject to optional  prepayment,  in whole or from time to time in part,  at the
times  and on the  terms  specified  in the Note  Purchase  Agreements,  but not
otherwise.

         If an Event of  Default,  as defined in the Note  Purchase  Agreements,
occurs  and is  continuing,  the  principal  of this  Note  may be  declared  or
otherwise  become due and payable in the  manner,  at the price  (including  any
applicable  Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

         This Note has not been registered  under the Securities Act of 1933, as
amended,  or any  applicable  State  securities  act and may not be  transferred
absent  registration  under the  Securities  Act and  applicable  state laws, or
available exemptions from registration.

         THIS NOTE AND THE NOTE PURCHASE  AGREEMENTS  ARE GOVERNED BY, AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, INTERNAL NEVADA LAW.

Company:                                    Parent:
COVENANT ASSET                              COVENANT TRANSPORT, INC.,
MANAGEMENT, INC.,                           a Nevada corporation
a Nevada corporation

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

                                       2

                                   Exhibit 1

<PAGE>

                                                                    EXHIBIT 4.11

                          [FORM OF SUBSIDIARY GUARANTY]

         THIS  GUARANTY  (this  "Guaranty")  dated as of May 15, 2000 is made by
each of the undersigned (each, a "Guarantor"), in favor of the holders from time
to time of the Notes hereinafter  referred to, including each purchaser named in
the Note  Purchase  Agreement  hereinafter  referred  to,  and their  respective
successors and assigns  (collectively,  the "Holders" and each  individually,  a
"Holder").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS,  Covenant Asset  Management,  Inc., a Nevada  corporation (the
"Company"),  Covenant Transport,  Inc., a Nevada corporation (the "Parent"), and
the initial Holders have entered into a Note Purchase  Agreement dated as of May
15, 2000 (the Note Purchase Agreement as amended, restated or otherwise modified
from time to time in accordance with its terms and in effect, the "Note Purchase
Agreement");

         WHEREAS,  the Note Purchase Agreement  contemplates the issuance by the
Company of $25,000,000  aggregate  principal  amount of Notes (as defined in the
Note Purchase Agreement) in series;

         WHEREAS, the Company is a wholly-owned subsidiary of the Parent;

         WHEREAS, each Guarantor is a Subsidiary (directly or indirectly) of the
Parent and, by virtue of such relationship  such Guarantor  derives  substantial
financial, management and other benefits and expects to continue to do so in the
future;

         WHEREAS,  each  Guarantor  will derive  substantial  benefits  from the
purchase by the Holders of the Company's Notes and may reasonably be expected to
benefit, directly or indirectly, from this Guaranty;

         WHEREAS,  it is a condition  precedent to the obligation of the Holders
to purchase the Notes that each Guarantor shall have executed and delivered this
Guaranty for the benefit of the Holders; and

         WHEREAS,  each Guarantor  finds it  advantageous,  desirable and in its
best  interests to execute and deliver this  Guaranty to satisfy the  conditions
described in the preceding paragraph;

         NOW, THEREFORE,  in consideration of the premises and other benefits to
the Guarantors,  and of the purchase of the Company's Notes by the Holders,  and
for other good and valuable consideration,  the receipt and sufficiency of which
are acknowledged, each Guarantor makes this Guaranty as follows:

         SECTION 1.  Definitions.  Any  capitalized  terms not otherwise  herein
defined  shall  have  the  meanings  attributed  to  them in the  Note  Purchase
Agreement.

                                        1

                                  Exhibit 4.11

<PAGE>

         SECTION  2.   Guaranty.   Each   Guarantor,   jointly  and   severally,
unconditionally  and  irrevocably  guarantees to the Holders the due, prompt and
complete  performance and  indefeasible  payment by the Company of the principal
of, Make-Whole  Amount,  if any, and interest and supplemental  interest on, and
each other amount due under, the Notes or the Note Purchase Agreement (the Notes
and  the  Note  Purchase  Agreement  being  sometimes  hereinafter  collectively
referred to as the "Note  Documents")  when and as the same shall become due and
payable (whether at stated maturity or by required or optional  prepayment or by
declaration  or  otherwise)  in  accordance  with the terms  thereof,  including
interest,  supplemental  interest and other amounts owed under the terms thereof
for which the  Company  has  obtained  relief  under  bankruptcy  or other  laws
providing for relief from creditors  (such amounts  payable by the Company under
the terms of the Note  Documents,  and all  other  monetary  obligations  of the
Company thereunder,  being sometimes collectively hereinafter referred to as the
"Obligations").  This  Guaranty  is a  guaranty  of  payment  and  not  just  of
collectibility  and is in no way  conditioned or contingent  upon any attempt to
collect from the Company or upon any other event,  contingency  or  circumstance
whatsoever.  If for any reason  whatsoever  the Company  shall fail or be unable
duly, punctually and fully to pay such amounts as and when the same shall become
due and payable, each Guarantor, without demand, presentment,  protest or notice
of any kind,  will forthwith pay or cause to be paid such amounts to the Holders
under the terms of such Note Documents, in lawful money of the United States, at
the place  specified in the Note Purchase  Agreement,  or perform or comply with
the same or cause the same to be  performed  or  complied  with,  together  with
interest (to the extent  provided for under such Note  Documents)  on any amount
due and owing from the Company. Each Guarantor,  promptly after demand, will pay
to the Holders the reasonable  costs and expenses of collecting  such amounts or
otherwise enforcing this Guaranty, including, without limitation, the reasonable
fees and  expenses  of  counsel.  Notwithstanding  the  foregoing,  the right of
recovery  against each Guarantor under this Guaranty is limited to the extent it
is judicially  determined  with respect to any Guarantor that entering into this
Guaranty would violate  Section 548 of the United States  Bankruptcy Code or any
comparable  provisions of any state law, in which case such  Guarantor  shall be
liable under this Guaranty only for amounts aggregating up to the largest amount
that  would  not  render  such  Guarantor's  obligations  hereunder  subject  to
avoidance  under  Section  548 of  the  United  States  Bankruptcy  Code  or any
comparable provisions of any state law.

         SECTION 3. Guarantor's  Obligations  Unconditional.  The obligations of
each Guarantor under this Guaranty shall be primary,  absolute and unconditional
obligations  of  such  Guarantor,  shall  not be  subject  to any  counterclaim,
set-off, deduction, diminution,  abatement, recoupment,  suspension,  deferment,
reduction or defense based upon any claim such Guarantor or any other Person may
have against the Company or any other Person,  and to the full extent  permitted
by applicable  law shall remain in full force and effect  without regard to, and
shall not be released, discharged or in any way affected by, any circumstance or
condition  whatsoever  (whether or not such  Guarantor or the Company shall have
any knowledge or notice thereof), including:

                  (a) any termination,  amendment or modification of or deletion
         from or addition or  supplement  to or other  change in any of the Note
         Documents or any other instrument or agreement applicable to any of the
         parties to any of the Note Documents;

                                       2

                                  Exhibit 4.11

<PAGE>

                  (b) any  furnishing  or  acceptance  of any  security,  or any
         release of any  security,  for the  Obligations,  or the failure of any
         security or the  failure of any Person to perfect  any  interest in any
         collateral;

                  (c) any failure,  omission or delay on the part of the Company
         to conform or comply with any term of any of the Note  Documents or any
         other  instrument  or  agreement  referred to in  paragraph  (a) above,
         including, without limitation,  failure to give notice to any Guarantor
         of the  occurrence  of a "Default"  or an "Event of Default"  under any
         Note Document;

                  (d) any waiver of the payment,  performance  or  observance of
         any of the obligations,  conditions,  covenants or agreements contained
         in  any  Note  Document,  or  any  other  waiver,  consent,  extension,
         indulgence, compromise, settlement, release or other action or inaction
         under  or in  respect  of any  of  the  Note  Documents  or  any  other
         instrument  or  agreement  referred  to in  paragraph  (a) above or any
         obligation or liability of the Company, or any exercise or non-exercise
         of any right,  remedy,  power or  privilege  under or in respect of any
         such instrument or agreement or any such obligation or liability;

                  (e) any  failure,  omission or delay on the part of any of the
         Holders to  enforce,  assert or  exercise  any  right,  power or remedy
         conferred  on  such  Holder  in this  Guaranty,  or any  such  failure,
         omission  or delay on the part of such  Holder in  connection  with any
         Note Document, or any other action on the part of such Holder;

                  (f)  any  voluntary  or  involuntary  bankruptcy,  insolvency,
         reorganization,  arrangement,  readjustment, assignment for the benefit
         of    creditors,    composition,     receivership,     conservatorship,
         custodianship,  liquidation,  marshaling of assets and  liabilities  or
         similar  proceedings  with respect to the Company,  any Guarantor or to
         any other Person or any of their respective properties or creditors, or
         any action taken by any trustee or receiver or by any court in any such
         proceeding;

                  (g) any  discharge,  termination,  cancellation,  frustration,
         irregularity,  invalidity or unenforceability,  in whole or in part, of
         any of the Note Documents or any other agreement or instrument referred
         to in paragraph (a) above or any term hereof;

                  (h)  any  merger  or  consolidation  of  the  Company  or  any
         Guarantor  into or with any other  corporation,  or any sale,  lease or
         transfer  of any of the assets of the Company or any  Guarantor  to any
         other Person;

                  (i) any change in the ownership of any shares of capital stock
         of the Company or any change in the corporate  relationship between the
         Company,  the  Parent and any  Guarantor,  or any  termination  of such
         relationship;

                  (j) any  release or  discharge,  by  operation  of law, of any
         Guarantor  from  the  performance  or  observance  of  any  obligation,
         covenant or agreement contained in this Guaranty; or

                                       3

                                  Exhibit 4.11

<PAGE>

                  (k) any other  occurrence,  circumstance,  happening  or event
         whatsoever,  whether  similar or dissimilar to the  foregoing,  whether
         foreseen or unforeseen, and any other circumstance that might otherwise
         constitute a legal or equitable defense or discharge of the liabilities
         of a guarantor or surety or that might otherwise limit recourse against
         any Guarantor.

         SECTION 4. Full Recourse Obligations. The obligations of each Guarantor
set forth herein  constitute  the full recourse  obligations  of such  Guarantor
enforceable against it to the full extent of all its assets and properties.

         SECTION 5. Waiver. Each Guarantor unconditionally waives, to the extent
permitted by  applicable  law,  (a) notice of any of the matters  referred to in
Section  3,  (b)  notice  to  such  Guarantor  of the  incurrence  of any of the
Obligations, notice to such Guarantor or the Company of any breach or default by
the Company with respect to any of the  Obligations or any other notice that may
be required, by statute, rule of law or otherwise, to preserve any rights of the
Holders against such Guarantor, (c) presentment to or demand of payment from the
Company or such Guarantor with respect to any amount due under any Note Document
or  protest  for  nonpayment  or  dishonor,  (d) any  right to the  enforcement,
assertion  or exercise by any of the Holders of any right,  power,  privilege or
remedy  conferred in the Note  Purchase  Agreement or any other Note Document or
otherwise,  (e) any  requirement of diligence on the part of any of the Holders,
(f) any requirement to exhaust any remedies or to mitigate the damages resulting
from any default under any Note Document,  (g) any notice of any sale,  transfer
or other disposition by any of the Holders of any right, title to or interest in
the Note  Purchase  Agreement  or in any other Note  Document  and (h) any other
circumstance  whatsoever  that might  otherwise  constitute a legal or equitable
discharge,  release or defense of a guarantor or surety or that might  otherwise
limit recourse against such Guarantor.

         SECTION 6. Subrogation, Contribution, Reimbursement or Indemnity. Until
one year and one day after all Obligations have been  indefeasibly paid in full,
each  Guarantor  agrees not to take any action  pursuant  to any rights that may
have arisen in  connection  with this  Guaranty to be  subrogated  to any of the
rights  (whether  contractual,  under the  United  States  Bankruptcy  Code,  as
amended, including section 509 thereof, under common law or otherwise) of any of
the Holders  against the Company or against any collateral  security or guaranty
or right of offset held by the Holders for the payment of the Obligations. Until
one year and one day after all Obligations have been  indefeasibly paid in full,
each Guarantor agrees not to take any action pursuant to any contractual, common
law,  statutory or other rights of reimbursement,  contribution,  exoneration or
indemnity  (or any similar  right)  from or against  the  Company  that may have
arisen in connection with this Guaranty.  So long as the Obligations  remain, if
any amount  shall be paid by or on behalf of the  Company to such  Guarantor  on
account of any of the rights waived in this paragraph, such amount shall be held
by such Guarantor in trust,  segregated from other funds of such Guarantor,  and
shall,  forthwith upon receipt by such Guarantor,  be turned over to the Holders
(duly  endorsed by such  Guarantor to the Holders,  if required),  to be applied
against the  Obligations,  whether  matured or  unmatured,  in such order as the
Holders may determine.  The provisions of this paragraph  shall survive the term
of this Guaranty and the payment in full of the Obligations.

                                       4

                                  Exhibit 4.11

<PAGE>

         SECTION 7. Effect of Bankruptcy  Proceedings,  etc. This Guaranty shall
continue to be effective or be automatically  reinstated, as the case may be, if
at any time  payment,  in whole or in part, of any of the sums due to any of the
Holders  pursuant to the terms of the Note Purchase  Agreement or any other Note
Document is rescinded  or must  otherwise be restored or returned by such Holder
upon the insolvency, bankruptcy,  dissolution,  liquidation or reorganization of
the Company or any other Person,  or upon or as a result of the appointment of a
custodian,  receiver,  trustee or other officer with similar powers with respect
to the  Company or other  Person or any  substantial  part of its  property,  or
otherwise,  all as though such payment had not been made. If an event permitting
the  acceleration of the maturity of the principal  amount of the Notes shall at
any time have occurred and be continuing,  and such  acceleration  shall at such
time be  prevented  by reason of the  pendency  against the Company or any other
Person of a case or  proceeding  under a  bankruptcy  or  insolvency  law,  each
Guarantor  agrees  that,  for  purposes  of this  Guaranty  and its  obligations
hereunder,  the  maturity  of the  principal  amount  of the Notes and all other
Obligations  shall be deemed to have been accelerated with the same effect as if
any Holder had  accelerated  the same in  accordance  with the terms of the Note
Purchase  Agreement or other applicable Note Document,  and such Guarantor shall
forthwith pay such principal  amount,  Make-Whole  Amount,  if any, interest and
supplemental interest thereon and any other amounts guaranteed hereunder without
further notice or demand.

         SECTION  8.  Term of  Agreement.  This  Guaranty  and  all  guaranties,
covenants and  agreements of each Guarantor  contained  herein shall continue in
full force and effect and shall not be discharged  until such time as all of the
Obligations  shall be paid and  performed in full and all of the  agreements  of
each Guarantor hereunder shall be duly paid and performed in full.

         SECTION 9.  Representations and Warranties.  Each  Guarantor represents
and warrants to each Holder that:

                  (a) such Guarantor is a corporation  duly  organized,  validly
         existing and in good  standing  under the laws of its  jurisdiction  of
         organization  and has the  corporate  power  and  authority  to own and
         operate its  property,  to lease the property it operates as lessee and
         to conduct the business in which it is currently engaged;

                  (b) such  Guarantor has the corporate  power and authority and
         the legal right to execute and deliver,  and to perform its obligations
         under, this Guaranty,  and has taken all necessary  corporate action to
         authorize its execution, delivery and performance of this Guaranty;

                  (c) this  Guaranty  constitutes  a legal,  valid  and  binding
         obligation of such Guarantor  enforceable in accordance with its terms,
         except as  enforceability  may be  limited by  bankruptcy,  insolvency,
         reorganization, moratorium or similar laws affecting the enforcement of
         creditors'  rights  generally  and  by  general  equitable   principles
         (regardless  of  whether  such   enforceability   is  considered  in  a
         proceeding in equity or at law);

                                       5

                                  Exhibit 4.11

<PAGE>

                  (d) the execution,  delivery and  performance of this Guaranty
         will not violate any  provision of any  requirement  of law or material
         contractual  obligation  of such  Guarantor  and will not  result in or
         require  the  creation  or  imposition  of  any  Lien  on  any  of  the
         properties,  revenues  or  assets  of such  Guarantor  pursuant  to the
         provisions of any material contractual  obligation of such Guarantor or
         any requirement of law;

                  (e) no consent or authorization  of, filing with, or other act
         by or in respect  of,  any  arbitrator  or  Governmental  Authority  is
         required  in  connection  with the  execution,  delivery,  performance,
         validity or enforceability of this Guaranty;

                  (f) no  litigation,  investigation  or proceeding of or before
         any  arbitrator  or  Governmental  Authority  is  pending  or,  to  the
         knowledge of such Guarantor, threatened by or against such Guarantor or
         any of its  properties or revenues (i) with respect to this Guaranty or
         any  of  the  transactions  contemplated  hereby  or  (ii)  that  could
         reasonably  be  expected  to have a material  adverse  effect  upon the
         business,  operations or financial  condition of such Guarantor and its
         Subsidiaries taken as a whole;

                  (g) the execution,  delivery and  performance of this Guaranty
         will not violate any provision of any order,  judgment,  writ, award or
         decree of any court, arbitrator or Governmental Authority,  domestic or
         foreign,  or of the  charter  or by-laws  of such  Guarantor  or of any
         securities issued by such Guarantor; and

                  (h) such  Guarantor  (after  giving due  consideration  to any
         rights of contribution) has received fair  consideration and reasonably
         equivalent value for the incurrence of its obligations  hereunder or as
         contemplated  hereby  and  after  giving  effect  to  the  transactions
         contemplated herein, (i) the fair value of the assets of such Guarantor
         (both at fair valuation and at present fair saleable value) exceeds its
         liabilities,  (ii) such  Guarantor is able to and expects to be able to
         pay its debts as they  mature,  and (iii) such  Guarantor  has  capital
         sufficient  to carry on its business as conducted and as proposed to be
         conducted.

         SECTION 10. Notices.  All notices under the terms and provisions hereof
shall be in  writing,  and shall be  delivered  or sent by telex or  telecopy or
mailed by first-class mail, postage prepaid,  addressed (a) if to the Company or
any Holder at the address set forth in, the Note Purchase Agreement or (b) if to
any Guarantor,  in care of the Company at the Company's address set forth in the
Note Purchase  Agreement,  or in each case at such other address as the Company,
any Holder or a Guarantor  shall from time to time  designate  in writing to the
other parties. Any notice so addressed shall be deemed to be given when actually
received.

         SECTION 11.  Survival.  All warranties,  representations  and covenants
made  by  each  Guarantor  herein  or in any  certificate  or  other  instrument
delivered  by it or on its behalf  hereunder  shall be  considered  to have been
relied upon by the Holders and shall  survive the execution and delivery of this
Guaranty,  regardless  of any  investigation  made  by any of the  Holders.  All
statements  in  any  such  certificate  or  other  instrument  shall  constitute
warranties and representations by such Guarantor hereunder.

                                       6

                                  Exhibit 4.11

<PAGE>

         SECTION 12.  Submission to  Jurisdiction.  Each  Guarantor  irrevocably
submits  to the  jurisdiction  of the  courts of the State of Nevada  and of the
courts of the  United  States of  America  having  jurisdiction  in the State of
Nevada for the purpose of any legal action or  proceeding in any such court with
respect to, or arising out of, this Guaranty, the Note Purchase Agreement or the
Notes.  Each Guarantor  consents to process being served in any suit,  action or
proceeding by mailing a copy thereof by registered  or certified  mail,  postage
prepaid, return receipt requested, to the address of such Guarantor specified in
or designated  pursuant to the Note Purchase  Agreement.  Each Guarantor  agrees
that such service upon  receipt (i) shall be deemed in every  respect  effective
service  of  process  upon it in any such suit,  action or  proceeding  and (ii)
shall,  to the fullest  extent  permitted  by law, be taken and held to be valid
personal service upon and personal delivery to such Guarantor.

         SECTION 13.  Miscellaneous.  Any  provision  of this  Guaranty  that is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating  the  remaining  provisions  hereof,  and any such  prohibition  or
unenforceability   in  any   jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.  To the extent permitted
by  applicable  law,  each  Guarantor  hereby  waives any  provision of law that
renders any provisions  hereof  prohibited or unenforceable in any respect.  The
terms of this Guaranty  shall be binding upon, and inure to the benefit of, each
Guarantor and the Holders and their respective  successors and assigns.  No term
or provision of this Guaranty may be changed,  waived,  discharged or terminated
orally,  but only by an instrument in writing  signed by each  Guarantor and the
Holders.  The section and  paragraph  headings in this Guaranty and the table of
contents are for  convenience  of reference  only and shall not modify,  define,
expand or limit any of the terms or provisions hereof, and all references herein
to  numbered  sections,  unless  otherwise  indicated,  are to  sections in this
Guaranty.  This Guaranty  shall in all respects be governed by, and construed in
accordance  with,  the laws of the State of  Nevada,  including  all  matters of
construction, validity and performance.

                                       7

                                  Exhibit 4.11

<PAGE>

                  IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to
be duly executed as of the day and year first above written.

                                            COVENANT TRANSPORT, INC.
                                            (a Tennessee corporation)

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                            SOUTHERN REFRIGERATED
                                            TRANSPORT, INC.

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                            TONY SMITH TRUCKING, INC.

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                            HAROLD IVES TRUCKING CO.

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                            TERMINAL TRUCK BROKER, INC.

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                       8

                                  Exhibit 4.11

<PAGE>

                                            COVENANT.COM, INC.

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                            CIP, INC.

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                       9

                                  Exhibit 4.11

<PAGE>

                         JOINDER TO SUBSIDIARY GUARANTY

         The undersigned (the  "Guarantor"),  a member of the consolidated group
of companies,  including  Covenant Asset Management,  Inc., a Nevada corporation
(the "Company"),  which are subsidiaries of Covenant  Transport,  Inc., a Nevada
corporation (the "Parent"), joins in the Subsidiary Guaranty dated as of May 15,
2000 from the Guarantors  named therein in favor of the  Purchasers,  as defined
therein,  and agrees to be bound by all of the terms thereof and  represents and
warrants to the Purchasers that:

                  (a) the Guarantor is duly organized,  validly  existing and in
         good standing under the laws of its state of incorporation  and has the
         requisite power and authority to own and operate its property, to lease
         the property it operates as lessee and to conduct the business in which
         it is currently engaged;

                  (b) the Guarantor  has the  requisite  power and authority and
         the legal  right to execute  and  deliver  this  Joinder to  Subsidiary
         Guaranty ("Joinder") and to perform its obligations hereunder and under
         the Subsidiary Guaranty and has taken all necessary action to authorize
         its execution and delivery of this Joinder and its  performance  of the
         Subsidiary Guaranty;

                  (c) the  Subsidiary  Guaranty  constitutes a legal,  valid and
         binding obligation of the Guarantor  enforceable in accordance with its
         terms,   except  as  enforceability   may  be  limited  by  bankruptcy,
         insolvency,  reorganization,  moratorium or similar laws  affecting the
         enforcement  of creditors'  rights  generally and by general  equitable
         principles  (regardless of whether such enforceability is considered in
         a proceeding in equity or at law);

                  (d)  the  execution  and  delivery  of  this  Joinder  and the
         performance of the  Subsidiary  Guaranty will not violate any provision
         of any  requirement of law or  contractual  obligation of the Guarantor
         and will not result in or require  the  creation or  imposition  of any
         Lien on any of the  properties,  revenues  or assets  of the  Guarantor
         pursuant to the  provisions of any material  contractual  obligation of
         such Guarantor or any requirement of law;

                  (e) no consent or authorization  of, filing with, or other act
         by or in respect  of,  any  arbitrator  or  governmental  authority  is
         required  in  connection  with the  execution,  delivery,  performance,
         validity or enforceability of the Subsidiary Guaranty;

                  (f) no  litigation,  investigation  or proceeding of or before
         any  arbitrator  or  governmental  authority  is  pending  or,  to  the
         knowledge of the  Guarantor,  threatened by or against the Guarantor or
         any of its properties or revenues (i) with respect to this Joinder, the
         Subsidiary  Guaranty or any of the transactions  contemplated hereby or
         (ii) that could  reasonably  be  expected  to have a  material  adverse
         effect  on the  business,  operations  or  financial  condition  of the
         Guarantor and its subsidiaries taken as a whole;

                                       10

                                  Exhibit 4.11

<PAGE>

                  (g)  the  execution  and  delivery  of  this  Joinder  and the
         performance of the  Subsidiary  Guaranty will not violate any provision
         of any order, judgment,  writ, award or decree of any court, arbitrator
         or Governmental  Authority,  domestic or foreign,  or of the charter or
         by-laws of the Guarantor or of any securities  issued by the Guarantor;
         and

                  (h)  after  giving  effect  to the  transactions  contemplated
         herein,  (i) the fair  value of the assets of such  Guarantor  (both at
         fair  valuation  and  at  present  fair  saleable  value)  exceeds  its
         liabilities,  (ii) such  Guarantor is able to and expects to be able to
         pay its debts as they  mature,  and (iii) such  Guarantor  has  capital
         sufficient  to carry on its business as conducted and as proposed to be
         conducted.

Capitalized  Terms used but not defined herein have the meanings ascribed in the
Subsidiary Guaranty.

                  IN WITNESS WHEREOF, the undersigned has caused this Joinder to
Subsidiary Guaranty to be duly executed as of __________, ____.

                                            [Name of Guarantor]

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                       11

                                  Exhibit 4.11

<PAGE>

                                                                    EXHIBIT 4.12

                                 FORM OF SECOND
                     AMENDED AND RESTATED MASTER COLLATERAL
                           AND INTERCREDITOR AGREEMENT

                  SECOND AMENDED AND RESTATED MASTER COLLATERAL
                           AND INTERCREDITOR AGREEMENT

                  SECOND   AMENDED   AND   RESTATED   MASTER    COLLATERAL   AND
INTERCREDITOR AGREEMENT,  dated as of December __, 2000, among the Participating
Creditors  (as defined  below) and BANK OF  AMERICA,  N.A.,  a national  banking
association,  as collateral agent (the "Collateral Agent") for the Participating
Creditors.  Capitalized  terms used herein shall have the meanings given to them
in Section 1.1.

                                    RECITALS

                  WHEREAS, Connecticut General Life Insurance Company, on behalf
of one or more separate accounts, Connecticut General Life Insurance Company and
Life  Insurance  Company of North  America  (collectively,  together  with their
successors and assigns, the "Noteholders") have heretofore purchased $25,000,000
in aggregate  principal amount of 7.39% Guaranteed  Senior Notes, due October 1,
2005  (the  "Notes"),  issued  by  Covenant  Asset  Management,  Inc.,  a Nevada
corporation (the "Borrower"),  pursuant to that certain Note Purchase  Agreement
(as the same may  hereafter be amended,  modified,  supplemented,  refinanced or
replaced,  the  "Note  Agreement"),  dated  as of  May  15,  2000,  between  the
Noteholders,  the Borrower and Covenant  Transport,  Inc., a Nevada  corporation
(the  "Parent").  The Notes are  guaranteed  by the Parent  pursuant to the Note
Agreement  (the  "Parent  Guarantee")  and  by  the  Subsidiary  Guarantors  (as
hereinafter  defined) pursuant to a Subsidiary Guaranty dated as of May 15, 2000
(as it may hereafter be amended, modified, supplemented, refinanced or replaced,
the "Subsidiary Guaranty"); and

                  WHEREAS, the Note Agreement is intended to be the successor to
the  separate  Note  Purchase  Agreements  dated as of  October  15,  1995 among
Covenant Transport,  Inc., a Tennessee  corporation  ("CTI"), the Parent and the
purchasers  named  therein  (the "1995 Note  Agreement").  The 7.39%  Guaranteed
Senior Notes due October 1, 2005 issued pursuant to the 1995 Note Agreement were
prepaid in full with the proceeds of the Notes as part of the  reorganization of
the Parent and its Subsidiaries; and

                  WHEREAS,  the  Borrower  has  entered  into a  certain  Credit
Agreement  (hereinafter  defined)  dated as of the date  hereof  with the  banks
signatories  thereto  (collectively  with all financial  institutions  hereafter
party thereto, the "Banks"), the Banks serving as letter of credit issuing banks
thereunder,  and BANK OF AMERICA,  N.A., as Agent (the "Agent";  the Banks,  the
Letter  of  Credit  Banks  and the Agent  being  collectively  called  the "Bank
Creditors"),  pursuant  to which the Bank  Creditors  have  agreed to  provide a
revolving  credit  facility and letter of credit facility for the benefit of the
Borrower; and

                                       12

<PAGE>

                  WHEREAS,  the revolving  credit  facility and letter of credit
facility are being provided  pursuant to the Credit Agreement to refinance those
certain  facilities  provided  to the  Borrower  pursuant  to the  Prior  Credit
Agreement; and

                  WHEREAS,  the Noteholders  previously  entered into an Amended
and Restated Master Collateral and Intercreditor Agreement,  dated as of June 6,
2000, among the  Noteholders,  the Prior Bank Creditors and the Prior Collateral
Agent, and acknowledged and agreed to by the Obligors, (the "Prior Intercreditor
Agreement"),  in order  to  acknowledge  their  agreement  that  the  Borrower's
obligations  to each of the  Noteholders  under the Notes and Note Agreement and
the Prior Bank Creditors under the Prior Credit  Agreement would be secured on a
pari passu basis, and to set forth their respective rights in respect of any and
all security or collateral securing the obligations of the Obligors or any other
guarantor to the Noteholders  under the Notes and Note Agreement or to the Prior
Bank Creditors under the Prior Credit Agreement; and

                  WHEREAS,  the  Noteholders  and the Bank Creditors have agreed
that the Borrower's obligations to each of them under the Note Agreement and the
Credit  Agreement shall be secured on a pari passu basis,  and are entering into
this Agreement to amend and restate the Prior Intercreditor Agreement insofar as
the credit facilities  provided under the Credit Agreement refinance and replace
those credit facilities provided pursuant to the Prior Credit Agreement,  and to
set  forth  their  respective  rights  in  respect  of any and all  security  or
collateral now or hereafter securing the current  obligations of the Borrower to
the Noteholders or the Bank Creditors; and

                  WHEREAS,  pursuant  to the terms of  Section  5.4 of the Prior
Intercreditor  Agreement,  the Prior  Collateral Agent has resigned and has been
discharged from the responsibilities thereby created; and

                  WHEREAS,   subject  to  the  terms  and   conditions  of  this
Agreement,  the  Noteholders  and the Bank  Creditors have agreed to appoint the
Collateral  Agent to serve as  collateral  agent under this  Agreement,  and the
Collateral Agent has agreed to serve as collateral agent under this Agreement.

                  NOW,  THEREFORE,  in consideration of the foregoing  premises,
the  mutual   covenants   contained   herein,   and  other  good  and   valuable
consideration,  the receipt and  adequacy of which is hereby  acknowledged,  the
parties hereto hereby agree as follows:

                                    ARTICLE I

                                   Definitions

                  SECTION 1.1. Definitions of Certain Terms. As used herein, the
following terms shall have the meanings set forth below:

                  "ABN"  shall  mean ABN AMRO Bank  N.V.,  a Dutch  bank  acting
through its Atlanta Agency, and its successors and assigns.

                  "Act" shall have the meaning given such term in Section 2.1.

                  "Actionable Default" shall mean any Event of Default under and
as defined in the Credit  Agreement or any Event of Default under and as defined
in the Note Agreement.

                  "Affiliate"  shall mean any Person (other than the Parent) (i)
which directly or indirectly through one or more intermediaries  controls, or is
controlled  by,  or is  under  common

                                       13

<PAGE>

control with, the Parent,  (ii) which  beneficially  owns or holds 5% or more of
any class of the voting  stock of the  Parent,  (iii) of which the Parent or the
Borrower or  shareholders of the Parent  beneficially  own or hold 5% or more of
the voting stock (or in the case of a Person which is not a  corporation,  5% or
more of the equity interest),  or (iv) who is a member of the Board of Directors
of the Parent or a member of the immediate  family of any such Person.  The term
"immediate family" of any Person shall include the spouse, brothers, sisters and
descendants of such Person. The term "control" means the possession, directly or
indirectly,  of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting stock, by contract
or otherwise.  The term "voting stock" means the shares of stock or other equity
interest of a Person that,  in the normal  course of affairs,  have the power to
elect directors or the members of any policy making board of such Person.

                  "Agent"  shall mean Bank of America  acting in the capacity of
agent under the Credit Agreement, and any successor thereto.

                  "AmSouth"  shall mean the AmSouth  Bank,  N.A.,  successor  by
merger to First American National Bank, and its successors and assigns.

                  "Bank  Creditors"  shall mean the Banks,  the Letter of Credit
Banks and the Agent.

                  "Bank  Guaranty"  shall  mean,  collectively,  (i) the  Parent
Guaranty Agreement, dated as of the date hereof, executed by the Parent in favor
of the Bank Creditors,  (ii) the Subsidiary Guaranty Agreement,  dated as of the
date hereof,  executed by the direct and indirect  Subsidiaries of the Parent in
favor of the Bank Creditors,  and (iii) any other Facility  Guaranty (as defined
in the Credit Agreement), each as the same may be further amended, supplemented,
restated or replaced, from time to time.

                  "Banks"  shall  have the  meaning  set  forth in the  recitals
hereto,  and each other  institution party to the Credit Agreement as a "Lender"
from time to time,  and any  assignee  thereof  pursuant to Section  13.1 of the
Credit Agreement.

                  "Bank of America"  shall mean Bank of America,  N.A.,  and its
successors and assigns.

                  "Bank One" shall mean Bank One,  N.A.,  and its successors and
assigns.

                  "Borrower"  shall mean  Covenant  Asset  Management,  Inc.,  a
Nevada corporation.

                  "Business  Day" shall  mean any day other  than a Saturday  or
Sunday on which banks in New York, New York and Charlotte,  North Carolina,  are
not required or authorized to close.

                  "Co-Collateral  Agent" shall have the meaning  given such term
in Section 5.7 hereof.

                  "Collateral  Accounts"  shall  have the  meaning  set forth in
Section 4.1 hereof.

                  "Collateral  Agent" shall mean Bank of America,  acting in its
capacity as the  Collateral  Agent in the manner and to the extent  described in
this  Agreement  and the Security  Documents,  or any  successor  acting as such
Collateral  Agent  pursuant to Section 5.4 hereof.  In addition,  such term also
shall include any  Co-Collateral  Agent appointed  pursuant to and to the extent
provided in Section 5.7 hereof.

                                       14

<PAGE>

                  "Collateral"  shall  mean all the  properties  and  assets  of
whatever  nature,  tangible or  intangible,  now owned or existing or  hereafter
acquired or arising,  on or in which the Collateral  Agent or any  Participating
Creditor  has been  granted a Lien or security  interest  pursuant to any of the
Security Documents.

                  "Commitment"  shall have the  meaning  set forth in the Credit
Agreement.

                  "Credit Agreement  Collateral  Account" shall have the meaning
set forth in Section 4.1 hereof.

                  "Credit  Agreement"  shall mean that certain Credit  Agreement
dated as of the date hereof, among, the Borrower, the Parent, the Bank Creditors
and the Agent, (as the same may be amended, restated,  supplemented or otherwise
modified from time to time).

                  "Credit Transaction Documents" shall mean this Agreement,  the
Note  Agreement,  the Notes,  the Notes  Guarantee,  the Credit  Agreement,  the
Security  Documents  and any and all other  Loan  Documents  (as  defined in the
Credit Agreement).

                  "LC Disbursement" shall mean a payment or disbursement made by
a Letter of Credit Bank pursuant to a Letter of Credit issued by it.

                  "Letter of Credit  Bank"  shall  mean any Bank which  issues a
Letter of Credit.

                  "Letter of Credit  Collateral  Account" shall have the meaning
set forth in Section 4.1.

                  "Letter of Credit" shall mean any letter of credit issued by a
Letter of Credit Bank pursuant to the Credit Agreement.

                  "Lien" as applied to the  property or assets (or the income or
profits therefrom) of any Person,  shall mean (in each case, whether the same is
consensual  or  nonconsensual  or arises by contract,  operation  of law,  legal
process  or  otherwise):  any  mortgage,  lien,  pledge,  attachment,  financing
statement,  levy,  charge, or other security interest or encumbrance of any kind
in  respect  of any  property  or assets of such  Person,  or upon the income or
profits  therefrom.  For this  purpose,  the Parent,  the  Borrower or any other
Subsidiary  shall be  deemed  to own  subject  to a Lien any  asset  that it has
acquired  or holds  subject  to the  interest  of a vendor or  lessor  under any
conditional sale agreement, capitalized lease or other title retention agreement
relating to such asset.

                  "Loans"  shall  have  the  meaning  set  forth  in the  Credit
Agreement and shall  include all  Revolving  Loans and all Swing Line Loans made
thereunder.

                  "LOC Creditors"  shall mean the Letter of Credit Banks and the
Banks that hold participations in Letters of Credit.

                  "Non-Pro-Rata  Payment"  shall have the  meaning  set forth in
Section 7.2(b) hereof.

                  "Note Agreement Collateral Account" shall have the meaning set
forth in Section 4.1 hereof.

                  "Note Agreement" shall have the meaning set forth in the first
recital paragraph hereof.

                                       15

<PAGE>

                  "Noteholders"  shall have the  meaning  set forth in the first
recital paragraph hereof .

                  "Notes"  shall have the meaning set forth in the first recital
paragraph hereof.

                  "Notes  Guarantee"  shall  mean,   collectively,   the  Parent
Guarantee and the Subsidiary Guaranty.

                  "Notice of  Actionable  Default"  shall mean a written  notice
delivered by the Agent or the Required Holders to the Collateral Agent,  stating
that an Actionable Default has occurred. A Notice of Actionable Default shall be
deemed to have been given when the notice referred to in the preceding  sentence
has actually been received by the  Collateral  Agent and to have been  rescinded
when the Collateral  Agent has received  written notice  satisfactory to it that
such Actionable  Default has been cured or when such Actionable Default has been
effectively waived by the Required  Creditors for purposes of this Agreement.  A
Notice of  Actionable  Default  shall be deemed to be  outstanding  at all times
after such  Notice has been given  until such time,  if any,  as such Notice has
been rescinded.

                  "Obligations"  shall  mean all  indebtedness,  obligations  or
liabilities (including,  without limitation, all principal,  interest,  premium,
fees,  reimbursement  obligations,  indemnity obligations,  collection costs and
other  amounts)  now  or  hereafter   owing  by  any  or  all  of  the  Obligors
(specifically including all "Obligations" as defined in the Credit Agreement and
the  obligations  of the Parent  and the  Subsidiary  Guarantors  under the Bank
Guaranty) to any or all of the  Participating  Creditors  and/or the  Collateral
Agent under any or all of the Credit Transaction Documents.

                  "Obligors"  shall  mean  the  Borrower,  the  Parent  and  the
Subsidiary Guarantors.

                  "Outstanding Credit Agreement  Obligations" shall mean, at any
time, the sum (without  duplication)  of (a) the aggregate  principal  amount of
Loans  outstanding  at such time and the aggregate  amount of accrued and unpaid
interest  thereon at such time, (b) the aggregate amount of all LC Disbursements
not yet reimbursed to the LOC Creditors and accrued and unpaid interest  thereon
at such time, (c) the aggregate amount of accrued and unpaid commitment,  letter
of credit or similar fees payable to the Bank Creditors,  or any of them,  under
or in connection with the Credit  Agreement and (d) the aggregate  amount of all
other  monetary  obligations  of any Obligor  that are accrued and owing at such
time to the Bank Creditors or any of them under the Credit  Agreement,  the Bank
Guaranty and/or the Security  Documents,  including  indemnification and expense
reimbursement obligations (but excluding any Unfunded LOC Exposure).

                  "Outstanding  Note Agreement  Obligations"  shall mean, at any
time, the sum (without  duplication) of (a) the outstanding  principal amount of
the Notes at such time and the amount of accrued and unpaid interest  thereon at
such time and (b) the amount of all other  monetary  obligations of the Obligors
that are  accrued  and  owing at such  time to the  Noteholders  under  the Note
Agreement,  the  Notes  Guarantee  and/or  the  Security  Documents,   including
indemnification and expense reimbursement obligations and premium, if any.

                  "Outstanding  Obligations" shall mean, at any time, the sum of
(a)  the  Outstanding  Credit  Agreement  Obligations  at  such  time,  (b)  the
Outstanding  Note  Agreement  Obligations  at such time and (c) the Unfunded LOC
Exposure at such time.

                  "Parent"  shall  mean  Covenant  Transport,   Inc.,  a  Nevada
corporation.

                  "Participating  Creditors"  shall mean the Bank  Creditors and
the Noteholders.

                                       16

<PAGE>

                  "Payment  Default" shall mean any Actionable  Default  arising
from a failure to pay any of the  Outstanding  Credit  Agreement  Obligations or
outstanding  Note  Agreement  Obligations  when  and as  due,  but  only if such
Obligations that have not been paid include principal, interest, premium, fee or
unreimbursed LC Disbursements.

                  "Permitted Investments" shall mean any of the following:

                           (i)  debt  securities  if  (A)  such  securities  are
         long-term  securities  and rated "A" or  higher  by  Moody's  Investors
         Service ("Moody's"),  or "A" or higher by Standard & Poor's Corporation
         ("S&P's"),  or (B) such securities have been issued or fully guaranteed
         as to  principal  and  interest by the United  States of America or any
         agency or  instrumentality  thereof whose obligations are backed by the
         full faith and credit of the United  States of America;  provided  that
         any such  securities  shall have a remaining  term to  maturity  not to
         exceed 3 months;

                           (ii) commercial  paper  rated "Prime-1" or  higher by
         Moody's or "A-1" or higher by S&P's;

                           (iii)  certificates of deposits of, or demand or time
         deposits  in,  or  money  market   investment  funds  managed  by,  the
         Collateral Agent or any of the Banks;

                           (iv)  demand  deposits  in  domestic  banks  that are
         insured by the Federal  Deposit  Insurance  Corporation,  have combined
         capital  and  surplus  in  excess of  $300,000,000  and whose (or whose
         parent company's) publicly held long-term debt securities, if any, meet
         the standards set forth in item (i) above; and

                           (v) repurchase contracts covering securities that are
         described in clause (i) above,  and which contracts have a maturity not
         exceeding the date fourteen days from the date of  acquisition  thereof
         and  which   contracts  are  entered  into  with  a  bank  meeting  the
         requirements of clause (iv) above.

                  "Person" shall mean an individual,  corporation,  partnership,
or  unincorporated  organization,  a  government  or  any  agency  or  political
subdivision thereof.

                  "Prior  Bank  Creditors"  shall mean ABN,  as agent  under the
Prior  Credit  Agreement,  and  ABN,  AmSouth,  Bank of  America,  Bank  One and
SunTrust, as lenders under the Prior Credit Agreement.

                  "Prior Collateral Agent" shall mean First Union National Bank,
a national  banking  association,  in its capacity as Collateral Agent under the
Prior Intercreditor Agreement.

                  "Prior Credit  Agreement"  shall mean that certain Amended and
Restated Credit Agreement dated as of June 18, 1999 among CTI, the Borrower, and
the Prior Bank  Creditors,  as  further  amended in that  certain  Amendment  to
Amended and Restated  Credit  Agreement  dated as of June 6, 2000 among CTI, the
Borrower,  and the Prior Bank  Creditors (as the same may be amended,  restated,
supplemented or otherwise modified from time to time).

                  "Prior  Intercreditor  Agreement"  shall have the  meaning set
forth in the fifth recital paragraph hereof.

                                       17

<PAGE>

                  "Required  Banks"  shall have the meaning  given to  "Required
Lenders" in the Credit Agreement.

                  "Required  Holders"  shall have the meaning given such term in
the Note Agreement.

                  "Required  Creditors"  shall  mean at any  time  Participating
Creditors holding Voting  Obligations  representing not less than 66 2/3% of the
Voting Obligations.

                  "Security  Document"  shall  mean  each of the  documents  and
agreements  defined  as a  "Security  Document"  in the Note  Agreement  or as a
"Security  Instrument"  in the Credit  Agreement  and shall  include any and all
agreements, assignments, mortgages, deeds or other similar documents under which
the Collateral Agent or any Participating Creditor is now or hereafter granted a
Lien in any  Collateral  to secure  any of the  Obligations,  including  without
limitation the documents listed on Exhibit A attached hereto.

                  "Special  Collateral Account" shall have the meaning set forth
in Section 7.2(b).

                  "Subsidiary"  when used to  determine  the  relationship  of a
Person to another Person,  shall mean any Person of which (a) securities  having
ordinary  voting power to elect a majority of the board of  directors  (or other
persons having similar functions),  or (b) other ownership interests  ordinarily
constituting a majority voting interest, in each case, are at the time, directly
or indirectly, owned or controlled by such other Person, or by one or more other
Subsidiaries  of such other  Person,  or by such other Person and one or more of
its Subsidiaries.  Unless otherwise specified "Subsidiary" means a Subsidiary of
the Parent.

                  "Subsidiary   Guarantors"   shall  mean   Covenant.com,   Inc.
(formerly known as Covenant Acquisition Co. and C & F Acquisition Co.), a Nevada
corporation,  CIP, Inc. (formerly known as Intellectual  Property Co.), a Nevada
corporation,  Southern  Refrigerated  Transport,  Inc., an Arkansas corporation,
Tony Smith Trucking, Inc., an Arkansas corporation, Harold Ives Trucking Co., an
Arkansas  corporation,  Terminal  Truck Broker,  Inc., an Arkansas  corporation,
Covenant  Transport,  Inc., a Tennessee  corporation,  and any other subsidiary,
direct or  indirect,  of the  Parent  that may  hereafter  become a party to the
Subsidiary Guaranty or the Bank Guaranty.

                  "SunTrust"  shall mean SunTrust  Bank,  and its successors and
assigns.

                  "Unfunded LOC Exposure" shall mean, at any time, the aggregate
undrawn amount of all outstanding Letters of Credit at such time.

                  "Voting   Actions"   shall   mean  (a)  all   amendments   and
modifications  to, and waivers of any provisions of, and consents granted under,
any of the  Security  Documents  or this  Agreement  and (b) any  delivery  of a
notice,  determination or any other action  whatsoever  permitted to be taken or
withheld by the Collateral Agent.

                  "Voting Credit  Agreement  Obligations"  shall mean (i) at any
time during the continuance of an Actionable  Default under the Credit Agreement
or at any time  after  the  acceleration  of all  Outstanding  Credit  Agreement
Obligations, (a) the aggregate principal amount of the Loans outstanding at such
time,  (b) the aggregate  amount of the Unfunded LOC Exposure at such time,  and
(c) the aggregate amount of unreimbursed LC Disbursements at such time; provided
that any of the foregoing obligations owed to any Obligor or any Affiliate of an
Obligor at such time shall be deemed not to be outstanding  for purposes of this
definition,  and (ii) at all other times the Total Revolving  Credit  Commitment
(as defined in the Credit Agreement) as shall then be effective.

                                       18

<PAGE>

                  "Voting Note Agreement  Obligations"  shall mean, at any time,
the outstanding  principal  amount of the Notes at such time;  provided that any
portion of the Notes owned by any Obligor or any Affiliate of an Obligor at such
time shall be deemed not to be outstanding for the purposes of this definition.

                  "Voting  Obligations"  shall mean the Voting Credit  Agreement
Obligations and the Voting Note Agreement Obligations.

                  SECTION 1.2. Terms  Generally.  The definitions in Section 1.1
shall apply equally to both the singular and plural forms of the terms  defined.
Whenever the context may require,  any pronoun shall  include the  corresponding
masculine,  feminine  and neuter  forms.  The words  "include",  "includes"  and
"including"  shall be deemed to be followed by the phrase "without  limitation".
All  references  herein to Articles and Sections  shall be deemed  references to
Articles  and  Sections of this  Agreement  unless the context  shall  otherwise
require.  All references herein to any Person,  other than an Obligor,  shall be
deemed to  include  such  Person's  successors,  transferees  and  assigns.  All
references  herein to any  Obligor  shall be deemed to  include  such  Obligor's
successors. All references herein to any Credit Transaction Document shall be to
such document as the terms thereof may have been amended,  supplemented,  waived
or otherwise modified from time to time in accordance with the terms thereof and
hereof.

                                   ARTICLE II

                        Acts of Participating Creditors;
                             Amounts of Obligations

                  SECTION 2.1.  Acts of  Participating  Creditors.  Any request,
demand,  authorization,  direction,  notice,  consent,  waiver  or other  action
permitted or required by this  Agreement to be given or taken by the Agent,  the
Participating   Creditors  or  any  portion  thereof   (including  the  Required
Creditors) may be and, at the request of the Collateral Agent, shall be embodied
in  and  evidenced  by one or  more  instruments  satisfactory  in  form  to the
Collateral  Agent and  signed by or on behalf  of such  Persons  and,  except as
otherwise  expressly  provided in any such  instrument,  any such  action  shall
become  effective when such instrument or instruments  shall have been delivered
to the Collateral  Agent.  The  instrument or instruments  evidencing any action
(and the action embodied therein and evidenced  thereby) are sometimes  referred
to herein as an "Act" of the parties signing such instrument or instruments. The
Collateral  Agent  shall  be  entitled  to  rely  absolutely  upon an Act of any
Participating  Creditor if such Act purports to be taken by or on behalf of such
Participating  Creditor,  and nothing in this  Section 2.1 or  elsewhere in this
Agreement or in any Security Document shall be construed to require the Agent or
any  Participating  Creditor to demonstrate  that it has been authorized to take
any action that it purports to be taking, the Collateral Agent being entitled to
rely conclusively,  and being fully protected in so relying,  on any Act of such
Participating Creditor.

                  SECTION 2.2. Determination of Amounts of Obligations. Whenever
the Collateral  Agent is required to determine the existence or amount of any of
the Outstanding  Obligations or Voting Obligations or any portion thereof or the
existence of any Actionable Default for any purposes of this Agreement, it shall
be entitled to make such  determination on the basis of one or more certificates
of any  Participating  Creditor  (with respect to the  Obligations  owed to such
Participating  Creditor) or the Agent (with respect to the  Obligations  owed to
the Bank Creditors, or any of them); provided, however, that if, notwithstanding
the request of the Collateral  Agent,  any  Participating  Creditor or the Agent
shall fail or refuse  within five Business Days of such request to certify as to
the existence or amount of

                                       19

<PAGE>

any Outstanding Obligations or Voting Obligations or any portion thereof owed to
it or the existence of any Actionable  Default,  the  Collateral  Agent shall be
entitled to determine  such existence or amount by such method as the Collateral
Agent may, in its sole  discretion,  determine,  including  by  reliance  upon a
certificate of any Obligor;  provided further, however, that, promptly following
determination  of any such  amount,  the  Collateral  Agent  shall  notify  such
Participating  Creditor of such  determination  and thereafter shall correct any
error that such Participating Creditor brings to the attention of the Collateral
Agent.  In addition,  the  Collateral  Agent may rely on any  certificate of any
Obligor with respect to the amount of the Notes  considered not  outstanding for
purposes of the definition of the terms "Voting Note Agreement  Obligations" and
"Voting  Obligations" as a result of any portion of the Notes being owned by any
Obligor  or  any  Affiliate  of  an  Obligor.  The  Collateral  Agent  may  rely
conclusively,  and shall be fully protected in so relying,  on any determination
made by it in accordance  with the  provisions of the preceding  sentence (or as
otherwise  directed  by a court of  competent  jurisdiction)  and shall  have no
liability to any Obligor,  any  Participating  Creditor or any other person as a
result of any action taken by the Collateral Agent based upon such determination
prior to receipt of written notice of any error in such determination.  Upon any
request of the Collateral Agent,  each Obligor will, and by countersigning  this
Agreement  each  Obligor  agrees  to,  as  promptly  as  practicable  furnish  a
certificate  to the  Collateral  Agent  as to the  existence  or  amount  of any
Outstanding  Obligation  or  Voting  Obligation  or as to the  existence  of any
Actionable  Default.  For all  purposes  of this  Agreement  to the  extent  any
Outstanding  Obligation  has been taken into account for purposes of determining
the amount to which any  Participating  Creditor is entitled in any distribution
hereunder,  any  guarantee  of such  Outstanding  Obligation  that is  itself an
Outstanding Obligation shall not be taken into account for such purpose.

                  SECTION  2.3.  Restrictions  on  Actions.  Each  Participating
Creditor  agrees  that,  from  the  date  of  this  Agreement,  as  long  as any
Outstanding  Obligations  exist,  the provisions of this Agreement shall provide
the exclusive method by which any Participating Creditor may exercise rights and
remedies under the Security Documents.  Therefore,  each Participating  Creditor
shall,  for  the  mutual  benefit  of all  Participating  Creditors,  except  as
permitted under this Agreement:

                           (a)  refrain   from  taking  or  filing  any  action,
                  judicial  or  otherwise,  to enforce  any rights or pursue any
                  remedies under the Security  Documents,  except for delivering
                  notices  hereunder  or  exercising  any rights to request  and
                  receive  information  or  documents  or to  inspect or examine
                  Collateral; and

                           (b)  refrain from  exercising  any rights or remedies
                  under  the  Security Documents that  may  be exercisable  as a
                  result of an Actionable Default;

provided,  however,  that the foregoing shall not prevent (i) any  Participating
Creditor from  accelerating  its  Obligations or from imposing a default rate of
interest in  accordance  with the Credit  Agreement  or the Note  Agreement,  as
applicable, (ii) a Participating Creditor from raising any defenses or asserting
any  compulsory  counterclaim  in any  action  in which it has been made a party
defendant or has been joined as a third party,  except that the Collateral Agent
may direct  and  control  any  defense or  counterclaim  to the extent  directly
relating to the Collateral or any one or more of the Security Documents, subject
to and in  accordance  with  the  provisions  of  this  Agreement,  or  (iii)  a
Participating  Creditor  from  exercising  its rights and  remedies as a general
creditor in accordance  with the Credit  Transaction  Documents  (other than the
Security  Documents) and applicable  law,  including the right to commence legal
proceedings  to  collect  any  Outstanding  Obligation  due and  payable to such
Participating Creditor and remaining unpaid, to obtain a judgment and to enforce
such judgment, in each case to the same extent as if such Participating Creditor
were  an  unsecured   creditor   that  was  not  a  party  to  this   Agreement.
Notwithstanding  anything herein to the contrary,  each  Participating  Creditor
also shall be entitled to appear in and prosecute its claims against any Obligor
in any bankruptcy,

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<PAGE>

receivership, insolvency, reorganization, moratorium or other similar proceeding
which may be filed by or  against  such  Obligor  (a  "Bankruptcy  Proceeding"),
except  that each  Participating  Creditor  shall not take or file any action or
exercise any rights or remedies  under any Security  Documents in any Bankruptcy
Proceeding  except in  accordance  with the other terms and  conditions  of this
Agreement.

                                   ARTICLE III

                           Duties of Collateral Agent

                  SECTION  3.1.   Notices  to   Participating   Creditors.   The
Collateral Agent shall promptly notify each Participating  Creditor in the event
it shall receive any Notice of Actionable Default or any certificate  rescinding
a Notice of Actionable  Default or any written request by any party hereto or by
any Obligor for any  consent,  waiver or amendment  with  respect  hereto or any
other Credit Transaction Document.

                  SECTION  3.2.  Actions  Under  Security  Documents.   (a)  The
Collateral  Agent shall not be obligated to take any action under this Agreement
or any of the Security  Documents  except for the  performance of such duties as
are  specifically  set forth  herein or therein.  Subject to the  provisions  of
Article V and Section 7.5, the  Collateral  Agent shall take any action under or
with  respect  to the  Security  Documents  that is  requested  by the  Required
Creditors and which in the Collateral Agent's  determination is not inconsistent
with or contrary to the provisions of this Agreement or the Security  Documents.
In the  absence of  necessary  instructions  from the  Required  Creditors,  the
Collateral  Agent may take,  but shall have no obligation  to take,  any and all
such  actions  under the  Security  Documents  or any of them or otherwise as it
shall deem to be in the best interests of the  Participating  Creditors in order
to maintain  the  Collateral  and protect and preserve  the  Collateral  and the
rights  of the  Participating  Creditors;  provided,  however,  that,  except as
provided in paragraph (b) below or the last sentence of Section  5.3(d),  in the
absence of written  instructions  (which may relate to the  exercise of specific
remedies or to the exercise of remedies in general) from the Required Creditors,
the Collateral  Agent shall not foreclose any Lien on the Collateral or exercise
any other remedies  available to it under any Security Documents with respect to
the Collateral or any part thereof.

                  (b)  If  the  Collateral  Agent  shall  receive  a  Notice  of
Actionable  Default which shall remain  outstanding,  the applicable  Actionable
Default  shall  not have  been  cured or  waived  by the  Required  Banks or the
Required  Holders,  as  applicable,  and the  Collateral  Agent  shall  not have
received  instructions with respect to such Actionable Default from the Required
Creditors  within 45 days  thereafter,  the  Collateral  Agent  shall,  upon the
written  request  of the (i) the  Required  Banks  if  such  Actionable  Default
occurred  with respect to the Credit  Agreement or (ii) the Required  Holders if
such Actionable  Default  occurred with respect to the Note Agreement,  exercise
such rights and remedies as may be then available to the Collateral  Agent under
the Security Documents to collect,  sell or otherwise dispose of or realize upon
the Collateral or to otherwise  collect the Obligations,  all in accordance with
such  instructions  and the other terms and  conditions of this  Agreement,  the
Security Documents and applicable law; provided,  however, that, if instructions
are  thereafter  received from the Required  Creditors,  then the actions of the
Collateral  Agent  shall be subject  to  paragraph  (a)  above.  Notwithstanding
anything herein to the contrary, in the event that a Payment Default occurs with
respect to the Outstanding Credit Agreement  Obligations or the Outstanding Note
Agreement   Obligations  and  the  Collateral  Agent  shall  not  have  received
instructions  with respect to such Payment  Default from the Required  Creditors
within 30 days  thereafter,  and such Payment Default  continues  unremedied and
unwaived for 30 consecutive  days, the  Collateral  Agent shall,  if at any time
thereafter during the continuation of such Payment Default it is requested to do
so in writing by (i) the Required Banks if such Payment  Default  relates to the
Outstanding  Credit  Agreement  Obligations or (ii) the Required Holders if such
Payment Default relates to the Outstanding Note Agreement Obligations

                                       21

<PAGE>

exercise  such rights and remedies as may be then  available  to the  Collateral
Agent under the Security  Documents to collect,  sell or otherwise dispose of or
realize upon the  Collateral  or to otherwise  collect the  Obligations,  all in
accordance with the other terms and conditions of this  Agreement,  the Security
Documents and applicable law.

                  SECTION 3.3.  Meetings;  Voting. (a) When the Collateral Agent
receives a Notice of Actionable Default,  the Collateral Agent shall give prompt
notice thereof to the  Participating  Creditors and, upon the written request of
any Participating Creditor, shall schedule within 20 days of the receipt of such
notice a meeting of all Participating Creditors to be held at the offices of the
Collateral  Agent,  or another  mutually  convenient  place,  provided  that any
Participating  Creditor  may  participate  via  telephone.  At such  meeting the
Participating  Creditors  agree to consult  with one another in good faith in an
attempt to  determine  a mutually  acceptable  course of conduct  regarding  the
Obligors,  the  collection of the  Outstanding  Obligations  and the exercise of
rights and remedies under the Security Documents.

                  (b) Whenever it is necessary  to take any Voting  Action,  the
Collateral  Agent  shall  notify  each   Participating   Creditor   entitled  to
participate  therein of the proposed Voting Action,  shall collect  instructions
from the Participating  Creditors  regarding such Voting Action and shall notify
all Participating Creditors entitled to participate in such Voting Action of the
results thereof.

                  SECTION 3.4.  Records.  The  Collateral  Agent shall  maintain
records  regarding  Voting  Actions,   determinations  of  the  amounts  of  the
Outstanding  Obligations and Voting Obligations for any purpose,  the allocation
of deposits to the  Collateral  Accounts and any  distributions  therefrom.  The
information   contained  in  such  records  shall  be  made   available  to  any
Participating Creditor upon request.

                  SECTION 3.5. Nature of Collateral Agent Duties.  The duties of
the Collateral Agent hereunder and under the Security  Documents shall be solely
administrative in nature,  and the Collateral Agent shall not have, by reason of
this  Agreement  or  any  Security   Document,   any  fiduciary  duties  to  any
Participating  Creditor, and nothing in this Agreement or any Security Document,
whether express or implied, is intended or shall be construed to impose upon the
Collateral  Agent any  obligations  in respect of this  Agreement,  any Security
Document or the Collateral except those expressly set forth in this Agreement or
any Security Document.

                                   ARTICLE IV

                   Proceeds Received Under Security Documents

                  SECTION 4.1.  Collateral  Accounts.  (a) The Collateral  Agent
shall  establish  and maintain  three  accounts  into which it shall  (except as
otherwise  explicitly  provided in any  Security  Document)  deposit all amounts
received  by it in its  capacity  as  Collateral  Agent  (and  not in any  other
capacity) in respect of the Collateral upon an Actionable Default, including all
monies received on account of any sale of or other  realization  upon any of the
Collateral  pursuant to any Security Document and all amounts allocated from the
Special  Collateral  Account pursuant to Section 7.2;  provided,  however,  that
notwithstanding  any other provision of this Agreement,  if the Collateral Agent
(i) shall be a Bank Creditor, amounts that the Collateral Agent shall receive on
account of the  Outstanding  Credit  Agreement  Obligations in its capacity as a
Bank  Creditor,  and not  through  the  sale of or  other  realization  upon any
Collateral  as  provided  herein  and  in  the  Security  Documents,   shall  be
distributed by it in accordance with the provisions of the Credit  Agreement and
shall  not  be  deposited  in  the  Collateral  Accounts  and  (ii)  shall  be a
Noteholder,  amounts that the  Collateral  Agent shall

                                       22

<PAGE>

receive on account of the Outstanding Note Agreement Obligations in its capacity
as  Noteholder,  and not  through  the  sale of or  other  realization  upon any
Collateral  as  provided  herein  and  in  the  Security  Documents,   shall  be
distributed  by it in accordance  with the terms of the Note Agreement and shall
not be deposited in the Collateral Accounts.  One of the three accounts referred
to in the preceding sentence shall be established and maintained for the benefit
of the Bank Creditors in respect of the Outstanding Credit Agreement Obligations
(the  "Credit  Agreement  Collateral  Account"),  the  second  account  shall be
established  and  maintained  for the  benefit  of the  Noteholders  (the  "Note
Agreement  Collateral  Account") and the third such account shall be established
and  maintained  for the  benefit of the LOC  Creditors  (the  "Letter of Credit
Collateral  Account" and, together with the Credit Agreement  Collateral Account
and the Note Agreement  Collateral  Account,  the  "Collateral  Accounts").  All
amounts  deposited in the  respective  Collateral  Accounts shall be held by the
Collateral Agent subject to the terms hereof and of the Security  Documents,  it
being  understood  that any such  amounts  may be released to any Obligor to the
extent required by any of the Security  Documents (any amounts so released to be
released from the respective Collateral Accounts pro rata in accordance with the
aggregate  amounts deposited in such accounts during the term of this Agreement;
provided,  however, that the aggregate amounts deposited in the Letter of Credit
Collateral  Account shall be deemed to have been reduced by any amounts released
from such account  pursuant to paragraph (d) below).  The Obligors shall have no
rights with respect to, and the Collateral  Agent shall have exclusive  dominion
and control over,  the  Collateral  Accounts.  Prior to the  liquidation  of any
Collateral by the  Collateral  Agent and the  allocation of the proceeds of such
Collateral to the  Collateral  Accounts,  such  Collateral  shall be held by the
Collateral Agent for the ratable benefit of the Participating Creditors.

                  (b) Except as set forth in  paragraph  (d) below,  all amounts
that the  Collateral  Agent is required at any time to deposit in the respective
Collateral  Accounts pursuant to paragraph (a) above shall be allocated between,
and deposited in, the Credit Agreement  Collateral  Account,  the Note Agreement
Collateral  Account  and the  Letter of Credit  Collateral  Account  pro rata in
accordance   with  the  aggregate   amount  of  Outstanding   Credit   Agreement
Obligations,  Outstanding Note Agreement  Obligations and Unfunded LOC Exposure,
respectively, at such time.

                  (c) The Collateral  Agent shall establish  sub-accounts in the
Letter of Credit Collateral  Account with respect to each outstanding  Letter of
Credit.  All amounts deposited in the Letter of Credit Collateral  Account shall
be allocated between,  and deposited in, the respective  sub-account therein pro
rata in  accordance  with the Unfunded LOC Exposure  with respect to the related
Letters of Credit.  If, on or after the date on which any funds are deposited in
the Letter of Credit  Collateral  Account  pursuant to paragraph (b) above,  any
Letter of Credit is drawn upon by the beneficiary  thereof, the Collateral Agent
shall, upon the written request of the Agent, apply any funds in the sub-account
with  respect  to  such  Letter  of  Credit  to the  reimbursement  of  such  LC
Disbursement in accordance  with the written  direction of the Agent, as if such
reimbursement  were being made by the Borrower  pursuant to the Credit Agreement
(but not in an amount in excess of the amount of such drawing).

                  (d) At the  time  of any  expiration  or  cancellation  of any
outstanding  Letter of Credit,  or any other reduction in the amount of Unfunded
LOC  Exposure  thereunder  (other than as a result of an LC  Disbursement),  the
amount of funds in the sub-account with respect to such Letter of Credit (or, in
the case of any  partial  reduction  in the  amount  of  Unfunded  LOC  Exposure
thereunder,  a pro rata portion of such funds) shall,  upon written  notice from
Agent,  be released from such  sub-account,  and the funds so released  shall be
allocated between,  and deposited in, the Credit Agreement  Collateral  Account,
the Note Agreement Collateral Account and the other subaccounts in the Letter of
Credit  Collateral  Account pro rata in accordance with the aggregate  amount of
the  Outstanding  Credit  Agreement  Obligations,   Outstanding  Note  Agreement
Obligations and Unfunded LOC Exposure, respectively, at such time.

                                       23

<PAGE>

                  (e) The Collateral  Agent shall have the right at any time and
from time to time to apply any amounts in the Collateral Accounts to the payment
of the  administrative  fees and  out-of-pocket  costs and  expenses  (including
reasonable  attorney  fees  and  disbursements)   charged  or  incurred  by  the
Collateral  Agent in administering  and carrying out its obligations  under this
Agreement or any of the Security  Documents,  in  exercising  or  attempting  to
exercise any right or remedy hereunder or thereunder or in taking possession of,
promoting,  preserving or disposing of any item of  Collateral,  and all amounts
against or for which the  Collateral  Agent is to be  indemnified  or reimbursed
hereunder (excluding any such costs,  expenses or amounts which have theretofore
been reimbursed) until all of such costs, expenses and amounts have been paid in
full; provided, however, that any such application shall be allocated as between
the Credit Agreement Collateral Account, the Letter of Credit Collateral Account
(provided  that  the  aggregate  amounts  deposited  in  the  Letter  of  Credit
Collateral  Account shall be deemed to have been reduced by any amounts released
from such  Account  pursuant  to  paragraph  (d) above)  and the Note  Agreement
Collateral Account ratably in accordance with the aggregate amounts deposited in
such Accounts  during the term of this  Agreement.  The  Collateral  Agent shall
reimburse any Noteholder or Bank Creditor, as the case may be, prior to applying
any amounts in the Collateral  Accounts pursuant to Section 4.2, for any and all
losses  with  respect to any  amounts  expended  with  respect to any  indemnity
provided in accordance  with Section 5.3(e) or Section 5.6 by such Noteholder or
Bank Creditor by  application  of funds in the  Collateral  Accounts in the same
manner as provided in the proviso to the preceding sentence.

                  (f) For purposes of  determining  allocations  and deposits of
funds (but not  distributions of funds) pursuant to this Section 4.1 and Section
4.2, any Outstanding Obligations shall be deemed to be reduced by the amount, if
any, then held by the Collateral Agent in the Collateral  Account (or subaccount
therein) from which  distributions are to be paid in respect of such Outstanding
Obligations.

                  SECTION 4.2. Application of Proceeds. (a) Amounts deposited in
the Credit Agreement  Collateral Account shall be applied in the following order
of priority:

                           First,  to  the  payment  of all  Outstanding  Credit
                  Agreement  Obligations  that  consist  of costs  and  expenses
                  incurred in connection  with the  enforcement or protection of
                  the rights of the Bank Creditors (whether incurred by the Bank
                  Creditors or the Collateral Agent);

                           Second,  to the  Bank  Creditors  in  respect  of the
                  Outstanding   Credit   Agreement   Obligations   pro  rata  in
                  accordance  with  the  aggregate  amounts  of the  Outstanding
                  Credit   Agreement   Obligations  at  such  time,   until  the
                  Outstanding Credit Agreement  Obligations shall have been paid
                  in full:

                           Third,  if there are any  Outstanding  Note Agreement
                  Obligations  or if there is any Unfunded LOC Exposure,  to the
                  Note  Agreement  Collateral  Account  and the Letter of Credit
                  Collateral  Account pro rata in accordance with the respective
                  amounts of such Outstanding Obligations; and

                           Fourth, the balance,  if any, to the Obligors or such
                  other person or persons as shall be entitled thereto.

                  (b) Amounts deposited in the Note Agreement Collateral Account
shall be applied in the following order of priority:

                                       24

<PAGE>

                           First,  to  the  payment  of  all  Outstanding   Note
                  Agreement  Obligations  that  consist  of costs  and  expenses
                  incurred in connection  with the  enforcement or protection of
                  the  rights  of  the  Noteholders  (whether  incurred  by  the
                  Noteholders or the Collateral Agent);

                           Second,  to the  Noteholders,  pro  rata,  until  the
                  Outstanding Note Agreement Obligations shall have been paid in
                  full;

                           Third, if there are any Outstanding  Credit Agreement
                  Obligations   (or  if  the  Banks  shall  have  any  remaining
                  Commitments to lend under the Credit Agreement) or if there is
                  any  Unfunded  LOC  Exposure  (or if the Banks  shall have any
                  remaining  Commitments  to  participate  in  the  issuance  of
                  Letters of Credit), to the Credit Agreement Collateral Account
                  and the  Letter  of  Credit  Collateral  Account  pro  rata in
                  accordance  with the  respective  amounts of such  Outstanding
                  Obligations; and

                           Fourth, the balance,  if any, to the Obligors or such
                  other person or persons as shall be entitled thereto.

                  (c) All amounts  deposited in any sub-account in the Letter of
Credit  Collateral  Account shall be applied as provided in Sections 4.1 (c) and
(d).

                  (d) Each Participating Creditor (and, by countersigning,  each
Obligor)  agrees that,  notwithstanding  any provision of this  Agreement or the
other  Credit  Transaction  Documents,  any sums and  amounts  received  by such
Participating  Creditor  pursuant  to this  Section  4.2 shall be applied to the
payment  of  its  Outstanding   Obligations  as  follows  (i)  with  respect  to
Outstanding Note Agreement Obligations: first, to the payment of all Outstanding
Note  Agreement  Obligations  owed to such  Participating  Creditor,  other than
principal,  interest and premium; second, to the payment of all Outstanding Note
Agreement Obligations owed to such Participating  Creditor consisting of accrued
interest;  third, to the payment of all Outstanding  Note Agreement  Obligations
owed to such Participating Creditor consisting of principal;  and fourth, to the
payment of any prepayment charges and make-whole premium;  and (ii) with respect
to Outstanding Credit Agreement Obligations, as set forth in Section 11.5 of the
Credit Agreement as in effect on the date of this Agreement.

                  SECTION 4.3.  Time of Payments.  Unless the  Collateral  Agent
shall have received written  instructions from the Required  Creditors as to the
times at which any amounts are to be  distributed  pursuant to Section  4.2, all
distributions  under  Section 4.2 shall be made at such times as the  Collateral
Agent  shall  in  its  sole  discretion  determine,  but in all  cases  no  less
frequently  than once a week,  subject to Section 4.4 hereof;  provided that any
distributions  from  the  Credit  Agreement  Collateral  Account  and  the  Note
Agreement Collateral Account shall be made substantially simultaneously.

                  SECTION 4.4. Application of Amounts Not Distributable.  If the
Agent or any Noteholder  shall inform the Collateral Agent in writing that there
is no provision under the Credit  Agreement or its Note  Agreement,  as the case
may be, for the application of amounts that are to be distributed to the parties
to such agreements  pursuant to Section 4.2 (whether by virtue of the applicable
Outstanding  Obligations thereunder not being then due and payable or otherwise)
or for the  holding  of such  amounts  by or on behalf of such  parties  pending
application  thereof,  then the Collateral Agent shall invest the amounts in the
applicable  Collateral Account in investments permitted by Section 4.5 and shall
hold such  amounts  and all  proceeds  of such  investments  in such  Collateral
Account  for the benefit of the  applicable  Participating  Creditor  until such
Participating  Creditor  shall

                                       25

<PAGE>

request the delivery  thereof by the Collateral  Agent for  application  against
such  Outstanding  Obligations  or shall notify the  Collateral  Agent that such
Outstanding Obligations have been paid.

                  SECTION 4.5.  Investment  of Amounts in  Collateral  Accounts.
Pending the disbursement  thereof  pursuant to the terms of this Agreement,  all
amounts in the Collateral  Accounts and the Special Collateral Account shall (to
the extent the Collateral  Agent deems  practical) be invested by the Collateral
Agent in Permitted  Investments.  The Collateral Agent shall, to the extent that
the timing of distributions  to be made from any Collateral  Account is known or
can be reasonably anticipated,  select Permitted Investments for such Collateral
Account that mature prior to the anticipated date of any distribution to be made
from such  Collateral  Account.  The  Collateral  Agent  shall not  discriminate
between Collateral Accounts in the selection of Permitted Investments;  provided
that  the  foregoing  shall  not  be  construed  to  prevent  the  selection  of
longer-term   investments  for  the  Letter  of  Credit  Collateral  Account  if
distributions  from such  Account  are  expected to be made at a later date than
distributions  from  the  other  Collateral  Accounts.  Investments  made by the
Collateral Agent hereunder may be effected through the Collateral  Agent's Trust
Department.  The Collateral Agent shall not be liable for any investment  losses
suffered in connection with the making or breaking of any Permitted Investment.

                                    ARTICLE V

                         Concerning the Collateral Agent

                  SECTION 5.1.  Appointment of Collateral Agent. Bank of America
is hereby  appointed by the  Participating  Creditors to act as Collateral Agent
pursuant to the terms of the Security Documents and this Agreement and is hereby
authorized by the respective  Participating Creditors to execute and perfect the
Security  Documents as directed in  accordance  with Section 2.1, in the name of
and for the  benefit of the  Collateral  Agent,  as agent for the  Participating
Creditors,  and Bank of  America  agrees  to act as  Collateral  Agent  for such
Participating  Creditors,  pursuant to the terms of the Security  Documents  and
this Agreement.

                  SECTION  5.2.  Limitations  on  Responsibility  of  Collateral
Agent.  The Collateral Agent shall not be responsible in any manner whatever for
the  correctness  of any  recitals,  statements,  representations  or warranties
contained herein or in any other Credit Transaction  Document,  except for those
expressly made by it herein.  The Collateral Agent makes no representation as to
the value,  perfection,  priority,  or condition of the  Collateral  or any part
thereof  or any Lien of the  Collateral  Agent  thereon,  as to the title of any
Obligor to the Collateral,  as to the security afforded by this Agreement or any
Security  Document or,  except as  expressly  set forth in Article VI, as to the
validity,   execution,   enforceability,   perfection,   priority,  legality  or
sufficiency of this Agreement or any other Credit Transaction Document,  and the
Collateral  Agent shall incur no liability or  responsibility  in respect of any
such matters.  The Collateral  Agent shall not be  responsible  for insuring the
Collateral,  for the payment of taxes,  charges,  assessments  or Liens upon the
Collateral  or  otherwise as to the  maintenance  of the  Collateral,  except as
provided in the  immediately  following  sentence when the Collateral  Agent has
possession of the  Collateral.  The  Collateral  Agent shall have no duty to any
Obligor or to the Participating Creditors as to any Collateral in its possession
or  control  or in the  possession  or  control  of any agent or  nominee of the
Collateral  Agent or any  income  thereon  or as to the  presentation  of rights
against prior parties or any other rights pertaining thereto, except the duty to
accord such of the Collateral as may be in its possession substantially the same
care as it accords its own assets and the duty to account for monies received by
it. The Collateral Agent shall not be required to ascertain or inquire as to the
performance  by any  Obligor of any of the  covenants  or  agreements  contained
herein or in the other  Credit  Transaction  Documents.  Neither the  Collateral
Agent nor any  officer,  agent or

                                       26

<PAGE>

representative  thereof  shall be  personally  liable  for any  action  taken or
omitted to be taken by any such person in connection  with this Agreement or any
other  Credit  Transaction  Document  except for its or such  Person's own gross
negligence or willful misconduct.  Neither the Collateral Agent nor any officer,
agent or representative  thereof shall be personally liable for any action taken
by it or any such person in  accordance  with any notice given by the  requisite
number of Participating  Creditors  hereunder entitled to give such notice, even
if, at the time such action is taken by it or any such person, the Participating
Creditors  that gave the notice to take such action are no longer  Participating
Creditors and if the  Collateral  Agent has not received  written notice of such
fact.  The  Collateral  Agent may execute any of the powers  granted  under this
Agreement or any of the  Security  Documents  and perform any duty  hereunder or
thereunder  either  directly or by or through agents or  attorneys-in-fact,  and
shall not be  responsible  for the  negligence  or  misconduct  of any agents or
attorneys-in-fact selected by it with reasonable care and without negligence.

                  SECTION 5.3. Reliance by Collateral  Agent;  Indemnity Against
Liabilities; etc.

                  (a)  Whenever  in the  performance  of its  duties  under this
Agreement  the  Collateral  Agent shall deem it necessary  or  desirable  that a
matter be proved or established  with respect to any Obligor or any other Person
in connection with the taking,  suffering or omitting of any action hereunder by
the Collateral  Agent,  such matter may be  conclusively  deemed to be proved or
established  by a  certificate  purporting  to be executed by an officer of such
Person,  and the  Collateral  Agent shall have no liability  with respect to any
action taken, suffered or omitted in reliance thereon.

                  (b) The  Collateral  Agent may consult  with legal  counsel of
recognized  standing and shall be fully protected in taking any action hereunder
in accordance with any advice of such counsel.  The Collateral  Agent shall have
the right but not the obligation at any time to seek instructions concerning the
administration of this Agreement, the duties created hereunder or the Collateral
from any court of competent jurisdiction.

                  (c) The Collateral  Agent shall be fully  protected in relying
upon  any  resolution,  statement,  certificate,  instrument,  opinion,  report,
notice,  request,  consent, order or other paper or document that it believes to
be genuine and to have been signed or  presented by the proper party or parties.
In the absence of its gross negligence or willful misconduct or actual notice to
the contrary, the Collateral Agent may conclusively rely, as to the truth of the
statements  and the  correctness  of the opinions  expressed  therein,  upon any
certificate  or opinions  furnished to the Collateral  Agent in connection  with
this Agreement.

                  (d) The  Collateral  Agent shall not be deemed to have actual,
constructive,  direct or indirect  notice or knowledge of the  occurrence of any
Actionable  Default unless and until the Collateral  Agent shall have received a
Notice of  Actionable  Default.  The  Collateral  Agent shall have no obligation
whatsoever  either prior to or after  receiving such a notice to inquire whether
an  Actionable  Default  has,  in fact,  occurred  and shall be entitled to rely
conclusively,  and shall be fully  protected  in so  relying,  on any  notice so
furnished to it. The  Collateral  Agent may (but shall not be obligated to) take
action hereunder on the basis of an Actionable  Default of the type specified in
Section  11(g) or Section  11(h) of the Note  Agreement  or  Section  11.1(g) or
Section  11.1(h) of the Credit  Agreement  regardless of whether the  Collateral
Agent has received any Notice of Actionable Default stating that such Actionable
Default has  occurred,  provided  that any such action  taken by the  Collateral
Agent without direction from the Required  Creditors shall be limited to actions
that the Collateral Agent determines to be necessary to protect and preserve the
Collateral and the rights of the Participating Creditors.

                  (e) If the Collateral  Agent has been requested or required to
take any  specific  action  pursuant to any  provision  of this  Agreement,  the
Collateral Agent shall not be under any

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<PAGE>

obligation  to  exercise  any of the  rights  or  powers  vested  in it by  this
Agreement  in the  manner  so  requested  unless  it shall  have  been  provided
indemnity reasonably  satisfactory to it against the costs (including reasonable
attorney's fees and expenses),  expenses and liabilities that may be incurred by
it in compliance with such request or direction.

                  SECTION  5.4.   Resignation  of  the  Collateral   Agent.  The
Collateral Agent may at any time, by giving 30 days' prior written notice to the
Borrower and each  Participating  Creditor,  resign and be  discharged  from the
responsibilities  hereby created,  such resignation to become effective upon the
earlier of (a) the acceptance of the appointment of a successor  pursuant to the
next  sentence of this  Section or (b) the  appointment  of a  successor  by the
Required Creditors (or, if a Co-Collateral  Agent has been appointed pursuant to
Section  5.7,  then,  as to a successor  Co-Collateral  Agent,  by the  Required
Creditors)  and the  acceptance of such  appointment  by such  successor.  If no
successor shall be appointed and approved pursuant to clause (b) above within 30
days after the date of any such  resignation,  the Collateral Agent may apply to
any  court of  competent  jurisdiction  to  appoint a  successor  to act until a
successor shall have been appointed by the Required  Creditors as above provided
or may, on behalf of the Participating Creditors, appoint a successor Collateral
Agent.  Any  successor  Collateral  Agent  shall be a bank with an office in New
York,  New York or  Charlotte,  North  Carolina  having a combined  capital  and
surplus of at least $500,000,000 which is authorized to perform the functions of
the  Collateral  Agent  hereunder.   After  any  retiring   Collateral   Agent's
resignation  or removal  hereunder as Collateral  Agent,  the provisions of this
Agreement  (including,  without  limitation,  Sections 5.5 and 5.6 hereof) shall
continue in effect for the benefit of such retiring  Collateral Agent in respect
of any  actions  taken or  omitted  to be taken by it while it was acting as the
Collateral Agent.

                  SECTION 5.5. Expenses and Indemnification by the Obligors.  By
countersigning this Agreement,  each Obligor jointly and severally agrees (a) to
pay to the  Collateral  Agent,  on demand,  its  administrative  fees charged in
connection  with its acting as  Collateral  Agent under this  Agreement  and the
Security  Documents,  and to reimburse the Collateral Agent, on demand,  for any
expenses incurred by the Collateral Agent, including reasonable counsel fees and
expenses,  other charges and disbursements  and compensation of agents,  arising
out of, in any way connected  with, or as a result of, the execution or delivery
of this  Agreement  or any  Security  Document or any  agreement  or  instrument
contemplated  hereby or  thereby or the  performance  by the  parties  hereto or
thereto of their respective obligations hereunder or thereunder or in connection
with the enforcement or protection of the rights of the Collateral Agent and the
Participating  Creditors under this Agreement and the Security Documents and (b)
to indemnify and hold harmless the Collateral Agent and its directors, officers,
employees  and agents,  on demand,  from and  against  any and all  liabilities,
obligations,  losses,  damages,  penalties,  actions,  judgments,  suits, costs,
expenses or disbursements of any kind or nature  whatsoever which may be imposed
on, incurred by or asserted  against the Collateral Agent in its capacity as the
Collateral  Agent or any of them in any way  relating  to or arising out of this
Agreement or any Security  Document or any action taken or omitted by them under
this Agreement or any Security Document, provided that the Obligors shall not be
liable to the Collateral Agent for any portion of such liabilities, obligations,
losses,  damages,  penalties,  actions,  judgments,  suits,  costs,  expenses or
disbursements  resulting from the gross negligence or willful  misconduct of the
Collateral Agent or any of its directors, officers, employees or agents.

                  SECTION  5.6.  Expenses  and   Indemnification  by  Banks  and
Noteholder.  Each  Noteholder  and Bank agrees (a) to reimburse  the  Collateral
Agent,  on demand,  in the amount of its pro rata share  (based on the amount of
its Voting  Obligations),  for any fees or  expenses  referred to in Section 5.5
that shall not have been  reimbursed by the Obligors within 30 days after demand
by the  Collateral  Agent  therefor or paid from the proceeds of  Collateral  as
provided herein and (b) to indemnify and hold harmless the Collateral  Agent and
its directors,  officers, employees and agents, on demand, in the amount of such
pro rata share, from and against any and all liabilities,  obligations,

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<PAGE>

losses,  damages,  penalties,  actions,  judgments,  suits,  costs,  expenses or
disbursements  referred to in Section 5.5, to the extent the same shall not have
been  reimbursed by the Obligors  within 30 days after demand by the  Collateral
Agent  therefor or paid from the  proceeds  of  Collateral  as provided  herein;
provided that no Noteholder or Bank shall be liable to the Collateral  Agent for
any  portion  of such  liabilities,  obligations,  losses,  damages,  penalties,
actions,  judgments,  suits, costs, expenses or disbursements resulting from the
gross  negligence or willful  misconduct of the  Collateral  Agent or any of its
directors, officers, employees or agents.

                  SECTION 5.7.  Co-Collateral  Agent. (a) If deemed necessary or
desirable  by the  Collateral  Agent or by the  Required  Creditors  in order to
enforce,  preserve or protect any  interest in any of the  Collateral,  then the
Required   Creditors  may,  by  notice  to  the  Collateral  Agent,   appoint  a
co-collateral  agent (a  "Co-Collateral  Agent"),  which shall be an institution
that would  otherwise  qualify as a successor  Collateral  Agent.  Except as set
forth below,  any  Co-Collateral  Agent so appointed  shall have all the rights,
powers,  duties and  obligations  of the  Collateral  Agent for the  purposes of
enforcing  the  Security  Documents  with  respect  to which it shall  have been
appointed to act by the  Collateral  Agent or the Required  Creditors.  Upon the
appointment  of a  Co-Collateral  Agent  with  respect  to any  item or items of
Collateral,  except as expressly provided below, all rights,  powers, duties and
obligations of the Collateral Agent hereunder with respect to such item or items
of Collateral  shall be exercised and performed  jointly by the Collateral Agent
and the  Co-Collateral  Agent (or by the Collateral  Agent or the  Co-Collateral
Agent individually as directed by the Collateral Agent).

                  (b) Any Co-Collateral  Agent shall, to the extent permitted by
law, be  appointed  and act as such,  subject to the  following  provisions  and
conditions:

                                    (i)   all   rights,   powers,   duties   and
                  obligations  conferred upon the Collateral Agent in respect of
                  the  custody,  control  and  management  of moneys,  papers or
                  securities   (including   without  limitation  the  Collateral
                  Accounts) shall be exercised  solely by the Collateral  Agent;
                  and

                                    (ii) all other  rights,  powers,  duties and
                  obligations  conferred upon the  Co-Collateral  Agent shall be
                  exercised   jointly  by  the   Co-Collateral   Agent  and  the
                  Collateral  Agent  (or by the  Co-Collateral  Agent  with  the
                  consent of the Collateral Agent).

                  (c) Neither the Collateral Agent nor the  Co-Collateral  Agent
shall be liable by reason of any act or omission of the other.

                  (d) If a Co-Collateral  Agent is appointed,  each reference to
the  "Collateral  Agent" in any Credit  Transaction  Document shall be deemed to
refer to the Collateral Agent and the  Co-Collateral  Agent jointly,  unless the
context clearly indicates otherwise.

                  SECTION 5.8. Collateral Agent in its Individual  Capacity.  If
and for so long as the institution acting as Collateral Agent is a Participating
Creditor,  such Collateral Agent shall have the same rights and powers hereunder
and under the  Security  Documents  with  respect to its  individual  rights and
obligations as a Participating  Creditor as any other Participating Creditor and
may exercise the same as though it were not  performing the duties of Collateral
Agent specified herein, and the term "Participating  Creditor" as used herein or
in any Security Document shall,  unless the context otherwise clearly indicates,
include such  Collateral  Agent in its  individual  capacity as a  Participating
Creditor.  The Collateral  Agent may accept  deposits  from,  lend money to, and
generally  engage in any kind of  banking,  trust,  financial  advisory or other
business with any Obligor or any of Obligor's  Subsidiaries  or Affiliates as if
the Collateral  Agent were not  performing  the duties of the  Collateral  Agent
specified

                                       29

<PAGE>

herein and may accept  fees and other  consideration  from any  Obligor  for its
services as the  Collateral  Agent  hereunder  without having to account for the
same to the other Participating  Creditors;  provided,  however,  the Collateral
Agent may not engage in such activities if doing so conflicts with its duties as
Collateral Agent hereunder or under any Security Document.

                                   ARTICLE VI

                         Representations and Warranties

                  The   Collateral   Agent  and  each   Participating   Creditor
represents  and  warrants to the other  parties  hereto that (a) the  execution,
delivery and  performance of this Agreement (i) have been duly authorized by all
requisite  corporate  action  on its  part  and (ii)  will  not  contravene  any
provision  of its  charter  or  by-laws  or any  order  of any  court  or  other
Governmental  Authority having applicability to it or any applicable law and (b)
this  Agreement has been duly executed and delivered by it and  constitutes  its
legal, valid and binding obligation.

                                   ARTICLE VII

                           Intercreditor Arrangements

                  SECTION 7.1. Security Interests. The Collateral Agent and each
of the  Participating  Creditors  hereby  agrees  that the  liens  and  security
interests granted to the Collateral Agent under the Security  Documents shall be
treated,  as among the  Participating  Creditors,  as having equal  priority and
shall at all times be shared by the  Participating  Creditors as provided herein
regardless of any claim or defense (including,  without  limitation,  any claims
under the fraudulent  transfer,  preference or similar  avoidance  provisions of
applicable  bankruptcy,  insolvency  or  other  laws  affecting  the  rights  of
creditors generally) to which the Collateral Agent or any Participating Creditor
may be entitled or subject.  Any and all amounts required to be provided as cash
collateral for Unfunded LOC Exposure  pursuant to the Credit  Agreement shall be
deemed to be Collateral  for purposes of this Agreement and shall be turned over
to the Collateral Agent pursuant to Section 7.2.

                  SECTION 7.2. Turnover of Collateral and Certain Payments.  (a)
If any Participating  Creditor  acquires  custody,  control or possession of any
Collateral  or  proceeds  therefrom  other  than  pursuant  to the terms of this
Agreement, then such Participating Creditor shall promptly cause such Collateral
or proceeds to be delivered to or put in the custody,  possession  or control of
the Collateral  Agent for  disposition or  distribution  in accordance  with the
provisions  of Sections 4.1 and 4.2.  Until such time as the  provisions  of the
immediately  preceding  sentence have been  complied  with,  such  Participating
Creditor  shall be deemed to hold such  Collateral  or proceeds in trust for the
parties entitled thereto hereunder.  Notwithstanding  the foregoing,  subject to
paragraph (b) below, no  Participating  Creditor shall be required to deliver to
or put in the custody,  possession or control of the Collateral Agent or to hold
in trust as specified in the  preceding  sentence any amount of any  Outstanding
Obligation  paid or prepaid by any Obligor to it (and not obtained by it through
any sale of or other  realization  upon any Collateral as provided herein and in
the Security  Documents) in accordance with the terms of the Credit Agreement or
the Note Agreement, as applicable.

                  (b) In the event that any Payment Default occurs and continues
unremedied  for three  Business  Days,  the  Collateral  Agent  shall,  promptly
following receipt of written notice thereof,  notify all Participating Creditors
of (i) such Payment Default, (ii) the amount and nature thereof,  (iii) the date
on which the  payment was due that is the  subject of such  Payment  Default and
(iv) their  obligations  under this paragraph (b). Each  Participating  Creditor
agrees that,  in the event that it

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<PAGE>

receives any payment  (other than pursuant to this  Agreement) in respect of its
Outstanding  Obligations  at any time  that any other  Participating  Creditor's
Outstanding  Obligations,  or any part thereof, are due and payable but have not
been paid (any such  payment so received  being  referred to as a  "Non-Pro-Rata
Payment"),  then,  promptly  following  receipt  of any notice  pursuant  to the
preceding  sentence  (and  thereafter   promptly  following  any  receipt  of  a
Non-Pro-Rata Payment),  such Participating Creditor will deliver such payment to
the Collateral Agent for deposit in a special  collateral  account (the "Special
Collateral  Account"),  and  such  amounts  shall  be  retained  in the  Special
Collateral  Account until  distributed as described below. In the event that all
Payment  Defaults  are cured or waived,  the  Collateral  Agent shall return all
amounts on  deposit  in the  Special  Collateral  Account  to the  Participating
Creditors  from which such amounts were  received,  together with their pro rata
share of any earnings thereon from the investment of such amounts.  In the event
that,  prior to the  return of amounts  on  deposit  in the  Special  Collateral
Account to the applicable  Participating  Creditors as provided herein,  all the
Outstanding  Credit Agreement  Obligations or all the Outstanding Note Agreement
Obligations are declared due and payable as provided in Section 7.6, all amounts
on deposit in the Special  Collateral  Account shall be allocated to each of the
Collateral  Accounts  and  applied as the  proceeds  of  Collateral  pursuant to
Article IV. In the event that any Payment Default occurs and remains  continuing
for  more  than  30  days  and  neither  all the  Outstanding  Credit  Agreement
Obligations  nor  all the  Outstanding  Note  Agreement  Obligations  have  been
declared due and payable as provided in Section 7.6, then the  Collateral  Agent
shall apply the amounts then on deposit in the Special Collateral Account to pay
(and shall continue to apply Non-Pro-Rata  Payments thereafter received by it to
pay)  Outstanding  Obligations  that  are  then  due  and  payable  pro  rata in
accordance  with the amounts so due and  payable,  provided  that the  foregoing
shall not relieve any  Participating  Creditor from its obligation to deliver to
the Collateral Agent any  Non-Pro-Rata  Payment received by it while any Payment
Default remains  continuing.  By  countersigning  this  Agreement,  each Obligor
agrees  that any  amounts  paid to a  Participating  Creditor  in respect of any
Outstanding  Obligation shall not relieve the Obligors from liability in respect
of such  Outstanding  Obligation to the extent that such amounts are distributed
to other Participating Creditors pursuant to this paragraph and shall constitute
payment to the Participating  Creditor of any Outstanding Obligation only on the
date  such   Participating   Creditor  is   entitled  to  retain  such   amount.
Notwithstanding  anything herein to the contrary, the provisions of this Section
7.2(b)  shall not apply to the  receipt by any Bank or Letter of Credit  Bank of
the  proceeds  of any Loans  made or deemed  made by the Banks  under the Credit
Agreement  in order to  refinance  any  Loan  previously  made by any Bank or to
refinance the  Borrower's  reimbursement  obligations  for any Letters of Credit
issued by such Letter of Credit Bank in its capacity as a Letter of Credit Bank.

                  SECTION 7.3. Setoffs. If any Participating  Creditor exercises
any right of setoff or similar right with respect to any assets  (regardless  of
whether such assets shall  constitute  Collateral) of any Obligor for payment of
any Outstanding  Obligations at any time that an Actionable Default has occurred
and is  continuing,  the  amounts  so set off shall  constitute  Collateral  for
purposes of this Agreement, and such Participating Creditor shall promptly cause
such amounts to be delivered to or put in the custody,  possession or control of
the Collateral  Agent for  disposition or  distribution  in accordance  with the
provisions  of Sections 4.1 and 4.2.  Until such time as the  provisions  of the
immediately  preceding  sentence have been  complied  with,  such  Participating
Creditor  shall be  deemed  to hold such  Collateral  in trust  for the  parties
entitled thereto hereunder.

                  SECTION  7.4.  Amendment of Certain  Provisions  of the Credit
Agreement and the Note  Agreement.  (a) The Bank Creditors agree that they shall
not, without the prior written consent of the  Noteholders,  amend or revise the
Credit  Agreement  in any  manner  that would  increase  the  maximum  aggregate
principal amount of the Loans or other extensions of credit provided  thereunder
to more than $160,000,000.

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<PAGE>

                           (b)  The  Noteholders  agree  that  they  shall  not,
without the prior  written  consent of the Required  Banks,  amend or revise the
Note  Agreement in any manner that would  increase the  principal  amount of the
Notes or decrease the maturity thereof.

                  SECTION 7.5. Release of Collateral. (a) In connection with any
sale,  transfer or disposition of any Collateral that is permitted by the Credit
Agreement,  the Note Agreement or any Security  Documents or that is approved by
the Required Creditors, the Participating Creditors agree that any Liens on such
Collateral  created pursuant to the Security Documents will be released upon the
delivery  of  evidence  satisfactory  to the  Collateral  Agent  that such sale,
transfer  or  disposition  is  in  compliance  with  the  requirements  of  such
agreements  (or the terms of any such  approval by the Required  Creditors)  and
that the proceeds of such transaction have been or will be applied to the extent
required by such agreements (or any applicable terms of any such approval).

                           (b) Collateral may be released in connection with the
exercise of any rights,  powers or remedies by the Collateral  Agent pursuant to
and in  accordance  with  Section  3.2 and such  release  shall not  require any
approval under this Section 7.5.

                           (c) The Participating  Creditors hereby authorize the
Collateral  Agent to execute  releases and other documents in form and substance
satisfactory  to the  Collateral  Agent in respect of any release of  Collateral
permitted under this Section 7.5 or Section 3.2.

                  SECTION  7.6.   Acceleration.   The  Bank  Creditors  and  the
Noteholders  hereby  covenant  and  agree  that,  notwithstanding  any  contrary
provisions of the Credit Transaction Documents,  as long as this Agreement is in
effect,  (a)  the  Loans  may not be  declared  to be due  and  payable  and the
Commitments may not be terminated  pursuant to the Credit  Agreement  unless (i)
the Agent or the Required Banks shall notify the Borrower,  the  Noteholders and
the Collateral  Agent of such declaration and termination in writing at any time
that an  Actionable  Default  under the Credit  Agreement  has  occurred  and is
continuing  and (ii) at least 10 days  shall have  passed  since the time of the
giving  of such  notice,  and (b) the Notes  may not be  declared  to be due and
payable  pursuant  to  Section  12.1  of  the  Note  Agreement  unless  (i)  the
Noteholders  shall notify the Borrower,  the  Collateral  Agent and the Agent of
such  declaration  in writing at any time that an  Actionable  Default under the
Note  Agreement has occurred and is  continuing  and (ii) at least 10 days shall
have passed since the giving of such  notice;  provided,  however,  that (i) the
foregoing shall not affect the consequences specified under the Credit Agreement
and the Note  Agreement in respect of an Actionable  Default with respect to any
Obligor  described  in Section  11(g) or 11(h) of the Note  Agreement or Section
11.1(g) or Section 11.1(h) of the Credit Agreement, (ii) the foregoing shall not
affect the rights of any Noteholder to declare its Note to be due and payable in
accordance  with its Note Agreement in the event of a Payment Default in respect
of such Note,  (iii) the  foregoing  shall not affect the rights of the Agent or
the Required Banks to declare the Loans or any of them to be due and payable and
to terminate  the  Commitments  in accordance  with the Credit  Agreement in the
event of a Payment Default in respect of any of the Outstanding Credit Agreement
Obligations,  (iv) if the Notes or the Loans, or any of them, are declared to be
due and payable in accordance  herewith as a result of any  Actionable  Default,
then the foregoing  shall not affect the rights of the  Noteholders or the Agent
to declare the balance of the Notes or the balance of the Loans, or any of them,
which  are  not so due and  payable  directly  as a  result  of such  Actionable
Default,  to be due and  payable,  including  without  limitation  by  means  of
cross-acceleration,  and to terminate the Commitments, (v) the Commitments shall
automatically terminate if and when the Loans are declared to be due and payable
in accordance  with this Section 7.6,  (vi) the foregoing  shall not require the
Banks to make any Revolving  Loans or Swing Line Loans (as defined in the Credit
Agreement)  or issue any  Letters  of Credit if the  conditions  to making  such
Revolving  Loans and Swing Line Loans and issuing such Letters of Credit are not
satisfied,  and (vii) the  provisions of this Section 7.6 may be waived with the
consent of each Bank, the Agent and each Noteholder.

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<PAGE>

                  SECTION 7.7.  Additional  Collateral.  Each of the Noteholders
and the Agent (on behalf of the Banks)  hereby  covenants and agrees that it (a)
will not accept any guarantee of any of the  Obligations  by any person  (except
the Bank Guaranty and the Notes Guarantee) unless such guarantee  guarantees the
payment of all the  Obligations  on a pari passu basis and (b) will not take any
security  interest  in or Lien on any assets of any  Obligor or other  Person to
secure any of the Obligations  unless such security interest or Lien secures the
payment of all the  Obligations  on a pari passu basis  pursuant to the Security
Documents.

                  SECTION 7.8. Solicitations.  By countersigning this Agreement,
each Obligor  agrees that it will not, and will not permit any person  acting on
its behalf to, solicit, request or negotiate for or with respect to any proposed
waiver or  amendment  of any of the  provisions  of this  Agreement or any other
Security Document unless each  Participating  Creditor shall be informed thereof
by such Obligor and shall be afforded the  opportunity of  considering  the same
and shall be supplied by such Obligor with  sufficient  information to enable it
to make an informed decision with respect thereto.  Executed or true and correct
copies of any amendment,  waiver or consent effected  pursuant to the provisions
of this  Agreement  shall be  delivered  by the  Obligors to each  Participating
Creditor forthwith following the date on which the same shall have been executed
and delivered by the required  percentage  of the  Participating  Creditors.  By
countersigning  this  Agreement,  each Obligor agrees that it will not, and will
not permit any Person acting on its behalf to,  directly or  indirectly,  pay or
cause to be paid any remuneration, whether by way of purchase of all or any part
of any Note or any Loan or payment of any  supplemental or additional  interest,
fee or otherwise,  to any  Participating  Creditor as consideration for or as an
inducement to the entering into by any  Participating  Creditor of any waiver or
amendment  of any of the terms and  provisions  of this  Agreement  or any other
Document  unless such  remuneration  is  concurrently  paid,  on the same terms,
ratably to each  Participating  Creditor  that shall  consent to such  waiver or
amendment.

                  SECTION  7.9.   Purchase  of  Collateral.   Any  Participating
Creditor may purchase  Collateral at any public sale of such Collateral pursuant
to any of the  Security  Documents  and may make  payment on account  thereof by
using any  Outstanding  Obligation  then due and  payable to such  Participating
Creditor from the Person that granted a security  interest in such Collateral as
a credit  against  the  purchase  price to the  extent,  but only to the extent,
approved by the Required Creditors.

                  SECTION 7.10. Further Assurances, etc. Each party hereto shall
execute and deliver such other documents and instruments,  in form and substance
reasonably  satisfactory to the other parties hereto,  and shall take such other
action, in each case as any other party hereto may reasonably have requested (at
the cost and expense of the Obligors, and by countersigning this Agreement, each
Obligor  jointly  and  severally  agrees  to pay such  costs and  expenses),  to
effectuate  and  carry  out the  provisions  of  this  Agreement,  including  by
recording or filing in such places as the requesting  party may deem  desirable,
this Agreement or such other documents or instruments.

                  SECTION 7.11.  Notices of Defaults.  Each of the Participating
Creditors shall use its best efforts to give the Collateral  Agent copies of any
notice of the  occurrence or existence of any  Actionable  Default given by such
Participating Creditor to any Obligor, but any Participating  Creditor's failure
to do so shall not affect  the  validity  of such  notice or create any cause of
action  against such  Participating  Creditor for failing to give such notice or
affect such  Participating  Creditor's  relative  rights and remedies under this
Agreement  or any of the  Security  Documents  or the other  Credit  Transaction
Documents  or create  any  claim or cause of  action  on the part of any  person
against  such  Participating  Creditor.  The  sending of any such  notice by any
Participating  Creditor to the  Collateral  Agent shall not  obligate  any other
Participating  Creditor  to cure the  Actionable  Default  which is the  subject
thereof.

                                       33

<PAGE>

                  SECTION 7.12. Independent Credit Analysis.  Each Participating
Creditor  agrees  that  it  has,  independently  and  without  reliance  on  the
Collateral  Agent  or any  other  Participating  Creditor,  and  based  on  such
documents  and  information  as it has deemed  appropriate,  made its own credit
analysis  of the  Obligors  and  its own  decision  to  enter  into  the  Credit
Transaction Documents pursuant to which any outstanding Obligations held by such
Participating  Creditor  were  or will be  issued  or  incurred  and  that  such
Participating   Creditor  will,   independent  and  without  reliance  upon  the
Collateral  Agent  or any  other  Participating  Creditor,  and  based  on  such
documents and information as it shall deem appropriate at the time,  continue to
make its own  analysis and  decisions in taking or not taking  action under this
Agreement,  any of the Security Documents or any of the other Credit Transaction
Documents.

                  SECTION 7.13. Additional  Intercreditor Matters. (a) Except as
may be  otherwise  expressly  provided  in this  Agreement  or any of the Credit
Transaction  Documents,  (i) each Participating Creditor may exercise all of its
rights and remedies  with respect to its Credit  Transaction  Documents  and the
Obligations  owed  to it  without  any  obligation  to the  other  Participating
Creditors  with  respect  thereto,  (ii) each  Participating  Creditor  shall be
entitled  to manage and  supervise  its  Credit  Transaction  Documents  and the
Obligations  owed to it in accordance  with applicable law and its own practices
as in effect from time to time and (iii) no  Participating  Creditor  shall have
liability  to any  other  Participating  Creditor  for any  actions  which  such
Participating  Creditor,  in good faith,  takes or omits to take with respect to
any of its Credit  Transaction  Documents and the Obligations owed to it, or the
occurrence of any Actionable  Default with respect to any such  Obligations,  or
the collection of any such Obligations from any Obligor.

                  (b) Each Participating  Creditor also agrees that it shall not
contest the validity, perfection,  priority or enforceability of any Lien in any
of  the  Collateral  granted  to the  Collateral  Agent  pursuant  to any of the
Security Documents or the Collateral Agent's  enforcement  thereof provided that
such Lien only secures the  Obligations  in accordance  with this  Agreement and
also provided that the Collateral Agent's enforcement thereof is consistent with
the other terms and  conditions of this  Agreement and the  applicable  Security
Documents.

                                  ARTICLE VIII

                            Approval by the Obligors

                  By  entering  into  the  Security  Documents,   each  Obligor,
although not a party hereto,  acknowledges and consents to and agrees to perform
and be bound by the provisions hereof.

                  Nothing  in this  Agreement  shall be  construed  to modify or
relieve,   in  any  manner,  any  obligation  of  any  Obligor  to  any  of  the
Participating  Creditors  under any of the  Credit  Transaction  Documents  and,
except as expressly provided in Section 9.3(b) hereof, nothing in this Agreement
is intended or shall be  construed  to confer any  rights,  defenses,  claims or
counterclaims  upon any Obligor,  and the Obligors are not  beneficiaries of the
terms and conditions of this Agreement (except to the extent expressly  provided
in  Section  9.3(b)  hereof).  Each  of the  Obligors  (by  countersigning  this
Agreement)  shall be  deemed  to have  agreed  that any  Participating  Creditor
holding any Collateral  does so as agent and bailee for the other  Participating
Creditors and the Collateral Agent.

                                       34

<PAGE>

                                   ARTICLE IX

                                  Miscellaneous

                  SECTION 9.1. No Individual  Action. No Participating  Creditor
may  require  the  Collateral  Agent to take or refrain  from  taking any action
hereunder or under any of the  Security  Documents or with respect to any of the
Collateral except as and to the extent expressly set forth in this Agreement.

                  SECTION 9.2.  Successors and Assigns.  This Agreement shall be
binding  on and  inure  to the  benefit  of the  Collateral  Agent,  each of the
Participating  Creditors and their respective  successors and permitted  assigns
(including any assignee of any Bank in accordance with the Credit  Agreement and
the holders from time to time of the Notes); provided,  however, that, except as
provided in the next  sentence,  no  Noteholder  or Bank Creditor may assign its
rights or obligations hereunder. The rights and obligations of any Bank Creditor
or Noteholder under this Agreement shall be assigned automatically,  without the
need for the  execution  of any document or any other  action,  to, and the term
"Bank Creditor" or  "Noteholder"  as used in this Agreement  shall include,  any
assignee,  transferee  or successor  of such  Participating  Creditor  under the
Credit  Agreement or any Note Agreement,  as the case may be, in accordance with
the terms of and upon the effectiveness of an assignment  pursuant to the Credit
Agreement or a transfer of a Note  pursuant to any Note  Agreement,  as the case
may be, and any such  assignee,  transferee  or  successor  shall  automatically
become a party to this Agreement. In addition to the foregoing, the lender(s) or
purchaser(s) in respect of any  indebtedness  refinancing the Notes or the Loans
shall be  considered  to be an assignee or successor of the  Noteholders  or the
Bank Creditors, as the case may be, provided that (i) such refinancing creditors
agree  with the  Bank  Creditors  or the  Noteholders,  as the  case may be,  to
continue the  effectiveness of this Agreement in connection with the issuance of
any such refinancing indebtedness and agree in writing to be bound by all of the
terms and conditions of this Agreement to the same extent as would have been the
case  had it been an  original  signatory  hereto,  (ii) the  repayment  of such
refinancing  indebtedness  is not  subordinated  to the  repayment  of any other
indebtedness of any Obligor, (iii) such refinancing  indebtedness is not owed to
any Obligor or any Subsidiary or Affiliate  thereof,  (iv) if such  indebtedness
refinances the Loans,  the principal  balance of such  refinancing  indebtedness
does not exceed  $160,000,000 in aggregate  outstanding  principal amount at any
particular  time,  and  (v) if  such  indebtedness  refinances  the  Notes,  the
principal  balance  of  such  refinancing   indebtedness  does  not  exceed  the
outstanding  principal amount of the Notes at the time of such  refinancing.  If
required  by any  party to this  Agreement  (including  in  connection  with the
issuance of any refinancing  indebtedness as contemplated above), such assignee,
transferee  or successor  shall execute and deliver to the other parties to this
Agreement a written  confirmation  of its  assumption of the  obligations of the
assignor or transferor  hereunder.  Each of the  Noteholders  and Bank Creditors
agrees that it shall deliver a complete copy of this  Agreement to any potential
assignee,  transferee or successor of such  Noteholder or Bank Creditor prior to
the  execution  of any such  assignment  or note.  Any Bank or  Noteholder  may,
without the consent of the other Bank Creditors or the Noteholders,  as the case
may be, sell one or more participations in the Loans or Letters of Credit or the
Notes,  as the case may be,  held by it or  issued  pursuant  to the  terms  and
conditions of the Credit  Agreement or the Note  Agreement,  as the case may be;
provided,  however, that (except as otherwise specified herein) each of the Bank
Creditors  and the  Noteholders  shall remain  liable to the others for the full
performance  of their  obligations  hereunder  with the same effect as though no
such participation had been sold and as though any and all amounts,  payments or
security  received by a participant with whom it dealt in respect of the loan or
note participation were received by such party and shall continue to deal solely
and  directly  with each  other  with  respect  to their  respective  rights and
obligations  under this Agreement.  This Agreement is not intended to confer any
benefit  on,  or  create  any  obligation  of,  the  Collateral   Agent  or  any
Participating Creditor to any Obligor or any third party.

                                       35

<PAGE>

                  SECTION  9.3.  Notices.   Notices  and  other   communications
provided for herein or in any Security Document shall be in writing and shall be
delivered by hand or overnight courier service, mailed or sent by telecopier, as
follows:

                                    (a) if to any Participating  Creditor or the
                  Collateral  Agent,  to it as set forth on the signature  pages
                  executed by such party; and

                                    (b) if to any Obligor, to it as specified in
                  the  Credit  Agreement,   the  Note  Agreement,  the  Security
                  Documents or the other Credit Transaction Documents.

All notices and other  communications  given to any party  hereto in  accordance
with the provisions of this Agreement  shall be deemed to have been given on the
date of receipt if  delivered by hand or  overnight  courier  service or sent by
telecopier,  or on the date five  Business  Days after  dispatch by certified or
registered  mail if mailed,  in each case  delivered,  sent or mailed  (properly
addressed) to such party as provided in this Section 9.3 or in  accordance  with
the latest  unrevoked  direction  from such party given in accordance  with this
Section 9.3 (each such unrevoked  direction from any Bank Creditor or Noteholder
or any assignee or successor  thereof shall be deemed to be an amendment of this
Section 9.3).

                  SECTION 9.4.  Termination.  (a) This Agreement shall terminate
automatically  upon  (x) the  indefeasible  payment  in full of the  Outstanding
Credit  Agreement  Obligations,  the  termination  of the  Commitments  and  the
expiration or  cancellation  of all Letters of Credit,  or (y) the  indefeasible
payment  in  full  of the  Outstanding  Note  Agreement  Obligations;  provided,
however,  that (i) Articles I, II, III,  IV, V, VIII and IX, and  Sections  7.1,
7.2, 7.3, 7.5, 7.7 and 7.8 shall survive, and remain operative and in full force
and effect, as long as there are any Outstanding Obligations that are secured by
any of the Security  Documents  and (ii) this Section 9.4 and Sections  5.5, 5.6
and 9.5 of this Agreement shall survive,  and remain operative and in full force
and effect, regardless of the termination of this Agreement.

                  (b)  Notwithstanding  the  provisions  of paragraph (a) above,
this  Agreement  shall not terminate if (i) any Obligor shall have in connection
with  the  indefeasible  payment  in full of the  Outstanding  Credit  Agreement
Obligations or the Outstanding Note Agreement  Obligations,  as the case may be,
issued or incurred indebtedness  refinancing such obligations in accordance with
Section 9.2 and (ii) the Obligors,  the  Noteholders or the Bank  Creditors,  as
applicable,  and such  refinancing  creditors shall have elected to continue the
effectiveness  of  this  Agreement.   For  purposes  of  this  Agreement,   such
refinancing  creditors as  contemplated in Section 9.2 shall be considered to be
assignees or successors to the exiting  creditors and all  references  herein to
the  exiting  creditors  and the  Obligations  owed  thereto  shall be deemed to
constitute  references to the related refinancing  creditors and the Obligations
owed thereto.

                  (c) Upon  satisfaction  of the  conditions  for release of all
Liens on  Collateral  as set  forth  herein  and any  other  Credit  Transaction
Document,  this Agreement shall terminate,  subject to the provisos set forth in
Section 9.4(a) above, whereupon each Participating Creditor agrees that it will,
upon the written  request of and at the expense of the Obligors,  take and cause
the Collateral  Agent to take such action from time to time as may be reasonably
requested  by the  Obligors  to  release  the Liens of the  Security  Documents,
without recourse or liability to any Participating Creditor.

                  SECTION 9.5.  APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE  WITH, THE LAWS OF THE STATE OF TENNESSEE.  EACH
OF THE  PARTICIPATING  CREDITORS AND THE COLLATERAL

                                       36

<PAGE>

AGENT  (AND BY  COUNTERSIGNING  THIS  AGREEMENT,  EACH OF THE  OBLIGORS)  HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ALL RIGHTS TO A TRIAL
BY JURY IN CONNECTION WITH ANY ACTION,  SUIT OR OTHER PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE SECURITY DOCUMENTS.

                  SECTION 9.6.  Modification  of Agreement.  No  modification or
amendment  of any  provision of this  Agreement  shall in any event be effective
unless  the same shall be in writing  and signed by the  Required  Banks and the
Required Holders; provided,  however, that (a) no such modification or amendment
shall adversely affect any of the Collateral Agent's rights, immunities or right
to indemnification hereunder or under any Security Document or expand its duties
hereunder or under any Security  Document,  without the prior written consent of
the Collateral  Agent,  (b) no such  modification  or amendment shall modify any
provision  hereof that is intended to provide for the equal and ratable security
of  all  Outstanding  Obligations  without  the  prior  written  consent  of all
Participating  Creditors, and (c) no such modification or amendment shall change
the definition of the term "Required  Creditors" or this Section or Section 3.2,
7.1, 7.2,  7.3,  7.4, 7.5 or 7.6 without the prior written  consent of each Bank
Creditor and  Noteholder.  No waiver of any  provision of this  Agreement and no
consent to any departure by any party hereto from the provisions hereof shall be
effective  unless  such  waiver  or  consent  shall be set  forth  in a  written
instrument executed by the party against which it is sought to be enforced,  and
then such waiver or consent shall be effective only in the specific instance and
for the purpose for which  given.  No notice to or demand on any party hereto in
any case shall  entitle  such party to any other or further  notice or demand in
the same, similar or other circumstances.

                  SECTION  9.7.  Waiver of Rights.  Neither  any failure nor any
delay  on the  part of any  party  hereto  in  exercising  any  right,  power or
privilege  hereunder shall operate as a waiver thereof,  and a single or partial
exercise  thereof  shall not  preclude  any  other or  further  exercise  or the
exercise of any other right, power or privilege.

                  SECTION  9.8.  Severability.  In  case  any one or more of the
provisions   contained  in  this  Agreement   should  be  invalid,   illegal  or
unenforceable in any respect,  the validity,  legality and enforceability of the
remaining  provisions  contained  herein  shall  not in any way be  affected  or
impaired  thereby.  The parties  shall  endeavor in good faith  negotiations  to
replace the invalid,  illegal or unenforceable  provisions with valid provisions
the economic  effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

                  SECTION 9.9.  Counterparts.  This Agreement may be executed in
two or more counterparts, each of which shall constitute an original, but all of
which, when taken together, shall constitute but one instrument.

                  SECTION  9.10.  Section  Headings.  The  Article  and  Section
headings used herein are for convenience of reference only and are not to affect
the  construction  of  or be  taken  into  consideration  in  interpreting  this
Agreement.

                  SECTION 9.11. Complete Agreement.  This Agreement  constitutes
the entire  agreement  between  the parties  hereto with  respect to the subject
matter hereof and supersedes all prior representations,  negotiations, writings,
memoranda  and  agreements.  To the  extent  any  provision  of  this  Agreement
conflicts  with any other Credit  Transaction  Document,  the provisions of this
Agreement shall be controlling.

                                       37

<PAGE>

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

                                  NOTEHOLDERS:

                                  LIFE INSURANCE COMPANY OF
                                  NORTH AMERICA

                                  By:  CIGNA Investments, Inc.

                                  By:___________________________________________
                                     Name:______________________________________
                                     Title:_____________________________________

                                  Address for Notices:

                                  CIG & Co.
                                  c/o CIGNA Investments, Inc.
                                  900 Cottage Grove Road
                                  Hartford, Connecticut 06152-2307
                                  Attention: Private Securities Division - S-307

                                  Telecopy No.: (860) 726-7203

                                       38

<PAGE>

                                  CONNECTICUT GENERAL LIFE
                                  INSURANCE COMPANY

                                  By: CIGNA Investments, Inc.

                                  By:___________________________________________
                                     Name:______________________________________
                                     Title:_____________________________________

                                  Address for Notices:

                                  CIG & Co.
                                  c/o CIGNA Investments, Inc.
                                  900 Cottage Grove Road
                                  Hartford, Connecticut 06152-2307
                                  Attention: Private Securities Division - S-307

                                 Telecopy No.: (203) 726-7203

                                       39

<PAGE>

                                  CONNECTICUT GENERAL LIFE
                                  INSURANCE COMPANY, ON BEHALF
                                  OF ONE OR  MORE SEPARATE
                                  ACCOUNTS

                                  By: CIGNA Investments, Inc.

                                  By:___________________________________________
                                     Name:______________________________________
                                     Title:_____________________________________

                                  Address for Notices:

                                  CIG & Co.
                                  c/o CIGNA Investments, Inc.
                                  900 Cottage Grove Road
                                  Hartford, Connecticut 06152-2307
                                  Attention: Private Securities Division - S-307

                                  Telecopy No.: (203) 726-7203

                                       40

<PAGE>

                                  AGENT:

                                  BANK OF AMERICA, N.A., as Agent for
                                  the Bank Creditors

                                  By:___________________________________________
                                     Name:______________________________________
                                     Title:_____________________________________

                                  Address for Notices:

                                  Bank of America, N.A.
                                  101 North Tryon Street, 15th Floor
                                  NC1-001-15-04
                                  Charlotte, North Carolina  28255
                                  Attention: Agency Services
                                  Telephone:        (704) 386-____
                                  Telefacsimile:    (704) 386-9923

                                  with a copy to:

                                  Bank of America, N.A.
                                  TN6-300-02-03
                                  633 Chestnut Street, 2nd Floor
                                  Chattanooga, Tennessee  37450
                                  Attention: Sybil Weldon
                                  Telephone:        (423) 752-1222
                                  Telefacsimile:    (423) 755-0689

                                       41

<PAGE>

                                  COLLATERAL AGENT:

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

                                  By:___________________________________________
                                     Name:
                                     Title:

                                  Address for Notices:

                                  Bank of America, N.A.
                                  TN6-300-02-03
                                  633 Chestnut Street, 2nd Floor
                                  Chattanooga, Tennessee  37450
                                  Attention: Sybil Weldon
                                  Telephone:        (423) 752-1222
                                  Telefacsimile:    (423) 755-0689

                                       42

<PAGE>

                           ACKNOWLEDGMENT AND CONSENT

         The Second Amended and Restated  Master  Collateral  and  Intercreditor
Agreement,  dated as of  December  __,  2000,  among Bank of America,  N.A.,  as
Collateral Agent (the "Collateral  Agent"),  and the  Participating  Creditors a
party thereto, is hereby  acknowledged,  approved and consented and agreed to by
each of the undersigned.

COVENANT ASSET MANAGEMENT, INC.,
a Nevada corporation ("Borrower")

By:_____________________________________
     Name:        Joey B. Hogan
     Title:       Treasurer

COVENANT TRANSPORT, INC.,
a Nevada corporation ("Parent")

By:_____________________________________
     Name:        Joey B. Hogan
     Title:       Treasurer

                                       43

<PAGE>

COVENANT  TRANSPORT,   INC.,  a
Tennessee  corporation  (a "Subsidiary")
CIP, INC., a Nevada corporation (a
"Subsidiary")
TERMINAL  TRUCK BROKER,  INC., an
Arkansas  corporation  (a "Subsidiary")
SOUTHERN   REFRIGERATED
TRANSPORT,   INC.,   an  Arkansas corporation
(a "Subsidiary")
TONY SMITH  TRUCKING,  INC.,  an
Arkansas  corporation  (a "Subsidiary")
COVENANT.COM, INC., a Nevada
corporation (a "Subsidiary")
HAROLD  IVES  TRUCKING  CO.,  an
 Arkansas  corporation  (a "Subsidiary")

By:_____________________________________
     Name:        Joey B. Hogan
     Title:       Treasurer

                                       44

<PAGE>

                                    EXHIBIT A

                  (i) that certain  Intercompany  Note Pledge Agreement dated as
         of December ___, 2000 in favor of the Collateral  Agent for the ratable
         benefit  of the Bank  Creditors  and the  Noteholders  executed  by the
         Borrower;

                  (ii)  any  additional   Intercompany   Note  Pledge  Agreement
         delivered to the Collateral Agent pursuant to Article V or Section 9.19
         of the Credit Agreement;

                  (iii) that certain  Second  Amended and Restated  Parent Stock
         Pledge and Security  Agreement  dated as of December  ___,  2000 by the
         Parent in favor of the Collateral Agent, for the ratable benefit of the
         Bank Creditors and the Noteholders, amending and restating that certain
         Amended and Restated  Parent Stock Pledge and Security  Agreement dated
         as of June 6,  2000 by the  Parent  in  favor of the  Prior  Collateral
         Agent;

                  (iv) that certain Second Amended and Restated  Guarantor Stock
         Pledge and Security  Agreement dated as of December ___, 2000 by CTI in
         favor of the  Collateral  Agent,  for the  ratable  benefit of the Bank
         Creditors  and the  Noteholders,  amending and  restating  that certain
         Amended and Restated  Guarantor  Stock  Pledge and  Security  Agreement
         dated as of June 6, 2000 by CTI in favor of the Prior Collateral Agent;

                  (v)  any  additional   Pledge   Agreement   delivered  to  the
         Collateral Agent pursuant to Section 9.19 of the Credit Agreement;

                  (vi) with respect to any Subsidiary  Securities (as defined in
         the Credit Agreement) issued by a Direct Foreign Subsidiary (as defined
         in the Credit Agreement) of the Parent or the Borrower,  any additional
         or substitute charge, agreement, document, instrument or conveyance, in
         form and substance  acceptable to the Agent and the  Collateral  Agent,
         conferring under  applicable  foreign law upon the Collateral Agent for
         the ratable  benefit of the Bank  Creditors and the  Noteholders a Lien
         upon  such  Subsidiary  Securities  as are  owned  by the  Parent,  the
         Borrower  or  any  Domestic   Subsidiary  (as  defined  in  the  Credit
         Agreement) of the Parent or the Borrower;

                  (vii) that certain  Guarantor  Security  Agreement dated as of
         December ___, 2000 by CTI and Southern Refrigerated Transport,  Inc. in
         favor of the  Collateral  Agent,  for the  ratable  benefit of the Bank
         Creditors and the Noteholders; and

                  (viii) any  additional  Security  Agreement  delivered  to the
         Collateral  Agent  pursuant to Article V or Section  9.19 of the Credit
         Agreement.

                                       1

                                  Exhibit 4.12

<PAGE>

                                                                     EXHIBIT 9.6

                                PARENT GUARANTEE

1.1      Guarantied Obligations.

         The   Parent   hereby   guaranties,    irrevocably,    absolutely   and
unconditionally  as and for its own debt, until final and  indefeasible  payment
has been made,  the full and prompt  payment of the  principal  and interest and
Make-Whole Amount, if any, on all Notes at any time outstanding and the full and
prompt payment of all moneys payable,  and all other indebtedness  owing, by the
Company  under  this Note  Purchase  Agreement  (collectively,  the  "Guarantied
Obligations"),  in each case when and as the same shall  become due and payable,
whether at  maturity,  pursuant  to  optional  prepayment,  by  acceleration  or
otherwise, all in accordance with the terms and provisions of the Notes and this
Note  Purchase  Agreement;  it being the intent of the Parent  that this  Parent
Guarantee be a guaranty of payment and not a guaranty of collection.  The Parent
hereby  further  unconditionally   guaranties  the  full,  prompt  and  faithful
performance,  keeping,  observance and fulfillment by the Company of all duties,
agreements,  covenants and obligations of the Company contained in the Notes and
in this Note Purchase Agreement.

1.2      Performance by Parent.

         The Parent agrees that its liability in this Parent  Guarantee shall be
immediate and shall not be contingent  upon the exercise or  enforcement  by any
holder of Notes of whatever remedies such holder may have against the Company or
the Parent or the enforcement of any Lien or realization  upon any security such
holder may at any time possess or have available for its benefit.

         The  guarantee  set forth in this  Parent  Guarantee  is a primary  and
original obligation of the Parent and is an absolute, unconditional,  continuing
and  irrevocable  guaranty of payment and shall  remain in full force and effect
without respect to future changes in conditions,  including, without limitation,
change of law, or any invalidity or irregularity with respect to the issuance of
any  obligations  (including,  without  limitation,  any  of the  Notes)  of the
Company,  or  with  respect  to the  execution  and  delivery  of any  agreement
(including,  without  limitation,  any of the Note Purchase Agreements or any of
the other Financing Documents) among the Company, the Parent and any one or more
of  the  holders  of  Notes,  or  with  respect  to the  genuineness,  validity,
regularity or enforceability of any of the Guarantied Obligations.

         Without limiting the scope of the foregoing,  but in addition  thereto,
the obligations of the Parent  hereunder shall not be discharged or impaired by:
any default,  failure or delay, willful or otherwise,  in the performance of any
obligations by the Company; any creditors' rights,  bankruptcy,  receivership or
other  insolvency  proceeding  of  the  Company  or any  merger,  consolidation,
reorganization,  dissolution,  liquidation  or winding up or change in corporate
constitution or corporate identity or loss of corporate identity of the Company;
impossibility or illegality of performance on the part of the Company under this
Note Purchase  Agreement or the Notes; in respect of the Company,  any change of
circumstances,  whether or not foreseen or foreseeable, whether or not imputable
to the Company, or other  impossibility of performance through fire,  explosion,
accident, labor disturbance,  floods, droughts,  embargoes, wars (whether

                                       1

                                  Exhibit 9.6

<PAGE>

or not declared),  civil commotions,  acts of God or the public enemy, delays or
failure of  suppliers or  carriers,  inability to obtain  materials or any other
causes affecting performance,  or any other force majeure, whether or not beyond
the  control  of the  Company  and  whether  or not  of  the  kind  hereinbefore
specified;  any  attachment,   claim,  demand,  charge,  Lien,  order,  process,
encumbrance or any other happening or event or reason,  similar or dissimilar to
the foregoing,  or any withholding or diminution at the source, by reason of any
taxes, assessments,  expenses,  indebtedness,  obligations or liabilities of any
character,  foreseen or  unforeseen,  and  whether or not valid,  incurred by or
against any Person, or any claims,  demands,  charges,  Liens or encumbrances of
any nature, foreseen or unforeseen,  incurred by any Person, or against any sums
payable under this Note Purchase Agreement or the Notes, so that such sums would
be  rendered  inadequate  or would be  unavailable  to make the  payment  herein
provided;  any order,  judgment,  decree,  ruling or regulation  (whether or not
valid) of any court of any nation or of any political subdivision thereof or any
body, agency, department, official or administrative or regulatory agency of any
nation or any  political  subdivision  thereof or any other  action,  happening,
event or reason whatsoever that shall delay,  interfere with, hinder or prevent,
or in any way adversely  affect,  the  performance  by the Company of any of its
respective obligations under this Note Purchase Agreement or the Notes.

1.3      Waivers Subrogation; Offsets.

         The Parent  does  hereby  waive:  notice of  acceptance  of this Parent
Guarantee;  notice of any  purchase  of Notes  issued  under this Note  Purchase
Agreement  or the  extension  of credit from time to time given by any holder of
Notes to the Company and the creation,  existence or  acquisition  of any of the
Guarantied  Obligations;  notice of the  amount of the  Guarantied  Obligations,
subject,  however,  to the Parent's right to make inquiry at any reasonable time
of any holder of Notes to  ascertain  the amount of the  Guarantied  Obligations
held by such holder;  notice of adverse change in the financial condition of the
Company or of any other fact that might  increase the Parent's  risk;  notice of
presentment for payment,  demand,  protest and notice thereof as to the Notes or
any other instrument; notice of default; all defenses, offsets and counterclaims
that the Parent may at any time have to any claim of any holder of Notes against
the  Company;  notice of  addition of any Person as a Parent of all or a part of
the  Guarantied  Obligations or release of any Person as a Parent of all or part
of the  Guarantied  Obligations;  and all other notices and demands to which the
Parent might  otherwise  be entitled  except to the extent that any such notices
are expressly  provided for in this Parent Guarantee.  The Parent further waives
the rights by statute or  otherwise  to require any holder of Notes to institute
suit  against  the  Company or to exhaust  its rights and  remedies  against the
Company or any other Parent of all or part of the  Guarantied  Obligations,  the
Parent  being bound to the  payment of each and all  Guarantied  Obligations  in
respect of each holder of Notes,  whether now existing or hereinafter  accruing,
as fully as if such Guarantied Obligations were directly owing to each holder of
Notes by the Parent.  The Parent further waives any defense arising by reason of
any  disability  or other  defense of the Company or by reason of the  cessation
from any cause  whatsoever  of the  liability  of the  Company in respect of the
Guarantied Obligations.

         Each holder of Notes shall have,  to the fullest  extent  permitted  by
law,  the right of set-off in  respect  of any and all  credits  and any and all
other  Property of the Parent,  now or at any time  whatsoever  with,  or in the
possession of, such holder for any and all obligations of the Parent  hereunder.
By its  acceptance of any Note,  each such holder shall be deemed to have agreed
that,

                                       2

                                  Exhibit 9.6

<PAGE>

if it shall at any time  exercise  any such right of set-off,  such holder shall
promptly  thereafter  take such actions as shall be necessary to share equitably
the benefit of such credits and other  property with all of the holders of Notes
(exclusive of Notes held by the Parent,  the Company or any of their  respective
Subsidiaries or Affiliates).

1.4      Releases.

         The Parent  consents and agrees that,  without notice to it and without
affecting or impairing the obligations of it hereunder, any holder of Notes may,
in the manner provided in or pursuant to this Note Purchase Agreement, by action
or inaction, directly or indirectly,  compromise or settle, extend the period of
duration  or the time for the payment or  discharge  or  performance  of, or may
refuse to, or otherwise not, enforce, or may, by action or inaction, release all
or any one or more parties to, any one or more of the Notes,  this Note Purchase
Agreement or any documents related thereto (the "Financing  Documents"),  or may
grant other  indulgences to the Company or such parties in respect  thereof,  or
may amend or modify in any manner and at any time (or from time to time) any one
or more of the Financing  Documents,  or may, by action or inaction,  release or
substitute  any  one or more  of the  endorsers  or  Parents  of the  Guarantied
Obligations  whether parties hereto or not, or may exchange,  enforce,  waive or
release,  by action or inaction,  directly or indirectly,  any security for this
Parent Guarantee or any Guarantied Obligation. Further, no holder of Notes shall
be under any  obligation  whatsoever to, or shall have any liability for failing
to,  obtain or perfect or to maintain,  or caused to be  obtained,  perfected or
maintained, the perfection of any security interest or other Lien on Property to
secure the  Guarantied  Obligations  or the  obligations  of any other Parent in
respect thereof.

1.5      Marshaling; Revival of Obligations.

         The Parent  consents  and agrees that no holder of Notes shall be under
any  obligation  to marshall any assets in favor of it, or against or in payment
of any or all of the  Guarantied  Obligations.  The  Parent  agrees  to pay  all
expenses  incurred by each holder of Notes in connection  with the collecting of
any sums due under this Parent  Guarantee  or  enforcing  any rights or remedies
that are or may be available to it, including,  without limitation, court costs,
reasonable  collection charges and attorneys' fees, costs and expenses.  Without
limiting  the  scope  of the  immediately  preceding  sentence  and in  addition
thereto,  if the Company or the Parent shall fail to pay when due any  principal
of, or Make-Whole  Amount or interest on, any Note, or shall fail to comply with
any  other  provision  of  any  Financing  Document,  or  if  there  shall  be a
controversy or potential  controversy  between the Company or the Parent and one
or more  holders of Notes as to any of the  provisions  of any of the  Financing
Documents,  the Parent  shall be liable to pay to each  holder of Notes,  to the
extent  permitted by applicable law, such further amounts as shall be sufficient
to cover the  reasonable  costs and  expenses  (including,  without  limitation,
attorneys'  fees and the  allocated  cost of counsel for any holder of Notes who
are employees  of, or employees of any  affiliate  of, such holder)  incurred by
each such  holder in  collecting  any sums due on such  Notes or under any other
Financing Document or in otherwise assessing,  analyzing or enforcing any rights
or remedies that are or may be available to it.

         The  Parent  further  agrees  that to the extent  the  Company  makes a
payment or  payments  to any holder of Notes,  which  payment or payments or any
part  thereof  are  subsequently  invalidated,  declared  to  be  fraudulent  or
preferential, set aside or required, for any of the

                                       3

                                  Exhibit 9.6

<PAGE>

foregoing  reasons  or for any  other  reason,  to be  repaid  or paid over to a
custodian, trustee, receiver or any other party or officer under any bankruptcy,
reorganization,  arrangement, insolvency, administration,  readjustment of debt,
dissolution or liquidation law of any jurisdiction, state or federal law, or any
common law or equitable cause,  then to the extent of such payment or repayment,
the  obligation  or part thereof  intended to be satisfied  shall be revived and
continued  in full force and effect as if such payment had not been made and the
Parent shall be primarily liable for such obligation.

1.6      No Election.

         Each holder of Notes shall have the right to seek recourse  against the
Parent to the full extent provided for in this Parent  Guarantee and against the
Company  to the full  extent  provided  for in the Notes and this Note  Purchase
Agreement.  No  election  to  proceed  in one form of action or  proceeding,  or
against any party (including,  without limitation,  any other guarantor),  or on
any obligation,  shall  constitute a waiver of the right of such holder of Notes
to proceed in any other form of action or  proceeding  or against  other parties
(including, without limitation, any other Guarantor) unless such holder of Notes
has expressly waived such right in writing.  Specifically,  but without limiting
the generality of the foregoing,  no action or proceeding by any holder of Notes
against  the Company or any other  Guarantor  under any  document or  instrument
evidencing  Guarantied  Obligations shall serve to diminish the liability of the
Parent under this Parent Guarantee except to the extent that such holder finally
and  unconditionally  shall have realized  payment by such action or proceeding,
notwithstanding  the effect of any such action or  proceeding  upon the Parent's
right of  subrogation  against  the  Company.  The Parent is fully  aware of the
financial  condition of the Company.  The Parent delivers this Parent  Guarantee
based  solely  upon its own  independent  investigation  and in no part upon any
representation  or statement of any one or more of the holders of the Notes with
respect thereto.  The Parent is in a position to obtain, and hereby assumes full
responsibility  for  obtaining,   any  additional   information  concerning  the
financial  condition  of the  Company as such  Parent may deem  material  to its
obligations  hereunder,  and the Parent is neither  relying upon, nor expecting,
any holder of Notes to  furnish  it any  information  concerning  the  financial
condition of the Company.

1.7      Severability.

         Subject  to the  second  paragraph  of  Section  1.13  of  this  Parent
Guarantee,  each of the rights and remedies  granted under this Parent Guarantee
to each  holder of Notes in  respect  of the Notes  held by such  holder  may be
exercised  by such  holder  without  notice  to, or the  consent of or any other
action by, any other holder of Notes.

1.8      Other Enforcement Rights.

         Each  holder of Notes may  proceed,  as provided in Section 1.7 of this
Parent Guarantee,  to protect and enforce the guaranty of any one or more of the
guarantors  under  this  Parent  Guarantee  by suit or suits or  proceedings  in
equity, at law or in bankruptcy, and whether for the specific performance of any
covenant or agreement  contained in this Parent Guarantee or in execution or aid
of any power herein granted or for the recovery of judgment for or in respect of
the Guarantied  Obligations or for the enforcement of any other proper, legal or
equitable remedy available under applicable law.

                                       4

                                  Exhibit 9.6

<PAGE>

1.9      Delay or Omission; No Waiver.

         No course of dealing on the part of any holder of Notes and no delay or
failure  on the part of such  holder  to  exercise  any  right  under  this Note
Purchase Agreement or the Other Agreements (including,  without limitation,  any
rights under  Section 12 thereof) or under any other  Financing  Document  shall
prejudice such holder's rights,  powers and remedies hereunder.  Every right and
remedy given in or by this Parent Guarantee or by law to any holder of Notes may
be  exercised  from  time to time as often as may be  deemed  expedient  by such
Person.

1.10     Restoration of Rights and Remedies.

         If any holder of Notes shall have  instituted any proceeding to enforce
any right or remedy in this Parent Guarantee and such proceeding shall have been
discontinued  or  abandoned  for any  reason,  or  shall  have  been  determined
adversely to such  holder,  then and in every such case each such holder and the
Parent shall,  except as may be limited or affected by any determination in such
proceeding,  be restored  severally and  respectively  to its respective  former
position hereunder,  and thereafter the rights and remedies of such holder shall
continue as though no such proceeding had been instituted.

1.11     Subordination.

         In the event  that,  for any reason  whatsoever,  the Company is now or
hereafter  becomes indebted to the Parent,  the Parent agrees that the amount of
such  indebtedness  and all  interest  thereon  shall,  at all times  during the
existence  of a Default or an Event of  Default,  be  subordinate  as to time of
payment and in all other  respects to all the Guarantied  Obligations,  and that
the  Parent  shall not be  entitled  so long as such  Default  or such  Event of
Default exists to enforce or receive payment thereof until all sums then due and
owing to the  holders of Notes in respect of the  Guarantied  Obligations  shall
have been  paid in full.  If any  other  payment,  other  than  pursuant  to the
immediately  preceding  sentence,  shall  have  been  made to the  Parent by the
Company on any such  indebtedness  during any time that a Default or an Event of
Default  exists and there are  Guarantied  Obligations  outstanding,  the Parent
shall hold in trust all such  payments  for the benefit of the holders of Notes.

1.12 Cumulative Remedies.

         No remedy  under this Parent  Guarantee  or any of the other  Financing
Documents is intended to be exclusive  of any other  remedy,  but each and every
remedy shall be  cumulative  and in addition to any and every other remedy given
thereunder.

1.13     Miscellaneous.

         The Parent (to the fullest extent that it may lawfully do so) expressly
waives  any  claim  of  any  nature  arising  out  of any  right  of  indemnity,
contribution,  reimbursement or any similar right in respect of any payment made
under this Parent Guarantee or in connection with this Parent Guarantee,  or any
claim of subrogation  arising with respect to any payment made under this Parent
Guarantee,  against the Company or the estate of the Company (including Liens on
the property of the Company or the estate of the Company),  in each case if, and
for so long as, the Company is the subject of any  proceeding  brought under any
bankruptcy,    reorganization,

                                       5

                                  Exhibit 9.6

<PAGE>

arrangement,  insolvency,  administration,  readjustment of debt, dissolution or
liquidation  law of any  jurisdiction,  whether now or hereafter in effect,  and
further  agrees  that it will not file any  claims  against  the  Company or the
estate of the Company in the course of such  proceeding in respect of the rights
referred to in this Section 1.13,  and further  agrees that each holder of Notes
may specifically enforce the provisions of this Section 1.13.

         If an Event of Default  exists,  then the holders of Notes (as provided
in Section 12 of this Note Purchase  Agreement and the Other  Agreements)  shall
have the right to  declare  all of the  Guarantied  Obligations  to be, and such
Guarantied  Obligations  shall  thereupon  become,  forthwith  due and  payable,
without any  presentment,  demand,  protest or other notice of any kind,  all of
which have been expressly waived by each Parent, and  notwithstanding  any stay,
injunction or other prohibition  preventing such declaration (or such guarantied
Obligations from becoming automatically due and payable) as against the Company.
In any such event,  the holders of Notes  shall have  immediate  recourse to the
Parent to the fullest extent set forth herein.

         The  provisions  hereof  are  intended  to be for  the  benefit  of all
holders,  from time to time,  of Notes,  and  shall be  enforceable  by any such
holder,  whether or not an express assignment to such holder of rights hereunder
shall have been made by any Purchaser or its successors or assigns.

                                       6

                                  Exhibit 9.6CREDIT AGREEMENT

                                  by and among

                        COVENANT ASSET MANAGEMENT, INC.,
                                  as Borrower,

                            COVENANT TRANSPORT, INC.

                             BANK OF AMERICA, N.A.,
                             as Agent and as Lender

                                       and

                   THE LENDERS PARTY HERETO FROM TIME TO TIME

                                December 13, 2000

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

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

                                    ARTICLE I

                              Definitions and Terms

1.1.       Definitions.........................................................2
1.2.       Rules of Interpretation............................................29
1.3.       Accounting for Acquisitions........................................30

                                   ARTICLE II

                              The Credit Facilities

2.1.       Revolving Loans....................................................32
2.2.       Use of Proceeds....................................................36
2.3.       Notes..............................................................36
2.4.       Swing Line.........................................................37

                                   ARTICLE III

                                Letters of Credit

3.1.       Letters of Credit..................................................39
3.2.       Reimbursement and Participations...................................39

                                   ARTICLE IV

                Eurodollar Funding, Fees, and Payment Conventions

4.1.       Interest Rate Options..............................................43
4.2.       Conversions and Elections of Subsequent Interest Periods...........43
4.3.       Payment of Interest................................................44
4.4.       Prepayments of Eurodollar Rate Loans...............................44
4.5.       Manner of Payment..................................................44
4.6.       Fees...............................................................45
4.7.       Pro Rata Payments..................................................46
4.8.       Computation of Rates and Fees......................................46
4.9.       Deficiency Advances; Failure to Purchase Participations............46
4.10.      Intraday Funding...................................................47

                                    ARTICLE V

                                    Security

5.1.       Security...........................................................48

                                       i

<PAGE>

5.2        Pledged Stock......................................................48
5.3        Intercompany Notes.................................................48
5.4        Licensing Agreements...............................................49
5.5.       Further Assurances.................................................49
5.6.       Information Regarding Collateral...................................50
5.7        Intercreditor Matters..............................................50

                                   ARTICLE VI

                             Change in Circumstances

6.1.       Increased Cost and Reduced Return..................................51
6.2.       Limitation on Types of Loans.......................................52
6.3.       Illegality.........................................................53
6.4.       Treatment of Affected Loans........................................53
6.5.       Compensation.......................................................53
6.6.       Taxes..............................................................54

                                   ARTICLE VII

            Conditions to Making Loans and Issuing Letters of Credit

7.1.       Conditions of Initial Advance......................................56
7.2.       Conditions of Revolving Loans and Letter of Credit.................60

                                  ARTICLE VIII

                         Representations and Warranties

8.1.       Organization and Authority.........................................62
8.2.       Loan Documents.....................................................62
8.3.       Solvency...........................................................63
8.4.       Subsidiaries and Stockholders......................................63
8.5.       Ownership Interests................................................63
8.6.       Financial Condition................................................63
8.7.       Title to Properties................................................64
8.8.       Taxes..............................................................64
8.9.       Other Agreements...................................................64
8.10.      Litigation.........................................................65
8.11.      Margin Stock.......................................................65
8.12.      Regulated Company..................................................65
8.13.      Patents, Etc.......................................................66
8.14.      No Untrue Statement................................................66
8.15.      No Consents, Etc...................................................66
8.16.      Employee Benefit Plans.............................................66
8.17.      No Default.........................................................67
8.18.      Environmental Laws.................................................67
8.19.      Employment Matters.................................................68

                                       ii

<PAGE>

                                   ARTICLE IX

                              Affirmative Covenants

9.1.       Financial Reports, Etc.............................................69
9.2.       Maintain Properties................................................70
9.3.       Existence, Qualification, Etc......................................70
9.4.       Regulations and Taxes..............................................71
9.5.       Insurance..........................................................71
9.6.       True Books.........................................................71
9.7.       Right of Inspection................................................71
9.8.       Observe all Laws...................................................71
9.9.       Governmental Licenses..............................................71
9.10.      Covenants Extending to Other Persons...............................72
9.11.      Officer's Knowledge of Default.....................................72
9.12.      Suits or Other Proceedings.........................................72
9.13.      Notice of Environmental Complaint or Condition.....................72
9.14.      Environmental Compliance...........................................72
9.15.      Indemnification....................................................73
9.16.      Further Assurances.................................................73
9.17.      Employee Benefit Plans.............................................73
9.18.      Continued Operations...............................................74
9.19.      New Subsidiaries...................................................74
9.20       Intercompany Advances..............................................76
9.21       Collateral.........................................................76

                                    ARTICLE X

                               Negative Covenants

10.1.      Financial Covenants................................................77
10.2.      Acquisitions.......................................................77
10.3.      Liens..............................................................78
10.4.      Indebtedness.......................................................79
10.5.      Transfer of Assets.................................................80
10.6.      Investments........................................................80
10.7.      Merger or Consolidation............................................81
10.8.      Restricted Payments................................................81
10.9.      Transactions with Affiliates.......................................81
10.10.     Compliance with ERISA, the Code and Foreign Benefit Laws...........82
10.11.     Fiscal Year........................................................82
10.12.     Dissolution, Etc...................................................82
10.13.     Limitations on Sales and Leasebacks................................82
10.14.     Change in Control..................................................83
10.15.     Rate Hedging Obligations...........................................83
10.16.     Negative Pledge Clauses............................................83
10.17.     Compensation; Reimbursement of Expenses............................83

                                      iii

<PAGE>

10.18.     Change in Accountants..............................................84
10.19.     Modification of Indebtedness and Certain Documentation.............84
10.20.     Partnerships.......................................................84
10.21.     Restrictive Agreements.............................................84

                                   ARTICLE XI

                       Events of Default and Acceleration

11.1.      Events of Default..................................................86
11.2.      Agent to Act.......................................................89
11.3.      Cumulative Rights..................................................89
11.4.      No Waiver..........................................................89
11.5.      Allocation of Proceeds.............................................89

                                   ARTICLE XII

                                    The Agent

12.1.      Appointment, Powers, and Immunities................................91
12.2.      Reliance by Agent..................................................91
12.3.      Defaults...........................................................92
12.4.      Rights as Lender...................................................92
12.5.      Indemnification....................................................92
12.6.      Non-Reliance on Agent and Other Lenders............................93
12.7.      Resignation of Agent...............................................93

                                  ARTICLE XIII

                                  Miscellaneous

13.1.      Assignments and Participations.....................................94
13.2.      Notices............................................................95
13.3.      Right of Set-off; Adjustments......................................97
13.4.      Survival...........................................................97
13.5.      Expenses...........................................................97
13.6.      Amendments and Waivers.............................................98
13.7.      Counterparts; Facsimile Signatures.................................98
13.8.      Termination........................................................99
13.9.      Indemnification; Limitation of Liability...........................99
13.10.     Severability......................................................100
13.11.     Entire Agreement..................................................100
13.12.     Agreement Controls................................................100
13.13.     Usury Savings Clause..............................................100
13.14.     Governing Law; Waiver of Jury Trial...............................101

EXHIBIT A      Applicable Commitment Percentages.............................A-1
EXHIBIT B      Form of Assignment and Acceptance.............................B-1

                                       iv

<PAGE>

EXHIBIT C      Notice of Appointment (or Revocation) of Authorized
               Representative................................................C-1
EXHIBIT D-1    Form of Borrowing Notice--Revolving Loans...................D-1-1
EXHIBIT D-2    Form of Borrowing Notice--Swing Line Loans..................D-2-1
EXHIBIT E      Form of Interest Rate Selection Notice........................E-1
EXHIBIT F-1    Form of Note................................................F-1-1
EXHIBIT F-2    Form of Swing Line Note.....................................F-2-1
EXHIBIT G      Form of Opinion of Borrower's Counsel.........................G-1
EXHIBIT H      Compliance Certificate........................................H-1
EXHIBIT I-1    Form of Parent Guaranty Agreement...........................I-1-1
EXHIBIT I-2    Form of Subsidiary Guaranty Agreement.......................I-2-1
EXHIBIT J-1    Form of Second Amended and Restated Parent Stock Pledge
               and Security Agreement......................................J-1-1
EXHIBIT J-2    Form of Second Amended and Restated Guarantor Stock Pledge
               and Security Agreement......................................J-2-1
EXHIBIT K      Form of Borrowing Base Certificate............................K-1
EXHIBIT L      Form of Commitment Increase Agreement.........................L-1
EXHIBIT M      Form of Added Lender Agreement................................M-1
EXHIBIT N-1    Form of Borrower Intercompany Note Pledge Agreement.........N-1-1
EXHIBIT O-1    Form of Guarantor Security Agreement........................O-1-1

Schedule 5.6   Information Regarding Collateral..............................S-1
Schedule 8.4   Subsidiaries and Investments in Other Persons.................S-2
Schedule 8.6   Indebtedness..................................................S-3
Schedule 8.7   Liens.........................................................S-4
Schedule 8.8   Tax Matters...................................................S-5
Schedule 8.10  Litigation....................................................S-6

                                       v

<PAGE>

                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT, dated as of December 13, 2000 (the "Agreement"),
is made by and among COVENANT ASSET MANAGEMENT,  INC., a Nevada corporation (the
"Borrower"),  COVENANT  TRANSPORT,  INC., a Nevada  corporation and the owner of
100% of the issued and outstanding  common stock of the Borrower (the "Parent"),
BANK OF AMERICA,  N.A., a national  banking  association  organized and existing
under the laws of the  United  States,  in its  capacity  as a Lender  ("Bank of
America"),  and each other  financial  institution  executing  and  delivering a
signature page hereto and each other financial  institution  which may hereafter
execute and deliver an instrument of assignment  with respect to this  Agreement
pursuant  to  Section  13.1  (hereinafter  such  financial  institutions  may be
referred to individually  as a "Lender" or  collectively as the "Lenders"),  and
BANK OF AMERICA,  N.A., a national  banking  association  organized and existing
under the laws of the United  States,  in its  capacity as agent for the Lenders
(in such capacity, and together with any successor agent appointed in accordance
with the terms of Section 12.7, the "Agent");

                              W I T N E S S E T H:
                              -------------------

         WHEREAS,  the Borrower has requested that the Lenders make available to
the Borrower a revolving credit facility of up to $120,000,000,  the proceeds of
which are to be used as provided in Section 2.2 hereof and which shall include a
letter of credit  facility of up to $10,000,000  for the issuance of standby and
commercial letters of credit and a swing line facility of up to $5,000,000; and

         WHEREAS,  the Lenders are willing to make such revolving credit,  swing
line, and letter of credit  facilities  available to the Borrower upon the terms
and conditions set forth herein;

         NOW, THEREFORE, the Borrower, the Lenders and the Agent hereby agree as
follows:

<PAGE>

                                    ARTICLE I

                              Definitions and Terms

         1.1     Definitions.  For the purposes of this Agreement,  in addition
to the  definitions  set  forth  above,  the  following  terms  shall  have  the
respective meanings set forth below:

                  "Acquisition"  means  the  acquisition  of  (i) a  controlling
         equity interest in another Person (including the purchase of an option,
         warrant or  convertible  or similar  type  security  to acquire  such a
         controlling  interest at the time it becomes  exercisable by the holder
         thereof),  whether by purchase of such equity interest or upon exercise
         of an option or warrant for, or  conversion of  securities  into,  such
         equity interest,  or (ii) assets of another Person which constitute all
         or substantially all of the assets of such Person or of a line or lines
         of business conducted by such Person.

                  "Acquisition  Adjustments"  means the  adjustments  to certain
         financial terms and computations more particularly described in Section
         1.3.

                  "Added Lender" has the meaning set forth in Section 2.1(f).

                  "Advance"  means  a  borrowing  under  the  Revolving   Credit
         Facility consisting of a Base Rate Loan or a Eurodollar Rate Loan.

                  "Affiliate"  means any Person (i) which directly or indirectly
         through one or more intermediaries controls, or is controlled by, or is
         under common  control  with the  Borrower or the Parent;  or (ii) which
         beneficially  owns or holds 5% or more of any class of the  outstanding
         voting stock (or in the case of a Person which is not a corporation, 5%
         or more of the equity interest) of the Borrower or the Parent; or 5% or
         more of any class of the outstanding  voting stock (or in the case of a
         Person which is not a corporation,  5% or more of the equity  interest)
         of which is  beneficially  owned or held by the Borrower or the Parent.
         The term "control" means the possession, directly or indirectly, of the
         power to direct or cause the direction of the  management  and policies
         of a Person,  whether through ownership of voting stock, by contract or
         otherwise.

                  "Applicable  Commitment  Percentage" means, for each Lender at
         any time, a fraction, with respect to the Revolving Credit Facility and
         the Letter of Credit  Facility,  the  numerator  of which shall be such
         Lender's Revolving Credit Commitment and the denominator of which shall
         be the Total Revolving Credit Commitment,  which Applicable  Commitment
         Percentage  for each Lender as of the  Closing  Date is as set forth in
         Exhibit A; provided that the Applicable  Commitment  Percentage of each
         Lender shall be increased or decreased to reflect any assignments to or
         by  such  Lender  effected  in  accordance  with  Section  13.1  or  in
         connection with any increase in the Total Revolving  Credit  Commitment
         pursuant to Section 2.1(f).

                  "Applicable  Lending  Office"  means,  for each Lender and for
         each  Type of Loan,  the  "Lending  Office"  of such  Lender  (or of an
         affiliate  of such  Lender)  designated  for

                                       2

<PAGE>

         such Type of Loan on the signature pages hereof or such other office of
         such Lender (or an  affiliate  of such  Lender) as such Lender may from
         time to time specify to the Agent and the Borrower by written notice in
         accordance  with the terms  hereof as the  office by which its Loans of
         such Type are to be made and maintained.

                  "Applicable  Margin"  means that percent per annum which shall
         be based  upon the  Consolidated  Leverage  Ratio for the  Four-Quarter
         Period most recently ended,  set forth as the Applicable  Margin in the
         Pricing Grid and subject to further adjustment as therein provided.

                  "Applications  and  Agreements  for Letters of Credit"  means,
         collectively, the Applications and Agreements for Letters of Credit, or
         similar  documentation,  executed by the Borrower from time to time and
         delivered  to the Issuing  Bank to support  the  issuance of Letters of
         Credit.

                  "Applicable  Unused Fee" means that  percent per annum,  based
         upon the Consolidated  Leverage Ratio for the Four-Quarter  Period most
         recently ended,  set forth as the Applicable  Unused Fee in the Pricing
         Grid and subject to further adjustment as therein provided.

                  "Assignment  and  Acceptance"  shall  mean an  Assignment  and
         Acceptance in the form of Exhibit B (with blanks  appropriately  filled
         in)  delivered  to the  Agent in  connection  with an  assignment  of a
         Lender's interest under this Agreement pursuant to Section 13.1.

                  "Authorized  Representative" means (i) with respect to matters
         regarding the Borrower,  any of the President or any Vice  President of
         the Borrower or, with respect to financial matters, the chief financial
         officer of the Borrower,  or any other Person  expressly  designated by
         the Board of Directors of the  Borrower (or the  appropriate  committee
         thereof) as an Authorized  Representative of the Borrower, as set forth
         from time to time in a  certificate  in the form of  Exhibit C and (ii)
         with respect to matters  regarding the Parent or any  Subsidiary of the
         Parent  (other than the  Borrower),  any of the  President  or any Vice
         President  of the Parent or, with  respect to  financial  matters,  the
         chief financial  officer of the Parent,  or any other Person  expressly
         designated by the Board of Directors of the Parent (or the  appropriate
         committee  thereof) as an Authorized  Representative  of the Parent, as
         set forth from time to time in a certificate in the form of Exhibit C.

                  "Bank  of  America"  means  Bank  of  America,  N.A.  and  its
         successors.

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

                  "Base  Rate"  means,  for  any  day,  at the  election  of the
         Borrower (as indicated in the applicable  Borrowing  Notice or Interest
         Rate  Selection  Notice),  either  (i) the rate per annum  equal to the
         higher  of (a) the  Federal  Funds  Rate for such day plus one  percent
         (1.0%) and (b) the Prime Rate for such day ("Base  Rate  Option 1"), or
         (ii) the Federal

                                       3

<PAGE>

         Funds Rate for such day plus  one-half of one percent  (0.50%) plus the
         Applicable  Margin ("Base Rate Option 2"). Any change in the Base Rate,
         as elected, due to a change in the Prime Rate or the Federal Funds Rate
         shall be  effective on the  effective  date of such change in the Prime
         Rate or Federal Funds Rate.

                  "Base Rate Loan"  means a Loan for which the rate of  interest
         is  determined  by  reference  to the  Base  Rate,  as  elected  by the
         Borrower.

                  "Base Rate Option 1" has the meaning  assigned to such term in
         the definition of "Base Rate" herein.

                  "Base Rate Option 2" has the meaning  assigned to such term in
         the definition of "Base Rate" herein.

                  "Base Rate  Refunding  Loan" means a Base Rate Loan  (having a
         Base Rate  determined  by Base Rate  Option 1) or Swing  Line Loan made
         either to (i) satisfy Reimbursement  Obligations arising from a drawing
         under a Letter of  Credit or (ii) pay Bank of  America  in  respect  of
         Swing Line Outstandings.

                  "Board"  means the Board of Governors  of the Federal  Reserve
         System (or any successor body).

                  "Borrower's Account" means a demand deposit account maintained
         with the Agent,  which may be  maintained at one or more offices of the
         Agent or an agent of the Agent.

                  "Borrowing  Base"  means  the sum of 90% of the total net book
         value  of  Eligible  Revenue  Equipment,   less  the  aggregate  amount
         outstanding  under  the  Senior  Notes,  determined  at the end of each
         fiscal  quarter  and  certified  by the  Borrower  and the  Parent in a
         Borrowing Base Certificate.

                  "Borrowing Base  Certificate"  means a certificate in the form
         attached hereto as Exhibit K and incorporated herein by reference.

                  "Borrowing Notice" means the notice delivered by an Authorized
         Representative in connection with an Advance under the Revolving Credit
         Facility or a Swing Line Loan,  in the forms of  Exhibits  D-1 and D-2,
         respectively.

                  "Business  Day"  means,  (i) except as  expressly  provided in
         clause (ii), any day which is not a Saturday,  Sunday or a day on which
         banks in the States of New York and North  Carolina are  authorized  or
         obligated by law,  executive order or governmental  decree to be closed
         and,  (ii) with  respect  to the  selection,  funding,  interest  rate,
         payment, and Interest Period of any Eurodollar Rate Loan, any day which
         is a  Business  Day,  as  described  above,  and on which the  relevant
         international  financial  markets  are  open  for  the  transaction  of
         business  contemplated by this Agreement in London,  England, New York,
         New York and Charlotte, North Carolina.

                                       4

<PAGE>

                  "Capital Leases" means all leases which have been or should be
         capitalized  in  accordance  with GAAP as in  effect  from time to time
         including Statement No. 13 of the Financial  Accounting Standards Board
         and any successor thereof.

                  "Change of Control" means, at any time:

                           (i) any "person" or "group" (each as used in Sections
                  13(d)(3) and  14(d)(2) of the  Exchange  Act) other than David
                  Parker, Jacqueline Parker, or Clyde Fuller or any such "group"
                  including any of them (the "Exempt  Group") either (A) becomes
                  the  "beneficial  owner"  (as  defined  in Rule  13d-3  of the
                  Exchange Act ), directly or indirectly,  of Voting  Securities
                  of the Parent (or securities  convertible into or exchangeable
                  for such Voting  Securities)  representing  50% or more of the
                  combined  voting power of all Voting  Securities of the Parent
                  (on a fully  diluted  basis) or (B) otherwise has the ability,
                  directly  or  indirectly,  to elect a majority of the board of
                  directors of the Parent;

                           (ii)  during  any  period  of up  to  24  consecutive
                  months, commencing on the Closing Date, individuals who at the
                  beginning of such 24-month period were directors of the Parent
                  shall cease for any reason (other than the death,  disability,
                  removal or  retirement  of a director of the Parent so long as
                  an officer of the Parent replaces such Person as a director or
                  such  Person  is  replaced  as a  director  by a Person  whose
                  election or appointment is approved by a majority of the board
                  of directors at the time of such  replacement) to constitute a
                  majority of the board of directors of the Parent;

                           (iii)  any  Person or two or more  Persons  acting in
                  concert,  other than the Exempt Group,  shall have acquired by
                  contract or  otherwise,  or shall have entered into a contract
                  or arrangement that, upon consummation thereof, will result in
                  its or their acquisition of the power to exercise, directly or
                  indirectly,  a  controlling  influence  on the  management  or
                  policies of the Borrower or the Parent; or

                           (iv) the Parent shall cease to own,  beneficially and
                  of record 100% of the issued and outstanding shares of capital
                  stock or other equity  interest of the Borrower and each other
                  Subsidiary  of the  Parent  existing  on the  Closing  Date or
                  thereafter acquired or organized.

                  "CIP" means CIP, Inc., a Nevada corporation.

                  "Closing  Date" means the date as of which this  Agreement  is
         executed by the Borrower,  the Parent, the Lenders and the Agent and on
         which the conditions set forth in Section 7.1 have been satisfied.

                  "Code"  means the Internal  Revenue Code of 1986,  as amended,
         and any regulations promulgated thereunder.

                                       5

<PAGE>

                  "Collateral" means, collectively,  all property of the Parent,
         the Borrower or any Subsidiary of either the Parent or the Borrower, or
         any other  Person in which  the Agent or any  Lender is  granted a Lien
         under any Security Instrument as security for all or any portion of the
         Obligations or any other obligation arising under any Loan Document.

                  "Collateral  Agent"  means Bank of America in its  capacity as
         Collateral  Agent  under  each  of the  Security  Instruments  and  the
         Intercreditor  Agreement for the benefit of the Agent,  the Lenders and
         the holders of the Senior Notes,  and any successor  thereto  acting in
         such capacity.

                  "Consistent  Basis" in  reference to the  application  of GAAP
         means the accounting  principles observed in the period referred to are
         comparable in all material respects to those applied in the preparation
         of the audited financial statements of the Parent referred to as of the
         Closing Date in Section 8.6(a).

                  "Consolidated  EBITDAR" means,  with respect to the Parent and
         its  Subsidiaries  for any  Four-Quarter  Period  ending on the date of
         computation thereof, the sum of, without duplication,  (i) Consolidated
         Net Income, (ii) Consolidated Interest Expense,  (iii) taxes on income,
         (iv)  depreciation,  (v)  amortization,  and  (vi)  Consolidated  Lease
         Payments,  all  determined on a consolidated  basis in accordance  with
         GAAP applied on a Consistent Basis, subject to Acquisition Adjustments.

                  "Consolidated Fixed Charge Coverage Ratio" means, with respect
         to the Parent and its Subsidiaries  for any Four-Quarter  Period ending
         on the date of  computation  thereof,  the  ratio  of (i)  Consolidated
         EBITDAR for such period less (without duplication) taxes on income paid
         in cash during such period, subject to Acquisition Adjustments, to (ii)
         the sum of Consolidated  Fixed Charges for such period plus twenty-five
         percent  (25%)  of  Revolving  Credit  Outstandings  as of the  date of
         computation.

                  "Consolidated Fixed Charges" means, with respect to the Parent
         and its Subsidiaries for any Four-Quarter  Period ending on the date of
         computation thereof, the sum of, without duplication,  (i) Consolidated
         Interest   Expense  for  such  period,   (ii)  current   maturities  of
         Consolidated  Indebtedness  during such period,  and (iii) Consolidated
         Lease Payments for such period,  all determined on a consolidated basis
         in  accordance  with GAAP  applied on a  Consistent  Basis,  subject to
         Acquisition Adjustments.

                  "Consolidated  Indebtedness"  means all Indebtedness for Money
         Borrowed  of the  Parent  and its  Subsidiaries,  all  determined  on a
         consolidated basis.

                  "Consolidated  Interest  Expense"  means,  with respect to any
         period of computation thereof, the gross interest expense of the Parent
         and its  Subsidiaries,  including  without  limitation  (i) the current
         amortized  portion of debt  discounts  to the extent  included in gross
         interest  expense,  (ii)  the  current  amortized  portion  of all fees
         (including  fees  payable in respect  of any Rate  Hedging  Obligation)
         payable in connection with the incurrence of Indebtedness to the extent
         included  in gross  interest  expense  and

                                       6

<PAGE>

         (iii) the  portion of any  payments  made in  connection  with  Capital
         Leases allocable to interest expense,  all determined on a consolidated
         basis in accordance with GAAP applied on a Consistent Basis, subject to
         Acquisition Adjustments;  provided, however, that Consolidated Interest
         Expense  shall  include the amount of payments in respect of  Synthetic
         Lease Obligations and the Permitted Receivables Securitization that are
         in the nature of interest.

                  "Consolidated  Lease  Payments"  means the gross amount of all
         lease or rental payments,  whether or not characterized as rent, of the
         Parent and its Subsidiaries,  excluding  payments in respect of Capital
         Leases  constituting  Indebtedness  or in  respect of  Synthetic  Lease
         Obligations,  all determined on a consolidated basis in accordance with
         GAAP applied on a Consistent Basis, subject to Acquisition Adjustments.

                  "Consolidated  Leverage  Ratio"  means,  as  of  the  date  of
         computation  thereof,  the  ratio of (i)  Consolidated  Total  Adjusted
         Indebtedness  (determined as at such date) to (ii) Consolidated EBITDAR
         (for the  Four-Quarter  Period ending on, (or most recently ended prior
         to), such date), subject to Acquisition Adjustments.

                  "Consolidated Net Income" means, for any period of computation
         thereof,  the gross  revenues  from  operations  of the  Parent and its
         Subsidiaries  (including  payments  received  by  the  Parent  and  its
         Subsidiaries   of  (i)  interest   income,   and  (ii)   dividends  and
         distributions  made in the  ordinary  course  of  their  businesses  by
         Persons in which investment is permitted pursuant to this Agreement and
         not  related  to  an  extraordinary  event),  less  all  operating  and
         non-operating  expenses  of the Parent and its  Subsidiaries  including
         taxes on income,  all determined on a consolidated  basis in accordance
         with  GAAP  applied  on a  Consistent  Basis;  but  excluding  (for all
         purposes other than compliance with Section 10.1(a)) as income: (i) net
         gains on the  acquisition,  retirement,  sale or other  disposition  of
         capital stock and other  securities of the Parent or its  Subsidiaries,
         (ii)  net  gains  on the  collection  of  proceeds  of  life  insurance
         policies,  (iii) any write-up of any asset, and (iv) any other net gain
         or credit of an  extraordinary  nature as determined on a  consolidated
         basis in accordance with GAAP applied on a Consistent Basis, subject to
         Acquisition Adjustments.

                  "Consolidated  Shareholders'  Equity" means, as of any date on
         which  the  amount  thereof  is to be  determined,  (i)  the sum of the
         following in respect of the Parent and its Subsidiaries  (determined on
         a  consolidated  basis and  excluding any upward  adjustment  after the
         Closing Date due to  revaluation  of assets):  (a) the amount of issued
         and  outstanding  share capital,  (b) the amount of additional  paid-in
         capital and retained earnings (or, in the case of a deficit,  minus the
         amount of such  deficit),  and (c) the amount of any  foreign  currency
         translation adjustment (if positive, or, if negative,  minus the amount
         of such translation adjustment),  (ii) minus the amount of any treasury
         stock,  all as determined on a  consolidated  basis in accordance  with
         GAAP applied on a Consistent Basis.

                  "Consolidated  Tangible  Net Worth"  means,  as of any date on
         which  the   amount   thereof   is  to  be   determined,   Consolidated
         Shareholders'  Equity  minus  the net book  value

                                       7

<PAGE>

         of all assets of the Parent and its Subsidiaries which would be treated
         as intangible assets,  such as (without  limitation)  goodwill (whether
         representing  the excess of cost over book value of assets  acquired or
         otherwise),   capitalized  expenses,   unamortized  debt  discount  and
         expense,  consignment  inventory  rights,  patents,  trademarks,  trade
         names,  copyrights,  franchises  and  licenses,  all as determined on a
         consolidated  basis in  accordance  with GAAP  applied on a  Consistent
         Basis.

                  "Consolidated  Total Adjusted  Indebtedness" means the sum of,
         without duplication, (i) Consolidated Indebtedness,  (ii) the amount of
         the present value of all future Consolidated Lease Payments (calculated
         using a reasonable discount rate acceptable to the Agent) for which the
         Parent or any  Subsidiary  of the  Parent is  obligated,  and (iii) all
         Contingent  Obligations  consisting of a guaranty of  Indebtedness  for
         Money Borrowed of the Parent and its Subsidiaries,  all determined on a
         consolidated  basis in  accordance  with GAAP  applied on a  Consistent
         Basis, subject to Acquisition Adjustments.

                  "Consolidated Total Assets" means, as of any date on which the
         amount thereof is to be determined, the net book value of all assets of
         the Parent and its  Subsidiaries as determined on a consolidated  basis
         in accordance with GAAP applied on a Consistent Basis.

                  "Contingent Obligation" means, as to any Person, any direct or
         indirect  liability  of that Person with  respect to any  Indebtedness,
         lease, dividend, guaranty, letter of credit or other obligation (each a
         "primary  obligation")  of  another  Person  (the  "primary  obligor"),
         whether or not  contingent,  (a) to purchase,  repurchase  or otherwise
         acquire any such primary obligation or any property constituting direct
         or indirect security  therefor,  or (b) to advance or provide funds (i)
         for the payment or discharge of any such primary obligation, or (ii) to
         maintain  working  capital or equity capital of the primary  obligor in
         respect of any such primary obligation or otherwise to maintain the net
         worth or  solvency  or any  balance  sheet  item,  level of  income  or
         financial  condition  of  such  primary  obligor,  or (c)  to  purchase
         property,  securities or services primarily for the purpose of assuring
         the owner of any such primary  obligation of the ability of the primary
         obligor  thereof to make  payment of such  primary  obligation,  or (d)
         otherwise  to assure  or hold  harmless  the owner of any such  primary
         obligation  against  loss or failure or inability to perform in respect
         thereof. The amount of any Contingent  Obligation shall be deemed to be
         an amount  equal to the stated or  determinable  amount of the  primary
         obligation in respect of which such  Contingent  Obligation is made or,
         if not  stated or  determinable,  the  maximum  reasonably  anticipated
         liability in respect thereof.

                  "Continue", "Continuation", and "Continued" shall refer to the
         continuation  pursuant to Section 4.2 hereof of a Eurodollar  Rate Loan
         as a Eurodollar Rate Loan from one Interest Period to the next Interest
         Period.

                  "Convert",  "Conversion",  and  "Converted"  shall  refer to a
         conversion  pursuant  to Section  4.2 of one Type of Loan into  another
         Type of Loan.

                                       8

<PAGE>

                  "Cost of Acquisition"  means, with respect to any Acquisition,
         as at the date of entering into any agreement therefor,  the sum of the
         following  (without  duplication):  (i) the value of the capital stock,
         warrants  or  options  to  acquire  capital  stock  of  Parent  or  any
         Subsidiary of the Parent to be  transferred  in  connection  therewith,
         (ii) the  amount of any cash and fair  market  value of other  property
         (excluding  property  described in clause (i) and the unpaid  principal
         amount of any debt instrument) given as consideration, (iii) the amount
         (determined by using the face amount or the amount payable at maturity,
         whichever is greater) of any Indebtedness incurred, assumed or acquired
         by the Parent or any  Subsidiary of the Parent in connection  with such
         Acquisition,  (iv) all additional purchase price amounts in the form of
         earnouts and other  contingent  obligations  that should be recorded on
         the  financial  statements  of  the  Parent  and  its  Subsidiaries  in
         accordance  with GAAP, (v) all amounts paid in respect of covenants not
         to compete,  consulting agreements that should be recorded on financial
         statements of the Parent and its  Subsidiaries in accordance with GAAP,
         and other  affiliated  contracts in connection  with such  Acquisition,
         (vi) the aggregate fair market value of all other  consideration  given
         by the Parent or any  Subsidiary of the Parent in connection  with such
         Acquisition, and (vii) out of pocket transaction costs for the services
         and expenses of attorneys,  accountants and other consultants  incurred
         in effecting such transaction,  and other similar  transaction costs so
         incurred.  For purposes of determining  the Cost of Acquisition for any
         transaction, (A) the capital stock of the Parent shall be valued (I) in
         the case of capital stock that is then  designated as a national market
         system security by the National Association of Securities Dealers, Inc.
         ("NASDAQ") or is listed on a national securities exchange,  the average
         of the last reported bid and ask quotations or the last prices reported
         thereon, and (II) with respect to any other shares of capital stock, as
         determined by the Board of Directors of the Parent and, if requested by
         the Agent,  determined to be a reasonable  valuation by the independent
         public accountants referred to in Section 9.1(a), (B) the capital stock
         of any  Subsidiary  of the Parent shall be valued as  determined by the
         Board of Directors of such  Subsidiary  and, if requested by the Agent,
         determined  to be a  reasonable  valuation  by the  independent  public
         accountants  referred to in Section 9.1(a), and (C) with respect to any
         Acquisition  accomplished  pursuant  to  the  exercise  of  options  or
         warrants or the conversion of securities, the Cost of Acquisition shall
         include both the cost of acquiring such option,  warrant or convertible
         security as well as the cost of exercise or conversion.

                  "Credit  Parties"  means,  collectively,   the  Borrower,  the
         Parent,  each  Guarantor  and each other Person  granting a Lien on, or
         collaterally assigning, Collateral pursuant to any Security Instrument.

                  "CTI" means Covenant Transport, Inc., a Tennessee corporation,
         a Subsidiary of the Parent and an Affiliate of the Borrower.

                  "CVTI" means CVTI Receivables Corp., a Nevada corporation.

                  "Default" means any event or condition which,  with the giving
         or  receipt  of notice or lapse of time or both,  would  constitute  an
         Event of Default hereunder.

                                       9

<PAGE>

                  "Default Rate" means (i) with respect to each  Eurodollar Rate
         Loan, until the end of the Interest Period applicable  thereto,  a rate
         of two percent (2%) above the Eurodollar  Rate applicable to such Loan,
         and  thereafter  at a rate of  interest  per annum  which  shall be two
         percent  (2%) above the Base Rate  (determined  by Base Rate Option 1),
         (ii) with respect to Base Rate Loans,  Swing Line Loans,  Reimbursement
         Obligations,  fees,  and  other  amounts  payable  in  respect  of  (x)
         Obligations or (y) (except as otherwise expressly provided therein) the
         obligations  of any Credit Party other than the  Borrower  under any of
         the other Loan  Documents,  a rate of interest per annum which shall be
         two percent (2%) above the Base Rate (determined by Base Rate Option 1)
         and (iii) in any case, the maximum rate permitted by applicable law, if
         lower.

                  "Direct  Foreign  Subsidiary" of any Person means a Subsidiary
         other than a Domestic  Subsidiary  of such  Person a majority  of whose
         Voting Securities,  or a majority of whose Subsidiary  Securities,  are
         owned by such Person or a Domestic Subsidiary of such Person.

                  "Dollars" and the symbol "$" means dollars  constituting legal
         tender for the payment of public and private debts in the United States
         of America.

                  "Domestic  Subsidiary"  of any Person means any  Subsidiary of
         such Person  organized  under the laws of the United States of America,
         any state or territory thereof or the District of Columbia.

                  "Eligible Assignee" means (i) a Lender, (ii) an Affiliate of a
         Lender, and (iii) any other Person approved by the Agent and, unless an
         Event  of  Default  has  occurred  and is  continuing  at the  time any
         assignment is effected in accordance  with Section 13.1,  the Borrower,
         such  approval  not to be  unreasonably  withheld  (provided  that  the
         incurrence by the Borrower of additional  costs pursuant to Section 6.6
         as a result of such assignment  shall constitute a reasonable basis for
         withholding  such consent) or delayed by the Borrower or the Agent, and
         such  approval to be deemed  given by the  Borrower  (in the absence of
         notice to the contrary,  effective  upon  receipt)  within two Business
         Days after notice of such proposed  assignment has been provided by the
         assigning Lender to the Borrower;  provided,  however, that neither the
         Borrower,  the Parent nor an  Affiliate  of the  Borrower or the Parent
         shall qualify as an Eligible Assignee.

                  "Eligible  Revenue  Equipment" means any equipment,  including
         all  tractors,  trucks,  trailers  and  similar  equipment  used in the
         conduct of the trucking business of the Parent and its Subsidiaries and
         not  constituting  inventory,  owned by the Parent or any Subsidiary of
         the Parent  which (i) is subject to no Lien other than Liens  permitted
         by Section  10.3 (a),  (b) or (c),  (ii) is in salable and good working
         condition, and (iii) is not stored or located (or as to motor vehicles,
         garaged or otherwise  permanently  located) at a location  other than a
         place of business of the Parent or any Subsidiary of the Parent.

                  "Eligible  Securities" means the following obligations and any
         other obligations previously approved in writing by the Agent:

                                       10

<PAGE>

                           (a)  Government Securities;

                           (b)  obligations of any  corporation  organized under
                  the laws of any state of the United States of America or under
                  the laws of any other nation,  payable in the United States of
                  America,  expressed to mature not later than 92 days following
                  the date of issuance  thereof and rated in an investment grade
                  rating category by S&P and Moody's; and

                           (c) interest  bearing demand or time deposits  issued
                  by any Lender or certificates  of deposit  maturing within one
                  year from the date of issuance thereof and issued by a bank or
                  trust company organized under the laws of the United States or
                  of any state  thereof  having  capital  surplus and  undivided
                  profits  aggregating at least $400,000,000 and being rated "A"
                  or better by S&P or "A" or better by Moody's.

                  "Employee  Benefit Plan" means (i) any employee  benefit plan,
         including any Pension Plan, within the meaning of Section 3(3) of ERISA
         which (A) is maintained for employees of the Parent or any of its ERISA
         Affiliates, or any Subsidiary of the Parent or is assumed by the Parent
         or any of its ERISA  Affiliates,  or any  Subsidiary  of the  Parent in
         connection  with any Acquisition or (B) has at any time been maintained
         for the employees of the Parent, any current or former ERISA Affiliate,
         or any  Subsidiary  of the  Parent  and  (ii)  any  plan,  arrangement,
         understanding  or scheme  maintained by the Parent or any Subsidiary of
         the Parent that provides retirement, deferred compensation, employee or
         retiree  medical or life  insurance,  severance  benefits  or any other
         benefit   covering  any  employee  or  former  employee  and  which  is
         administered  under  any  Foreign  Benefit  Law  or  regulated  by  any
         Governmental Authority other than the United States of America.

                  "Environmental  Laws"  means  any  federal,   state  or  local
         statute, law, ordinance, code, rule, regulation,  order, decree, permit
         or license regulating,  relating to, or imposing liability or standards
         of  conduct  concerning,   any  environmental  matters  or  conditions,
         environmental protection or conservation, including without limitation,
         the Comprehensive  Environmental  Response,  Compensation and Liability
         Act of 1980, as amended;  the Superfund  Amendments and Reauthorization
         Act of 1986, as amended; the Resource Conservation and Recovery Act, as
         amended;  the Toxic Substances  Control Act, as amended;  the Clean Air
         Act, as amended;  the Clean  Water Act, as amended;  together  with all
         regulations  promulgated  thereunder,  and  any  other  "Superfund"  or
         "Superlien" law.

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

                  "ERISA  Affiliate",  as applied to the Parent or the Borrower,
         respectively,  means any Person or trade or business  which is a member
         of a group  which is  under  common  control  with  the  Parent  or the
         Borrower,  respectively,  who together with the Parent or the

                                       11

<PAGE>

         Borrower,  respectively,  is  treated as a single  employer  within the
         meaning of Section 414(b) and (c) of the Code.

                  "Eurodollar  Rate  Loan"  means a Loan for  which  the rate of
         interest is determined by reference to the Eurodollar Rate.

                  "Eurodollar Rate" means the interest rate per annum calculated
         according to the following formula:

                  Eurodollar   =    Interbank Offered Rate    +   Applicable
                                  --------------------------
                     Rate          1-  Reserve Requirement          Margin

                  "Event of Default" means any of the  occurrences  set forth as
         such in Section 11.1.

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

                  "Existing  Facility"  means that certain term loan,  revolving
         credit and letter of credit  facility  provided to Borrower by ABN AMRO
         Bank N.V., as Agent, the Banks named therein,  and the Letter of Credit
         Banks named  therein,  in the  maximum  aggregate  principal  amount of
         $130,000,000, established pursuant to that certain Amended and Restated
         Credit  Agreement dated as of June 18, 1999, as amended by Amendment to
         Amended and Restated Loan Agreement dated as of June 6, 2000.

                  "Facility  Guaranties"  means,  collectively,   the  following
         Guaranty Agreements, as each of the same may be amended,  supplemented,
         amended and restated, or otherwise modified from time to time:

                           (i) that certain Parent  Guaranty  Agreement dated as
                  of  December  13, 2000 by the Parent in favor of the Agent and
                  the Lenders, substantially in the form of Exhibit I-1 attached
                  hereto;

                           (ii) that certain Subsidiary Guaranty Agreement dated
                  as of  December  13,  2000 by the  Guarantors  other  than the
                  Parent ("Subsidiary Guarantors") in favor of the Agent and the
                  Lenders,  substantially  in the form of Exhibit  I-2  attached
                  hereto; and

                           (iii) any additional  Guaranty Agreement delivered to
                  the Agent  pursuant to Section 9.19 hereof,  substantially  in
                  the form of Exhibit  I-2  attached  hereto  (with  appropriate
                  conforming changes).

                  "Facility  Termination  Date"  means  such  date as all of the
         following shall have occurred:  (a) the Borrower shall have permanently
         terminated the Revolving  Credit Facility and the Swing Line by payment
         in full of all  Revolving  Credit  Outstandings  and  Letter  of Credit
         Outstandings and Swing Line Outstandings, together with all accrued and
         unpaid interest  thereon,  except for the undrawn portion of Letters of
         Credit as have been

                                       12

<PAGE>

         fully  cash  collateralized  in a manner  consistent  with the terms of
         Section  11.1(B),  (b) all Swap Agreements  shall have been terminated,
         expired or cash  collateralized  on terms  acceptable to the Agent, (c)
         all Revolving Credit Commitments and Letter of Credit Commitments shall
         have  terminated  or expired  and (d) the  Borrower  shall have  fully,
         finally and  irrevocably  paid and  satisfied  in full all  Obligations
         (other than Obligations  consisting of continuing indemnities and other
         contingent  Obligations  of the Borrower or any  Guarantor  that may be
         owing to the  Lenders  pursuant  to the Loan  Documents  and  expressly
         survive termination of this Agreement);

                  "FASB 133" means Statement of Financial  Accounting  Standards
         No. 133.

                  "Federal  Funds Rate"  means,  for any day, the rate per annum
         (rounded  upwards,  if necessary,  to the nearest 1/100 of 1%) equal to
         the  weighted   average  of  the  rates  on  overnight   Federal  funds
         transactions  with members of the Federal  Reserve  System  arranged by
         Federal funds brokers on such day, as published by the Federal  Reserve
         Bank of New York on the Business Day next succeeding such day; provided
         that (a) if such day is not a Business  Day, the Federal Funds Rate for
         such day shall be such rate on such  transactions on the next preceding
         Business Day as so published on the next  succeeding  Business Day, and
         (b) if no such rate is so  published on such next  succeeding  Business
         Day,  the  Federal  Funds Rate for such day shall be the  average  rate
         charged to the Agent (in its  individual  capacity) on such day on such
         transactions as determined by the Agent.

                  "Fiscal  Year"  means the twelve  month  fiscal  period of the
         Parent and its  Subsidiaries  commencing  on January 1 of each calendar
         year and ending on December 31 of each calendar year.

                  "Foreign  Benefit  Law"  means any  applicable  statute,  law,
         ordinance,  code,  rule,  regulation,  order or decree  of any  foreign
         nation  or  any  province,  state,  territory,  protectorate  or  other
         political  subdivision  thereof  regulating,  relating  to, or imposing
         liability  or  standards of conduct  concerning,  any Employee  Benefit
         Plan.

                  "Four-Quarter  Period" means a period of four full consecutive
         fiscal quarters of the Parent and its  Subsidiaries,  taken together as
         one accounting period.

                  "GAAP" or "Generally  Accepted  Accounting  Principles"  means
         generally  accepted  accounting  principles,  being those principles of
         accounting  set forth in  pronouncements  of the  Financial  Accounting
         Standards   Board,   the  American   Institute   of  Certified   Public
         Accountants,  or which have other substantial authoritative support and
         are applicable in the circumstances as of the date of a report.

                  "Government   Securities"  means  direct  obligations  of,  or
         obligations  the timely  payment of principal and interest on which are
         fully and unconditionally guaranteed by, the United States of America.

                                       13

<PAGE>

                  "Governmental   Authority"  shall  mean  any  Federal,  state,
         municipal,  national  or  other  governmental  department,  commission,
         board,   bureau,   court,   agency  or   instrumentality  or  political
         subdivision  thereof  or any entity or  officer  exercising  executive,
         legislative,  judicial,  regulatory or  administrative  functions of or
         pertaining  to any  government  or any  court,  in  each  case  whether
         associated with a state of the United States,  the United States,  or a
         foreign entity or government.

                  "Guarantors"  means,  at any date,  the Parent,  CTI,  and all
         other  Subsidiaries  of the Parent at such date who have  executed  and
         delivered a Facility  Guaranty  and related  documents  at such date as
         required hereunder.

                  "Hazardous   Material"   means  and  includes  any  pollutant,
         contaminant,  or  hazardous,  toxic or  dangerous  waste,  substance or
         material    (including   without   limitation    petroleum    products,
         asbestos-containing  materials  and lead),  the  generation,  handling,
         storage,  transportation,  disposal,  treatment,  release, discharge or
         emission of which is subject to any Environmental Law.

                  "Increased  Commitment  Date"  has the  meaning  set  forth in
         Section 2.1(f).

                  "Increasing  Lender"  has the  meaning  set  forth in  Section
         2.1(f).

                  "Indebtedness"  means as to any Person,  without  duplication,
         (a) all  Indebtedness  for Money Borrowed of such Person,  (b) all Rate
         Hedging Obligations of such Person, (c) all indebtedness secured by any
         Lien on any  property or asset owned or held by such Person  regardless
         or whether the indebtedness  secured thereby shall have been assumed by
         such Person or is  non-recourse  to the credit of such Person,  and (d)
         all  Contingent  Obligations  of such Person,  including all such items
         incurred by any partnership or joint venture as to which such Person is
         liable as a general partner or joint venturer.

                  "Indebtedness  for Money  Borrowed"  means with respect to any
         Person,  without  duplication,  all  indebtedness  in  respect of money
         borrowed,  including without limitation,  all obligations under Capital
         Leases,   all   amounts   outstanding   under   Permitted   Receivables
         Securitizations,   all  Synthetic   Lease   Obligations,   all  amounts
         outstanding under the Senior Notes, all Subordinated Indebtedness,  the
         deferred purchase price of any property or services, the aggregate face
         amount  of  all  surety   bonds,   letters  of  credit,   and  bankers'
         acceptances,  and (without  duplication) all payment and  reimbursement
         obligations in respect thereof  whether or not matured,  evidenced by a
         promissory note, bond,  debenture or similar written obligation for the
         payment of money  (including  reimbursement  agreements and conditional
         sales or similar title retention agreements),  including all such items
         incurred by any partnership or joint venture as to which such Person is
         liable  as a  general  partner  or joint  venturer,  other  than  trade
         payables  and  accrued  expenses  incurred  in the  ordinary  course of
         business.

                  "Interbank Offered Rate" means, with respect to any Eurodollar
         Rate Loan for the Interest Period applicable thereto:

                                       14

<PAGE>

                           (a) the rate per annum  equal to the rate  determined
                  by the Agent to be the offered  rate that  appears on the page
                  of the  Telerate  screen  that  displays  an  average  British
                  Bankers  Association  Interest Settlement Rate for deposits in
                  Dollars  (for  delivery  on the  first  day of  such  Interest
                  Period)  with a  term  equivalent  to  such  Interest  Period,
                  determined as of  approximately  11:00 a.m.  (London time) two
                  Business Days prior to the first day of such Interest  Period,
                  or

                           (b) in the event the rate referenced in the preceding
                  subsection (a) does not appear on such page or service or such
                  page or  service  shall  cease to be  available,  the rate per
                  annum  equal to the  rate  determined  by the  Agent to be the
                  offered rate on such other page or other service that displays
                  an average British  Bankers  Association  Interest  Settlement
                  Rate for deposits in Dollars (for delivery on the first day of
                  such Interest  Period) with a term equivalent to such Interest
                  Period,  determined  as of  approximately  11:00 a.m.  (London
                  time)  two  Business  Days  prior  to the  first  day of  such
                  Interest Period, or

                           (c)  in  the  event  the  rates   referenced  in  the
                  preceding subsections (a) and (b) are not available,  the rate
                  per  annum  determined  by the  Agent as the rate of  interest
                  (rounded  upward to the next 1/100th of 1%) at which  deposits
                  in  Dollars  for  delivery  on the first day of such  Interest
                  Period  in same day  funds in the  approximate  amount  of the
                  Eurodollar  Rate Loan being made,  continued  or  converted by
                  Bank of America and with a term  equivalent  to such  Interest
                  Period would be offered by Bank of America's  London Branch to
                  major banks in the offshore  Dollar market at their request at
                  approximately 11:00 a.m. (London time) two Business Days prior
                  to the first day of such Interest Period.

                  "Intercompany  Borrowing Notes" means,  collectively,  each of
         (i) the promissory  note of CTI, dated January 1, 2000,  payable to the
         order of the Borrower in the principal amount of $100,000,000, (ii) the
         promissory  note of Harold Ives  Trucking  Co.,  dated January 1, 2000,
         payable  to the  order  of the  Borrower  in the  principal  amount  of
         $75,000,000,   (iii)  the  promissory  note  of  Southern  Refrigerated
         Transport,  Inc.,  dated  January 1, 2000,  payable to the order of the
         Borrower in the principal  amount of  $30,000,000,  (iv) the promissory
         note of CIP,  dated  January  1,  2000,  payable  to the  order  of the
         Borrower in the principal amount of $1,000,000, (v) the promissory note
         of Covenant.com,  Inc., dated January 1, 2000,  payable to the order of
         the Borrower in the principal amount of $1,000,000,  and (vi) any other
         promissory  note at any time  outstanding  issued by the  Parent or any
         Subsidiary  of the Parent in favor of the Parent,  the  Borrower or any
         other Subsidiary of the Parent, in form and substance acceptable to the
         Agent and the Required Lenders, which evidences a loan or other advance
         from the Parent, the Borrower or such other Subsidiary of the Parent to
         the Parent or any Subsidiary of the Parent.

                  "Intercompany Investment Notes" means,  collectively,  each of
         (i) the promissory  note of CTI, dated January 1, 2000,  payable to the
         order of the  Parent  in the  principal  amount  of  $100,000,000,  and
         subsequently endorsed and assigned (with recourse) by the Parent to the
         order  of the  Borrower  as a  capital  contribution  pursuant  to that
         certain

                                       15

<PAGE>

         Conveyance  Agreement dated as of January 1, 2000 by and between Parent
         and Borrower (the "Conveyance Agreement"),  (ii) the promissory note of
         Southern Refrigerated  Transport,  Inc., dated January 1, 2000, payable
         to the  order  of  CTI  in the  principal  amount  of  $10,693,014  and
         subsequently  endorsed and assigned (with recourse) by CTI to the order
         of the Parent as a distribution,  and thereafter  endorsed and assigned
         (with recourse) by the Parent to the order of the Borrower as a capital
         contribution  pursuant  to  the  Conveyance  Agreement  and  (iii)  the
         promissory  note of Terminal  Trucker  Broker,  Inc.,  dated January 1,
         2000, payable to the order of CTI in the principal amount of $4,647,439
         and  subsequently  endorsed and assigned (with  recourse) by CTI to the
         Parent as a  distribution,  and thereafter  endorsed and assigned (with
         recourse)  by the  Parent to the  Borrower  as a  capital  contribution
         pursuant to the Conveyance Agreement.

                  "Intercompany Note Pledge Agreements" means, collectively, (i)
         that certain Intercompany Note Pledge Agreement dated as of the Closing
         Date in favor of the  Collateral  Agent for the ratable  benefit of the
         Agent and the Lenders and the holders of the Senior  Notes  executed by
         the Borrower  pledging  and  collectively  assigning to the  Collateral
         Agent for the  benefit of the Agent and the  Lenders and the holders of
         the Senior Notes each Intercompany  Note,  substantially in the form of
         Exhibit N-1 attached hereto and incorporated  herein by reference,  and
         (ii) any additional Intercompany Note Pledge Agreement delivered to the
         Collateral  Agent  by the  Parent  or any  Subsidiary  pursuant  to the
         provisions of Article V and Section 9.19 hereof,  substantially  in the
         form  of  Exhibit  N-1  attached  hereto  and  incorporated  herein  by
         reference  (with  appropriate  conforming  changes),  each as  amended,
         restated, supplemented or otherwise modified.

                  "Intercompany  Notes" means,  collectively,  each Intercompany
         Borrowing Note and each Intercompany Investment Note.

                  "Intercreditor  Agreement"  means that certain  Second Amended
         and Restated Master Collateral and Intercreditor  Agreement dated as of
         the Closing  Date by and among the  Collateral  Agent,  the Agent,  the
         Lenders and the holders of the Senior Notes.

                  "Interest  Period"  means,  for each  Eurodollar  Rate Loan, a
         period  commencing  on the date  such  Eurodollar  Rate Loan is made or
         Converted or Continued and ending,  at the  Borrower's  option,  on the
         date one, two, three or six months  thereafter as notified to the Agent
         by the Authorized  Representative  in accordance with the terms hereof;
         provided that,

                           (a) if an Interest  Period for a Eurodollar Rate Loan
                  would end on a day which is not a Business  Day, such Interest
                  Period shall be extended to the next Business Day (unless such
                  extension would cause the applicable Interest Period to end in
                  the  succeeding  calendar  month,  in which case such Interest
                  Period shall end on the next preceding Business Day); and

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

                                       16

<PAGE>

                  in the  calendar  month  at the end of such  Interest  Period)
                  shall end on the last Business Day of a calendar month.

                  "Interest  Rate  Selection  Notice"  means the written  notice
         delivered  by an  Authorized  Representative  in  connection  with  the
         election of a subsequent  Interest  Period for any Eurodollar Rate Loan
         or the Conversion of any Eurodollar  Rate Loan into a Base Rate Loan or
         the  Conversion  of any Base Rate Loan into a Eurodollar  Rate Loan, in
         the form of Exhibit E.

                  "Issuing Bank" means  initially Bank of America and thereafter
         any  Lender  which  succeeds  Bank of  America  as issuer of Letters of
         Credit under Article III.

                  "Letter of Credit"  means a standby  or  commercial  letter of
         credit  issued by the Issuing  Bank  pursuant to Article III hereof for
         the account of the Borrower (or the Borrower and any  Subsidiary of the
         Parent) in favor of a Person advancing credit or securing an obligation
         on behalf of the Borrower or any Subsidiary of the Parent.

                  "Letter  of Credit  Commitment"  means,  with  respect to each
         Lender,  the  obligation  of such Lender to acquire  Participations  in
         respect of Letters of Credit  and  Reimbursement  Obligations  up to an
         aggregate  amount at any one time  outstanding  equal to such  Lender's
         Applicable   Commitment  Percentage  of  the  Total  Letter  of  Credit
         Commitment, as the same may be increased or decreased from time to time
         pursuant to this Agreement.

                  "Letter of Credit  Facility"  means the facility  described in
         Article III hereof  providing  for the issuance by the Issuing Bank for
         the account of the Borrower of Letters of Credit in an aggregate stated
         amount at any time outstanding not exceeding the Total Letter of Credit
         Commitment minus outstanding Reimbursement Obligations.

                  "Letter  of  Credit  Outstandings"  means,  as of any  date of
         determination,  the  aggregate  amount  available to be drawn under all
         Letters of Credit  then  issued  plus  Reimbursement  Obligations  then
         outstanding.

                  "Licensing  Agreements"  means,  collectively,   each  written
         license agreement,  in form and substance satisfactory to the Agent, by
         and among the Borrower or any other Credit Party, as licensee, and CIP,
         as  licensor,  pursuant to which the  Borrower or such Credit  Party or
         Parties  will  have  the  right  to use all  trademarks,  trade  names,
         goodwill,  rights under certain  license  agreements  regarding  source
         code, internally developed software,  and certain know-how conducive to
         the operation of a trucking company, and shall pay royalties to CIP, in
         connection  with  such  use in  amounts  established  by  such  license
         agreement,  including  but not  limited  to that  certain  Intellectual
         Property  License and Services  Agreement  dated October 1, 1999 by and
         between  CIP, as  licensor,  and CTI,  as  licensee,  and that  certain
         Intellectual  Property License and Services  Agreement dated October 1,
         1999  by and  between  CIP,  as  licensor,  and  Southern  Refrigerated
         Transport, Inc., as licensee.

                                       17

<PAGE>

                  "Licensor  Acknowledgement  and Agreement"  means the licensor
         consent, waiver and estoppel certificates described in Section 5.4.

                  "Lien" means any interest in property  securing any obligation
         owed to, or a claim by, a Person other than the owner of the  property,
         whether such interest is based on the common law,  statute or contract,
         and including but not limited to the lien or security  interest arising
         from a mortgage, encumbrance,  pledge, security agreement,  conditional
         sale or trust receipt or a lease,  consignment or bailment for security
         purposes.  For the  purposes  of this  Agreement,  the  Parent  and any
         Subsidiary  of the  Parent  shall  be  deemed  to be the  owner  of any
         property  which it has acquired or holds subject to a conditional  sale
         agreement,  financing  lease,  or other  arrangement  pursuant to which
         title to the  property  has been  retained  by or vested in some  other
         Person for security purposes.

                  "Loan" or Loans" means any of the Revolving Loans or the Swing
         Line Loans.

                  "Loan Documents" means this Agreement, the Notes, the Security
         Instruments,  the Facility Guaranties, the Intercreditor Agreement, the
         Applications and Agreements for Letters of Credit and all Subordination
         Agreements,  and all other  instruments  and  documents  heretofore  or
         hereafter executed or delivered to or in favor of any Lender (including
         the Issuing  Bank) or the Agent or the  Collateral  Agent in connection
         with the Loans made and transactions contemplated under this Agreement,
         but excluding documents or instruments  evidencing Swap Agreements,  as
         the same may be  amended,  supplemented  or  replaced  from the time to
         time.

                  "Material  Adverse Effect" means a material  adverse effect on
         (i) the  business,  properties,  operations,  prospects  or  condition,
         financial or otherwise,  of the Parent and its Subsidiaries  taken as a
         whole,  (ii) the  ability  of any Credit  Party to pay or  perform  its
         respective  obligations,  liabilities and  indebtedness  under the Loan
         Documents as such payment or performance becomes due in accordance with
         the terms  thereof,  or (iii) the  rights,  powers and  remedies of the
         Agent or any Lender under any Loan Document or the  validity,  legality
         or enforceability thereof.

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

                  "Multiemployer  Plan" means a "multiemployer  plan" as defined
         in  Section  4001(a)(3)  of ERISA to which  the  Borrower  or any ERISA
         Affiliate   is  making,   or  is  accruing  an   obligation   to  make,
         contributions  or has made,  or been  obligated to make,  contributions
         within the preceding six (6) Fiscal Years.

                  "Notes"  means,  collectively,  the  Swing  Line  Note and the
         Revolving Notes.

                  "Obligations"   means   the   obligations,   liabilities   and
         Indebtedness  of the  Borrower  with respect to (i) the  principal  and
         interest on the Loans as evidenced by the Notes, (ii) the Reimbursement
         Obligations  and  otherwise in respect of the Letters of Credit,  (iii)
         all  liabilities  of  Borrower to any Lender (or any  affiliate  of any
         Lender)  which arise under a Swap  Agreement,  and (iv) the payment and
         performance of all other  obligations,

                                       18

<PAGE>

         liabilities and Indebtedness of the Borrower to the Lenders  (including
         the Issuing Bank),  the Agent,  the Collateral  Agent or BAS hereunder,
         under any one or more of the other Loan  Documents  or with  respect to
         the Loans.

                  "Operating  Documents"  means with respect to any corporation,
         limited liability company,  partnership,  limited partnership,  limited
         liability  partnership  or other  legally  authorized  incorporated  or
         unincorporated  entity, the bylaws,  operating  agreement,  partnership
         agreement,  limited partnership agreement or other applicable documents
         relating to the operation, governance or management of such entity.

                  "Organizational Action" means with respect to any corporation,
         limited liability company,  partnership,  limited partnership,  limited
         liability  partnership  or other  legally  authorized  incorporated  or
         unincorporated  entity,  any corporate,  organizational  or partnership
         action (including any required shareholder,  member or partner action),
         or other similar official action, as applicable, taken by such entity.

                  "Organizational   Documents"   means   with   respect  to  any
         corporation,    limited   liability   company,   partnership,   limited
         partnership,  limited liability partnership or other legally authorized
         incorporated or unincorporated  entity,  the articles of incorporation,
         certificate of incorporation, articles of organization,  certificate of
         limited  partnership  or other  applicable  organizational  or  charter
         documents relating to the creation of such entity.

                  "Outstandings" means, collectively, at any date, the Letter of
         Credit  Outstandings,  Swing Line  Outstandings  and  Revolving  Credit
         Outstandings on such date.

                  "Participation"  means,  (i) with respect to any Lender (other
         than the Issuing Bank) and a Letter of Credit,  the extension of credit
         represented  by the  participation  of  such  Lender  hereunder  in the
         liability of the Issuing  Bank in respect of a Letter of Credit  issued
         by the Issuing Bank in  accordance  with the terms hereof and (ii) with
         respect to any Lender  (other  than Bank of  America)  and a Swing Line
         Loan, the extension of credit  represented by the participation of such
         Lender  hereunder  in the  liability of Bank of America in respect of a
         Swing Line Loan made by Bank of America  in  accordance  with the terms
         hereof.

                  "PBGC" means the Pension Benefit Guaranty  Corporation and any
         successor thereto.

                  "Pension Plan" means any employee  pension benefit plan within
         the meaning of Section 3(2) of ERISA, other than a Multiemployer  Plan,
         which is subject to the  provisions of Title IV of ERISA or Section 412
         of the Code and which (i) is maintained  for employees of the Parent or
         the Borrower or any of their  respective ERISA Affiliates or is assumed
         by  the  Parent  or the  Borrower  or any  of  their  respective  ERISA
         Affiliates in connection  with any  Acquisition or (ii) has at any time
         been  maintained for the employees of the Parent or the Borrower or any
         current or former ERISA Affiliate.

                                       19

<PAGE>

                  "Permitted Receivables  Securitization" means limited recourse
         or nonrecourse sales and assignments of accounts receivable of Borrower
         or  any  Subsidiary  of the  Parent  to one  or  more  special  purpose
         entities,  in  connection  with the  issuance  of  obligations  by such
         special purpose entities secured by such accounts,  the proceeds of the
         issuance of which  obligations  shall be made available to the Borrower
         or such  Subsidiary of the Parent,  as applicable,  all pursuant to the
         terms and conditions of the Receivables Purchase Agreement.

                  "Permitted Share Repurchases" means purchases by the Parent of
         the  common  stock  of the  Parent  made on the open  market,  on terms
         acceptable to the Agent and in compliance with applicable  regulations,
         which  purchases in the aggregate  shall be subject to the  limitations
         set forth in Section 10.8.

                  "Person"  means  an  individual,   partnership,   corporation,
         limited  liability  company,  limited  liability  partnership,   trust,
         unincorporated organization, association, joint venture or a government
         or agency or political subdivision thereof.

                  "Pledge Agreements" means, collectively,  the following Pledge
         Agreements, as each of the same may be amended, supplemented (including
         by Pledge  Agreement  Supplement),  amended and restated,  or otherwise
         modified from time to time:

                           (i) that certain Second  Amended and Restated  Parent
                  Stock Pledge and Security  Agreement  dated as of December 13,
                  2000 by the Parent in favor of the Collateral  Agent,  for the
                  ratable  benefit of the Agent and the  Lenders and the holders
                  of the Senior  Notes,  amending  and  restating  that  certain
                  Amended  and   Restated   Parent  Stock  Pledge  and  Security
                  Agreement  dated as of June 6, 2000 by the  Parent in favor of
                  the  Prior  Collateral  Agent,  substantially  in the  form of
                  Exhibit J-1 attached hereto;

                           (ii)  that  certain   Second   Amended  and  Restated
                  Guarantor  Stock  Pledge and  Security  Agreement  dated as of
                  December 13, 2000 by CTI in favor of the Collateral Agent, for
                  the  ratable  benefit  of the  Agent and the  Lenders  and the
                  holders of the  Senior  Notes,  amending  and  restating  that
                  certain  Amended  and  Restated  Guarantor  Stock  Pledge  and
                  Security Agreement dated as of June 6, 2000 by CTI in favor of
                  the  Prior  Collateral  Agent,  substantially  in the  form of
                  Exhibit J-2 attached hereto;

                           (iii) any additional  Pledge  Agreement  delivered to
                  the  Collateral  Agent  pursuant to Article V or Section  9.19
                  hereof,  substantially  in the form attached hereto as Exhibit
                  J-1 (with appropriate conforming changes); and

                           (iv) with respect to any Subsidiary Securities issued
                  by a Direct Foreign  Subsidiary of the Parent or the Borrower,
                  any  additional or  substitute  charge,  agreement,  document,
                  instrument or conveyance,  in form and substance acceptable to
                  the  Agent  and  the  Collateral   Agent,

                                       20

<PAGE>

                  conferring  under  applicable  foreign law upon the Collateral
                  Agent for the ratable benefit of the Agent and the Lenders and
                  the  holders of the Senior  Notes a Lien upon such  Subsidiary
                  Securities  as are owned by the  Parent,  the  Borrower or any
                  Domestic Subsidiary of the Parent or the Borrower.

                  "Pledge  Agreement  Supplement"  means,  with  respect to each
         Pledge Agreement,  the Pledge Agreement  Supplement in the form affixed
         as an Exhibit to such Pledge Agreement.

                  "Pledged  Interests" means the Subsidiary  Securities required
         to be pledged as  Collateral  pursuant to Article V or Section  9.19 or
         the terms of any Pledge Agreement.

                  "Pricing Grid" means:
<TABLE>
<CAPTION>
                                                                                       Applicable
                             Consolidated Leverage                Applicable            Unused
                   Tier             Ratio                            Margin               Fee
                   ----             -----                            ------               ---
                   <S>       <C>                                  <C>                  <C>
                   V         Greater than or equal to                 1.25%               0.25%
                             2.50 to 1.00

                   IV        Less than 2.50 to 1.00 and               1.125%              0.225%
                             Greater than or equal to
                             2.25 to 1.00

                   III       Less than 2.25 to 1.00 and               1.00%               0.20%
                             Greater than or equal to
                             2.00 to 1.00

                   II        Less than 2.00 to 1.00 and               0.875%              0.175%
                             Greater than or equal to
                             1.75 to 1.00

                   I         Less than 1.75 to 1.00                   0.75%               0.150%

</TABLE>

         The Applicable Margin and Applicable Unused Fee shall be established at
         the end of each fiscal  quarter of the Parent (each,  a  "Determination
         Date").  Any change in the Applicable  Margin or Applicable  Unused Fee
         following each  Determination  Date shall be determined  based upon the
         computations  set  forth  in the  certificate  furnished  to the  Agent
         pursuant  to Section  9.1(a)(ii)  and  Section  9.1(b)(ii),  subject to
         review and  approval of such  computations  by the Agent,  and shall be
         effective  commencing on the fifth Business Day following the date such
         certificate is received until the fifth Business Day following the date
         on which a new certificate is delivered or is required to be delivered,
         whichever  shall  first  occur.  From  the  Closing  Date to the  fifth
         Business  Day  following  the date the  certificate  referred to in the
         preceding  sentence  for  the  fiscal  period  ended  as at  the  first
         Determination  Date to occur after the Closing  Date is delivered or is
         required

                                       21

<PAGE>

         to be delivered  (whichever shall first occur),  the Applicable  Margin
         and  Applicable  Unused  Fee  shall be Tier  III.  Notwithstanding  the
         provisions of the two preceding  sentences,  if the Borrower shall fail
         to deliver  any such  certificate  within the time  period  required by
         Section 9.1, then the Applicable Margin and Applicable Unused Fee shall
         be Tier V from  the date  such  certificate  was due  until  the  fifth
         Business  Day  following  the date the  appropriate  certificate  is so
         delivered.

                  "Prime Rate" means the per annum rate of interest  established
         from time to time by Bank of America as its prime rate,  which rate may
         not be the lowest  rate of  interest  charged by Bank of America to its
         customers.

                  "Principal  Office"  means  the  principal  office  of Bank of
         America,  presently located at 101 North Tryon Street,  15th Floor, NC1
         001-15-04, Charlotte, North Carolina 28255, Attention: Agency Services,
         or such  other  office  and  address as the Agent may from time to time
         designate.

                  "Prior  Collateral  Agent" means First Union National Bank, as
         Collateral Agent under the Prior Intercreditor Agreement.

                  "Prior Intercreditor Agreement" means that certain Amended and
         Restated Master Collateral and Intercreditor Agreement dated as of June
         6, 2000 by and among the Prior  Collateral  Agent,  the  holders of the
         Senior  Notes,  ABN  AMRO  Bank,  N.V.,  and  the  other  participating
         creditors (including the Lenders) party thereto.

                  "Rate  Hedge  Value"  means,  with  respect to each  contract,
         instrument or other arrangement creating a Rate Hedging Obligation, the
         net obligations of the Borrower,  the Parent,  or any Subsidiary of the
         Parent  thereunder equal to the termination value thereof as determined
         in accordance with its provisions (if such Rate Hedging  Obligation has
         been  terminated)  or the mark to market value thereof as determined on
         the basis of available  quotations  from any  recognized  dealer in, or
         from Bloomberg or other similar  service  providing  market  quotations
         for,  the  applicable  Rate  Hedging  Obligation  (if such Rate Hedging
         Obligation has not been terminated).

                  "Rate Hedging Obligations" means, without duplication, any and
         all obligations of the Borrower or any Subsidiary,  whether absolute or
         contingent and howsoever and whensoever created, arising,  evidenced or
         acquired (including all renewals,  extensions and modifications thereof
         and substitutions therefor), under (i) any and all agreements,  devices
         or arrangements designed to protect at least one of the parties thereto
         from the  fluctuations  of interest  rates,  exchange  rates or forward
         rates,  including  fuel  prices,  applicable  to such  party's  assets,
         liabilities or exchange  transactions,  including,  but not limited to,
         Dollar-denominated or cross-currency interest rate exchange agreements,
         forward  currency  exchange  agreements,  interest  rate cap or  collar
         protection agreements,  forward rate currency or interest rate options,
         puts,  warrants  and  those  commonly  known as  interest  rate  "swap"
         agreements  and  forward  fuel  purchase  contracts,   commitments,  or
         options; (ii) all other "derivative instruments" as defined in FASB 133
         and which are subject to the  reporting  requirements  of FASB 133; and
         (iii) any and all cancellations,

                                       22

<PAGE>

         buybacks,  reversals,   terminations  or  assignments  of  any  of  the
         foregoing. For purposes of any computation hereunder, each Rate Hedging
         Obligation shall be valued at the Rate Hedge Value thereof.

                  "Receivables Purchase Agreement" means, collectively, (i) that
         certain Receivables Purchase Agreement dated as of December 12, 2000 by
         and among CTI, as an Originator, Southern Refrigerated Transport, Inc.,
         as an  Originator,  and CVTI, as Purchaser,  and (ii) that certain Loan
         Agreement dated as of December 12, 2000 by and among CVTI, as Borrower,
         the Parent, as Master Servicer,  Three Pillars Funding Corporation,  as
         Lender,   and   SunTrust   Equitable   Securities    Corporation,    as
         Administrator,  each reasonably acceptable in form and substance to the
         Agent and the Required Lenders.

                  "Registrar" means, with respect to any Subsidiary  Securities,
         any  Person   authorized  or  obligated  to  maintain  records  of  the
         registration of ownership or transfer of ownership of interests in such
         Subsidiary Securities,  and in the event no such Person shall have been
         expressly  designated by the related  Subsidiary,  shall mean (i) as to
         any  corporation  or  limited  liability  company,  its  Secretary  (or
         comparable  official),  and  (ii) as to any  partnership,  its  general
         partner (or managing general partner if one shall have been appointed).

                  "Regulation D" means Regulation D of the Board as the same may
         be amended or supplemented from time to time.

                  "Reimbursement   Obligation"  shall  mean  at  any  time,  the
         obligation  of the  Borrower  with  respect  to any Letter of Credit to
         reimburse  the  Issuing  Bank and the  Lenders  to the  extent of their
         respective Participations (including by the receipt by the Issuing Bank
         of  proceeds  of Loans  pursuant  to Section  2.1(c)(iii))  for amounts
         theretofore  paid by the Issuing Bank  pursuant to a drawing under such
         Letter of Credit.

                  "Required Lenders" means, as of any date, Lenders on such date
         having Credit  Exposures (as defined  below)  aggregating  (i) if there
         shall be fewer than three (3)  Lenders,  100% of the  aggregate  Credit
         Exposures of all Lenders on such date, and (ii) if there shall be three
         (3) or more Lenders, more than 50% of the aggregate Credit Exposures of
         all the Lenders on such date.  For purposes of the preceding  sentence,
         the amount of the "Credit  Exposure"  of each Lender  shall be equal at
         all times (a) other  than  following  the  occurrence  and  during  the
         continuance of an Event of Default, to its Revolving Credit Commitment,
         and (b) following the occurrence and during the continuance of an Event
         of Default,  to the sum of (i) the aggregate  principal  amount of such
         Lender's   Applicable   Commitment   Percentage  of  Revolving   Credit
         Outstandings   plus  (ii)  the  amount  of  such  Lender's   Applicable
         Commitment  Percentage of Letter of Credit  Outstandings and Swing Line
         Outstandings;  provided that, for the purpose of this definition  only,
         (A) if any Lender shall have failed to fund its  Applicable  Commitment
         Percentage of any Advance, then the Revolving Credit Commitment of such
         Lender  shall be deemed  reduced by the amount it so failed to fund for
         so long  as such  failure  shall  continue  and  such  Lender's  Credit
         Exposure  attributable  to such  failure  shall be  deemed  held by any
         Lender making more than its  Applicable  Commitment  Percentage of such

                                       23

<PAGE>

         Advance to the extent it covers such  failure,  (B) if any Lender shall
         have  failed to pay to the  Issuing  Bank upon  demand  its  Applicable
         Commitment  Percentage  of any  drawing  under  any  Letter  of  Credit
         resulting  in  an  outstanding  Reimbursement  Obligation  (whether  by
         funding its Participation  therein or otherwise),  such Lender's Credit
         Exposure  attributable  to all Letter of Credit  Outstandings  shall be
         deemed to be held by the Issuing  Bank until such Lender shall pay such
         deficiency amount to the Issuing Bank together with interest thereon as
         provided in Section 4.9 and (C) if any Lender  shall have failed to pay
         to Bank of America on demand its  Applicable  Commitment  Percentage of
         any Swing Line Loan  (whether by funding its  Participation  therein or
         otherwise),  such Lender's  Credit  Exposure  attributable to all Swing
         Line  Outstandings  shall be deemed to be held by Bank of America until
         such  Lender  shall  pay  such  deficiency  amount  to Bank of  America
         together with interest thereon as provided in Section 4.9.

                  "Reserve  Requirement"  means, for any day during any Interest
         Period, the reserve percentage (expressed as a decimal,  rounded upward
         to the next  1/100th  of 1%) in  effect  on such  day,  whether  or not
         applicable to any Lender, under regulations issued from time to time by
         the Board for determining the maximum  reserve  requirement  (including
         any emergency, supplemental or other marginal reserve requirement) with
         respect to Eurocurrency funding (currently referred to as "Eurocurrency
         liabilities"). The Eurodollar Rate for each outstanding Eurodollar Rate
         Loan shall be adjusted  automatically  as of the effective  date of any
         change in the Reserve Requirement.

                  "Restricted   Payment"   means  (a)  any   dividend  or  other
         distribution, direct or indirect, on account of any shares of any class
         of stock of the Parent or any Subsidiary  Securities  (other than those
         payable or  distributable  solely to the  Parent,  or those  payable or
         distributable to a Subsidiary of the Parent which are subsequently paid
         or  distributed  by such  Subsidiary  to the Parent,  provided that any
         amount received by the Parent and not used to finance a Permitted Share
         Repurchase  within thirty (30) days of its receipt shall be contributed
         as capital to the  Borrower,  other than  amounts used by the Parent to
         make cash  dividend  payments  as  permitted  by  Section  10.8) now or
         hereafter outstanding,  except a dividend payable solely in shares of a
         class of stock or equity interest to the holders of that class; (b) any
         redemption,   conversion,  exchange,  retirement  or  similar  payment,
         purchase or other  acquisition  for value,  direct or indirect,  of any
         shares of any class of stock of the Parent or any Subsidiary Securities
         (other than those payable or distributable solely to the Parent) now or
         hereafter outstanding; (c) any payment made to retire, or to obtain the
         surrender  of, any  outstanding  warrants,  options or other  rights to
         acquire  shares  of any  class  of stock of  Parent  or any  Subsidiary
         Securities of its  Subsidiaries now or hereafter  outstanding;  and (d)
         any issuance and sale of Subsidiary Securities of any Subsidiary of the
         Parent or of the Borrower,  (or any option, warrant or right to acquire
         such stock) other than in the case of Subsidiaries of the Borrower,  to
         the  Borrower  or  another of its  Subsidiaries  and in the case of any
         other  Subsidiaries  of  the  Parent,  to  the  Parent  or  one  of its
         Subsidiaries.

                  "Revolving  Credit  Commitment"  means,  with  respect to each
         Lender,  the obligation of such Lender to make  Revolving  Loans to the
         Borrower  up  to  an  aggregate

                                      24

<PAGE>

         principal  amount at any one time  outstanding  equal to such  Lender's
         Applicable   Commitment   Percentage  of  the  Total  Revolving  Credit
         Commitment.

                  "Revolving  Credit  Facility" means the facility  described in
         Section 2.1 hereof  providing  for Loans to the Borrower by the Lenders
         in the  aggregate  principal  amount  of  the  Total  Revolving  Credit
         Commitment.

                  "Revolving  Credit  Outstandings"  means,  as of any  date  of
         determination,  the aggregate  principal  amount of all Revolving Loans
         then outstanding.

                  "Revolving  Credit  Termination  Date"  means  (i) the  Stated
         Termination  Date or (ii) such earlier date of  termination of Lenders'
         obligations pursuant to Section 11.1 upon the occurrence of an Event of
         Default,  or  (iii)  such  date as the  Borrower  may  voluntarily  and
         permanently  terminate the Revolving Credit Facility by payment in full
         of all  Revolving  Credit  Outstandings,  Swing Line  Outstandings  and
         Letter  of Credit  Outstandings  and  cancellation  of all  Letters  of
         Credit, together with all accrued and unpaid interest thereon.

                  "Revolving  Loan" means any  borrowing  pursuant to an Advance
         under the Revolving Credit Facility in accordance with Section 2.1.

                  "Revolving Notes" means, collectively, the promissory notes of
         the Borrower  evidencing  Revolving Loans executed and delivered to the
         Lenders as provided in Section 2.3 substantially in the form of Exhibit
         F-1,  with  appropriate  insertions  as to amounts,  dates and names of
         Lenders.

                  "S&P" means Standard & Poor's Ratings Group, a division of The
         McGraw-Hill Companies, Inc.

                  "Security  Agreements"  means,  collectively,   the  following
         Security Agreements,  pursuant to which the Borrower and each Guarantor
         has  granted or will grant to the  Collateral  Agent for the benefit of
         the Agent,  the Lenders  and the holders of the Senior  Notes a Lien in
         the rights of the  Borrower and each such  Guarantor  in the  Licensing
         Agreements, as each of the same may be amended,  supplemented,  amended
         and restated, or otherwise modified from time to time:

                           (i) that certain Guarantor  Security  Agreement dated
                  as of  December  13,  2000  by CTI and  Southern  Refrigerated
                  Transport,  Inc.  in favor of the  Collateral  Agent,  for the
                  ratable  benefit of the Agent and the  Lenders and the holders
                  of the Senior Notes,  substantially in the form of Exhibit O-1
                  attached hereto; and

                           (ii) any  additional  Security Agreement delivered to
                   the  Collateral  Agent  pursuant to Section 9.19 or Article V
                   hereof,  substantially in the form attached hereto as Exhibit
                   O-1 (with appropriate conforming changes).

                                       25

<PAGE>

                  "Security   Instruments"  means,   collectively,   the  Pledge
         Agreements,  the  Intercompany  Note Pledge  Agreements,  the  Security
         Agreements,  the Licensor  Acknowledgement and Agreement, and all other
         agreements  (including  control  agreements),   instruments  and  other
         documents,  whether now existing or  hereafter  in effect,  pursuant to
         which the  Borrower,  the Parent or any  Subsidiary of the Parent or of
         the Borrower or other  Person  shall grant or convey to the  Collateral
         Agent for the benefit of the Agent,  the Lenders and the holders of the
         Senior Notes a Lien in, or any other Person shall  acknowledge any such
         Lien in, property as security for all or any portion of the Obligations
         or any other obligation under any Loan Document,  as any of them may be
         amended, modified or supplemented from time to time.

                  "Senior  Note  Purchase  Agreement"  means that  certain  Note
         Purchase  Agreement  dated as of May 15, 2000 among the  Borrower,  the
         Parent and the  holders  of the Senior  Notes,  as  amended,  restated,
         supplemented   or   otherwise   modified  or  replaced  to  the  extent
         permissible under Sections 10.4 and 10.19.

                  "Senior  Notes"  means,   collectively,   the  $25,000,000  in
         aggregate  principal  amount  of 7.39%  Guaranteed  Senior  Notes,  due
         October  1,  2005,  issued  pursuant  to the terms of the  Senior  Note
         Purchase  Agreement,  as amended,  restated,  supplemented or otherwise
         modified, or replaced, refinanced or refunded to the extent permissible
         under Sections 10.4 and 10.19 hereof (issued  initially by the Borrower
         to each of Connecticut General Life Insurance Company, on behalf of one
         or more separate accounts,  Connecticut  General Life Insurance Company
         and Life Insurance Company of North America).

                  "Servicing  Agreements"  means,  collectively,   each  written
         servicing agreement,  in form and substance acceptable to the Agent, by
         and between  Covenant.com,  Inc.  and the  Borrower  and certain  other
         Credit Parties pursuant to which Covenant.com, Inc. provides management
         information  system  services  to such  entities  in  return  for a fee
         determined by such servicing agreement.

                  "Solvent" means, when used with respect to any Person, that at
         the time of determination:

                            (a) the  fair  value  of its  assets  (both  at fair
                   valuation  and at present fair  saleable  value on an orderly
                   basis) is in excess of the total  amount of its  liabilities,
                   including Contingent Obligations; and

                            (b) it is then  able and  expects  to be able to pay
                   its debts as they mature; and

                            (c)  it  has  capital  sufficient  to  carry  on its
                   business as conducted and as proposed to be conducted.

                  "Stated Termination Date" means December 13, 2003.

                                       26

<PAGE>

                  "Subordinated Indebtedness" means, (i) as at the Closing Date,
         Indebtedness for Money Borrowed then outstanding of the Borrower or any
         Guarantor which is subject to a Subordination Agreement or otherwise is
         fully  subordinated in writing on terms acceptable to the Agent and the
         Required  Lenders  to  the  Obligations   and,  as  applicable,   other
         obligations  of the Credit Parties under the Loan  Documents,  and (ii)
         from and after the Closing Date, in addition,  such other  Indebtedness
         for Money  Borrowed of the  Borrower or any  Guarantor  permitted to be
         incurred hereunder and which is subject to a Subordination Agreement or
         otherwise is fully  subordinated in writing on terms  acceptable to the
         Agent and the Required  Lenders to the Obligations  and, as applicable,
         other obligations of the Credit Parties under the Loan Documents.

                  "Subordination  Agreement" means a Subordination  Agreement in
         form and substance  satisfactory to the Agent and the Required Lenders,
         executed  and  delivered  by the  Borrower or any  Guarantor  which has
         issued  Subordinated  Indebtedness and by the holder or holders of such
         Subordinated Indebtedness.

                  "Subsidiary"  of any  Person  means any  corporation  or other
         entity in which more than 50% of its outstanding  Voting  Securities or
         more than 50% of all equity  interests is owned  directly or indirectly
         by such Person,  and/or by one or more of such  Person's  Subsidiaries,
         and when used in this Agreement  without reference to such Person shall
         include  both  a  Subsidiary  of the  Parent  and a  Subsidiary  of the
         Borrower;  provided,  however,  that CVTI shall only be  included  as a
         Subsidiary  of  the  Parent  in  the  references  to   "Subsidiary"  or
         "Subsidiaries" included in Sections 8.1(a) and (b), 8.4 (except for the
         last sentence thereof),  8.8, 8.9, 8.10, 9.1(f) and (g), 9.3, 9.4, 9.6,
         9.7, 9.8, 9.9, 9.11, 9.12 and 10.14.

                  "Subsidiary  Securities"  means the shares of capital stock or
         the other equity  interests issued by or equity  participations  in any
         Subsidiary  of the  Borrower  or of the  Parent  (excluding  CVTI,  and
         specifically  including the capital stock of the Borrower, all of which
         is owned by the Parent), whether or not constituting a "security" under
         Article  8  of  the  Uniform  Commercial  Code  as  in  effect  in  any
         jurisdiction.

                  "Swap  Agreement"  means one or more  agreements  between  the
         Borrower and any Person with respect to  Indebtedness  evidenced by any
         or all of the Notes, on terms mutually  acceptable to Borrower and such
         Person and approved by the Required  Lenders,  which agreements  create
         Rate Hedging Obligations;  provided,  however, that no such approval of
         the Lenders shall be required to the extent such agreements are entered
         into  between  the  Borrower  and any  Lender or any  affiliate  of any
         Lender.

                  "Swing Line" means the revolving line of credit established by
         Bank of America in favor of the Borrower pursuant to Section 2.4.

                   "Swing Line Loans" means loans made by Bank of America to the
         Borrower pursuant to Section 2.4.

                                       27

<PAGE>

                  "Swing Line Note" means the  promissory  note of the  Borrower
         evidencing  the Swing Line executed and delivered to Bank of America as
         provided in Section 2.3 substantially in the form of Exhibit F-2.

                  "Swing   Line   Outstandings"   means,   as  of  any  date  of
         determination,  the aggregate  principal amount of all Swing Line Loans
         then outstanding.

                  "Synthetic  Lease  Obligations"  means  (i)  specifically  the
         obligations of CTI under the  Participation  Agreement  dated March 29,
         1996 among CTI, Lease Plan North America,  Inc. and ABN AMRO Bank N.V.,
         Atlanta Agency,  as Participant and Agent, and (ii) generally all other
         monetary  obligations  of a lessee  under  any tax  retention  or other
         synthetic  leases which is treated as an operating lease under GAAP but
         the  liabilities   under  which  are  or  would  be   characterized  as
         indebtedness  of such Person for tax purposes or upon the insolvency of
         such Person.  The amount of Synthetic  Lease  Obligations in respect of
         any synthetic lease at any date of determination thereof shall be equal
         to the aggregate  purchase price of any property  subject to such lease
         less the aggregate  amount of payments of rent  theretofore  made which
         reduce the lessee's  obligations  under such synthetic  lease and which
         are not the financial equivalent of interest.

                  "Termination  Event" means: (i) a "Reportable Event" described
         in Section 4043 of ERISA and the regulations  issued thereunder (unless
         the notice  requirement has been waived by applicable  regulation);  or
         (ii) the withdrawal of the Parent or any ERISA Affiliate from a Pension
         Plan  during a plan year in which it was a  "substantial  employer"  as
         defined in Section 4001(a)(2) of ERISA or was deemed such under Section
         4062(e)  of ERISA;  or (iii) the  termination  of a Pension  Plan,  the
         filing  of a notice  of  intent  to  terminate  a  Pension  Plan or the
         treatment of a Pension Plan  amendment as a  termination  under Section
         4041 of ERISA;  or (iv) the  institution  of proceedings to terminate a
         Pension  Plan by the PBGC;  or (v) any other event or  condition  which
         would  constitute  grounds  under  Section  4042(a)  of  ERISA  for the
         termination  of, or the  appointment  of a trustee to  administer,  any
         Pension  Plan;  or (vi)  the  partial  or  complete  withdrawal  of the
         Borrower or any ERISA Affiliate from a Multiemployer Plan; or (vii) the
         imposition of a Lien pursuant to Section 412 of the Code or Section 302
         of  ERISA;  or (viii)  any  event or  condition  which  results  in the
         reorganization or insolvency of a Multiemployer Plan under Section 4241
         or Section 4245 of ERISA, respectively;  or (ix) any event or condition
         which results in the termination of a Multiemployer  Plan under Section
         4041A  of  ERISA  or the  institution  by the  PBGC of  proceedings  to
         terminate a Multiemployer  Plan under Section 4042 of ERISA; or (x) any
         event or condition  with respect to any Employee  Benefit Plan which is
         regulated by any Foreign Benefit Law that results in the termination of
         such Employee  Benefit Plan or the revocation of such Employee  Benefit
         Plan's authority to operate under the applicable Foreign Benefit Law.

                   "Total  Letter of Credit  Commitment"  means an amount not to
         exceed $10,000,000.

                                       28

<PAGE>

                  "Total Revolving Credit  Commitment"  means a principal amount
         equal to $120,000,000,  as reduced from time to time in accordance with
         Section  2.1(e) and as increased  from time to time in accordance  with
         Section 2.1(f)

                   "Transplace.com"  means Transplace.com,  LLC, an Affiliate of
         the Parent.

                   "Type" shall mean any type of Loan (i.e., a Base Rate Loan or
         a Eurodollar Rate Loan).

                  "Voting  Securities" means shares of capital stock issued by a
         corporation,  or equivalent  interests in any other Person, the holders
         of which are ordinarily,  in the absence of contingencies,  entitled to
         vote for the  election  of  directors  (or persons  performing  similar
         functions)  of such  Person,  even if the  right  so to vote  has  been
         suspended by the happening of such a contingency.

         1.2.     Rules of Interpretation.

                  (a) All accounting terms not specifically defined herein shall
         have the meanings  assigned to such terms and shall be  interpreted  in
         accordance with GAAP applied on a Consistent Basis.

                  (b) Each term  defined in Articles 1, 8 or 9 of the  Tennessee
         Uniform  Commercial  Code shall have the meaning given  therein  unless
         otherwise  defined  herein,  except  to the  extent  that  the  Uniform
         Commercial Code of another  jurisdiction is controlling,  in which case
         such terms shall have the meaning given in the Uniform  Commercial Code
         of the applicable jurisdiction.

                  (c) The  headings,  subheadings  and  table of  contents  used
         herein or in any other Loan  Document  are solely  for  convenience  of
         reference  and  shall not  constitute  a part of any such  document  or
         affect the meaning, construction or effect of any provision thereof.

                  (d) Except as otherwise expressly provided,  references in any
         Loan  Document to articles,  sections,  paragraphs,  clauses,  annexes,
         appendices,   exhibits  and  schedules  are   references  to  articles,
         sections,  paragraphs,   clauses,  annexes,  appendices,  exhibits  and
         schedules in or to such Loan Document.

                  (e) All  definitions  set forth  herein  or in any other  Loan
         Document shall apply to the singular as well as the plural form of such
         defined term, and all references to the masculine  gender shall include
         reference  to the  feminine or neuter  gender,  and vice versa,  as the
         context may require.

                  (f) When used herein or in any other Loan Document, words such
         as "hereunder", "hereto", "hereof" and "herein" and other words of like
         import  shall,  unless the context  clearly  indicates to the contrary,
         refer to the whole of the applicable document and not to any particular
         article, section, subsection, paragraph or clause thereof.

                                       29

<PAGE>

                  (g) References to "including" means including without limiting
         the  generality of any  description  preceding such term, and such term
         shall  not  limit a  general  statement  to  matters  similar  to those
         specifically mentioned.

                  (h)  Except as  otherwise  expressly  provided,  all dates and
         times of day  specified  herein  shall refer to such dates and times at
         Charlotte, North Carolina.

                  (i) Whenever  interest rates or fees are  established in whole
         or in part by reference to a numerical  percentage expressed as "___%",
         such arithmetic  expression shall be interpreted in accordance with the
         convention that 1% = 100 basis points.

                  (j)  Each of the  parties  to the  Loan  Documents  and  their
         counsel have reviewed and revised, or requested (or had the opportunity
         to  request)  revisions  to,  the  Loan  Documents,  and  any  rule  of
         construction  that  ambiguities are to be resolved against the drafting
         party shall be inapplicable in the construing and interpretation of the
         Loan Documents and all exhibits, schedules and appendices thereto.

                  (k) Any  reference to an officer of the Borrower or the Parent
         or any other Person by reference to the title of such officer  shall be
         deemed to refer to each other officer of such Person,  however  titled,
         exercising the same or substantially similar functions.

                  (l) All  references  to any  agreement or document as amended,
         modified or supplemented,  or words of similar effect,  shall mean such
         document  or  agreement,  as the case may be, as  amended,  modified or
         supplemented  from  time to time  only as and to the  extent  permitted
         therein and in the Loan Documents.

         1.3      Accounting for Acquisitions.

         With  respect to any  Acquisition  consummated  on or after the Closing
Date and prior to the Facility Termination Date, the following shall apply:

                  (a)  As  to  each  Acquisition  that  is  accounted  for  as a
         "purchase,"  for  each of the four  Four-Quarter  Periods  ending  next
         following the date of such Acquisition,  (i) Consolidated EBITDAR shall
         include the results of  operations  of the Person or assets so acquired
         on a  historical  pro  forma  basis  as if such  Acquisition  had  been
         consummated as a "pooling of interests,"  and which amounts may include
         such   adjustments  as  are  permitted  under  Regulation  S-X  of  the
         Securities and Exchange  Commission and reasonably  satisfactory to the
         Agent  but  (ii)  for  purposes  of  determining  compliance  with  the
         provisions of Section 10.1(a),  any increase in Consolidated Net Income
         resulting  solely  from such pro forma  treatment  of such  Acquisition
         shall be disregarded; and

                  (b) For  each of the four  Four-Quarter  Periods  ending  next
         following  the date of each  Acquisition,  Consolidated  Fixed  Charges
         shall  include  the  results of  operations  of the Person or assets so
         acquired,  which amounts shall be determined on a historical  pro forma
         basis as if such  Acquisition  had been  consummated  as a "pooling  of
         interests;"

                                       30

<PAGE>

         provided, however, Consolidated Interest Expense shall be adjusted on a
         historical pro forma basis to (i) eliminate  interest  expense  accrued
         during such period on any  Indebtedness  repaid in connection with such
         Acquisition  and (ii)  include  interest  expense  on any  Indebtedness
         (including  Indebtedness  hereunder)  incurred,  acquired or assumed in
         connection with such Acquisition ("Incremental Debt") calculated (x) as
         if all such  Incremental  Debt had been incurred as of the first day of
         such Four-Quarter  Period and (y) at the following  interest rates: (I)
         for all  periods  subsequent  to the  date of the  Acquisition  and for
         Incremental  Debt assumed or acquired in the  Acquisition and in effect
         prior to the  date of  Acquisition,  at the  actual  rates of  interest
         applicable  thereto,  and (II)  for all  periods  prior  to the  actual
         incurrence of such Incremental Debt, equal to the average daily rate of
         interest  actually  applicable to such  Incremental  Debt  hereunder or
         under other  financing  documents  applicable  thereto as at the end of
         each affected Four-Quarter Period, as the case may be.

                                       31
<PAGE>

                                   ARTICLE II

                              The Credit Facilities

         2.1      Revolving Loans.

         (a)      Commitment.  Subject  to the  terms  and  conditions  of  this
Agreement,  each Lender  severally agrees to make Advances to the Borrower under
the Revolving  Credit Facility from time to time from the Closing Date until the
Revolving Credit  Termination Date on a pro rata basis as to the total borrowing
requested  by the Borrower on any day  determined  by such  Lender's  Applicable
Commitment Percentage up to but not exceeding the Revolving Credit Commitment of
such Lender, provided,  however, that the Lenders will not be required and shall
have no obligation to make any such Advance (i) so long as a Default or an Event
of Default has occurred and is continuing  or (ii) if the Agent has  accelerated
the  maturity of any of the Notes as a result of an Event of  Default;  provided
further, however, that immediately after giving effect to each such Advance, the
amount of Revolving Credit  Outstandings plus Letter of Credit Outstandings plus
Swing Line  Outstandings  shall not exceed the lesser of (A) the Total Revolving
Credit  Commitment or (B) the Borrowing Base.  Within such limits and subject to
the other terms and conditions of this Agreement, the Borrower may borrow, repay
and  reborrow  under the  Revolving  Credit  Facility on a Business Day from the
Closing Date until, but (as to borrowings and reborrowings)  not including,  the
Revolving Credit Termination Date.

         (b)      Amounts.  Except as  otherwise  permitted  by the Lenders from
time to time, the amount of Revolving Credit  Outstandings plus Letter of Credit
Outstandings  plus  Swing  Line  Outstandings  shall not  exceed at any time the
lesser of (i) the Total Revolving Credit  Commitment or (ii) the Borrowing Base,
and, in the event there shall be outstanding any such excess, the Borrower shall
immediately  make such payments and  prepayments as shall be necessary to comply
with this restriction.  Each Advance under the Revolving Credit Facility,  other
than Base Rate Refunding  Loans,  shall be in an amount of at least  $1,000,000,
and, if greater than $1,000,000, an integral multiple of $1,000,000.

         (c)      Advances.

                  (i) An  Authorized  Representative  shall  give the  Agent (1)
         irrevocable  telephonic  notice of each  Eurodollar  Rate Loan (whether
         representing an additional borrowing or the Continuation of a borrowing
         hereunder or the  Conversion of a borrowing  hereunder from a Base Rate
         Loan to a  Eurodollar  Rate Loan) prior to 10:30 A.M. on the date three
         Business  Days  prior  to  the  day  of  such  proposed  Loan  and  (2)
         irrevocable  telephonic  notice of each Base Rate Loan (other than Base
         Rate Refunding  Loans and automatic  Conversions to the extent the same
         are effected without notice pursuant to Section 2.1(c)(iii) and Article
         VI  respectively,  and whether  representing  an  additional  borrowing
         hereunder or the Conversion of borrowing hereunder from Eurodollar Rate
         Loans  to Base  Rate  Loans)  prior to  10:30  A.M.  on the day of such
         proposed  Revolving  Loan.  Each such notice  shall be  effective  upon
         receipt by the Agent,  shall specify the amount of the  borrowing,  the
         type of  Revolving  Loan (Base Rate  Option 1 or Base Rate  Option 2 or
         Eurodollar Rate), the date of borrowing and, if a Eurodollar

                                       32

<PAGE>

         Rate  Loan,  the  Interest  Period  to be  used in the  computation  of
         interest. The Authorized Representative shall provide the Agent written
         confirmation of each such telephonic  notice in the form of a Borrowing
         Notice  or  Interest  Rate  Selection   Notice  (as  applicable)   with
         appropriate   insertions;   provided,  that  failure  to  provide  such
         confirmation  shall not affect the validity of such telephonic  notice.
         Notice of receipt of such  Borrowing  Notice or Interest Rate Selection
         Notice,  as the case may be,  together with the amount of each Lender's
         portion of an Advance  requested  thereunder,  shall be provided by the
         Agent to each  Lender by  telefacsimile  transmission  with  reasonable
         promptness,  but (provided the Agent shall have received such notice by
         10:30  A.M.) not later  than 1:00 P.M.  on the same day as the  Agent's
         receipt of such notice.

                  (ii) Not later than 2:00 P.M. on the date  specified  for each
         borrowing  under this Section 2.1, each Lender  shall,  pursuant to the
         terms and subject to the conditions of this Agreement,  make the amount
         of the Advance or Advances  to be made by it on such day  available  by
         wire  transfer  to the  Agent  in the  amount  of its pro  rata  share,
         determined according to such Lender's Applicable  Commitment Percentage
         of the Revolving  Loan or Revolving  Loans to be made on such day. Such
         wire transfer  shall be directed to the Agent at the  Principal  Office
         and shall be in the form of Dollars constituting  immediately available
         funds. The amount so received by the Agent shall,  subject to the terms
         and conditions of this Agreement,  be made available to the Borrower by
         delivery of the proceeds thereof to the Borrower's Account or otherwise
         as  shall  be  directed  in  the  applicable  Borrowing  Notice  by the
         Authorized Representative and reasonably acceptable to the Agent.

                  (iii)  Notwithstanding  the  foregoing,  if a drawing  is made
         under any Letter of  Credit,  such  drawing  is honored by the  Issuing
         Bank,  and the  Borrower  shall not  immediately  fully  reimburse  the
         Issuing Bank in respect of such  drawing from other funds  available to
         the Borrower,  (A) provided  that the  conditions to making a Revolving
         Loan as herein  provided  shall then be  satisfied,  the  Reimbursement
         Obligation  arising from such drawing shall be paid to the Issuing Bank
         by the Agent without the  requirement of notice to or from the Borrower
         from immediately available funds which shall be advanced as a Base Rate
         Refunding  Loan to the Agent at its  Principal  Office  by each  Lender
         under the Revolving Credit Facility in an amount equal to such Lender's
         Applicable Commitment Percentage of such Reimbursement Obligation,  and
         (B) if the  conditions  to making a Revolving  Loan as herein  provided
         shall not then be satisfied,  each of the Lenders shall fund by payment
         to the Agent (for the  benefit of the  Issuing  Bank) at its  Principal
         Office in  immediately  available  funds the purchase  from the Issuing
         Bank of their respective  Participations  in the related  Reimbursement
         Obligation based on their respective Applicable Commitment  Percentages
         of the Total  Letter of Credit  Commitment.  If a drawing is  presented
         under any Letter of Credit in accordance with the terms thereof and the
         Borrower  shall not  immediately  reimburse the Issuing Bank in respect
         thereof,  then  notice of such  drawing  or payment  shall be  provided
         promptly by the Issuing  Bank to the Agent and the Agent shall  provide
         notice to each Lender by telephone or  telefacsimile  transmission.  If
         notice to the Lenders of a drawing  under any Letter of Credit is given
         by the Agent at or before 12:00 noon on any Business  Day,  each Lender
         shall  either make a Base Rate  Refunding  Loan or fund the purchase of
         its

                                       33

<PAGE>

         Participation  as  specified  above  in the  amount  of  such  Lender's
         Applicable  Commitment  Percentage of such drawing or payment and shall
         pay such amount to the Agent for the account of the Issuing Bank at the
         Principal  Office in Dollars and in immediately  available funds before
         2:30 P.M.  on the same  Business  Day. If such notice to the Lenders is
         given by the Agent after 12:00 noon on any  Business  Day,  each Lender
         shall either make such Base Rate  Refunding  Loan or fund such purchase
         before 12:00 noon on the next following Business Day.

         (d)      Repayment  of Revolving  Loans.  The principal  amount of each
Revolving  Loan shall be due and  payable  to the Agent for the  benefit of each
Lender  in  full  on the  Revolving  Credit  Termination  Date,  or  earlier  as
specifically  provided herein. The principal amount of any Revolving Loan may be
prepaid in whole or in part on any  Business  Day,  upon (A) at least  three (3)
Business Days' irrevocable  telephonic notice in the case of each Revolving Loan
that is a Eurodollar Rate Loan from an Authorized Representative (effective upon
receipt) to the Agent prior to 10:30 A.M. and (B) irrevocable  telephonic notice
in the case of each  Revolving  Loan that is a Base Rate Loan from an Authorized
Representative  (effective upon receipt) to the Agent prior to 10:30 A.M. on the
day of such proposed repayment. The Authorized  Representative shall provide the
Agent written confirmation of each such telephonic notice but failure to provide
such confirmation  shall not effect the validity of such telephonic  notice. All
prepayments  of Revolving  Loans made by the Borrower  shall be in the amount of
$1,000,000 or such greater  amount which is an integral  multiple of $1,000,000,
or the amount equal to all Revolving Credit  Outstandings,  or such other amount
as necessary to comply with Section 2.1(b).

         (e)      Reductions.  The Borrower  shall, by notice from an Authorized
Representative,  have the right from time to time but not more  frequently  than
once each calendar  month,  upon not less than three (3) Business  Days' written
notice to the Agent,  effective  upon  receipt,  to reduce  the Total  Revolving
Credit Commitment. The Agent shall give each Lender, within one (1) Business Day
of receipt of such notice, telefacsimile notice, or telephonic notice (confirmed
in writing),  of such  reduction.  Each such reduction shall be in the aggregate
amount of $2,000,000 or such greater amount which is in an integral  multiple of
$1,000,000, or the entire remaining Total Revolving Credit Commitment, and shall
permanently reduce the Total Revolving Credit Commitment.  Each reduction of the
Total Revolving  Credit  Commitment shall be accompanied by payment of the Loans
or Swing Line Loans to the extent that the principal  amount of Revolving Credit
Outstandings  plus Letter of Credit  Outstandings  plus Swing Line  Outstandings
exceeds  the Total  Revolving  Credit  Commitment  after  giving  effect to such
reduction, together with accrued and unpaid interest on the amounts prepaid.

         (f)      Increases.

                   (i) The Borrower shall have the right, without the consent of
         the Banks,  subject to the terms of this Section 2.1(f),  to effectuate
         from time to time,  at any time prior to the then  effective  Revolving
         Credit  Termination  Date,  an increase in the Total  Revolving  Credit
         Commitment under this Agreement by adding to this Agreement one or more
         banks or other  financial  institutions  acceptable  to the Agent,  who
         shall,  upon  completion  of the  requirements  of this Section  2.1(f)
         constitute a "Lender" or "Lenders"  hereunder (each an "Added Lender"),
         or by allowing one or more Lenders in their sole

                                       34

<PAGE>

         discretion to increase their  respective  Revolving  Credit  Commitment
         hereunder  (each  an  "Increasing  Lender"),  so  that  such  increased
         Revolving  Credit  Commitments  shall  equal the  increase in the Total
         Revolving  Credit  Commitment  effectuated  pursuant  to  this  Section
         2.1(f);  provided that (i) the  aggregate  increased  Revolving  Credit
         Commitment or added Revolving Credit Commitment to be effected shall be
         in  an  amount  not  less  than  $10,000,000,   and,  if  greater  than
         $10,000,000, an integral multiple of $5,000,000, (ii) no increase in or
         added  Revolving  Credit  Commitments  pursuant to this Section  2.1(f)
         shall  result  in  the  Total  Revolving  Credit  Commitment  exceeding
         $160,000,000,  (iii) no Lender's  Revolving Credit  Commitment shall be
         increased under this Section 2.1(f) without the consent of such Lender,
         (iv) there shall not exist any Default or Event of Default  immediately
         prior to and immediately after giving effect to such increased or added
         Commitment,  (v) there shall not,  immediately  after giving  effect to
         such  increased  or added  Commitment,  exist any  violation or default
         under Section 10.11 of the Senior Note Purchase Agreement (as in effect
         on the date hereof)  arising from the  attachment of  additional  Liens
         granted  under  this  Agreement  and the  Security  Instruments  to the
         increased  amount of the Total Revolving  Credit  Commitment,  and (vi)
         there shall not at any prior time have been any  reduction of the Total
         Revolving Credit  Commitment  pursuant to Section 2.1(e).  The Borrower
         shall  deliver or pay, as  applicable,  to the Agent not later than ten
         (10) Business  Days prior to any such  increase in the Total  Revolving
         Credit  Commitment  each of the  following  items with  respect to each
         Added Lender and Increasing Lender:

                           (A) a  written  notice  of  Borrower's  intention  to
                  increase the Total  Revolving  Credit  Commitment  pursuant to
                  this Section 2.1(f), which shall specify each Added Lender and
                  Increasing Lender, if any, the changes in amounts of Revolving
                  Credit   Commitments   that  will   result,   and  such  other
                  information as is reasonably requested by the Agent;

                           (B)  documents in the form of Exhibit L or Exhibit M,
                  as may be required by the Agent,  executed  and  delivered  by
                  each Added  Lender and each  Increasing  Lender,  pursuant  to
                  which it becomes a party  hereto or  increases  its  Revolving
                  Credit Commitment, as the case may be;

                           (C) if requested by the applicable Lender,  Notes or
                  replacement  Notes, as the case may be, executed and delivered
                  by Borrower; and

                           (D) a  non-refundable  processing  fee of $3,500 with
                  respect to each Added Lender or Increasing Lender for the sole
                  account of the Agent.

                  (ii) Upon receipt of any notice  referred to in clause  (i)(A)
         above,  the Agent  shall  promptly  notify each  Lender  thereof.  Upon
         execution  and delivery of such  documents  and the payment of such fee
         (the  "Increased  Commitment  Date"),  each  such  Added  Lender  shall
         constitute a "Lender" for all purposes under this Agreement and related
         documents  without  any  acknowledgment  by or the consent of the other
         Lenders,  with a  Revolving  Credit  Commitment  as  specified  in such
         documents,  or such Lender's Revolving Credit Commitment shall increase
         as specified in such documents,  as the case

                                       35

<PAGE>

         may be.  Immediately  upon the  effectiveness  of the  addition of such
         Added Lender or the increase in the Revolving Credit Commitment of such
         Increasing  Lender  under  this  Section  2.1(f),  (i)  the  respective
         Applicable  Commitment  Percentages  of the  Lenders  shall  be  deemed
         modified as appropriate  to correspond to such changed Total  Revolving
         Credit  Commitment,  and (ii) if there are at such time outstanding any
         Revolving Credit Outstandings,  each Lender whose Applicable Commitment
         Percentage  has been decreased as a result of the increase in the Total
         Revolving Credit  Commitment shall be deemed to have assigned,  without
         recourse,  to each Added Lender and  Increasing  Lender such portion of
         such Lender's  Revolving  Credit  Outstandings as shall be necessary to
         effectuate such adjustment in Applicable Commitment  Percentages.  Each
         Increasing  Lender and Added Lender (i) shall be deemed to have assumed
         such portion of such Revolving Credit  Outstandings and (ii) shall fund
         to each other  Lender on the  Increased  Commitment  Date the amount of
         Revolving Credit Outstandings  assigned to it by such Lender.  Borrower
         agrees to pay to the  Lenders on demand any and all  amounts  resulting
         from  break  funding  charges to the extent  payable  pursuant  to this
         Agreement  as a  result  of any such  prepayment  of  Revolving  Credit
         Outstandings  occasioned by the foregoing  increase in Revolving Credit
         Commitments  and  the   reallocation   of  the  Applicable   Commitment
         Percentages.

                  (iii) This section shall  supercede any  provisions in Section
         13.1 and 13.6 to the contrary.

         2.2      Use  of Proceeds.  The proceeds of the Loans made  pursuant to
the Revolving  Credit Facility  hereunder shall be used by the Borrower for: (i)
general working capital needs and other corporate purposes, including the making
of Acquisitions permitted hereunder,  (ii) to repay, together with proceeds from
the Permitted Receivables Securitization, all Indebtedness outstanding under the
Existing Facility,  (iii) to make loans, dividends or other distributions to the
Parent,  which will use such  proceeds as permitted  herein,  including  without
limitation  Permitted Share Repurchases,  and (iv) to make loans and advances to
any  Guarantor,  which loan or advance  shall be  evidenced  by an  Intercompany
Borrowing Note which has been delivered to the Collateral Agent together with an
instrument of endorsement or assignment  thereof  executed in blank and which is
subject to the terms of Intercompany Note Pledge Agreements.

         2.3      Notes.

         (a)      Revolving  Notes. Revolving Loans made by each Lender shall be
evidenced  by the  Revolving  Note  payable  to the order of such  Lender in the
respective amount of its Applicable Commitment Percentage of the Total Revolving
Credit  Commitment,  which  Revolving  Note shall be dated the Closing Date or a
later date pursuant to an Assignment and Acceptance and shall be duly completed,
executed and delivered by the Borrower.

         (b)      Swing   Line  Note.  The  Swing  Line  Outstandings  shall  be
evidenced  by a  separate  Swing  Line Note  payable to the order of the Bank of
America in the amount of the Swing  Line,  which Note shall be dated the Closing
Date and shall be duly completed, executed and delivered by the Borrower.

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<PAGE>

         2.4      Swing  Line. (a)  Notwithstanding  any other provision of this
Agreement to the contrary,  in order to administer the Revolving Credit Facility
in an efficient  manner and to minimize the transfer of funds  between the Agent
and the Lenders,  Bank of America shall make  available  Swing Line Loans to the
Borrower prior to the Revolving Credit  Termination  Date. Bank of America shall
not be  obligated  to make any Swing  Line Loan  pursuant  hereto  (i) if to the
actual  knowledge of Bank of America the Borrower is not in compliance  with all
the  conditions  to the making of Revolving  Loans set forth in this  Agreement,
(ii) if after giving effect to such Swing Line Loan, the Swing Line Outstandings
exceed $5,000,000,  or (iii) if after giving effect to such Swing Line Loan, the
sum of the Swing Line Outstandings,  Revolving Credit Outstandings and Letter of
Credit  Outstandings  exceeds lesser of (i) the Borrowing Base or (ii) the Total
Revolving  Credit  Commitment.  Each  Swing  Line  Loan  shall  mature,  and the
principal amount thereof,  together with any accrued interest thereon,  shall be
payable  (if not  previously  prepaid)  in full to Bank of  America on the fifth
Business Day after such Swing Line Loan is made.  The Borrower  may,  subject to
the conditions set forth in the preceding sentence,  borrow,  repay and reborrow
under this  Section  2.4.  Unless  notified to the  contrary by Bank of America,
borrowings  under the Swing Line shall be made in the minimum amount of $100,000
or, if greater,  in amounts which are integral multiples of $100,000,  or in the
amount  necessary to effect a Base Rate Refunding  Loan, upon written request by
telefacsimile   transmission,   effective   upon   receipt,   by  an  Authorized
Representative of the Borrower made to Bank of America not later than 12:30 P.M.
on the Business Day of the requested borrowing. Each such Borrowing Notice shall
specify the amount of the borrowing  and the date of borrowing,  and shall be in
the form of Exhibit D-2, with  appropriate  insertions.  Unless  notified to the
contrary by Bank of America,  each repayment of a Swing Line Loan shall be in an
amount which is an integral  multiple of $100,000 or the aggregate amount of all
Swing Line Outstandings.

         (b)      The  interest  payable  on Swing  Line Loans is solely for the
account of Bank of America.  Swing Line Loans shall bear interest  solely at the
Base Rate, as elected by the Borrower.  All accrued and unpaid interest on Swing
Line Loans  shall be payable on the dates and in the manner  provided in Section
4.3 with respect to interest on Base Rate Loans,  and the Swing Line Loans shall
accrue  interest  at the  Default  Rate in such  circumstances  as set  forth in
Section 4.3.

         (c)      Upon  the making of a Swing Line Loan in  accordance  with the
terms hereof, each Lender shall be deemed to have purchased from Bank of America
a  Participation  therein  in  an  amount  equal  to  that  Lender's  Applicable
Commitment  Percentage  of such  Swing Line Loan.  Upon  demand  made by Bank of
America, each Lender shall, according to its Applicable Commitment Percentage of
such Swing Line Loan,  promptly  provide to Bank of America its  purchase  price
therefor in an amount equal to its Participation  therein. Any Advance made by a
Lender  pursuant  to  demand of Bank of  America  of the  purchase  price of its
Participation  shall when made be deemed to be (i) provided that the  conditions
to making  Revolving Loans shall be satisfied,  a Base Rate Refunding Loan under
Section  2.1,  and (ii) in all other  cases,  the  funding by each Lender of the
purchase price of its  Participation  in such Swing Line Loan. The obligation of
each  Lender  to so  provide  its  purchase  price to Bank of  America  shall be
absolute and  unconditional  and shall not be affected by the  occurrence  of an
Event of Default or any other occurrence or event.

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<PAGE>

         (d)      The  Borrower,  at its option and subject to the terms hereof,
may request an Advance pursuant to Section 2.1 in an amount  sufficient to repay
Swing  Line  Outstandings  on any  date and the  Agent  shall  provide  from the
proceeds of such  Advance to Bank of America the amount  necessary to repay such
Swing  Line  Outstandings  (which  Bank of  America  shall  then  apply  to such
repayment) and credit any balance of the Advance in immediately  available funds
in the manner  directed  by the  Borrower  pursuant to Section  2.1(c)(ii).  The
proceeds of such Advances  shall be paid to Bank of America for  application  to
the Swing Line  Outstandings  and the Lenders  shall then be deemed to have made
Loans in the amount of such  Advances.  The Swing Line shall  continue in effect
until the  Revolving  Credit  Termination  Date,  at which  time all Swing  Line
Outstandings and accrued interest thereon shall be due and payable in full.

                                       38

<PAGE>

                                   ARTICLE III

                                Letters of Credit

         3.1      Letters  of Credit.  The Issuing Bank  agrees,  subject to the
terms and  conditions of this  Agreement,  upon request of the Borrower to issue
from time to time for the  account  of the  Borrower  (or the  Borrower  and any
Subsidiary of the Parent) Letters of Credit upon delivery to the Issuing Bank of
an Application and Agreement for Letter of Credit  relating  thereto in form and
content  acceptable  to the Issuing  Bank;  provided,  that (i) the Issuing Bank
shall not be  obligated  to issue (or renew) any Letter of Credit if it has been
notified by the Agent or has actual knowledge that a Default or Event of Default
has occurred and is continuing, (ii) the Letter of Credit Outstandings shall not
exceed the Total Letter of Credit Commitment and (iii) no Letter of Credit shall
be issued  (or  renewed)  if,  after  giving  effect  thereto,  Letter of Credit
Outstandings  plus Revolving Credit  Outstandings  plus Swing Line  Outstandings
shall exceed the lesser of (i) the  Borrowing  Base or (ii) the Total  Revolving
Credit Commitment.  No Letter of Credit shall have an expiry date (including all
rights of the  Borrower  or any  beneficiary  named in such  Letter of Credit to
require  renewal) or payment date  occurring  later than the earlier to occur of
one year after the date of its issuance or the seventh Business Day prior to the
Stated Termination Date.

         3.2      Reimbursement and Participations.

         (a)      The  Borrower  hereby  unconditionally  agrees  to  pay to the
Issuing Bank  immediately on demand at the Principal Office all amounts required
to pay all drafts  drawn or  purporting  to be drawn under the Letters of Credit
and all reasonable  expenses incurred by the Issuing Bank in connection with the
Letters of Credit, and in any event and without demand to place in possession of
the Issuing  Bank (which  shall  include  Advances  under the  Revolving  Credit
Facility  if  permitted  by Section  2.1 and Swing Line  Loans if  permitted  by
Section 2.4) sufficient funds to pay all debts and liabilities arising under any
Letter of Credit.  The Issuing Bank agrees to give the Borrower prompt notice of
any request for a draw under a Letter of Credit. The Issuing Bank may charge any
account the  Borrower  may have with it for any and all amounts the Issuing Bank
pays under a Letter of Credit, plus charges and reasonable expenses as from time
to time agreed to by the Issuing  Bank and the  Borrower;  provided  that to the
extent  permitted by Section  2.1(c)(iii) and Section 2.4, amounts shall be paid
pursuant to Advances  under the  Revolving  Credit  Facility or, if the Borrower
shall elect,  by Swing Line Loans.  The Borrower  agrees to pay the Issuing Bank
interest on any  Reimbursement  Obligations  not paid when due  hereunder at the
Default Rate.

         (b)      In  accordance  with the  provisions  of Section  2.1(c),  the
Issuing  Bank shall  notify the Agent of any drawing  under any Letter of Credit
promptly following the receipt by the Issuing Bank of such drawing.

         (c)      Each  Lender (other than the Issuing Bank) shall automatically
acquire on the date of issuance  thereof in accordance with the terms hereof,  a
Participation  in the liability of the Issuing Bank in respect of each Letter of
Credit in an amount equal to such Lender's Applicable  Commitment  Percentage of
such  liability,  and to the extent that the  Borrower is  obligated  to pay

                                       39

<PAGE>

the Issuing Bank under Section 3.2(a), each Lender (other than the Issuing Bank)
thereby shall absolutely,  unconditionally  and irrevocably assume, and shall be
unconditionally  obligated to pay to the Issuing Bank, its Applicable Commitment
Percentage  of the  liability of the Issuing Bank under such Letter of Credit in
the manner and with the effect provided in Section 2.1(c)(iii).

         (d)      Simultaneously  with the making of each payment by a Lender to
the  Issuing  Bank  pursuant  to  Section  2.1(c)(iii)(B),  such  Lender  shall,
automatically  and without any further action on the part of the Issuing Bank or
such  Lender,  acquire  a  Participation  in an  amount  equal  to such  payment
(excluding the portion thereof  constituting  interest accrued prior to the date
the Lender  made its  payment) in the related  Reimbursement  Obligation  of the
Borrower.  Each Lender's obligation to make payment to the Agent for the account
of the Issuing Bank pursuant to Section  2.1(c)(iii) and Section 3.2(c), and the
right  of  the  Issuing  Bank  to  receive  the  same,  shall  be  absolute  and
unconditional, shall not be affected by any circumstance whatsoever and shall be
made without any offset, abatement,  withholding or reduction whatsoever. In the
event the Lenders have purchased  Participations in any Reimbursement Obligation
as set forth above,  then at any time payment (in fully  collected,  immediately
available  funds)  of such  Reimbursement  Obligation,  in whole or in part,  is
received by the Issuing Bank from the Borrower,  the Issuing Bank shall promptly
pay to each Lender an amount equal to its  Applicable  Commitment  Percentage of
such payment from the Borrower.

         (e)      Promptly  following  the end of  each  calendar  quarter,  the
Issuing  Bank  shall  deliver  to the Agent a notice  describing  the  aggregate
undrawn  amount of all  Letters of Credit at the end of such  quarter.  Upon the
request of any Lender from time to time,  the Issuing Bank shall  deliver to the
Agent,  and the Agent  shall  deliver  to such  Lender,  any  other  information
reasonably  requested  by such  Lender  with  respect  to each  Letter of Credit
outstanding.

         (f)      The  issuance  by the  Issuing  Bank of each  Letter of Credit
shall,  in addition to the  conditions  precedent  set forth in Article  VII, be
subject to the conditions that such Letter of Credit be in such form and contain
such terms as shall be reasonably  satisfactory  to the Issuing Bank  consistent
with the then current  practices and procedures of the Issuing Bank with respect
to similar letters of credit, and the Borrower shall have executed and delivered
such other instruments and agreements  relating to such Letters of Credit as the
Issuing Bank shall have reasonably  requested consistent with such practices and
procedures  and shall not be in conflict  with any of the express  terms  herein
contained.  All Letters of Credit shall be issued pursuant to and subject to the
Uniform   Customs  and  Practice  for   Documentary   Credits,   1993  revision,
International  Chamber of Commerce  Publication  No. 500 or, if the Issuing Bank
shall  elect  by  express  reference  in  an  affected  Letter  of  Credit,  the
International  Chamber of  Commerce  International  Standby  Practices  commonly
referred  to as  "ISP98",  or any  subsequent  amendment  or  revision of either
thereof.

         (g)      The  Borrower  agrees that the  Issuing  Bank may, in its sole
discretion,  accept or pay, as complying with the terms of any Letter of Credit,
any drafts or other  documents  otherwise in order which may be signed or issued
by an  administrator,  executor,  trustee in  bankruptcy,  debtor in possession,
assignee for the benefit of creditors, liquidator, receiver,

                                       40

<PAGE>

attorney  in fact or other  legal  representative  of a party who is  authorized
under such Letter of Credit to draw or issue any drafts or other documents.

         (h)      Without  limiting the  generality of the provisions of Section
13.9,  the Borrower  hereby  agrees to indemnify  and hold  harmless the Issuing
Bank, each other Lender, the Agent and the Collateral Agent from and against any
and all claims and damages, losses,  liabilities,  reasonable costs and expenses
which the Issuing Bank, such other Lender, the Agent or the Collateral Agent may
incur (or which may be claimed against the Issuing Bank, such other Lender,  the
Agent or the Collateral  Agent) by any Person by reason of or in connection with
the  issuance  or  transfer  of or payment or failure to pay under any Letter of
Credit;  provided  that the  Borrower  shall not be  required to  indemnify  the
Issuing  Bank,  any  other  Lender,  the Agent or the  Collateral  Agent for any
claims, damages, losses, liabilities,  costs or expenses to the extent, but only
to the extent,  (i) caused by the willful  misconduct or gross negligence of the
party to be indemnified or (ii) caused by the failure of the Issuing Bank to pay
under any Letter of Credit after the presentation to it of a request for payment
strictly  complying  with the terms and  conditions  of such  Letter of  Credit,
unless such payment is prohibited by any law, regulation, court order or decree.
The  indemnification  and hold harmless  provisions of this Section 3.2(h) shall
survive  repayment  of  the  Obligations,  occurrence  of the  Revolving  Credit
Termination Date, the Facility Termination Date and expiration or termination of
this Agreement.

         (i)      Without  limiting  Borrower's  rights as set forth in  Section
3.2(h), the obligation of the Borrower to immediately reimburse the Issuing Bank
for  drawings  made  under  Letters of Credit and the  Issuing  Bank's  right to
receive such payment shall be absolute,  unconditional and irrevocable, and such
obligations of the Borrower shall be performed  strictly in accordance  with the
terms of this  Agreement and such Letters of Credit and the related  Application
and  Agreement  for any Letter of Credit,  under all  circumstances  whatsoever,
including the following circumstances:

                  (i) any lack of  validity or  enforceability  of the Letter of
         Credit,  the obligation  supported by the Letter of Credit or any other
         agreement or instrument relating thereto (collectively, the "Related LC
         Documents");

                  (ii) any amendment or waiver of or any consent to or departure
         from all or any of the Related LC Documents;

                  (iii) the existence of any claim, setoff,  defense (other than
         the defense of payment in accordance  with the terms of this Agreement)
         or other  rights  which the  Borrower  may have at any time against any
         beneficiary  or any transferee of a Letter of Credit (or any persons or
         entities for whom any such  beneficiary  or any such  transferee may be
         acting),  the Agent,  the  Collateral  Agent,  the Lenders or any other
         Person,  whether in connection with the Loan Documents,  the Related LC
         Documents or any unrelated transaction;

                  (iv) any  breach of  contract  or other  dispute  between  the
         Borrower and any  beneficiary  or any  transferee of a Letter of Credit
         (or any  persons  or  entities  for whom

                                       41

<PAGE>

         such beneficiary or any such transferee may be acting),  the Agent, the
         Lenders or any other Person;

                  (v) any draft, statement or any other document presented under
         the  Letter of Credit  proving  to be  forged,  fraudulent,  invalid or
         insufficient  in any respect or any  statement  therein being untrue or
         inaccurate  in any  respect  whatsoever  so long as any  such  document
         appeared to comply with the terms of the Letter of Credit;

                  (vi) the existence,  character,  quality, quantity, condition,
         value, or delivery (including the time, place, manner or order thereof)
         of property described or purportedly  described in documents  presented
         in  connection  with any Letter of Credit or the  existence,  nature or
         extent of any insurance relating thereto;

                  (vii) any delay,  extension of time,  renewal,  compromise  or
         other  indulgence  or  modification  granted or agreed to by the Agent,
         with or without notice to or approval by the Borrower in respect of any
         of Borrower's Obligations; or

                  (viii) any other  circumstance or happening  whatsoever  where
         the Issuing Bank has acted in good faith, whether or not similar to any
         of the foregoing.

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<PAGE>

                                   ARTICLE IV

                Eurodollar Funding, Fees, and Payment Conventions

         4.1      Interest  Rate  Options.  Eurodollar  Rate Loans and Base Rate
Loans may be outstanding at the same time and, so long as no Default or Event of
Default  shall have  occurred and be  continuing,  the  Borrower  shall have the
option  to elect  the  Type of Loan  and the  duration  of the  initial  and any
subsequent  Interest  Periods and to Convert  Revolving Loans in accordance with
Sections 2.1(c)(i) and 4.2, as applicable;  provided,  however,  (a) there shall
not be outstanding at any one time  Eurodollar Rate Loans having more than eight
(8) different  Interest  Periods,  (b) each Eurodollar Rate Loan (including each
Conversion into and each  Continuation as a Eurodollar Rate Loan) shall be in an
amount of $1,000,000  or, if greater than  $1,000,000,  an integral  multiple of
$1,000,000,  and (c) no Eurodollar  Rate Loan shall have an Interest Period that
extends  beyond the Stated  Termination  Date.  If the Agent does not  receive a
Borrowing  Notice or an Interest Rate Selection Notice giving notice of election
of the  duration  of an  Interest  Period  or of  Conversion  of any  Loan to or
Continuation  of a Loan as a  Eurodollar  Rate  Loan by the time  prescribed  by
Sections 2.1(c)(i) and 4.2, as applicable,  the Borrower shall be deemed to have
elected to obtain or Convert such Loan to (or Continue such Loan as) a Base Rate
Loan  (having a Base Rate  determined  by Base Rate Option 1) until the Borrower
notifies the Agent in  accordance  with  Section 4.2. The Borrower  shall not be
entitled to elect to Continue  any Loan as or Convert any Loan into a Eurodollar
Rate  Loan  if a  Default  or  Event  of  Default  shall  have  occurred  and be
continuing.

         4.2 Conversions and Elections of Subsequent  Interest Periods.  Subject
to the  limitations  set forth in the  definition  of  "Interest  Period" and in
Section 4.1 and Article VI, the Borrower may:

         (a)      upon  delivery of telephonic  notice to the Agent (which shall
be  irrevocable)  on or before  10:30 A.M.  on any  Business  Day,  Convert  any
Eurodollar  Rate Loan to a Base Rate Loan,  having a Base Rate as elected by the
Borrower,  on the last day of the Interest Period for such Eurodollar Rate Loan;
and

         (b)      upon  delivery of telephonic  notice to the Agent (which shall
be  irrevocable)  on or before 10:30 A.M. on any Business Day,  Convert any Base
Rate Loan  having a Base Rate  determined  by Base Rate  Option 1 to a Base Rate
Loan  having a Base Rate  determined  by Base Rate Option 2, or Convert any Base
Rate Loan  having a Base Rate  determined  by Base Rate  Option 2 to a Base Rate
Loan having a Base Rate determined by Base Rate Option 1; and

         (c)      provided  that no  Default  or Event  of  Default  shall  have
occurred and be  continuing,  upon  delivery of  telephonic  notice to the Agent
(which shall be  irrevocable  on or before 10:30 A.M.  three (3) Business  Days'
prior to the date of such Conversion or Continuation:

                  (i) elect a subsequent Interest Period for any Eurodollar Rate
         Loan to begin on the last day of the then current  Interest  Period for
         such Eurodollar Rate Loan; or

                                       43

<PAGE>

                  (ii) Convert  any Base Rate Loan to a Eurodollar  Rate Loan on
         any Business Day.

Each such notice shall be effective upon receipt by the Agent, shall specify the
amount of the  Eurodollar  Rate Loan  affected,  and,  if a  Continuation  as or
Conversion  into a Eurodollar  Rate Loan, the Interest  Period to be used in the
computation of interest.  The Authorized  Representative shall provide the Agent
written  confirmation of each such telephonic  notice in the form of a Borrowing
Notice or  Interest  Rate  Selection  Notice (as  applicable)  with  appropriate
insertions  but  failure  to  provide  such  confirmation  shall not  affect the
validity of such telephonic  notice.  Notice of receipt of such Borrowing Notice
or Interest Rate Selection  Notice, as the case may be, shall be provided by the
Agent to each Lender by telefacsimile  transmission with reasonable  promptness,
but (provided the Agent shall have received such notice by 10:30 A.M.) not later
than 1:00 P.M. on the same day as the Agent's  receipt of such notice.  All such
Continuations  or  Conversions  of Loans shall be effected pro rata based on the
Applicable Commitment Percentages of the Lenders.

         4.3      Payment  of Interest.  The Borrower  shall pay interest on the
outstanding and unpaid  principal  amount of each Revolving Loan,  commencing on
the first date of such Revolving Loan until such Revolving Loan shall be repaid,
at the applicable  Base Rate or Eurodollar Rate as designated by the Borrower in
the related  Borrowing  Notice or Interest Rate Selection Notice or as otherwise
provided hereunder. Interest on each Revolving Loan shall be paid on the earlier
of (a) in the case of any Base  Rate  Loan,  quarterly  in  arrears  of the last
Business Day of each December, March, June and September, commencing on December
31, 2000, until the Revolving Credit  Termination Date, at which date the entire
principal  amount of and all accrued  interest on the  Revolving  Loans shall be
paid in full,  (b) in the case of any  Eurodollar  Rate Loan, on last day of the
applicable  Interest  Period for such  Eurodollar Rate Loan and if such Interest
Period extends for more than three (3) months,  at intervals of three (3) months
after the first day of such Interest Period, and (c) upon payment in full of the
related Revolving Loan;  provided,  however,  that if any Event of Default shall
occur and be continuing,  all amounts outstanding  hereunder shall bear interest
thereafter until paid in full at the Default Rate.

         4.4      Prepayments  of Eurodollar Rate Loans. Whenever any payment of
principal shall be made in respect of any Revolving Loan  hereunder,  whether at
maturity,  on acceleration,  by optional or mandatory prepayment or as otherwise
required or permitted  hereunder,  with the effect that any Eurodollar Rate Loan
shall  be  prepaid  in whole  or in part  prior to the last day of the  Interest
Period  applicable to such Eurodollar Rate Loan, such payment of principal shall
be accompanied by the additional payment, if any, of accrued and unpaid interest
thereon, and as required by Section 6.5.

         4.5      Manner  of Payment.  (a) Each payment of principal  (including
any  prepayment) and payment of interest and fees, and any other amount required
to be paid by or on behalf of the Borrower to the Lenders, the Issuing Bank, the
Agent,  the Collateral  Agent,  or Bank of America with respect to any Revolving
Loan, Letter of Credit,  Reimbursement  Obligation, or Swing Line Loan, shall be
made to the Agent at the Principal Office (or, as applicable,  to the Collateral
Agent) in Dollars in immediately  available funds without condition or deduction
for any setoff,

                                       44

<PAGE>

recoupment,  deduction or  counterclaim on or before 12:30 P.M. on the date such
payment is due. The Agent may,  but shall not be obligated  to, debit the amount
of such payment from any one or more ordinary  deposit  accounts of the Borrower
with the Agent.

         (b)      Any  payment made by or on behalf of the Borrower  that is not
made both in Dollars in immediately  available  funds and prior to 12:30 P.M. on
the date such payment is to be made shall constitute a  non-conforming  payment.
Any such  non-conforming  payment  shall not be deemed to be received  until the
later  of (i) the time  such  funds  become  available  funds  and (ii) the next
Business Day. Any  non-conforming  payment may constitute or become a Default or
Event of Default as otherwise provided herein. Interest shall continue to accrue
at the  Default  Rate on any  principal  or fees as to  which  no  payment  or a
non-conforming  payment is made from the date such  amount  was due and  payable
until the later of (i) the date such funds  become  available  funds or (ii) the
next Business Day.

         (c)      In  the event that any payment  hereunder  or under any of the
Notes or any other Loan  Document  becomes due and payable on a day other than a
Business  Day,  then  such due date  shall be  extended  to the next  succeeding
Business  Day  unless  provided  otherwise  under the  definition  of  "Interest
Period"; provided,  however, that interest and applicable fees shall continue to
accrue during the period of any such extension;  and provided further,  however,
that in no event shall any such due date be extended beyond the Revolving Credit
Termination Date.

         4.6      Fees

         (a)      Unused  Fee. For the period  beginning on the Closing Date and
ending on the Revolving Credit  Termination  Date, the Borrower agrees to pay to
the Agent,  for the pro rata  benefit of the Lenders  based on their  Applicable
Commitment  Percentages,  an  unused  fee  equal to the  Applicable  Unused  Fee
multiplied  by the  average  daily  amount by which the Total  Revolving  Credit
Commitment exceeds the sum of (i) Revolving Credit  Outstandings  without giving
effect to Swing Line  Outstandings  except in the case of Bank of  America  plus
(ii)  Letter of Credit  Outstandings.  Such fees  shall be due in arrears on the
last Business Day of each December,  March,  June, and September,  commencing on
December  31,  2000,  to  and  on  the  Revolving   Credit   Termination   Date.
Notwithstanding the foregoing, so long as any Lender fails to make available any
portion of its Revolving Credit Commitment when requested, such Lender shall not
be  entitled  to  receive  payment  of its pro rata share of such fee until such
Lender shall make available such portion.

         (b)      Letter  of Credit Facility Fees. The Borrower shall pay to the
Agent,  for the pro rata  benefit  of the  Lenders  based  on  their  Applicable
Commitment  Percentages,  a fee on the aggregate amount available to be drawn on
each outstanding Letter of Credit at a rate equal to the Applicable Margin. Such
fees shall be due and payable with respect to each Letter of Credit quarterly in
arrears on the last day of each December,  March, June and September,  the first
such payment to be made on the first such date occurring after the Closing Date.

         (c)      Letter  of  Credit  Fronting  and  Administrative   Fees.  The
Borrower  shall pay to the  Issuing  Bank a fronting  fee of  one-eighth  of one
percent (1/8 %) per annum on the initial  aggregate amount available to be drawn
on each  outstanding  Letter of Credit,  such fee to be due

                                       45

<PAGE>

and payable in full with respect to each Letter of Credit on the quarterly  date
established in Section 4.6(b) for the payment of Letter of Credit  facility fees
next  following the date of issuance (or renewal) of such Letter of Credit.  The
Borrower  shall also pay to the Issuing Bank such  administrative  fee and other
fees,  if any, in  connection  with the Letters of Credit in such amounts and at
such times as the Issuing Bank and the Borrower shall agree from time to time.

         (d)      Agent  Fees. The Borrower agrees to pay to the Agent,  for the
Agent's  individual  account,  an annual  Agent's fee, such fee to be payable in
such  amounts and at such dates as from time to time  agreed to by the  Borrower
and Agent in writing.

         4.7      Pro Rata Payments.  Except as otherwise  specified herein, (a)
each  payment on account of the  principal  of and  interest on Loans,  the fees
described in Sections 4.6(a) and 4.6(b),  and Swing Line Loans and Reimbursement
Obligations as to which the Lenders have funded their respective  Participations
which  remain  outstanding,  shall be made to the Agent for the  account  of the
Lenders pro rata based on their Applicable Commitment  Percentages,  and (b) the
Agent will promptly  distribute to the Lenders in  immediately  available  funds
payments  received  in fully  collected,  immediately  available  funds from the
Borrower.

         4.8      Computation of Rates and Fees. Interest on all Base Rate Loans
computed by reference to the Prime Rate shall be computed on the basis of a year
of 365/366  days and  calculated  for actual  days  elapsed.  Except as provided
above,  all interest rates (including each Eurodollar Rate and the Default Rate)
and fees shall be computed on the basis of a year of 360 days and calculated for
actual days elapsed.

         4.9      Deficiency  Advances;  Failure to Purchase Participations.  No
Lender  shall be  responsible  for any default of any other Lender in respect to
such other Lender's  obligation to make any Loan or Advance hereunder or to fund
its  purchase of any  Participation  hereunder  nor shall the  Revolving  Credit
Commitment or Letter of Credit  Commitment of any Lender  hereunder be increased
as a result of such default of any other Lender. Without limiting the generality
of the  foregoing or the  provisions  of Section  4.10,  in the event any Lender
shall fail to advance funds to the Borrower as herein provided, the Agent may in
its discretion, but shall not be obligated to, advance under the applicable Note
in its favor as a Lender all or any portion of such amount or amounts  (each,  a
"deficiency  advance") and shall thereafter be entitled to payments of principal
of and  interest on such  deficiency  advance in the same manner and at the same
interest  rate or rates to which such other Lender would have been  entitled had
it made such Advance under its Note;  provided that, (i) such defaulting  Lender
shall not be entitled to receive  payments of  principal,  interest or fees with
respect to such deficiency  advance until such deficiency advance (together with
interest  thereon as provided  in clause  (ii)) shall be paid by such Lender and
(ii) upon payment to the Agent from such other Lender of the entire  outstanding
amount of each  such  deficiency  advance,  together  with  accrued  and  unpaid
interest  thereon,  from the most recent date or dates  interest was paid to the
Agent by a  Borrower  on each Loan  comprising  the  deficiency  advance  at the
Federal Funds Rate,  then such payment shall be credited  against the applicable
Note of the Agent in full payment of such  deficiency  advance and such Borrower
shall be deemed to have borrowed the amount of such deficiency advance from such
other Lender as of the most recent date or dates, as the case may be, upon which
any payments of interest  were made by such Borrower  thereon.  In the event any
Lender shall fail to

                                       46

<PAGE>

fund its purchase of a Participation  after notice from the Issuing Bank or Bank
of America as the Swing Line lender, as applicable, such Lender shall pay to the
Issuing Bank or Bank of America as the Swing Line lender,  as  applicable,  such
amount on demand, together with interest at the Federal Funds Rate on the amount
so due from the date of such notice to the date such purchase  price is received
by the Issuing Bank or Bank of America as the Swing Line lender, as applicable.

         4.10     Intraday  Funding.  Without limiting the provisions of Section
4.9,  unless the  Borrower or any Lender has  notified  the Agent not later than
12:00 Noon of the  Business  Day before the date any payment  (including  in the
case of Lenders any Advance) to be made by it is due, that it does not intend to
remit such payment,  the Agent may, in its  discretion,  assume that Borrower or
each Lender,  as the case may be, has timely remitted such payment in the manner
required  hereunder and may, in its  discretion  and in reliance  thereon,  make
available such payment (or portion  thereof) to the Person  entitled  thereto as
otherwise provided herein. If such payment was not in fact remitted to the Agent
in the manner required hereunder, then:

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

                  (ii) if any  Lender  failed  to make such  payment,  the Agent
         shall be entitled to recover such  corresponding  amount forthwith upon
         the  Agent's  demand  therefor,  the Agent  promptly  shall  notify the
         Borrower, and the Borrower shall promptly pay such corresponding amount
         to the  Agent in  immediately  available  funds  upon  receipt  of such
         demand.  The Agent also shall be entitled  to recover  interest on such
         corresponding  amount  in  respect  of each  day  from  the  date  such
         corresponding amount was made available by the Agent to the Borrower to
         the date such corresponding  amount is recovered by the Agent, (A) from
         such Lender at a rate per annum equal to the daily  Federal  Funds Rate
         or (B) from the  Borrower,  at a rate per annum  equal to the  interest
         rate applicable to the Loan which includes such  corresponding  amount.
         Until the Agent shall recover such  corresponding  amount together with
         interest  thereon,   such  corresponding   amount  shall  constitute  a
         deficiency  advance  within the meaning of Section 4.9.  Nothing herein
         shall be deemed to relieve  any Lender from its  obligation  to fulfill
         its commitments hereunder or to prejudice any rights which the Agent or
         the  Borrower may have against any Lender as a result of any default by
         such Lender hereunder.

                                       47

<PAGE>

                                    ARTICLE V

                                    Security

         5.1      Security.  As  security  for the full and timely  payment  and
performance of all  Obligations,  the Borrower shall,  and shall cause all other
Credit  Parties  to, on or before the Closing  Date,  do or cause to be done all
things  necessary  in the  opinion of the Agent and its  counsel to grant to the
Collateral Agent for the benefit of the Agent and the Lenders and the holders of
the Senior  Notes a duly  perfected  first  priority  security  interest  in all
Collateral  subject  to no prior Lien or other  encumbrance  or  restriction  on
transfer (other than  restrictions on transfer imposed by applicable  securities
laws).

         5.2      Pledged Stock. Without limiting the generality of Section 5.1,
the Parent and each other Guarantor  having rights in any Subsidiary  Securities
shall on the Closing Date deliver to the Collateral Agent, in form and substance
satisfactory to the Agent and the Collateral Agent, (A) a Pledge Agreement which
shall  pledge  to the  Collateral  Agent  for the  benefit  of the Agent and the
Lenders and the holders of the Senior Notes (i) 65% of the Voting  Securities of
each Direct Foreign  Subsidiary (or if the Parent and its Subsidiaries shall own
less than 65%, then all of the Voting  Securities owned by them) and 100% of the
other Subsidiary  Securities of such Direct Foreign Subsidiary,  and (ii) all of
the Subsidiary  Securities of all Domestic  Subsidiaries  of the Parent,  (B) if
such  Subsidiary  Securities are in the form of  certificated  securities,  such
certificated securities, together with undated stock powers or other appropriate
transfer documents endorsed in blank pertaining thereto,  (C) if such Subsidiary
Securities do not  constitute  securities  and the Subsidiary has not elected to
have such  interests  treated  as  securities  under  Article  8 of the  Uniform
Commercial  Code, a control  agreement  (containing the provisions  described in
Section  9.19(e))  from the  Registrar of such  Subsidiary  Securities,  and (D)
Uniform Commercial Code financing statements reflecting the Lien in favor of the
Collateral  Agent on such  Subsidiary  Securities,  each in form  and  substance
acceptable to the Agent and the  Collateral  Agent,  and shall take such further
action and deliver or cause to be delivered  such further  documents as required
by the Security  Instruments or otherwise as the  Collateral  Agent or the Agent
may  request  to effect the  transactions  contemplated  by this  Article V. The
Borrower and the Parent shall,  and shall cause each of their  Subsidiaries  to,
pledge to the Collateral  Agent for the benefit of the Agent and the Lenders and
the holders of the Senior Notes (and as appropriate to reaffirm its prior pledge
of) all of the Subsidiary  Securities  which may be issued or acquired after the
Closing Date,  and to deliver to the  Collateral  Agent all of the documents and
instruments  in  connection  therewith as are required  pursuant to the terms of
Section 9.19 and of the Security Instruments.

         5.3      Intercompany Notes. Without limiting the generality of Section
5.1, the Borrower,  as security for all  Obligations,  shall on the Closing Date
deliver to the  Collateral  Agent,  in form and  substance  satisfactory  to the
Lenders,  (A) an  Intercompany  Note Pledge  Agreement which shall pledge to the
Collateral Agent for the benefit of the Agent and the Lenders and the holders of
the Senior Notes all of the Intercompany Notes then or thereafter existing,  and
(B) each original  Intercompany Note then existing with undated  endorsements or
other  appropriate  transfer  documents duly executed in blank affixed  thereto,
together with an estoppel notice in form and substance satisfactory to the Agent
and the  Collateral  Agent executed

                                       48

<PAGE>

by the issuer  thereof,  and shall take such further action and deliver or cause
to be delivered  then or  thereafter  such further  documents as required by the
Security  Instruments  or  otherwise  as the  Collateral  Agent or the Agent may
request  to  effect  the  transactions  contemplated  by this  Article  V.  Each
Intercompany  Borrowing Note executed and delivered after the Closing Date shall
immediately be delivered by the holder  thereof to the  Collateral  Agent in the
same  manner as in clause (B) of the  immediately  preceding  sentence  together
with, as applicable,  a new Intercompany Note Pledge Agreement (substantially in
the form of Exhibit N-1 attached hereto, with appropriate conforming changes) if
the holder of such  Intercompany  Borrowing  Note did not execute and deliver an
Intercompany Note Pledge Agreement on the Closing Date, or such supplement to or
revision of the Intercompany Note Pledge Agreement delivered on the Closing Date
as the Agent or the  Collateral  Agent  deems  necessary  for the  creation  and
attachment of a Lien therein in favor of the Collateral Agent for the benefit of
the Agent, the Lenders and the holders of the Senior Notes.

         5.4      Licensing  Agreements.  Without  limiting  the  generality  of
Section 5.1, the Borrower  and the  Subsidiary  Guarantors,  as security for all
Obligations and obligations under each Facility  Guaranty,  shall on the Closing
Date deliver,  or cause to be delivered,  to the Collateral  Agent,  in form and
substance  satisfactory to the Agent and the Collateral  Agent,  (i) a certified
copy of each Licensing  Agreement then existing,  (ii) the Security  Agreements,
which shall grant a Lien to the  Collateral  Agent for the benefit of the Agent,
the  Lenders  and  the  holders  of the  Senior  Notes  in all of the  Licensing
Agreements then or thereafter existing,  and (iii) licensor consent,  waiver and
estoppel  certificates,  in form and  substance  acceptable to the Agent and the
Collateral  Agent,  executed by CIP,  with respect to all  Licensing  Agreements
assigned pursuant to the terms of the Security  Agreements,  and shall take such
further  action and deliver or cause to be  delivered  then or  thereafter  such
further  documents as required by the Security  Instruments  or otherwise as the
Collateral   Agent  or  the  Agent  may  request  to  effect  the   transactions
contemplated  by this Article V. The Parent and the Borrower shall  deliver,  or
cause to be delivered, a certified copy of each Licensing Agreement entered into
after the  Closing  Date  within five (5)  Business  Days of its  effectiveness,
together with licensor consent,  waiver and estoppel  certificates,  in form and
substance  acceptable to the Agent and the  Collateral  Agent,  executed by CIP,
with respect to the pledge of each such Licensing Agreement.

         5.5      Further  Assurances.  At  the  request  of  the  Agent  or the
Collateral  Agent, the Borrower will or will cause all other Credit Parties,  as
the case may be, to execute, by its duly authorized officers,  alone or with the
Agent or the Collateral Agent, any certificate, instrument, financing statement,
control  agreement,  statement or document,  or to procure any such certificate,
instrument,  statement  or  document,  or to take such other action (and pay all
connected  costs)  which  the Agent or the  Collateral  Agent  reasonably  deems
necessary  from  time to time to  create,  continue  or  preserve  the  Liens in
Collateral  (and the  perfection and priority  thereof) of the Collateral  Agent
contemplated  hereby and by the other Loan Documents and specifically  including
all Subsidiary Securities, Intercompany Notes, interests in Licensing Agreements
and all other  Collateral  acquired by the  Borrower or other Credit Party after
the Closing  Date.  The  Collateral  Agent is hereby  irrevocably  authorized to
execute and file or cause to be filed,  with or if permitted by  applicable  law
without the signature of the Borrower or any Credit Party appearing thereon, all
Uniform  Commercial  Code  financing  statements  reflecting the Borrower or any
other Credit Party as "debtor" and the Collateral Agent as "secured party",

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<PAGE>

and continuations thereof and amendments thereto, as the Agent or the Collateral
Agent reasonably deems necessary or advisable to give effect to the transactions
contemplated hereby and by the other Loan Documents.

         5.6      Information  Regarding  Collateral.  The Borrower  represents,
warrants and covenants that (i) the chief  executive  office of the Borrower and
each other Credit Party  (each,  a "Grantor")  at the Closing Date is located at
the address or  addresses  specified  on Schedule  5.6,  and (ii)  Schedule  5.6
contains a true and complete list of (a) the exact legal name,  jurisdiction  of
formation,  and address of each Grantor, (b) the exact legal name,  jurisdiction
of formation, and each location of the chief executive office of each Grantor at
any time since  December 1, 1995,  and (c) each trade name,  trademark  or other
trade style used by any Grantor since January 1, 2000 and the purposes for which
it was used.  Borrower shall not change,  and shall not permit any other Grantor
to change,  its name,  jurisdiction  of formation  (whether by  reincorporation,
merger or  otherwise),  the location of its chief  executive  office,  or use or
permit any other Grantor to use, any additional  trade name,  trademark or other
trade  style,  except upon giving not less than thirty (30) days' prior  written
notice to the Agent and the  Collateral  Agent and taking or causing to be taken
all  such  action  at  Borrower's  or such  other  Grantor's  expense  as may be
reasonably requested by the Agent or the Collateral Agent to perfect or maintain
the perfection of the Lien of the Collateral Agent in Collateral.

         5.7      Intercreditor  Matters.  Each  Lender  from time to time party
hereto, the Agent and the Borrower hereby consent to and agree with the terms of
the  Intercreditor  Agreement and such Lenders hereby (i)  acknowledge and agree
that  each  Lien in all  Collateral  now  owned or  hereafter  acquired  and all
remedies  available with respect to such  Collateral are subject to the terms of
the Intercreditor  Agreement, and (ii) direct the Agent on their behalf to enter
into the Intercreditor Agreement and irrevocably consents to the service by Bank
of America in the capacity of Collateral Agent.

                                       50

<PAGE>

                                   ARTICLE VI

                             Change in Circumstances

         6.1      Increased Cost and Reduced Return.

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

                  (i) shall  subject  such  Lender  (or its  Applicable  Lending
         Office)  to  any  tax,  duty,  or  other  charge  with  respect  to any
         Eurodollar  Rate Loans,  its Note, or its obligation to make Eurodollar
         Rate Loans,  or change the basis of taxation of any amounts  payable to
         such Lender (or its Applicable  Lending Office) under this Agreement or
         its Note in respect of any  Eurodollar  Rate  Loans  (other  than taxes
         imposed on the overall net income of such Lender by the jurisdiction in
         which such Lender has its principal  office or such Applicable  Lending
         Office);

                  (ii) shall impose,  modify,  or deem  applicable  any reserve,
         special deposit,  assessment,  or similar  requirement  (other than the
         Reserve  Requirement  utilized in the  determination  of the Eurodollar
         Rate)  relating to any  extensions of credit or other assets of, or any
         deposits with or other  liabilities or commitments  of, such Lender (or
         its  Applicable   Lending  Office),   including  the  Revolving  Credit
         Commitment of such Lender hereunder; or

                  (iii) shall impose on such Lender (or its  Applicable  Lending
         Office) or on the London interbank market any other condition affecting
         this  Agreement  or its Note or any of such  extensions  of  credit  or
         liabilities or commitments;

and the result of any of the  foregoing  is to increase  the cost to such Lender
(or its Applicable Lending Office) of making,  Converting into,  Continuing,  or
maintaining any Loans or to reduce any sum received or receivable by such Lender
(or its Applicable Lending Office) under this Agreement or its Note with respect
to any  Eurodollar  Rate Loans,  then the  Borrower  shall pay to such Lender on
demand such amount or amounts as will  compensate such Lender for such increased
cost or reduction.  If any Lender  requests  compensation  by the Borrower under
this Section 6.1(a),  the Borrower may, by notice to such Lender (with a copy to
the Agent),  suspend the  obligation of such Lender to make or Continue Loans of
the Type with respect to which such  compensation  is  requested,  or to Convert
Loans of any other Type into Loans of such  Type,  until the event or  condition
giving rise to such request ceases to be in effect (in which case the provisions
of Section 6.4 shall be  applicable);  provided that such  suspension  shall not
affect the right of such Lender to receive the compensation so requested.

                                       51

<PAGE>

         (b)      If,  after the date hereof,  any Lender shall have  determined
that the adoption of any applicable law, rule, or regulation  regarding  capital
adequacy  or any  change  therein  or in the  interpretation  or  administration
thereof by any  governmental  authority,  central  bank,  or  comparable  agency
charged with the  interpretation  or administration  thereof,  or any request or
directive regarding capital adequacy (whether or not having the force of law) of
any such  governmental  authority,  central bank, or comparable  agency,  has or
would  have the  effect of  reducing  the rate of return on the  capital of such
Lender or any  corporation  controlling  such  Lender as a  consequence  of such
Lender's  obligations  hereunder to a level below that which such Lender or such
corporation  could have  achieved but for such  adoption,  change,  request,  or
directive  (taking  into  consideration  its  policies  with  respect to capital
adequacy),  then from time to time upon  demand the  Borrower  shall pay to such
Lender such additional amount or amounts as will compensate such Lender for such
reduction.

         (c)      Each  Lender shall promptly  notify the Borrower and the Agent
of any event of which it has knowledge,  occurring after the date hereof,  which
will entitle such Lender to  compensation  pursuant to this Section 6.1 and will
designate a different  Applicable  Lending Office if such designation will avoid
the need for,  or reduce the amount of, such  compensation  and will not, in the
judgment of such Lender, be otherwise disadvantageous to it. Any Lender claiming
compensation  under this Section 6.1 shall furnish to the Borrower and the Agent
a  statement  setting  forth the  additional  amount or amounts to be paid to it
hereunder  which  shall be  conclusive  in the  absence of  manifest  error.  In
determining  such  amount,  such  Lender may use any  reasonable  averaging  and
attribution methods.

         (d)      The  provisions  of this Section 6.1 shall  continue in effect
notwithstanding the Facility Termination Date.

         6.2  Limitation  on Types of Loans.  If on or prior to the first day of
any Interest Period for any Eurodollar Rate Loan:

                  (a)  the  Agent  determines  (which   determination  shall  be
         conclusive)  that by reason of  circumstances  affecting  the  relevant
         market, adequate and reasonable means do not exist for ascertaining the
         Eurodollar Rate for such Interest Period; or

                  (b) the Required Lenders determine (which  determination shall
         be conclusive)  and notify the Agent that the Eurodollar  Rate will not
         adequately  and  fairly  reflect  the cost to the  Lenders  of  funding
         Eurodollar Rate Loans for such Interest Period;

then the Agent shall give the Borrower  prompt  notice  thereof  specifying  the
relevant Type of Loans and the relevant amounts or periods,  and so long as such
condition  remains in effect,  the Lenders  shall be under no obligation to make
additional Loans of such Type,  Continue Loans of such Type, or to Convert Loans
of any other Type into Loans of such Type and the  Borrower  shall,  on the last
day(s) of the then current Interest  Period(s) for the outstanding  Loans of the
affected Type,  either prepay such Loans or Convert such Loans into another Type
of Loan in accordance with the terms of this Agreement.

                                       52

<PAGE>

         6.3      Illegality.   Notwithstanding  any  other  provision  of  this
Agreement,  in the  event  that  it  becomes  unlawful  for  any  Lender  or its
Applicable  Lending  Office to make,  maintain,  or fund  Eurodollar  Rate Loans
hereunder,  then such Lender shall promptly notify the Borrower thereof and such
Lender's  obligation  to make or Continue  Eurodollar  Rate Loans and to Convert
other Types of Loans into  Eurodollar  Rate Loans shall be suspended  until such
time as such Lender may again make, maintain, and fund Eurodollar Rate Loans (in
which case the provisions of Section 6.4 shall be applicable).

         6.4      Treatment  of Affected  Loans. If the obligation of any Lender
to make a Eurodollar Rate Loan or to Continue,  or to Convert Loans of any other
Type into, Loans of a particular Type shall be suspended pursuant to Section 6.1
or 6.3 hereof (Loans of such Type being herein called  "Affected Loans" and such
Type being herein called the "Affected  Type"),  such  Lender's  Affected  Loans
shall be  automatically  Converted  into Base Rate Loans,  having a Base Rate as
elected  by the  Borrower,  on the  last  day(s)  of the then  current  Interest
Period(s)  for  Affected  Loans (or,  in the case of a  Conversion  required  by
Section  6.3  hereof,  on such  earlier  date as such  Lender may specify to the
Borrower  with a copy to the Agent)  and,  unless and until  such  Lender  gives
notice as provided below that the circumstances  specified in Section 6.1 or 6.3
hereof that gave rise to such Conversion no longer exist:

                  (a) to the extent that such Lender's  Affected Loans have been
         so  Converted,  all payments and  prepayments  of principal  that would
         otherwise be applied to such Lender's  Affected  Loans shall be applied
         instead to its Base Rate Loans; and

                  (b) all Loans that would  otherwise  be made or  Continued  by
         such Lender as Loans of the  Affected  Type shall be made or  Continued
         instead  as Base  Rate  Loans,  having a Base  Rate as  elected  by the
         Borrower,  and all  Loans  of  such  Lender  that  would  otherwise  be
         Converted  into Loans of the Affected  Type shall be Converted  instead
         into (or  shall  remain  as) Base  Rate  Loans,  having a Base  Rate as
         elected by the Borrower.

If such Lender gives notice to the Borrower  (with a copy to the Agent) that the
circumstances  specified  in  Section  6.1 or 6.3  hereof  that gave rise to the
Conversion  of such  Lender's  Affected  Loans  pursuant to this  Section 6.4 no
longer exist (which such Lender  agrees to do promptly  upon such  circumstances
ceasing  to  exist)  at a time  when  Loans of the  Affected  Type made by other
Lenders are  outstanding,  such Lender's Base Rate Loans shall be  automatically
Converted,  on the first day(s) of the next  succeeding  Interest  Period(s) for
such  outstanding  Loans of the Affected Type, to the extent  necessary so that,
after giving effect thereto,  all Loans held by the Lenders holding Loans of the
Affected  Type and by such  Lender are held pro rata (as to  principal  amounts,
Types,  and Interest  Periods) in  accordance  with their  respective  Revolving
Credit Commitments.

         6.5      Compensation.  Upon the  request of any Lender,  the  Borrower
shall pay to such Lender such amount or amounts as shall be  sufficient  (in the
reasonable  opinion of such  Lender) to  compensate  it for any loss,  cost,  or
expense (including loss of anticipated profits) incurred by it as a result of:

                                       53

<PAGE>

                  (i) any payment,  prepayment,  or  Conversion  of a Eurodollar
         Rate  Loan  for  any  reason  (including,   without   limitation,   the
         acceleration  of the Loans  pursuant  to Section  11.1) on a date other
         than the last day of the Interest Period for such Loan; or

                  (ii) any failure by the  Borrower  (for any reason,  including
         the failure of any condition  precedent  specified in Article VII to be
         satisfied,  other  than  the  failure  of  such  Lender  to make a Loan
         notwithstanding  satisfaction of all conditions  precedent  thereto) to
         borrow, Convert, Continue, or prepay a Eurodollar Rate Loan on the date
         for such borrowing,  Conversion,  Continuation, or prepayment specified
         in the  relevant  notice of  borrowing,  prepayment,  Continuation,  or
         Conversion under this Agreement.

         The   provisions   of  this  Section  6.5  shall   continue  in  effect
         notwithstanding the Facility Termination Date.

         6.6      Taxes.  (a) Any and all payments by the Borrower to or for the
account of any Lender or the Agent  hereunder  or under any other Loan  Document
shall be made free and clear of and without deduction for any and all present or
future taxes, duties, levies, imposts, deductions,  charges or withholdings, and
all liabilities with respect thereto,  excluding, in the case of each Lender and
the Agent,  taxes imposed on its income,  and franchise  taxes imposed on it, by
the jurisdiction  under the laws of which such Lender (or its Applicable Lending
Office)  or the  Agent  (as the  case  may  be) is  organized  or any  political
subdivision  thereof (all such  non-excluded  taxes,  duties,  levies,  imposts,
deductions, charges, withholdings, and liabilities being hereinafter referred to
as "Taxes").  If the Borrower  shall be required by law to deduct any Taxes from
or in respect of any sum payable under this Agreement or any other Loan Document
to any Lender or the Agent,  (i) the sum payable shall be increased as necessary
so that after making all required deductions (including deductions applicable to
additional  sums  payable  under  this  Section  6.6)  such  Lender or the Agent
receives  an  amount  equal  to the  sum it  would  have  received  had no  such
deductions  been made, (ii) the Borrower shall make such  deductions,  (iii) the
Borrower shall pay the full amount deducted to the relevant  taxation  authority
or other  authority in  accordance  with  applicable  law, and (iv) the Borrower
shall  furnish to the Agent,  at its address  referred to in Section  13.2,  the
original or a certified copy of a receipt evidencing payment thereof.

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

         (c)      The  Borrower  agrees to indemnify each Lender,  the Agent and
the  Collateral  Agent for the full amount of Taxes and Other Taxes  (including,
without  limitation,  any  Taxes or  Other  Taxes  imposed  or  asserted  by any
jurisdiction on amounts payable under this Section 6.6) paid by such Lender, the
Agent or the Collateral Agent (as the case may be) and any liability  (including
penalties, interest, and expenses) arising therefrom or with respect thereto.

                                       54

<PAGE>

         (d)      Each Lender organized under the laws of a jurisdiction outside
the United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Lender listed on the signature pages hereof and on
or prior to the date on which  it  becomes  a Lender  in the case of each  other
Lender, and from time to time thereafter if requested in writing by the Borrower
or the Agent (but only so long as such Lender  remains  lawfully able to do so),
shall provide the Borrower and the Agent with (i) Internal  Revenue Service Form
1001 or 4224, as  appropriate,  or any successor form prescribed by the Internal
Revenue  Service,  certifying  that such Lender is entitled to benefits under an
income tax treaty to which the United  States is a party which  reduces the rate
of  withholding  tax on  payments  of  interest  or  certifying  that the income
receivable pursuant to this Agreement is effectively  connected with the conduct
of a trade or business in the United States,  (ii) Internal Revenue Service Form
W-8 (including Form W-8BEN or W-8EC1) or W-9, as  appropriate,  or any successor
form  prescribed by the Internal  Revenue  Service,  and (iii) any other form or
certificate required by any taxing authority (including any certificate required
by Sections  871(h) and 881(c) of the Internal  Revenue Code),  certifying  that
such  Lender  is  entitled  to an  exemption  from or a  reduced  rate of tax on
payments pursuant to this Agreement or any of the other Loan Documents.

         (e)      For  any period  with  respect to which a Lender has failed to
provide the Borrower and the Agent with the appropriate form pursuant to Section
6.6(d)  (unless  such failure is due to a change in treaty,  law, or  regulation
occurring  subsequent to the date on which a form  originally was required to be
provided),  such Lender shall not be entitled to  indemnification  under Section
6.6(a) or 6.6(b) with respect to Taxes imposed by the United  States;  provided,
however,  that should a Lender,  which is otherwise  exempt from or subject to a
reduced rate of withholding  tax, become subject to Taxes because of its failure
to deliver a form required hereunder, the Borrower shall take such steps as such
Lender shall reasonably request to assist such Lender to recover such Taxes.

         (f)      If  the Borrower is required to pay  additional  amounts to or
for the account of any Lender  pursuant to this  Section  6.6,  then such Lender
will  agree  to  use  reasonable  efforts  to  change  the  jurisdiction  of its
Applicable  Lending  Office so as to  eliminate  or reduce  any such  additional
payment  which may  thereafter  accrue if such  change,  in the judgment of such
Lender, is not otherwise disadvantageous to such Lender.

         (g)      Within  thirty  (30)  days  after the date of any  payment  of
Taxes,  the Borrower shall furnish to the Agent the original or a certified copy
of a receipt evidencing such payment.

         (h)      The  provisions  of this Section 6.6 shall  continue in effect
notwithstanding the Facility Termination Date.

                                       55

<PAGE>

                                   ARTICLE VII

            Conditions to Making Loans and Issuing Letters of Credit

         7.1      Conditions  of Initial Advance.  The obligation of the Lenders
to make the initial  Advance under the  Revolving  Credit  Facility,  and of the
Issuing  Bank to issue any Letter of Credit,  and of Bank of America to make any
Swing Line Loan, is subject to the conditions precedent that:

                  (a)  the Agent shall have  received on the  Closing  Date,  in
         form  and  substance   satisfactory  to  the  Agent  and  Lenders,  the
         following:

                           (i) executed originals of each of this Agreement, the
                  Notes, the initial Facility  Guaranties of the Parent and each
                  direct and indirect  Domestic  Subsidiary of the Parent or the
                  Borrower,   the  Security   Instruments,   the   Intercreditor
                  Agreement,  the  other  Loan  Documents,   together  with  all
                  schedules and exhibits thereto;

                           (ii) the favorable  written  opinion or opinions with
                  respect   to  the   Loan   Documents   and  the   transactions
                  contemplated  thereby of counsel to the Credit  Parties  dated
                  the Closing  Date,  addressed to the Agent and the Lenders and
                  satisfactory to Smith Helms Mulliss & Moore,  L.L.P.,  special
                  counsel to the Agent, substantially in the form of Exhibit G;

                           (iii) resolutions of the boards of directors or other
                  appropriate  governing body (or of the  appropriate  committee
                  thereof) of each Credit Party  certified  by its  secretary or
                  assistant  secretary  as of the Closing  Date,  approving  and
                  adopting the Loan Documents to be executed by such Person, and
                  authorizing the execution and delivery thereof;

                           (iv)   specimen   signatures  of  officers  or  other
                  appropriate  representatives  executing the Loan  Documents on
                  behalf  of  each  of  the  Credit  Parties,  certified  by the
                  secretary or assistant secretary of such Credit Party;

                           (v)  the  Organizational  Documents  of  each  of the
                   Credit Parties certified as of a recent date by the Secretary
                   of State of its state of organization;

                           (vi)  Operating  Documents  of  each  of  the  Credit
                   Parties  certified as of the Closing Date as true and correct
                   by its secretary or assistant secretary;

                           (vii) certificates  issued as of a recent date by the
                  Secretaries  of  State  of  the  respective  jurisdictions  of
                  formation  of  each  of  the  Credit  Parties  as to  the  due
                  existence and good standing of such Person;

                           (viii)  appropriate  certificates of qualification to
                  do business,  good standing and, where appropriate,  authority
                  to conduct  business under assumed

                                       56

<PAGE>

                  name,  issued in respect of each of the Credit Parties as of a
                  recent date by the Secretary of State or  comparable  official
                  of each  jurisdiction  in which the failure to be qualified to
                  do business or authorized so to conduct  business could have a
                  Material  Adverse Effect,  provided that any such  certificate
                  which is required but not  delivered on the Closing  Date,  as
                  disclosed to the Agent and the Lenders in that certain  letter
                  from counsel to the Borrower dated November 21, 2000, shall be
                  delivered to the Agent not later than ten (10) weeks following
                  the Closing Date;

                           (ix) notice of appointment of the initial Authorized
                  Representative(s);

                           (x) certificate of an Authorized Representative dated
                  the Closing Date  demonstrating  compliance with the financial
                  covenants  contained in Sections  10.1(a)  through 10.1(c) and
                  10.8 as of the end of the fiscal  quarter most recently  ended
                  prior  to the  Closing  Date,  substantially  in the  form  of
                  Exhibit H;

                           (xi) evidence of all  insurance  required by the Loan
                   Documents;

                           (xii) an initial  Borrowing Base  Certificate for the
                  most  recently  ended  fiscal  quarter,  an initial  Borrowing
                  Notice  and,  if  elected  by  the  Borrower,   Interest  Rate
                  Selection Notice;

                           (xiii)  evidence of the filing of Uniform  Commercial
                  Code financing  statements and, as appropriate,  amendments to
                  previously filed financing  statements,  reflecting the filing
                  in all places  required by applicable law to perfect the Liens
                  of the  Collateral  Agent under the Security  Instruments as a
                  first  priority  Lien as to  items  of  Collateral  in which a
                  security  interest may be perfected by the filing of financing
                  statements,   subject  to  the  terms  of  the   Intercreditor
                  Agreement,  and such other documents  and/or evidence of other
                  actions as may be necessary  under  applicable  law to perfect
                  the  Liens  of  the   Collateral   Agent  under  the  Security
                  Instruments  as a first  priority  Lien  in and to such  other
                  Collateral  as the Agent may require,  subject to the terms of
                  the Intercreditor Agreement, including without limitation:

                                    (A)  the   delivery  by  the   Parent,   the
                           Borrower,  and other applicable Credit Parties of all
                           stock  certificates   evidencing  Pledged  Interests,
                           accompanied  in  each  case by  duly  executed  stock
                           powers (or other appropriate  transfer  documents) in
                           blank affixed thereto; and

                                    (B)  the   delivery  by  the   Parent,   the
                           Borrower,  and other  applicable  Credit  Parties  of
                           certificates of the Registrar of each  partnership or
                           limited  liability  company  Subsidiary of the Parent
                           evidencing the due  registration on the  registration
                           books  of such  Person  of the  Lien in  favor of the
                           Agent conferred under the Security Instruments;

                                       57

<PAGE>

                           (xiv)  evidence that all fees payable by the Borrower
                  on the Closing  Date to the Agent,  BAS and the  Lenders  have
                  been paid in full, including the due diligence expenses of the
                  Agent and the fees and  expenses  of counsel  for the Agent to
                  the extent invoiced prior to or on the Closing Date (which may
                  include amounts constituting reasonable estimates of such fees
                  and expenses incurred or to be incurred in connection with the
                  transaction;  provided that no such estimate shall  thereafter
                  preclude  the final  settling  of accounts as to such fees and
                  expenses);

                           (xv) Uniform  Commercial  Code search results showing
                  only those Liens as are acceptable to the Lenders;

                           (xvi)  a  certificate   of  the  President  or  chief
                  financial  officer of the Borrower as to the matters described
                  in Section 7.1(b);

                           (xvii)  evidence  satisfactory  to the  Agent  of the
                  termination of the Existing Facility, repayment of all amounts
                  owing by the  Borrower  thereunder,  and either the release of
                  all Liens  granted  in  respect  thereof  or the  continuation
                  thereof pursuant to the terms of the Security Instruments;

                           (xviii)  evidence  satisfactory to the Agent that all
                  letters of credit issued under the Existing Facility have been
                  terminated and returned to the issuers thereof;

                           (xix) evidence satisfactory to the Agent that CTI and
                  Southern  Refrigerated  Transport,  Inc.  have  entered  into,
                  together  with all  other  parties  thereto,  the  Receivables
                  Purchase Agreement,  satisfactory in form and substance to the
                  Agent  and the  Lenders,  and  has  received  proceeds  of the
                  Permitted  Receivables  Securitization  as  described  in  the
                  Receivables  Purchase Agreement in the amount of not less than
                  $25,000,000, and has applied such proceeds to the repayment of
                  the Existing Facility;

                           (xx) copies of all Licensing  Agreements to which the
                  Borrower and each  Guarantor  is party with CIP,  certified by
                  the  Secretary  or an  Assistant  Secretary or the Borrower or
                  such Guarantor, respectively, to be true, correct and complete
                  copies thereof;

                           (xxi) copies of each of the Senior Notes,  the Senior
                  Note Purchase Agreement, all documents governing or evidencing
                  the Synthetic Lease Obligations,  and all documents  governing
                  or evidencing the Permitted Receivables Securitization, all as
                  in effect as of the Closing  Date,  certified by the Secretary
                  or an Assistant  Secretary of the Borrower to be true, correct
                  and complete copies thereof;

                                       58

<PAGE>

                           (xxii) copies of each of the Servicing  Agreements as
                  in effect as of the Closing  Date,  certified by the Secretary
                  or an Assistant  Secretary of the Borrower and each  Guarantor
                  party thereto to be true, correct and complete copies thereof;

                           (xxiii)   all   Intercompany   Notes   with   undated
                  endorsements or other instruments of transfer duly executed in
                  blank affixed thereto, together with estoppel notices, in form
                  and  substance  satisfactory  to the Agent and the  Collateral
                  Agent, executed by the issuers thereof;

                           (xxiv)  evidence  of the  resignation  of  the  Prior
                  Collateral  Agent, as provided for in Section 5.4 of the Prior
                  Intercreditor Agreement;

                           (xxv) evidence of approval of the  appointment of the
                  Collateral  Agent  and  of  the  Security  Instruments  by the
                  holders of the Senior Notes;

                           (xxvi)   licensor   consent,   waiver  and   estoppel
                  certificates,  in form and  substance  acceptable to the Agent
                  and the Collateral Agent,  executed by CIP with respect to all
                  Licensing  Agreements  assigned  pursuant  to the terms of the
                  Security Agreements; and

                           (xxvii)    such   other    documents,    instruments,
                  certificates  and  opinions  as the  Agent or any  Lender  may
                  reasonably  request  on  or  prior  to  the  Closing  Date  in
                  connection   with  the   consummation   of  the   transactions
                  contemplated hereby; and

                  (b)  In the good faith judgment of the Agent and the Lenders:

                           (i) there shall not have  occurred or become known to
                  the Agent or the Lenders any event,  condition,  situation  or
                  status  since  the date of the  information  contained  in the
                  financial and business  projections,  budgets,  pro forma data
                  and forecasts  concerning the Credit Parties  delivered to the
                  Agent  prior  to the  Closing  Date  that  has  had  or  could
                  reasonably be expected to result in a Material Adverse Effect;

                           (ii) no litigation,  action,  suit,  investigation or
                  other arbitral, administrative or judicial proceeding shall be
                  pending or  threatened  which  could  reasonably  be likely to
                  result in a Material Adverse Effect; and

                           (iii) the  Credit  Parties  shall have  received  all
                  approvals,  consents and waivers, and shall have made or given
                  all  necessary  filings  and  notices as shall be  required to
                  consummate the  transactions  contemplated  hereby without the
                  occurrence of any default under, conflict with or violation of
                  (A) any applicable law, rule,  regulation,  order or decree of
                  any  Governmental  Authority or arbitral  authority or (B) any
                  agreement,  document or  instrument to which any of the Credit
                  Parties is a party or by which any of them or their properties
                  is  bound,  except  for  such  approvals,  consents,  waivers,
                  filings  and notices  the  receipt,  making or giving of which
                  will not have a Material Adverse Effect.

                                       59

<PAGE>

         7.2      Conditions  of  Revolving  Loans and  Letters of  Credit.  The
obligations of the Lenders to make any Revolving  Loans, and the Issuing Bank to
issue (or renew) Letters of Credit and Bank of America to make Swing Line Loans,
hereunder on or subsequent  to the Closing Date are subject to the  satisfaction
of the following conditions:

                  (a) the  Agent or, in the case of Swing  Line  Loans,  Bank of
         America shall have  received a Borrowing  Notice if required by Article
         II;

                  (b) the  representations  and warranties of the Credit Parties
         set forth in Article VIII and in each of the other Loan Documents shall
         be true and correct in all  material  respects on and as of the date of
         such Advance,  Swing Line Loan or Letter of Credit issuance or renewal,
         with the same effect as though such  representations and warranties had
         been  made on and as of such  date,  except  to the  extent  that  such
         representations and warranties  expressly relate to an earlier date and
         except that the  financial  statements  referred  to in Section  8.6(a)
         shall be deemed  (solely  for the  purpose  of the  representation  and
         warranty  contained in such  Section  8.6(a) but not for the purpose of
         any  cross  reference  to  such  Section  8.6(a)  or to  the  financial
         statements  described  therein  contained  in any  other  provision  of
         Section  8.6 or  elsewhere  in  Article  VIII)  to be  those  financial
         statements  most  recently  delivered  to the  Agent  and  the  Lenders
         pursuant  to  Section  9.1  from  the  date  financial  statements  are
         delivered to the Agent and the Lenders in accordance with such Section;

                  (c) in the case of the  issuance  of a Letter of  Credit,  the
         Borrower  shall have  executed  and  delivered  to the Issuing  Bank an
         Application  and  Agreement  for  Letters of Credit in form and content
         acceptable to the Issuing Bank together with such other instruments and
         documents as it shall request;

                  (d) at the time of (and after giving  effect to) each Advance,
         Swing Line Loan or the  issuance  of a Letter of Credit,  no Default or
         Event of Default  specified  in Article XI shall have  occurred  and be
         continuing; and

                  (e)      immediately after giving effect to:

                           (i) a Revolving Loan, the aggregate principal balance
                  of all  outstanding  Revolving Loans for each Lender shall not
                  exceed such Lender's Revolving Credit Commitment;

                           (ii) a Letter  of  Credit  or  renewal  thereof,  the
                  aggregate principal balance of all outstanding  Participations
                  in Letters of Credit and Reimbursement  Obligations (or in the
                  case  of  the  Issuing  Bank,  its  remaining  interest  after
                  deduction  of all  Participations  in  Letters  of Credit  and
                  Reimbursement  Obligations  of other  Lenders) for each Lender
                  and in the aggregate shall not exceed, respectively,  (X) such
                  Lender's  Letter of Credit  Commitment or (Y) the Total Letter
                  of Credit Commitment;

                                       60

<PAGE>

                           (iii) a Swing  Line Loan, the Swing Line Outstandings
                  shall not exceed $5,000,000; and

                           (iv) a Revolving Loan, Swing Line Loan or a Letter of
                  Credit  or  renewal  thereof,  the  sum of  Letter  of  Credit
                  Outstandings  plus Revolving  Credit  Outstandings  plus Swing
                  Line Outstandings shall not exceed the lesser of (i) the Total
                  Revolving Credit Commitment or (ii) the Borrowing Base.

                                       61

<PAGE>

                                  ARTICLE VIII

                         Representations and Warranties

         The Borrower  represents and warrants with respect to itself and to its
Subsidiaries and each other Credit Party, and the Parent represents and warrants
with  respect  to itself  and to its  Subsidiaries  (which  representations  and
warranties shall survive the delivery of the documents  mentioned herein and the
making of Loans and issuing of Letters of Credit), that:

         8.1      Organization and Authority.

                  (a) The  Borrower,  the Parent and each of their  Subsidiaries
         and each other Credit Party is a corporation, limited liability company
         or partnership, as the case may be, duly organized and validly existing
         under the laws of the jurisdiction of its formation;

                  (b) The  Borrower,  the Parent and each of their  Subsidiaries
         and each other Credit Party (x) has the  requisite  power and authority
         to own its  properties  and assets and to carry on its  business as now
         being conducted and as  contemplated in the Loan Documents,  and (y) is
         qualified to do business in every  jurisdiction  in which failure so to
         qualify could have a Material  Adverse Effect,  provided that CTI is in
         the process of becoming  qualified to transact business in the state of
         Ohio,  as  disclosed  to the Agent and the  Lenders  on or prior to the
         Closing Date in that certain  letter from counsel to the Borrower dated
         November  21, 2000,  and such  failure to be so qualified  could have a
         Material  Adverse Effect,  although it is the reasonable  belief of the
         Borrower and the Parent that this is not likely;

                  (c) The  Borrower  has the power  and  authority  to  execute,
         deliver  and  perform  this  Agreement  and the  Notes,  and to  borrow
         hereunder,  and to execute,  deliver and perform each of the other Loan
         Documents to which it is a party;

                  (d) Each Credit Party (other than the  Borrower) has the power
         and authority to execute,  deliver and perform the Facility  Guaranties
         and each of the other Loan Documents to which it is a party; and

                  (e) When executed and delivered, each of the Loan Documents to
         which any Credit Party is a party will be the legal,  valid and binding
         obligation  or  agreement,  as the case may be, of such  Credit  Party,
         enforceable  against  such Credit Party in  accordance  with its terms,
         subject  to  the  effect  of  any  applicable  bankruptcy,  moratorium,
         insolvency,   reorganization   or  other   similar  law  affecting  the
         enforceability  of  creditors'  rights  generally  and to the effect of
         general principles of equity (whether considered in a proceeding at law
         or in equity).

         8.2      Loan  Documents.  The execution,  delivery and  performance by
each Credit Party of each of the Loan Documents to which it is a party:

                                       62

<PAGE>

                  (a) have been duly authorized by all requisite  Organizational
         Action of such Credit Party required for the lawful execution, delivery
         and performance thereof;

                  (b) do not violate any provisions of (i) any  applicable  law,
         rule or  regulation,  (ii) any judgment,  writ,  order,  determination,
         decree or  arbitral  award of any  Governmental  Authority  or arbitral
         authority binding on such Credit Party or its properties,  or (iii) the
         Organizational Documents or Operating Documents of such Credit Party;

                  (c) does not and will not be in  conflict  with,  result  in a
         breach of or  constitute an event of default,  or an event which,  with
         notice or lapse of time or both,  would constitute an event of default,
         under  any  contract,  indenture,  agreement  or  other  instrument  or
         document  to  which  such  Credit  Party is a  party,  or by which  the
         properties or assets of such Credit Party are bound; and

                  (d) does not and will not result in the creation or imposition
         of any Lien upon any of the  properties  or assets of such Credit Party
         or any  Subsidiary  of the  Borrower or the Parent  except any Liens in
         favor of the Agent and the Lenders created by the Security Instruments.

         8.3      Solvency.  Each Credit Party is Solvent after giving effect to
the  transactions  contemplated by the Loan Documents.

         8.4      Subsidiaries  and  Stockholders.  The  Borrower and the Parent
have no Subsidiaries other than those Persons listed as Subsidiaries  thereof in
Schedule 8.4 and additional  Subsidiaries  created or acquired after the Closing
Date in compliance with Section 9.19;  Schedule 8.4 states as of the date hereof
the organizational form of each entity, the authorized and issued capitalization
of each  Subsidiary  listed  thereon,  the  number  of  shares  or other  equity
interests of each class of capital stock or interest  issued and  outstanding of
each such Subsidiary and the number and/or  percentage of outstanding  shares or
other equity interest (including  options,  warrants and other rights to acquire
any interest) of each such class of capital stock or other equity interest owned
by the Parent, the Borrower or by any such Subsidiary  thereof;  the outstanding
shares  or other  equity  interests  of each  such  Subsidiary  have  been  duly
authorized  and  validly  issued  and are  fully  paid  and  nonassessable;  and
Borrower,  the Parent and each such Subsidiary owns  beneficially  and of record
all the shares and other  interests it is listed as owning in Schedule 8.4, free
and clear of any Lien except for Liens in favor of the Collateral Agent, for the
benefit of the Agent and the Lenders and the holders of the Senior  Notes.  Each
Subsidiary of the Parent  (other than the  Borrower)  existing as of the Closing
Date has entered into a Facility Guaranty delivered at Closing.

         8.5      Ownership  Interests. Neither the Borrower nor the Parent owns
an interest in any Person other than the Persons listed in Schedule 8.4,  equity
investments in Persons not  constituting  Subsidiaries  permitted  under Section
10.6 and additional  Subsidiaries  created or acquired after the Closing Date in
compliance with Section 9.19.

         8.6      Financial Condition.

                                       63

<PAGE>

                  (a) The  Parent has  heretofore  furnished  to each  Lender an
         audited  consolidated  and related  consolidating  balance sheet of the
         Parent  and its  Subsidiaries  as at  December  31,  1999 and the notes
         thereto   and  the   related   consolidated   statements   of   income,
         stockholders'  equity and cash flows for the Fiscal  Year then ended as
         examined and  certified by  PricewaterhouseCoopers,  LLP, and unaudited
         consolidated  and  consolidating  interim  financial  statements of the
         Parent  and  its   Subsidiaries   consisting  of  a  consolidated   and
         consolidating  balance  sheets and related  consolidated  statements of
         income,  stockholders'  equity  and cash  flows,  in each case  without
         notes,  for and as of the  end of the  nine  (9)  month  period  ending
         September  30,  2000.  Except  as set  forth  therein,  such  financial
         statements  (including the notes thereto)  present fairly the financial
         condition  of the  Parent  and its  Subsidiaries  as of the end of such
         Fiscal Year and nine (9) month  period and results of their  operations
         and the  changes in its  stockholders'  equity for the Fiscal  Year and
         interim  period then ended,  all in  conformity  with GAAP applied on a
         Consistent  Basis,  subject however,  in the case of unaudited  interim
         statements to year end audit adjustments;

                  (b) since the later of (i) the date of the  audited  financial
         statements delivered pursuant to Section 8.6(a) hereof or (ii) the date
         of the audited financial statements most recently delivered pursuant to
         Section 9.1(a) hereof,  there has not occurred any event,  condition or
         circumstance  which has had or could  reasonably  be expected to have a
         Material  Adverse Effect,  nor have the businesses or properties of the
         Parent or any Subsidiary been materially adversely affected as a result
         of  any  fire,  explosion,   earthquake,   accident,  strike,  lockout,
         combination of workers, flood, embargo or act of God; and

                  (c) except as set forth in the financial  statements  referred
         to in Section  8.6(a) or in Schedule 8.6 or permitted by Section  10.4,
         neither the Parent nor any Subsidiary of the Parent has incurred, other
         than in the  ordinary  course of business,  any material  Indebtedness,
         Contingent  Obligation or other  commitment or liability  which remains
         outstanding or unsatisfied.

         8.7      Title  to  Properties.  The  Borrower,  the Parent and each of
their  Subsidiaries and each other Credit Party has good and marketable title to
all its real and personal  properties,  subject to no transfer  restrictions  or
Liens of any kind,  except for the transfer  restrictions and Liens described in
Schedule 8.7 and Liens permitted by Section 10.3.

         8.8      Taxes.  Except as set forth in Schedule 8.8, the Borrower, the
Parent  and each of their  Subsidiaries  has  filed or  caused  to be filed  all
federal,  state and local tax returns  which are required to be filed by it and,
except for taxes and  assessments  being  contested in good faith by appropriate
proceedings  diligently  conducted and against which  reserves  reflected in the
financial  statements  described in Section 8.6(a) or Sections 9.1(a) or (b) and
satisfactory to the Borrower's  independent  certified  public  accountants have
been  established,  have  paid or  caused  to be paid all taxes as shown on said
returns or on any assessment  received by it, to the extent that such taxes have
become due.

         8.9      Other Agreements. No Credit  Party nor any  Subsidiary thereof
 is

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                  (a) a party to or  subject  to any  judgment,  order,  decree,
         agreement, lease or instrument, or subject to other restrictions, which
         individually or in the aggregate could reasonably be expected to have a
         Material Adverse Effect; or

                  (b) in default in the  performance,  observance or fulfillment
         of any of the  obligations,  covenants or  conditions  contained in any
         agreement or  instrument  to which such Credit Party or any  Subsidiary
         thereof is a party,  which  default has, or if not remedied  within any
         applicable  grace period could reasonably be likely to have, a Material
         Adverse Effect.

         8.10     Litigation.  Except as set forth in Schedule 8.10, there is no
action,  suit,  investigation  or proceeding at law or in equity or by or before
any governmental  instrumentality or agency or arbitral body pending, or, to the
knowledge of the Borrower or the Parent,  threatened  by or against the Borrower
or the  Parent  or any of  their  Subsidiaries  or any  other  Credit  Party  or
affecting the Borrower or the Parent or any of their  Subsidiaries  or any other
Credit Party or any properties or rights of the Borrower or the Parent or any of
their  Subsidiaries or any other Credit Party,  which could reasonably be likely
to have a Material Adverse Effect.

         8.11     Margin  Stock.  The proceeds of the borrowings  made hereunder
will be used by the Borrower only for the purposes expressly  authorized herein.
None of such proceeds will be used,  directly or indirectly,  for the purpose of
purchasing  or  carrying  any margin  stock or for the  purpose of  reducing  or
retiring any  Indebtedness  which was  originally  incurred to purchase or carry
margin stock (other than shares of common stock of the Parent to be purchased by
the Parent in connection  with a Permitted Share  Repurchase,  provided that all
such Permitted Share  Repurchases have been (to the extent  consummated prior to
the date hereof) and will be  consummated,  and the shares of stock so purchased
have been (to the extent acquired prior to the date hereof) and will be retired,
or limited in amount, as shall be necessary for compliance with Regulation U (12
CFR Part 221) as the same may be applicable to Permitted Share  Repurchases from
time to  time),  or for any  other  purpose  which  violates  or which  would be
inconsistent  with  Regulation U (12 CFR Part 221) or  Regulation X (12 CFR Part
224) of the Board.  Neither the  Borrower,  the Parent,  nor any agent acting in
their behalf has taken or will take any action which might cause this  Agreement
or any of the documents or instruments  delivered  pursuant hereto or any use of
proceeds  of Loans to violate  any  regulation  of the Board or to  violate  the
Securities  Exchange Act of 1934, as amended,  or the Securities Act of 1933, as
amended,  or any state  securities  laws,  in each case as in effect on the date
hereof.

         8.12     Regulated  Company.  No  Credit  Party  is (i) an  "investment
company," or an "affiliated person" of, or "promoter" or "principal underwriter"
for,  an  "investment  company",  as such terms are  defined  in the  Investment
Company  Act of 1940,  as  amended  (15  U.S.C.  ss.  80a-1,  et seq.) or (ii) a
"holding  company"  or a  "subsidiary  company"  or  "affiliate"  of a  "holding
company" as such terms are defined in the Public Utility  Holding Company Act of
1935,  as amended.  The  application  of the proceeds of the Loans and repayment
thereof by the Borrower and the performance by the Borrower and the other Credit
Parties of the transactions  contemplated by the Loan Documents will not violate
any  provision  of said Act,  or any  rule,  regulation  or order  issued by the
Securities and Exchange Commission thereunder,  in each case as in effect on the
date hereof.

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         8.13     Patents, Etc. The Borrower and each other Credit Party owns or
has the right to use, under valid license agreements or otherwise,  all material
patents, licenses, franchises,  trademarks, trademark rights, trade names, trade
name rights, trade secrets,  copyrights and know-how necessary to or used in the
conduct of its  businesses  as now  conducted  and as  contemplated  by the Loan
Documents,   without  known  conflict  with  any  patent,  license,   franchise,
trademark,  trade secret, trade name, copyright,  other proprietary right of any
other  Person;  all the  foregoing  which is not owned by the  Borrower  or such
Credit Party is licensed thereto by CIP pursuant to a Licensing Agreement, which
Licensing Agreement has been collaterally  assigned, and a Lien in the rights of
such parties therein has been granted to the Collateral Agent for the benefit of
the Agent,  the  Lenders  and the  holders of the Senior  Notes  pursuant to the
Security Agreements.

         8.14     No Untrue Statement. Neither this Agreement nor any other Loan
Document or  certificate  or document  executed and delivered by or on behalf of
the  Borrower or any other Credit  Party in  accordance  with or pursuant to any
Loan Document  contains any  misrepresentation  or untrue  statement of material
fact or omits to state a material fact necessary,  in light of the  circumstance
under which it was made, in order to make any such warranty,  representation  or
statement contained therein not misleading.

         8.15     No  Consents,   Etc.  Neither  the  respective  businesses  or
properties of the Credit Parties or any Subsidiary thereof, nor any relationship
among the Credit Parties or any Subsidiary thereof and any other Person, nor any
circumstance in connection  with the execution,  delivery and performance of the
Loan Documents and the transactions  contemplated thereby, is such as to require
a  consent,   approval  or   authorization   of,  or  filing,   registration  or
qualification  with, any Governmental  Authority or any other Person on the part
of any Credit Party as a condition to the  execution,  delivery and  performance
of, or  consummation  of the  transactions  contemplated  by the Loan Documents,
which,  if not  obtained  or  effected,  would be  reasonably  likely  to have a
Material  Adverse  Effect,  or if so,  such  consent,  approval,  authorization,
filing, registration or qualification has been duly obtained or effected, as the
case may be.

         8.16     Employee Benefit Plans.

                  (a) The Borrower,  the Parent and each ERISA  Affiliate are in
         compliance with all applicable  provisions of ERISA and the regulations
         and published  interpretations  thereunder  and in compliance  with all
         Foreign Benefit Laws with respect to all Employee  Benefit Plans except
         for any required  amendments for which the remedial amendment period as
         defined  in  Section  401(b)  of the  Code  has not yet  expired.  Each
         Employee  Benefit Plan that is intended to be qualified  under  Section
         401(a) of the Code has been determined or the Borrower or the Parent or
         their  Subsidiaries is in the process of obtaining a  determination  by
         the Internal Revenue Service to be so qualified,  each trust related to
         such plan has been  determined to be exempt under Section 501(a) of the
         Code, and each Employee Benefit Plan subject to any Foreign Benefit Law
         has  received  the required  approvals  by any  Governmental  Authority
         regulating such Employee  Benefit Plan. No material  liability has been
         incurred  by the  Borrower or the Parent or any ERISA  Affiliate  which
         remains  unsatisfied  for any taxes or  penalties  with  respect to any
         Employee Benefit Plan or any Multiemployer Plan;

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<PAGE>

                  (b) Neither the Borrower,  the Parent nor any ERISA  Affiliate
         has (i)  engaged in a nonexempt  prohibited  transaction  described  in
         Section 4975 of the Code or Section 406 of ERISA  affecting  any of the
         Employee  Benefit Plans or the trusts  created  thereunder  which could
         subject any such  Employee  Benefit  Plan or trust to a material tax or
         penalty on prohibited  transactions imposed under Internal Revenue Code
         Section 4975 or ERISA, (ii) incurred any accumulated funding deficiency
         with respect to any Employee  Benefit Plan,  whether or not waived,  or
         any other  liability to the PBGC which remains  outstanding  other than
         the payment of premiums and there are no premium payments which are due
         and unpaid, (iii) failed to make a required  contribution or payment to
         a  Multiemployer  Plan,  (iv) failed to make a required  installment or
         other  required  payment under Section 412 of the Code,  Section 302 of
         ERISA or the terms of such Employee Benefit Plan, or (v) failed to make
         a required  contribution or payment,  or otherwise failed to operate in
         compliance with any Foreign Benefit Law regulating any Employee Benefit
         Plan;

                  (c)  No  Termination  Event  has  occurred  or  is  reasonably
         expected  to occur with  respect to any Pension  Plan or  Multiemployer
         Plan, and neither the Borrower, the Parent, nor any ERISA Affiliate has
         incurred  any  unpaid   withdrawal   liability   with  respect  to  any
         Multiemployer Plan;

                  (d) The present  value of all vested  accrued  benefits  under
         each  Employee  Benefit Plan which is subject to Title IV of ERISA,  or
         the funding of which is regulated  by any Foreign  Benefit Law did not,
         as of the most  recent  valuation  date for each such plan,  exceed the
         then  current  value  of the  assets  of  such  Employee  Benefit  Plan
         allocable to such benefits;

                  (e) To the best of the Borrower's and the Parent's  knowledge,
         each Employee Benefit Plan which is subject to Title IV of ERISA or the
         funding of which is regulated by any Foreign Benefit Law, maintained by
         the  Borrower  or  the  Parent  or  any  ERISA   Affiliate,   has  been
         administered in accordance with its terms in all material  respects and
         is  in  compliance  in  all  material   respects  with  all  applicable
         requirements  of  ERISA,  applicable  Foreign  Benefit  Law  and  other
         applicable laws, regulations and rules;

                  (f) The  consummation  of  the Loans  provided for herein will
         not involve any prohibited transaction under ERISA which is not subject
         to a statutory or administrative exemption; and

                  (g)   No   material   proceeding,    claim,   lawsuit   and/or
         investigation  exists or, to the best  knowledge of the Borrower  after
         due inquiry, is threatened concerning or involving any Employee Benefit
         Plan;

         8.17     No  Default.  As of the date hereof,  there does not exist any
Default or Event of Default hereunder.

         8.18     Environmental  Laws.  Except as listed on Schedule  8.18,  the
Borrower,  the Parent,  and each of their Subsidiaries is in compliance with all
applicable  Environmental  Laws

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<PAGE>

and has been issued and  currently  maintains  all required  federal,  state and
local   permits,   licenses,   certificates   and   approvals   except  for  any
non-compliance  that could not  reasonably  be  expected  to cause any  Material
Adverse  Effect.  Except as listed on Schedule 8.18,  neither the Borrower,  the
Parent,  nor any of their  Subsidiaries  has been  notified  of any  pending  or
threatened action, suit, proceeding or investigation,  and neither the Borrower,
the Parent,  nor any of their  Subsidiaries is aware of any fact or facts, which
(a) call into question,  or could  reasonably be expected to call into question,
compliance by the Borrower,  the Parent,  or any of their  Subsidiaries with any
Environmental  Laws,  (b) could  reasonably  be  expected to form the basis of a
meritorious  proceeding,  to suspend, revoke or terminate any license, permit or
approval necessary for the operation of the Borrower's,  the Parent's, or any of
their  Subsidiaries'  business or  facilities or for the  generation,  handling,
storage,  treatment  or  disposal  of any  Hazardous  Materials,  or  (c)  could
reasonably  be expected to form the basis of a  meritorious  proceeding to cause
any property of the Borrower,  the Parent, or any of their Subsidiaries or other
Credit Party to be subject to any restrictions on ownership,  use,  occupancy or
transferability under any Environmental Law.

         8.19     Employment Matters. (a) None of the employees of the Borrower,
the Parent, or any of their Subsidiaries is subject to any collective bargaining
agreement and there are no strikes, work stoppages,  election or decertification
petitions or proceedings,  unfair labor charges, equal opportunity  proceedings,
or other material  labor/employee  related  controversies or proceedings pending
or, to the best knowledge of the Borrower or the Parent,  threatened against the
Borrower,  the Parent, or any of their Subsidiaries or between the Borrower, the
Parent,  or any of  their  Subsidiaries  and any of its  employees,  other  than
employee  grievances  arising in the ordinary course of business which could not
reasonably be expected,  individually  or in the  aggregate,  to have a Material
Adverse Effect.

         (b)      Except  to the extent a failure to maintain  compliance  would
not have a Material Adverse Effect,  the Borrower,  the Parent and each of their
Subsidiaries  is in compliance in all respects with all applicable  laws,  rules
and regulations  pertaining to labor or employment  matters,  including  without
limitation those pertaining to wages,  hours,  occupational  safety and taxation
and there is  neither  pending  or  threatened  any  litigation,  administrative
proceeding  nor,  to  the  knowledge  of  the  Borrower  and  the  Parent,   any
investigation,  in respect of such matters which,  if decided  adversely,  could
reasonably  be  likely,  individually  or in the  aggregate,  to have a Material
Adverse Effect.

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<PAGE>

                                   ARTICLE IX

                              Affirmative Covenants

         Until the Facility  Termination Date, unless the Required Lenders shall
otherwise  consent  in  writing,  each  of  the  Borrower  and  the  Parent,  as
applicable, will, and where applicable will cause each of their Subsidiaries to:

         9.1      Financial  Reports,  Etc. (a) As soon as practical  and in any
event within 90 days after the end of each Fiscal Year of the Parent, deliver or
cause  to be  delivered  to the  Agent  and each  Lender  (i)  consolidated  and
consolidating balance sheets of the Parent and its Subsidiaries as at the end of
such  Fiscal  Year,  and the notes  thereto,  and the related  consolidated  and
consolidating statements of income, stockholders' equity and cash flows, and the
respective  notes thereto,  for such Fiscal Year,  setting forth (other than for
consolidating  statements)  comparative  financial  statements for the preceding
Fiscal Year, all prepared in accordance with GAAP applied on a Consistent  Basis
and containing, with respect to the consolidated financial statements,  opinions
of  PricewaterhouseCoopers,  LLP,  or other such  independent  certified  public
accountants  selected  by the  Parent  and  approved  by the  Agent,  which  are
unqualified as to the scope of the audit performed and as to the "going concern"
status of the Parent and without any  exception  not  acceptable to the Required
Lenders,  and (ii) a certificate of an Authorized  Representative  demonstrating
compliance with Sections  10.1(a) through  10.1(c) and 10.8,  which  certificate
shall be in the form of Exhibit H;

         (b)      as soon as practical and in any event within 45 days after the
end of each fiscal quarter  (except the last fiscal quarter of the Fiscal Year),
deliver to the Agent and each Lender (i) consolidated and consolidating  balance
sheets of the Parent and its  Subsidiaries as at the end of such fiscal quarter,
and  the  related   consolidated   and   consolidating   statements  of  income,
stockholders'  equity and cash flows for such fiscal  quarter and for the period
from the  beginning  of the then  current  Fiscal  Year  through the end of such
reporting   period,   and   accompanied   by  a  certificate  of  an  Authorized
Representative to the effect that such financial  statements  present fairly the
financial  position  of the  Parent and its  Subsidiaries  as of the end of such
fiscal  period and the  results  of their  operations  and the  changes in their
financial  position for such fiscal period, in conformity with the standards set
forth in Section 8.6(a) with respect to interim financial statements, and (ii) a
certificate of an Authorized  Representative  containing  computations  for such
quarter comparable to that required pursuant to Section 9.1(a)(ii);

         (c)      together  with  each  delivery  of  the  financial  statements
required  by Section  9.1(a)(i),  deliver to the Agent and each  Lender a letter
from the Parent's  accountants  specified in Section  9.1(a)(i)  stating that in
performing the audit necessary to render an opinion on the financial  statements
delivered under Section 9.1(a)(i),  they obtained no knowledge of any Default or
Event of Default by the Borrower or the Parent in the  fulfillment  of the terms
and  provisions of this  Agreement  insofar as they relate to financial  matters
(which at the date of such statement  remains  uncured);  or if the  accountants
have  obtained  knowledge  of such  Default  or Event of  Default,  a  statement
specifying the nature and period of existence thereof;

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<PAGE>

         (d)      promptly  upon their  becoming  available  to the Parent,  the
Parent  shall  deliver to the Agent and each Lender a copy of (i) all regular or
special reports or effective registration  statements which Parent or any of its
Subsidiaries  shall file with the  Securities  and Exchange  Commission  (or any
successor  thereto)  or  any  securities  exchange,  (ii)  any  proxy  statement
distributed  by the  Parent  or any of  its  Subsidiaries  to its  shareholders,
bondholders  or the  financial  community in general,  and (iii) any  management
letter or other  report  submitted  to the Parent,  the Borrower or any of their
Subsidiaries by independent  accountants in connection with any annual,  interim
or special audit of the Borrower or any of its Subsidiaries;

         (e)      as  soon as practical and in any event within  forty-five (45)
days after the end of each fiscal  quarter,  the Borrower  shall  deliver to the
Agent and each Lender a Borrowing Base Certificate in the form of Exhibit K;

         (f)      together  with  each  delivery  of  the  financial  statements
required by Section  9.1(a) and (b), an unaudited  balance  sheet for CVTI as of
the end of the fiscal  period  included  in such  financial  statements  and the
related unaudited statements of income,  stockholders' equity and cash flows for
CVTI  for  such  period,   together  with  consolidating   statements  or  other
reconciliations   reflecting  all  eliminations  or  adjustments   necessary  to
reconcile such financial statements to the consolidated  financial statements of
the Parent and its Subsidiaries; and

         (g)      promptly,  from time to time, deliver or cause to be delivered
to the Agent and each Lender such other information regarding the Parent's,  the
Borrower's,  or any  Subsidiary's  operations,  business  affairs and  financial
condition as the Agent or such Lender may reasonably request.

         The Agent and the  Lenders are hereby  authorized  to deliver a copy of
any such financial or other information  delivered  hereunder to the Lenders (or
any  affiliate  of any Lender) or to the Agent,  to any  Governmental  Authority
having jurisdiction over the Agent or any of the Lenders pursuant to any written
request  therefor or in the ordinary  course of examination of loan files, or to
any other Person who shall acquire or consider the assignment of, or acquisition
of any participation interest in, any Obligation permitted by this Agreement.

         9.2      Maintain Properties.  Maintain all properties necessary to its
operations  in good  working  order  and  condition,  make all  needed  repairs,
replacements  and renewals to such  properties,  and  maintain  free from Liens,
other than Liens in favor of the Collateral  Agent, for the benefit of the Agent
and the Lenders  and the  holders of the Senior  Notes,  all  trademarks,  trade
names,  patents,  copyrights,  trade secrets,  know-how,  and other intellectual
property and proprietary  information (or adequate  licenses  thereto),  in each
case as are reasonably  necessary to conduct its business as currently conducted
or as contemplated hereby, all in accordance with customary and prudent business
practices.

         9.3      Existence,  Qualification,  Etc. Except as otherwise expressly
permitted  under Section  10.7,  do or cause to be done all things  necessary to
preserve and keep in full force and effect its existence and all material rights
and franchises,  and maintain its license or  qualification  to do business as a
foreign  corporation  and  good  standing  in each  jurisdiction  in  which  its

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ownership or lease of property or the nature of its business  makes such license
or qualification necessary except where the failure to so qualify would not have
a Material Adverse Effect.

         9.4      Regulations  and Taxes.  Comply in all material  respects with
all  statutes  and  governmental  regulations  and pay all  taxes,  assessments,
governmental charges,  claims for labor, supplies, rent and any other obligation
which,  if unpaid,  would  become a Lien against any of its  properties,  except
liabilities being contested in good faith by appropriate  proceedings diligently
conducted   provided  that  (i)  adequate  reserves  with  respect  thereto  are
maintained on the books of the  applicable  Person in  accordance  with GAAP and
(ii) any Lien arising in connection  with any such contest shall be permitted to
exist to the extent provided in Section 10.3.

         9.5      Insurance. (a) Keep all of its insurable properties adequately
insured at all times with responsible  insurance carriers against loss or damage
by fire and other  hazards to the  extent  and in the manner as are  customarily
insured against by similar businesses owning such properties similarly situated,
(b) maintain  general public  liability  insurance at all times with responsible
insurance  carriers  against  liability  on  account  of damage to  persons  and
property and (c) maintain insurance under all applicable  workers'  compensation
laws (or in the  alternative,  maintain  required  reserves if self-insured  for
workers'  compensation   purposes)  and  against  loss  by  reason  of  business
interruption,  such  policies of  insurance  to have such  limits,  deductibles,
exclusions,  co-insurance and other provisions  providing no less coverages than
are maintained by similar  businesses  that are similarly  situated and to be in
form  reasonably  satisfactory  to the Agent.  Each of the policies of insurance
described  in this  Section 9.5 shall  provide  that the insurer  shall give the
Agent not less than  thirty  (30) days'  prior  written  notice  before any such
policy shall terminate or be terminated, lapse or be altered in any manner.

         9.6      True  Books.  Keep true books of record  and  account in which
full,  true  and  correct  entries  will  be  made  of all of its  dealings  and
transactions,  and set up on its books such  reserves as may be required by GAAP
with respect to doubtful accounts and all taxes,  assessments,  charges,  levies
and claims  and with  respect to its  business  in  general,  and  include  such
reserves in interim as well as year-end financial statements.

         9.7      Right  of  Inspection.  Permit  any Person  designated  by any
Lender  or the  Agent to visit and  inspect  at any time any of the  properties,
corporate  books and financial  reports of the Borrower,  the Parent,  or any of
their  Subsidiaries  (provided that any such visit or inspection shall be at the
Borrower's  expense (i) during the  continuance  of an Event of Default and (ii)
otherwise  up to once  during any Fiscal  Year),  and to  discuss  its  affairs,
finances  and  accounts  with  its  principal   officers  and,  if   applicable,
independent certified public accountants, all at reasonable times, at reasonable
intervals and with reasonable prior notice.

         9.8      Observe  all Laws. Conform to and duly observe in all material
respects all laws, rules and regulations and all other valid requirements of any
Governmental Authority with respect to the conduct of its business, except where
the failure to do so could not reasonably be expected to have a Material Adverse
Effect.

         9.9      Governmental  Licenses.  Obtain  and  maintain  all  licenses,
permits, certifications and approvals of all applicable Governmental Authorities
as are required for the conduct of its

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business as  currently  conducted  and as  contemplated  by the Loan  Documents,
except  where the  failure to do so could not  reasonably  be expected to have a
Material Adverse Effect.

         9.10     Covenants  Extending  to  Other  Persons.  Cause  each  of its
Subsidiaries to do with respect to itself, its business and its assets,  each of
the things  required of the Borrower and the Parent in Sections 9.2 through 9.9,
and 9.18 inclusive.

         9.11     Officer's  Knowledge  of  Default.  Upon  any  officer  of the
Borrower or the Parent  obtaining  knowledge  of any Default or Event of Default
hereunder or under any other  obligation of the  Borrower,  the Parent or any of
their  Subsidiaries  or any other  Credit  Party to any  Lender,  or any  event,
development or occurrence  which could reasonably be expected to have a Material
Adverse Effect,  cause such officer or an Authorized  Representative to promptly
notify the Agent of the nature  thereof,  the period of existence  thereof,  and
what action the  Borrower,  the Parent,  such  Subsidiary  or other Credit Party
proposes to take with respect thereto.

         9.12     Suits or Other  Proceedings.  Upon any officer of the Borrower
or the Parent obtaining  knowledge of any litigation or other  proceedings being
instituted  against the Borrower or the Parent or any of their  Subsidiaries  or
other Credit Party,  or any attachment,  levy,  execution or other process being
instituted  against  any  assets of the  Borrower  or the Parent or any of their
Subsidiaries or any other Credit Party, making a claim or claims in an aggregate
amount  greater than  $3,000,000  not otherwise  covered by insurance,  promptly
deliver to the Agent  written  notice  thereof  stating the nature and status of
such litigation, dispute, proceeding, levy, execution or other process.

         9.13     Notice  of  Environmental  Complaint  or  Condition.  Promptly
provide to the Agent true,  accurate and complete copies of any and all notices,
complaints,  orders, directives, claims or citations received by the Borrower or
the Parent or any of their Subsidiaries relating to any (a) violation or alleged
violation  by the  Borrower  or the Parent or any of their  Subsidiaries  of any
applicable  Environmental Law; (b) release or threatened release by the Borrower
or  the  Parent  or any  of  their  Subsidiaries,  or by  any  Person  handling,
transporting or disposing of any Hazardous Material on behalf of Borrower or the
Parent or any of their  Subsidiaries,  or at any  facility or property  owned or
leased or operated by  Borrower or the Parent or any of their  Subsidiaries,  of
any Hazardous  Material,  except where occurring legally pursuant to a permit or
license;  or (c) liability or alleged liability of Borrower or the Parent or any
of their  Subsidiaries  for the costs of cleaning up,  removing,  remediating or
responding to a release of Hazardous Materials.

         9.14     Environmental  Compliance. If Borrower or the Parent or any of
their  Subsidiaries  shall  receive  any  letter,  notice,   complaint,   order,
directive,  claim or  citation  alleging  that  Borrower or the Parent or any of
their  Subsidiaries  has  violated  any  Environmental  Law,  has  released  any
Hazardous  Material,  or is  liable  for the  costs of  cleaning  up,  removing,
remediating or responding to a release of Hazardous Materials, the Borrower, the
Parent and any such Subsidiary  shall,  within the time period  permitted and to
the extent  required by the  applicable  Environmental  Law or the  Governmental
Authority responsible for enforcing such Environmental Law, remove or remedy, or
cause the applicable  Subsidiary to remove or remedy,  such violation or release
or satisfy such liability.

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         9.15     Indemnification.  Without  limiting the  generality of Section
13.9, each of the Parent,  the Borrower and any respective  Subsidiary of either
of them hereby agrees to indemnify and hold the Agent,  the Collateral Agent and
the Lenders and any affiliate of any Lender party to a Swap Agreement, and their
respective officers, directors,  employees and agents, harmless from and against
any and  all  claims,  losses,  penalties,  liabilities,  damages  and  expenses
(including assessment and cleanup costs and reasonable attorneys',  consultants'
or other expert fees, expenses and disbursements) arising directly or indirectly
from, out of or by reason of (a) the violation of any  Environmental  Law by the
Borrower  or the  Parent or any of their  Subsidiaries  or with  respect  to any
property owned, operated or leased by the Borrower or the Parent or any of their
Subsidiaries or (b) the handling, storage, transportation,  treatment, emission,
release, discharge or disposal of any Hazardous Materials by or on behalf of the
Borrower or the Parent or any of their  Subsidiaries,  or on or with  respect to
property  owned or leased or  operated  by the  Borrower or the Parent or any of
their Subsidiaries. The provisions of this Section 9.15 shall continue in effect
notwithstanding the Facility Termination Date.

         9.16     Further  Assurances.  At the Borrower's cost and expense, upon
request of the Agent,  duly execute and deliver or cause to be duly executed and
delivered,  to the Agent and the  Collateral  Agent  such  further  instruments,
documents, certificates, financing and continuation statements, and do and cause
to be done such  further acts that may be  reasonably  necessary or advisable in
the reasonable opinion of the Agent to carry out more effectively the provisions
and  purposes of this  Agreement,  the Security  Instruments  and the other Loan
Documents.

         9.17     Employee Benefit Plans.

                  (a) With reasonable promptness, and in any event within thirty
         (30) days thereof, give notice to the Agent of (a) the establishment of
         any new Pension Plan (which  notice shall include a copy of such plan),
         (b) the  commencement of  contributions to any Employee Benefit Plan to
         which the Borrower,  the Parent,  or any of their ERISA  Affiliates was
         not previously contributing,  (c) any material increase in the benefits
         of any existing  Employee Benefit Plan, (d) each funding waiver request
         filed with respect to any Pension Plan and all communications  received
         or sent by the Borrower, the Parent or any ERISA Affiliate with respect
         to such request and (e) the failure of the Borrower,  the Parent or any
         ERISA Affiliate to make a required installment or payment under Section
         302 of ERISA  or  Section  412 of the  Code  (in the  case of  Employee
         Benefit  Plans  regulated  by the Code or ERISA)  or under any  Foreign
         Benefit Law (in the case of Employee  Benefit  Plans  regulated  by any
         Foreign Benefit Law) by the due date;

                  (b)  Promptly  and in any event  within  fifteen  (15) days of
         becoming aware of the  occurrence or forthcoming  occurrence of any (a)
         Termination  Event or (b) nonexempt  "prohibited  transaction," as such
         term is defined in Section 406 of ERISA or Section 4975 of the Code, in
         connection  with  any  Employee  Benefit  Plan  or  any  trust  created
         thereunder,  deliver  to the  Agent  a  notice  specifying  the  nature
         thereof,  what action the Borrower,  the Parent or any ERISA  Affiliate
         has taken, is taking or proposes to take with respect thereto and, when
         known,  any action taken or threatened by the Internal Revenue Service,
         the Department of Labor or the PBGC with respect thereto; and

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                  (c) With reasonable promptness but in any event within fifteen
         (15) days for  purposes  of clauses  (a),  (b) and (c),  deliver to the
         Agent  copies  of (a) any  unfavorable  determination  letter  from the
         Internal  Revenue Service  regarding the  qualification  of an Employee
         Benefit Plan under Section 401(a) of the Code, (b) all notices received
         by the  Parent,  Borrower or any ERISA  Affiliate  of the PBGC's or any
         Governmental  Authority's  intent to  terminate  any Pension Plan or to
         have a trustee  appointed  to  administer  any Pension  Plan,  (c) each
         Schedule B  (Actuarial  Information)  to the annual  report  (Form 5500
         Series) filed by the Borrower,  the Parent or any ERISA  Affiliate with
         the Internal Revenue Service with respect to each Employee Benefit Plan
         and (d) all notices  received by the Borrower,  the Parent or any ERISA
         Affiliate from a Multiemployer  Plan sponsor  concerning the imposition
         or amount of  withdrawal  liability  pursuant to Section 4202 of ERISA.
         The  Borrower  and the Parent will  notify the Agent in writing  within
         five  (5)  Business  Days of the  Borrower,  the  Parent  or any  ERISA
         Affiliate obtaining knowledge or reason to know that the Borrower,  the
         Parent or any ERISA  Affiliate has filed or intends to file a notice of
         intent to  terminate  any  Pension  Plan under a  distress  termination
         within the meaning of Section 4041(c) of ERISA.

         9.18     Continued  Operations.  Continue  at all times to conduct  its
business  of  transporting  freight and engage  principally  in the same line or
lines of business of transporting freight substantially as heretofore conducted.

         9.19     New  Subsidiaries.  Simultaneously  with  the  acquisition  or
creation of any  Subsidiary of the Borrower or the Parent,  the Borrower and the
Parent shall cause to be delivered to the Agent and the Collateral  Agent (or to
either of them as may be specified) each of the following:

                  (a) to the Agent, if such Subsidiary is a Domestic Subsidiary,
         a Facility  Guaranty  executed by such Subsidiary  substantially in the
         form of Exhibit I-2 (with appropriate conforming changes);

                  (b) if the  Subsidiary  Securities  issued by such  Subsidiary
         that are, or are required to become, Pledged Interests,  shall be owned
         by the  Borrower or by a  Subsidiary  of the Parent or the Borrower who
         has not then  executed and delivered to the  Collateral  Agent a Pledge
         Agreement  granting a Lien to the  Collateral  Agent,  for the  ratable
         benefit  of the Agent and the  Lenders  and the  holders  of the Senior
         Notes, in such equity  interests,  a Pledge  Agreement  executed by the
         Borrower  or by the  Subsidiary  that  directly  owns  such  Subsidiary
         Securities  substantially  in the form attached  hereto as Exhibit J-1,
         with appropriate  conforming  changes (or, as to the Pledged  Interests
         issued by any Direct Foreign  Subsidiary of the Borrower or the Parent,
         in a form  acceptable to the Agent and the  Collateral  Agent),  and if
         such Subsidiary Securities shall be owned by the Parent or a Subsidiary
         of the Parent who has previously executed a Pledge Agreement,  a Pledge
         Agreement  Supplement  in the form  required by such  Pledge  Agreement
         pertaining to such Subsidiary Securities;

                  (c) to the Collateral  Agent, if the Pledged  Interests issued
         by such Subsidiary constitute securities under Article 8 of the Uniform
         Commercial  Code  (i)  the  certificates

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         representing 100% of such Subsidiary Securities and (ii) duly executed,
         undated stock powers or other appropriate powers of assignment in blank
         affixed thereto;

                  (d) if such Subsidiary is party to any Licensing Agreements, a
         Security  Agreement  in the form of Exhibit O-1  attached  hereto (with
         appropriate  conforming changes),  or supplements in form and substance
         acceptable to the Agent and the Collateral  Agent to any such documents
         delivered on the Closing Date,  together with certified  copies of each
         Licensing Agreement, licensor consent, waiver and estoppel certificates
         executed by CIP, in form and  substance  satisfactory  to the Agent and
         the Collateral  Agent, and all such other  instruments,  agreements and
         documents  as  required to be  delivered  pursuant to Article V, by the
         Borrower and the Guarantors, on the Closing Date;

                  (e) if such  Subsidiary  has  issued  or is the  holder of any
         Intercompany  Borrowing Notes, an Intercompany Note Pledge Agreement in
         the form attached  hereto as Exhibit N-1 (with  appropriate  conforming
         changes)  executed  by the holder of each such  Intercompany  Borrowing
         Note,  or if such  Intercompany  Borrowing  Notes  shall be held by the
         Borrower  or any other  Credit  Party who has  previously  executed  an
         Intercompany Note Pledge Agreement, a supplement to or revision of such
         Intercompany Note Pledge Agreement as the Agent or the Collateral Agent
         deems  necessary  for the creation and  attachment of a Lien therein in
         favor of the Collateral Agent for the benefit of the Agent, the Lenders
         and the holders of the Senior Notes,  together  with, to the Collateral
         Agent,  the  original  of each such  Intercompany  Borrowing  Note with
         undated  endorsements or other instruments of transfer duly executed in
         blank  affixed   thereto,   estoppel  notices  in  form  and  substance
         satisfactory  to the Agent and the  Collateral  Agent  executed  by the
         issuer of each such  Intercompany  Borrowing  Note,  and all such other
         instruments, agreements and documents as required pursuant to Article V
         of the Borrower and the Guarantors on the Closing Date;

                  (f) (i) Uniform  Commercial Code financing  statements on form
         UCC-1 or otherwise  duly executed by the pledgor as "Debtor" and naming
         the Collateral  Agent, for the benefit of the Agent and the Lenders and
         the holders of the Senior Notes, as "Secured Party," in form, substance
         and number sufficient in the reasonable opinion of the Collateral Agent
         and the  Agent  and its  special  counsel  to be filed  in all  Uniform
         Commercial Code filing offices and in all jurisdictions in which filing
         is necessary or advisable to perfect in favor of the Collateral  Agent,
         for the  benefit of the Agent and the  Lenders  and the  holders of the
         Senior Notes,  the Lien on such  Subsidiary  Securities and (ii) if the
         Pledged   Interests   issued  by  such  Subsidiary  do  not  constitute
         securities  and such  Subsidiary has not elected to have such interests
         treated  as  securities  under  Article  8 of  the  applicable  Uniform
         Commercial  Code,  a  control  agreement  from  the  Registrar  of such
         Subsidiary,  in form and  substance  acceptable  to the  Agent  and the
         Collateral Agent and in which the Registrar (1)  acknowledges  that the
         pledgor is at the date of such  acknowledgment  the sole record and, to
         its knowledge,  beneficial  owner of such  Subsidiary  Securities,  (2)
         acknowledges the Lien in favor of the Collateral Agent, for the benefit
         of the Agent and the  Lenders  and the  holders  of the  Senior  Notes,
         conferred  under  the  Pledge  Agreements  and that  such  Lien will be
         reflected on the registry for such

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         Subsidiary  Securities,  (3)  agrees  that it  will  not  register  any
         transfer of such  Subsidiary  Securities  nor  acknowledge  any Lien in
         favor of any other Person on such  Subsidiary  Securities,  without the
         prior written  consent of the Collateral  Agent and the Agent,  in each
         instance,  until it receives notice from the Collateral  Agent that all
         Liens on such  Collateral  in favor of the  Collateral  Agent,  for the
         benefit  of the Agent and the  Lenders  and the  holders  of the Senior
         Notes,  have been  released  or  terminated,  and (4) agrees  that upon
         receipt of notice from the Collateral  Agent or the Agent that an Event
         of Default  has  occurred  and is  continuing  and that the  Subsidiary
         Securities  identified  in  such  notice  have  been  transferred  to a
         transferee identified in such notice, it will duly record such transfer
         of Subsidiary  Securities on the appropriate registry without requiring
         further  consent  from the  pledgor  and  shall  thereafter  treat  the
         transferee as the sole record and beneficial  owner of such  Subsidiary
         Securities  pending  further  transfer,  notwithstanding  any  contrary
         instruction received from the pledgor;

                  (g) an opinion of counsel to such  Subsidiary  dated as of the
         date of  delivery of the  Facility  Guaranty  and other Loan  Documents
         provided  for in this  Section  9.19 and  addressed  to the  Collateral
         Agent, the Agent,  the holders of the Senior Notes and the Lenders,  in
         form  and  substance  reasonably   acceptable  to  the  Agent  and  the
         Collateral   Agent   (which   opinion  may  include   assumptions   and
         qualifications  of similar effect to those contained in the opinions of
         counsel delivered pursuant to Section 7.1(a)); and

                  (h)  current  copies  of  the  Organizational   Documents  and
         Operating  Documents  of such  Subsidiary,  minutes of duly  called and
         conducted  meetings (or duly effected  consent actions) of the Board of
         Directors,   partners,  or  appropriate  committees  thereof  (and,  if
         required  by such  Organizational  Documents,  Operating  Documents  or
         applicable  law,  of the  shareholders,  members or  partners)  of such
         Subsidiary  authorizing  the actions and the  execution and delivery of
         documents described in this Section 9.19.

         9.20     Intercompany  Advances. (a) If the Borrower, the Parent or any
Subsidiary  of the  Parent or of the  Borrower  makes any loan or advance to the
Parent,  or to any  Subsidiary  of the  Parent or of the  Borrower,  whether  in
connection  with  a  Permitted  Share  Repurchase  or as a  borrowing  of  funds
constituting  Indebtedness  for Money  Borrowed,  such loan or  advance  must be
evidenced by an Intercompany Borrowing Note which is subject to the terms of the
Intercompany  Note  Pledge  Agreement  and  shall  have  been  delivered  to the
Collateral  Agent  together with undated  endorsements  or other  instruments of
transfer duly executed in blank affixed thereto.

         (b)      Any intercompany advance or other distribution received by the
Parent (as  permitted  by this  Agreement)  and not used to finance a  Permitted
Share  Repurchase  within thirty (30) days of its receipt  shall be  contributed
immediately  thereafter  as capital to the Borrower  (other than amounts used by
the Parent to make cash dividend payments as permitted by Section 10.8).

         9.21     Collateral.  The Collateral  shall at all times secure payment
and  performance of the  Obligations on a basis which shall not be  subordinated
to, or be on less than a pari passu basis with, the  obligations of the Borrower
under the Senior Notes.

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                                    ARTICLE X

                               Negative Covenants

         Until the Facility  Termination Date, unless the Required Lenders shall
otherwise consent in writing, neither the Borrower nor the Parent will, nor will
either permit any Subsidiary to:

         10.1     Financial Covenants.

         (a)      Consolidated  Tangible Net Worth. Permit Consolidated Tangible
Net Worth to be less than (i)  $136,223,081  from the  Closing  Date  until (but
excluding)  the last day of the fiscal  quarter  that  includes the Closing Date
(the "Closing Date Quarter"), and (ii) as at the last day of each fiscal quarter
of the Parent ending after the Closing Date and until (but  excluding)  the last
day of the next  following  fiscal  quarter  of the  Parent,  the sum of (A) the
amount of Consolidated  Tangible Net Worth required to be maintained pursuant to
this Section 10.1(a) as at the end of the immediately  preceding  fiscal quarter
(or, in the case of the Closing Date  Quarter,  required to be  maintained as of
the Closing Date),  plus (B) 50% of  Consolidated  Net Income (with no reduction
for net losses during any period) for the fiscal quarter of the Parent ending on
such day (including  within  "Consolidated  Net Income"  certain items otherwise
excluded, as provided for in the definition of "Consolidated Net Income"),  plus
(C) 100% of the  aggregate  amount of all  increases  in the stated  capital and
additional  paid-in capital  accounts of the Parent resulting from the issuance,
sale or exchange of equity securities or other capital investments.

         (b) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio
as of the end of any Four-Quarter Period to be greater than 3.00 to 1.00.

         (c)      Consolidated   Fixed  Charge   Coverage   Ratio.   Permit  the
Consolidated  Fixed  Charge  Coverage  Ratio  as of the end of any  Four-Quarter
Period to be less than 1.20 to 1.00.

         10.2     Acquisitions.  Enter  into any  agreement,  contract,  binding
commitment  or other  arrangement  providing  for any  Acquisition,  or take any
action to solicit  the  tender of  securities  or proxies in respect  thereof in
order to effect any  Acquisition,  unless (i) the Person to be (or whose  assets
are to be) acquired  does not oppose such  Acquisition  and the line or lines of
business of the Person to be acquired are  substantially the same as one or more
line or  lines  of  business  conducted  by the  Borrower,  the  Parent,  or its
Subsidiaries,  (ii) no Default or Event of Default  shall have  occurred  and be
continuing  either  immediately  prior to or immediately  after giving effect to
such Acquisition,  (iii) the Person acquired shall be a wholly-owned Subsidiary,
or be  merged  into the  Parent  or a  wholly-owned  Subsidiary  of the  Parent,
immediately  upon  consummation  of the  Acquisition  (or if  assets  are  being
acquired,  the acquiror shall be the Parent or a wholly-owned  Subsidiary of the
Parent), (iv) if the Cost of Acquisition shall exceed $50,000,000,  the Required
Lenders shall consent to such  Acquisition  in their  discretion,  and (v) after
giving effect to such Acquisition,  the aggregate Costs of Acquisition  incurred
in any Fiscal Year (on a noncumulative  basis,  with the effect that amounts not
incurred in any Fiscal Year may not be carried  forward to a subsequent  period)
shall not exceed twenty percent (20%) of Consolidated Total Assets as of the end
of the immediately preceding Fiscal Year.

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         10.3     Liens.  Incur,  create or permit to exist any Lien,  charge or
other  encumbrance  of any nature  whatsoever  with  respect to any  property or
assets now owned or hereafter  acquired by the Borrower,  the Parent,  or any of
their Subsidiaries (except for Transplace.com), other than

                  (a) Liens created under the Security  Instruments  in favor of
         the  Collateral  Agent for the benefit of the Agent and the Lenders and
         the holders of the Senior Notes, and otherwise  existing as of the date
         hereof and as set forth in Schedule 8.7;

                  (b) Liens imposed by law for taxes,  assessments or charges of
         any  Governmental  Authority  for claims not yet due or which are being
         contested  in  good  faith  by   appropriate   proceedings   diligently
         conducted,  and with  respect  to which  adequate  reserves  are  being
         maintained in accordance with GAAP, which Liens are not yet exercisable
         to effect the sale or seizure of property subject thereto;

                  (c)  statutory  Liens of  landlords  and  Liens  of  carriers,
         warehousemen,  mechanics,  materialmen  and other Liens  arising in the
         ordinary course of business and in existence less than 90 days from the
         date of  creation  thereof  for  amounts not yet due or which are being
         contested  in  good  faith  by   appropriate   proceedings   diligently
         conducted,  and with  respect  to which  adequate  reserves  are  being
         maintained in accordance with GAAP, which Liens are not yet exercisable
         to effect the sale or seizure of property subject thereto;

                  (d) Liens incurred or deposits made in the ordinary  course of
         business  in  connection  with  workers'   compensation,   unemployment
         insurance and other types of social security  benefits or to secure the
         performance of tenders,  bids, leases,  surety and appeal bonds (not in
         excess of  $5,000,000),  contracts  (other  than for the  repayment  of
         Indebtedness),  statutory  obligations and other similar obligations or
         arising as a result of progress payments under government contracts;

                  (e) easements  (including  reciprocal  easement agreements and
         utility agreements),  rights-of-way, covenants, consents, reservations,
         encroachments, variations and zoning and other restrictions, charges or
         encumbrances  (whether  or  not  recorded),   which  do  not  interfere
         materially  with the ordinary  conduct of the business of the Borrower,
         the  Parent or any of their  Subsidiaries  and which do not  materially
         detract  from  the  value  of the  property  to which  they  attach  or
         materially impair the use thereof to the Borrower, the Parent or any of
         their Subsidiaries;

                  (f)  purchase  money  Liens to secure  Indebtedness  permitted
         under Section  10.4(d);  provided that no such Lien shall extend to any
         property  other than the assets  purchased  with the  proceeds  of such
         Indebtedness,  and provided  further that such Liens shall be permitted
         only to the extent permitted under the Senior Note Purchase Agreement;

                  (g) Liens arising in connection with Capital Leases  permitted
         under  Section  10.4;  provided  that no such Lien shall  extend to any
         property  other than the assets  subject

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         to such Capital Leases,  and provided  further that such Liens shall be
         permitted only to the extent  permitted  under the Senior Note Purchase
         Agreement; and

                  (h) Liens on accounts  receivable and proceeds thereof arising
         in  connection  with  the  transfer  thereof  pursuant  to a  Permitted
         Receivables Securitization.

         10.4  Indebtedness.  Incur,  create,  assume  or  permit  to exist  any
Indebtedness, howsoever evidenced, except:

                  (a) Indebtedness  existing as of the Closing Date as set forth
         in Schedule 8.6,  including without limitation the Senior Notes and the
         Synthetic Lease  Obligations  described in clause (i) of the definition
         of  such  term;  provided,  none  of  the  instruments  and  agreements
         evidencing or governing such Indebtedness shall be amended, modified or
         supplemented   after  the   Closing   Date  to  change   any  terms  of
         subordination,  repayment or rights of  enforcement,  conversion,  put,
         exchange or other rights from such terms and rights as in effect on the
         Closing Date;

                  (b)  Indebtedness   owing  to  the  Agent  or  any  Lender  in
         connection with this Agreement, any Note or other Loan Document;

                  (c) the  endorsement of negotiable  instruments for deposit or
         collection or similar transactions in the ordinary course of business;

                  (d)  purchase  money  Indebtedness  not to exceed an aggregate
         outstanding principal amount at any time of $25,000,000;

                  (e)  Indebtedness   arising  from  Rate  Hedging   Obligations
         permitted under Section 10.15;

                  (f) Subordinated Indebtedness;

                  (g) unsecured intercompany Indebtedness for loans and advances
         made by the  Borrower  or any  Subsidiary  to the  Parent  or any other
         Guarantor  which (i) in each  instance are  evidenced  by  Intercompany
         Borrowing  Notes that have been  delivered to the  Collateral  Agent in
         compliance with the terms of the  Intercompany  Note Pledge  Agreements
         and (ii) collectively do not exceed at any time in aggregate  principal
         amount  the sum of  Revolving  Credit  Outstandings  at such  time plus
         amounts  available at such time under the Revolving Credit Facility for
         borrowing by the Borrower as Revolving Loans;

                  (h) additional  unsecured  Indebtedness for Money Borrowed not
         otherwise  covered by clauses (a) through (g) above,  provided that the
         aggregate  outstanding  principal amount of all such other Indebtedness
         permitted under this clause (h) shall in no event exceed  $5,000,000 at
         any time;

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                  (i)  Indebtedness  arising in  connection  with any  Permitted
         Receivables Securitization; and

                  (j)  Indebtedness  extending  the  maturity  of, or  renewing,
         refunding or refinancing,  in whole or in part,  Indebtedness  incurred
         under clauses (a), (d), (f) and (h) of this Section 10.4, provided that
         (A) the terms of any such extension,  renewal, refunding or refinancing
         Indebtedness  (and  of any  agreement  or  instrument  entered  into in
         connection  therewith)  are no  less  favorable  to the  Agent  and the
         Lenders than the terms of the  Indebtedness  as in effect prior to such
         action,  and provided further that  immediately  before and immediately
         after  giving  effect  to any such  extension,  renewal,  refunding  or
         refinancing,  no Default or Event of Default shall have occurred and be
         continuing,  and (B)  notwithstanding  anything in the foregoing to the
         contrary,  any renewal,  refunding or  refinancing of the Senior Notes,
         the  Synthetic  Lease   Obligations,   or  the  Permitted   Receivables
         Securitization  shall require the consent of the Agent and the Required
         Lenders.

         10.5     Transfer of Assets. Sell, lease, transfer or otherwise dispose
of any assets of Borrower,  Parent or any  Subsidiary of either,  other than (a)
dispositions of inventory in the ordinary course of business,  (b)  dispositions
of equipment or other property that is substantially worn, damaged, obsolete or,
in the judgment of the Borrower or the Parent,  no longer best used or useful in
its business or that of any Subsidiary,  (c) dispositions of accounts receivable
in  connection  with a Permitted  Receivables  Securitization,  (d) transfers of
assets  necessary  to  give  effect  to  merger  or  consolidation  transactions
permitted by Section 10.7, and (e) the disposition of Eligible Securities in the
ordinary course of management of the investment portfolios of the Borrower,  the
Parent, and their Subsidiaries.

         10.6     Investments.    Purchase,   own,   invest   in   (by   capital
contribution,  purchase of equity  interest or otherwise) or otherwise  acquire,
directly  or  indirectly,  any stock or other  securities,  or make or permit to
exist any interest  whatsoever  in any other Person or permit to exist any loans
or advances to any Person, except:

                  (a)  securities  of  any  Person  acquired  in an  Acquisition
         permitted hereunder, or securities
         acquired in connection with a Permitted Share Repurchase;

                  (b) Eligible Securities;

                  (c)  investments  existing  as of the date  hereof  and as set
         forth in Schedule 8.4;

                  (d) accounts  receivable  arising and trade credit  granted in
         the  ordinary  course  of  business  and  any  securities  received  in
         satisfaction  or  partial   satisfaction  thereof  in  connection  with
         accounts  of  financially  troubled  Persons to the  extent  reasonably
         necessary in order to prevent or limit loss; and

                  (e)  investments in  Subsidiaries  which are  Guarantors  (and
         including   Transplace.com)  and  investments  by  the  Parent  in  the
         Borrower;

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                  (f) loans by the Borrower or any  Subsidiary  to the Parent or
         to any other Guarantor as described in Section 10.4(g);

                  (g) additional  loans,  advances and investments not otherwise
         covered by clauses  (a)  through  (f) above in an  aggregate  principal
         amount at any time outstanding not to exceed $5,000,000.

         10.7     Merger  or  Consolidation.  (a) Consolidate with or merge into
any other  Person,  or (b) permit any other  Person to merge into it;  provided,
however,  (i) any  Subsidiary  of the  Borrower  may  merge or  transfer  all or
substantially  all of its assets into or  consolidate  with the  Borrower or any
wholly-owned Subsidiary of the Borrower, (ii) any other Subsidiary of the Parent
(other than the Borrower)  may merge with the Parent or any other  Subsidiary of
the  Parent,  (iii) any other  Person  may merge  into or  consolidate  with the
Borrower or the Parent or any wholly-owned  Subsidiary (the Borrower, the Parent
or such  Subsidiary  being the surviving  corporation)  and (iv) any  Subsidiary
(other than the Borrower) may merge into or consolidate with any other Person in
order to consummate an Acquisition  permitted by Section 10.2, provided further,
that any resulting or surviving entity shall execute and deliver such agreements
and other documents,  including a Facility Guaranty,  and take such other action
as the Agent may require to evidence  or confirm its express  assumption  of the
obligations  and  liabilities  of  its  predecessor   entities  under  the  Loan
Documents.

         10.8     Restricted  Payments.  Make any Restricted Payment or apply or
set  apart any of their  assets  therefor  or agree to do any of the  foregoing,
other than (i) Permitted Share  Repurchases and (ii) cash dividends  declared by
the  board of  directors  of the  Parent  in the  ordinary  course  of  business
consistent  with past  practice and paid thereby to its  stockholders;  provided
that the sum of (i) and (ii) from the Closing Date until the Stated  Termination
Date,  shall not exceed the sum of $24,000,000  plus 50% of the Consolidated Net
Income for each  fiscal  quarter  commencing  September  30,  2000 (such  amount
reduced by 100% of the amount of any negative Consolidated Net Income during any
such period).

         10.9     Transactions   with   Affiliates.   Other  than   transactions
permitted  under Sections 10.6 and 10.7,  enter into any  transaction  after the
Closing  Date,  including,  without  limitation,  the purchase,  sale,  lease or
exchange of property,  real or personal,  or the rendering of any service,  with
any Affiliate of the Parent, except (a) that such Persons may render services to
the Parent or its Subsidiaries  for  compensation at  substantially  the same or
more favorable  rates  generally paid by Persons  engaged in the same or similar
businesses  for the  same or  similar  services,  (b)  that  the  Parent  or any
Subsidiary  may render  services to such  Persons for  compensation  at the same
rates generally  charged by the Parent or such Subsidiary and (c) in either case
in the ordinary  course of business and pursuant to the reasonable  requirements
of the Parent's (or any Subsidiary's)  business consistent with past practice of
the  Parent  and its  Subsidiaries  and upon fair and  reasonable  terms no less
favorable  to the  Parent  (or any  Subsidiary)  than  would  be  obtained  in a
comparable arm's-length  transaction with a Person not an Affiliate, and all the
foregoing  shall at all  times be  applicable  with  respect  to each  Licensing
Agreement  and each  Servicing  Agreement  and the fees  payable  in  connection
therewith.

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         10.10  Compliance  with ERISA,  the Code and Foreign Benefit Laws. With
respect to any Pension Plan, Employee Benefit Plan or Multiemployer Plan:

                  (a) permit the occurrence of any Termination Event which would
         result in a liability  on the part of the  Borrower,  the Parent or any
         ERISA Affiliate to the PBGC or to any Governmental Authority; or

                  (b) permit the present value of all benefit  liabilities under
         all  Pension  Plans to exceed the  current  value of the assets of such
         Pension Plans allocable to such benefit liabilities; or

                  (c) permit any accumulated  funding  deficiency (as defined in
         Section 302 of ERISA and  Section 412 of the Code) with  respect to any
         Pension Plan, whether or not waived; or

                  (d)  fail  to  make  any   contribution   or  payment  to  any
         Multiemployer  Plan  which  the  Borrower,  the  Parent  or  any  ERISA
         Affiliate may be required to make under any agreement  relating to such
         Multiemployer Plan, or any law pertaining thereto; or

                  (e) engage, or permit any Subsidiary or any ERISA Affiliate to
         engage,  in any  prohibited  transaction  under Section 406 of ERISA or
         Sections 4975 of the Code for which a civil penalty pursuant to Section
         502(I) of ERISA or a tax  pursuant  to Section  4975 of the Code may be
         imposed; or

                  (f) permit the  establishment  of any  Employee  Benefit  Plan
         providing  post-retirement  welfare  benefits or establish or amend any
         Employee Benefit Plan which  establishment or amendment could result in
         liability  to the  Borrower  or the  Parent or any ERISA  Affiliate  or
         increase  the  obligation  of the  Borrower  or the Parent or any ERISA
         Affiliate to a Multiemployer Plan; or

                  (g) fail,  or permit the  Borrower  or the Parent or any ERISA
         Affiliate to fail,  to  establish,  maintain and operate each  Employee
         Benefit Plan in compliance in all material respects with the provisions
         of ERISA,  the Code, all applicable  Foreign Benefit Laws and all other
         applicable laws and the regulations and interpretations thereof.

         10.11    Fiscal Year.  Change its Fiscal Year.

         10.12    Dissolution,  Etc. Wind up, liquidate or dissolve (voluntarily
or involuntarily) or commence or suffer any proceedings seeking any such winding
up,  liquidation  or  dissolution,   except  in  connection  with  a  merger  or
consolidation permitted pursuant to Section 10.7.

         10.13    Limitations   on  Sales  and   Leasebacks.   Enter   into  any
arrangement  or  arrangements  with any Person  providing for the leasing by the
Borrower,  the Parent or any Subsidiary of either of real or personal  property,
whether now owned or  hereafter  acquired in a single  transaction  or series of
related  transactions,  which  has been or is to be sold or  transferred  by the
Borrower, the Parent or any of their Subsidiaries to such Person or to any other
Person to

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whom funds have been or are to be  advanced  by such  Person on the  security of
such property or rental obligations of the Borrower,  the Parent or any of their
Subsidiaries,  except for any such arrangements  entered into in connection with
(i) the  Synthetic  Lease  Obligations  and (ii) the truck and  trailer  leasing
program in an  aggregate  amount not to exceed in any Fiscal Year the sum of (A)
$25,000,000  plus (B) 50% of the aggregate amount of Consolidated Net Income for
each fiscal quarter  commencing with the fiscal quarter ended September 30, 2000
(such  amount  reduced by 100% of the amount of any  negative  Consolidated  Net
Income during any such fiscal quarter),  as presently conducted and disclosed to
the Agent and Lenders  and  hereafter  conducted  in  accordance  with such past
practices;  provided  that not later  than ten (10)  Business  Days prior to any
additional truck or trailer sale and leaseback occurring after the Closing Date,
the Parent  and the  Borrower  shall  deliver  (i) an  adjusted  Borrowing  Base
Certificate  giving  pro  forma  effect to such  sale and  leaseback  and (ii) a
certificate of an Authorized  Representative  demonstrating pro forma compliance
with the financial  covenants  contained in Article X, substantially in the form
of  Exhibit H, the  covenant  calculations  in which  shall be  determined  on a
historical pro forma basis as of the Four-Quarter Period most recently ended and
shall give pro forma effect to all lease payments incurred,  acquired or assumed
in connection with such transaction calculated as if all such lease payments had
been incurred as of the first day of such Four-Quarter Period.

         10.14    Change of Control.  Cause, suffer or  permit to exist or occur
 any Change of Control.

         10.15    Rate  Hedging Obligations.  Incur any Rate Hedging Obligations
or enter into any agreements,  arrangements,  devices or instruments relating to
Rate Hedging Obligations, except (i) pursuant to Swap Agreements in an aggregate
notional  amount  not to exceed at any time 50% of the  Total  Revolving  Credit
Commitment or as otherwise  agreed by the Borrower and the Agent and (ii) diesel
fuel forward  purchase  contracts,  commitments  and options entered into in the
ordinary  course  of  business,  consistent  with  past  practices,  and not for
speculative purposes.

         10.16    Negative Pledge Clauses. Enter into or cause, suffer or permit
to exist any  agreement  with any Person  other  than the Agent and the  Lenders
pursuant to this Agreement or any other Loan Documents which prohibits or limits
the  ability of any of the  Borrower,  the  Parent or any of their  Subsidiaries
(other than Transplace.com) to create, incur, assume or suffer to exist any Lien
upon any of its  property,  assets or  revenues,  whether now owned or hereafter
acquired,  except for Liens on shares  acquired in  connection  with a Permitted
Share  Repurchase,  Liens on any other shares of "margin  stock" as such term is
defined in  Regulation  U (12 CFR Part 221) of the Board,  and Liens on accounts
receivable transferred in a Permitted Receivables Securitization;  provided that
the Borrower,  the Parent and any of their  Subsidiaries  may enter into such an
agreement in connection  with, and that applies only to, property  acquired with
the proceeds of purchase money Indebtedness  permitted  hereunder subject to any
Lien permitted by this  Agreement and not released  after the date hereof,  when
such prohibition or limitation is by its terms effective only against the assets
subject to such Lien.

         10.17    Compensation; Reimbursement of Expenses.

                  (a) Pay any  salary,  fees,  and  other  direct  and  indirect
         remuneration  and  compensation  to any of its  directors and executive
         officers in an amount in excess of

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         those amounts paid to directors  and  executive  officers of comparable
         companies  engaged in the same  general type of business and in similar
         financial condition;

                  (b) Reimburse any stockholder,  officer, director, employee or
         agent of the Borrower,  the Parent,  or any Subsidiary  thereof for any
         expenses  incurred  by  such  Person  other  than  reasonable  expenses
         incurred for or on behalf of the Borrower, the Parent or any Subsidiary
         of either in the ordinary course of business.

         10.18    Change   in   Accountants.    Change  its  independent  public
accountants.

         10.19    Modification  or   Prepayment  of   Indebtedness  and  Certain
Documentation.

                  (a)  Amend,  modify  or  change  in any  manner  any  term  or
         condition of any Indebtedness  described in Section 10.4(a),  (d), (f),
         (g), (h), (i) or (j),  other than as permitted by Section  10.4(j),  or
         any Subordination  Agreement,  the Senior Note Purchase Agreement,  any
         Senior Note, the Receivables  Purchase  Agreement or any other document
         governing or evidencing a Permitted Receivables Securitization,  or any
         document governing or evidencing  Synthetic Lease Obligations,  so that
         the terms and  conditions  thereof are any less  favorable to the Agent
         and the Lenders  than the terms  thereof as of the  Closing  Date or as
         thereafter  initially entered into in compliance with the terms of this
         Agreement,  or amend or modify any  Licensing  Agreement  or  Servicing
         Agreement  in any respect  such as to diminish  any  security  interest
         granted to the  Collateral  Agent  therein  or in any other  Collateral
         under any of the  Security  Documents  or deprive  the  Borrower or any
         Guarantor  or other  Subsidiary  of the  Parent  as a party to any such
         Licensing  Agreement  or  Servicing  Agreement  of any license or right
         granted  thereunder  necessary  or  conducive  to the  operation of its
         trucking business;

                  (b)  Terminate,  or  cause,  offer  or  permit  to  occur  the
         termination  of, any of the  provisions  of the  Permitted  Receivables
         Securitization, any of the Licensing Agreements or any of the Servicing
         Agreements;

                  (c) At any time that the  "Fixed  Charges  Coverage  Ratio" as
         defined in the Senior Note Purchase Agreement (as in effect on the date
         hereof) is less than or equal to 1.50 to 1.00,  repay any Senior  Notes
         or terminate  the Senior Note  Purchase  Agreement  without the written
         consent of the Required Lenders.

         10.20    Partnerships. Become or be a general partner in any general or
limited partnership except any partnership holding,  solely, all or a portion of
the equity interest in Transplace.com.

         10.21    Restrictive  Agreements. Enter into or cause, suffer or permit
to exist  any  other  agreement  or  arrangement  with any  other  Person  which
prohibits,  limits or restricts the ability of (i) any  Subsidiary of the Parent
or of the Borrower to make any payments,  directly or indirectly,  to the Parent
or the  Borrower,  respectively,  by way of dividends,  advances,  repayments of
loans or advances, or other returns on investments,  or (ii) any such Subsidiary
to make any  payment,  directly  or  indirectly,  of  amounts  owing  under  the
Intercompany  Notes, to the Borrower or the

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Parent,  or  (iii)  the  Parent  to  make  any  equity  investment  in,  capital
contribution to or loan or advance to the Borrower or to any other Subsidiary of
the Parent.

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                                   ARTICLE XI

                       Events of Default and Acceleration

         11.1     Events of Default.  If any one or more of the following events
(herein called "Events of Default")  shall occur for any reason  whatsoever (and
whether such  occurrence  shall be voluntary or  involuntary or come about or be
effected by operation of law or pursuant to or in compliance  with any judgment,
decree  or  order  of  any  court  or  any  order,  rule  or  regulation  of any
Governmental Authority), that is to say:

                  (a) if default  shall be made in the due and punctual  payment
         of the  principal  of  any  Loan,  Reimbursement  Obligation  or  other
         Obligation,  when and as the  same  shall  be due and  payable  whether
         pursuant to any  provision  of Article II or Article III or Article IV,
         at maturity, by acceleration or otherwise; or

                  (b) if default  shall be made in the due and punctual  payment
         of any amount of  interest  on any Loan,  Reimbursement  Obligation  or
         other  Obligation or of any fees or other amounts payable to any of the
         Lenders  or the  Agent on the date on which  the same  shall be due and
         payable; or

                  (c) if default shall be made in the  performance or observance
         of any covenant set forth in Section 9.7,  9.11,  9.12,  9.19,  9.20 or
         Article X;

                  (d)  if  a  default  shall  be  made  in  the  performance  or
         observance  of,  or shall  occur  under,  any  covenant,  agreement  or
         provision  contained  in this  Agreement  or the Notes  (other  than as
         described  in clauses  (a),  (b) or (c) above) and such  default  shall
         continue  for thirty  (30) or more days after the earlier of receipt of
         notice of such default by the Authorized  Representative from the Agent
         or an officer of the  Borrower or of the Parent  becomes  aware of such
         default, or if a default shall be made in the performance or observance
         of,  or  shall  occur  under,  any  covenant,  agreement  or  provision
         contained  in any of the other Loan  Documents  (beyond any  applicable
         grace  period,  if any,  contained  therein)  or in any  instrument  or
         document  evidencing or creating any obligation,  guaranty,  or Lien in
         favor of the Agent or any of the Lenders or  delivered  to the Agent or
         any of the Lenders in connection  with or pursuant to this Agreement or
         any of the  Obligations,  or if any Loan Document  ceases to be in full
         force and effect  (other than as expressly  provided  for  hereunder or
         thereunder  or with the express  written  consent of the Agent),  or if
         without the written consent of the Lenders, this Agreement or any other
         Loan Document shall be disaffirmed or shall terminate, be terminable or
         be terminated or become void or unenforceable for any reason whatsoever
         (other than as expressly  provided for  hereunder or thereunder or with
         the express written consent of the Agent); or

                  (e) if there shall  occur (i) a default,  which is not waived,
         in the payment of any principal, interest, premium or other amount with
         respect  to  (A)  the  Senior  Notes,  (B)  the  Permitted  Receivables
         Securitization,  (C) the Synthetic Lease Obligations,  or (D) any other
         Indebtedness  (other  than the  Loans  and  other  Obligations)  of the
         Borrower,  the Parent or any  Subsidiary of either in an amount or Rate
         Hedge Value,  as applicable,  not

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         less than $2,500,000 in the aggregate  outstanding,  or (ii) a default,
         which is not waived,  in the performance,  observance or fulfillment of
         any  term  or  covenant  contained  in (A)  the  Senior  Note  Purchase
         Agreement,  (B) the Receivables  Purchase  Agreement,  (C) any document
         governing or evidencing  the Synthetic  Lease  Obligations,  or (D) any
         agreement   or   instrument   under  or  pursuant  to  which  any  such
         Indebtedness or Rate Hedging Obligation may have been issued,  created,
         assumed,  guaranteed  or  secured  by the  Borrower,  the Parent or any
         Subsidiary  of the  Parent,  or (iii)  with  respect  to any such  Rate
         Hedging  Obligation,  any termination event shall occur as to which the
         Borrower,  the Parent or any  Subsidiary of the Parent is the "affected
         party" under the  agreement or instrument  governing  such Rate Hedging
         Obligation,  or (iv) any other  event of  default as  specified  in any
         agreement   or   instrument   under  or  pursuant  to  which  any  such
         Indebtedness  may have been issued,  created,  assumed,  guaranteed  or
         secured by the Borrower,  the Parent or any  Subsidiary of either,  and
         such default or event of default or termination shall continue for more
         than the period of grace, if any, therein specified, or such default or
         event of default or  termination  event  shall  permit the holder of or
         counterparty to any such  Indebtedness  (or any agent or trustee acting
         on behalf of one or more holders or  counterparties)  to accelerate the
         maturity  of any  such  Indebtedness  or  terminate  any  agreement  or
         instrument governing any such Rate Hedging Obligation; or

                  (f) if any representation, warranty or other statement of fact
         contained in any Loan Document or in any writing,  certificate,  report
         or statement at any time  furnished to the Agent or any Lender by or on
         behalf of the Borrower,  the Parent or any other Credit Party  pursuant
         to or in connection  with any Loan  Document,  or  otherwise,  shall be
         false or misleading in any material respect when given; or

                  (g) if the Borrower, the Parent or any Subsidiary of either or
         other Credit  Party shall be unable to pay its debts  generally as they
         become  due;  file a  petition  to  take  advantage  of any  insolvency
         statute; make an assignment for the benefit of its creditors;  commence
         a proceeding for the appointment of a receiver,  trustee, liquidator or
         conservator  of itself or of the whole or any  substantial  part of its
         property; file a petition or answer seeking liquidation, reorganization
         or arrangement or similar relief under the federal  bankruptcy  laws or
         any other applicable law or statute; or

                  (h) if a court of competent jurisdiction shall enter an order,
         judgment  or  decree   appointing  a  custodian,   receiver,   trustee,
         liquidator  or  conservator  of  the  Borrower  or  the  Parent  or any
         Subsidiary  of  either  or other  Credit  Party or of the  whole or any
         substantial  part of its properties and such order,  judgment or decree
         continues  unstayed  and in effect for a period of sixty (60) days,  or
         approve a petition  filed  against  the  Borrower  or the Parent or any
         Subsidiary  of  either  or  other  Credit  Party  seeking  liquidation,
         reorganization  or  arrangement  or similar  relief  under the  federal
         bankruptcy  laws or any other  applicable  law or statute of the United
         States of America or any state,  which petition is not dismissed within
         sixty (60) days;  or if, under the  provisions of any other law for the
         relief  or aid of  debtors,  a court of  competent  jurisdiction  shall
         assume  custody  or  control  of  the  Borrower  or the  Parent  or any
         Subsidiary  of  either  or other  Credit  Party or of the  whole or any
         substantial  part of its properties,  which control is not relinquished
         within sixty (60) days;  or if there is commenced  against the Borrower
         or the

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         Parent or any Subsidiary of either or other Credit Party any proceeding
         or petition seeking reorganization, arrangement or similar relief under
         the federal  bankruptcy laws or any other  applicable law or statute of
         the United States of America or any state which  proceeding or petition
         remains undismissed for a period of sixty (60) days; or if the Borrower
         or the Parent or any  Subsidiary  of either or other Credit Party takes
         any  action  to  indicate  its  consent  to or  approval  of  any  such
         proceeding or petition; or

                  (i) if (i) one or more  judgments  or orders  where the amount
         not covered by insurance (or the amount as to which the insurer  denies
         liability) is in excess of $2,000,000 is rendered  against the Borrower
         or the  Parent  or any  Subsidiary  of  either,  or (ii)  there  is any
         attachment,  injunction or execution  against any of the  Borrower's or
         Parent's or either of their Subsidiaries'  properties for any amount in
         excess of $2,000,000 in the aggregate;  and such judgment,  attachment,
         injunction  or  execution  remains  unpaid,   unstayed,   undischarged,
         unbonded or undismissed for a period of thirty (30) days; or

                  (j) if the  Borrower,  the Parent or any  Subsidiary of either
         shall,  other than in the ordinary course of business (as determined by
         past practices),  suspend all or any part of its operations material to
         the  conduct  of the  business  of the  Borrower,  the  Parent  or such
         Subsidiary for a period of more than 60 days; or

                  (k) if there shall occur and not be waived an Event of Default
         as defined in any of the other Loan Documents;

then, and in any such event and at any time thereafter, if such Event of Default
or any other Event of Default shall have not been waived,

                           (A) either or both of the  following  actions  may be
                  taken: (i) the Agent may, and at the direction of the Required
                  Lenders  shall,  declare any obligation of the Lenders and the
                  Issuing  Bank to make further  Revolving  Loans and Swing Line
                  Loans or to issue  additional  Letters  of Credit  terminated,
                  whereupon  the  obligation  of each  Lender  to  make  further
                  Revolving Loans, of Bank of America to make further Swing Line
                  Loans, and of the Issuing Bank to issue additional  Letters of
                  Credit,  hereunder shall terminate  immediately,  and (ii) the
                  Agent shall at the direction of the Required Lenders, at their
                  option,  declare by notice to the  Borrower  any or all of the
                  Obligations to be immediately  due and payable,  and the same,
                  including   all  interest   accrued   thereon  and  all  other
                  obligations  of the  Borrower  to the Agent  and the  Lenders,
                  shall  forthwith  become  immediately  due and payable without
                  presentment, demand, protest, notice or other formality of any
                  kind,  all of which  are  hereby  expressly  waived,  anything
                  contained   herein  or  in  any   instrument   evidencing  the
                  Obligations   to  the  contrary   notwithstanding;   provided,
                  however,  that notwithstanding the above, if there shall occur
                  an Event of Default  under  clause (g) or (h) above,  then the
                  obligation of the Lenders to make Revolving  Loans, of Bank of
                  America to make Swing Line Loans,  and of the Issuing  Bank to
                  issue  Letters  of  Credit   hereunder   shall   automatically
                  terminate  and  any  and  all  of  the  Obligations  shall  be
                  immediately  due and  payable  without

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                  the  necessity  of any  action  by the  Agent or the  Required
                  Lenders or notice to the Agent or the Lenders; and

                           (B) the Agent and each of the Lenders  shall have all
                  of the rights and remedies  available under the Loan Documents
                  or under any applicable law.

         11.2     Agent  to Act. In case any one or more Events of Default shall
occur and not have been waived,  subject to the  provisions  of Article XII, the
Agent may,  and at the  direction  of the  Required  Lenders  shall,  proceed to
protect and enforce their rights and remedies  contained  herein or in any other
Loan Document, or as may be otherwise available at law or in equity.

         11.3     Cumulative  Rights.  No right or remedy herein  conferred upon
the  Lenders or the Agent is  intended to be  exclusive  of any other  rights or
remedies contained herein or in any other Loan Document, and every such right or
remedy shall be cumulative and shall be in addition to every other such right or
remedy  contained  herein and therein or now or hereafter  existing at law or in
equity or by statute, or otherwise.

         11.4     No  Waiver.  No course of dealing  between the Borrower or the
Parent  and any  Lender or the Agent or any  failure or delay on the part of any
Lender or the Agent in exercising any rights or remedies under any Loan Document
or otherwise available to it shall operate as a waiver of any rights or remedies
and no single or partial  exercise of any rights or remedies  shall operate as a
waiver or preclude the exercise of any other rights or remedies  hereunder or of
the same right or remedy on a future occasion.

         11.5     Allocation  of  Proceeds.  If an Event of Default has occurred
and not been waived, and the maturity of the Notes has been accelerated pursuant
to Article XI hereof,  all payments  received by the Agent hereunder,  including
amounts  allocated and made  available by the  Collateral  Agent to the Agent in
respect of the  obligations and liabilities of the Credit Parties under the Loan
Documents,  in respect of any principal of or interest on the Obligations or any
other amounts payable by the Borrower  hereunder,  shall be applied by the Agent
in the following order:

                  (a)  the  reasonable  expenses  incurred  in  connection  with
         retaking, holding, preserving, processing, maintaining or preparing for
         sale,  lease  or  other  disposition  of,  any  Collateral,   including
         reasonable attorney's fees and legal expenses pertaining thereto

                  (b) amounts due to the Lenders and the Issuing  Bank  pursuant
         to Sections 4.6(a), 4.6(b), 4.6(c), and 13.5;

                  (c)  amounts  due to the Agent  pursuant  to  Section  4.6(d);

                  (d)  payments  of  interest  on Loans,  Swing  Line  Loans and
         Reimbursement Obligations, to be applied for the ratable benefit of the
         Lenders  (with  amounts  payable in respect of Swing Line  Outstandings
         being included in such calculation and paid to Bank of America);

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<PAGE>

                  (e)  payments  of  principal  of Loans,  Swing  Line Loans and
         Reimbursement Obligations, to be applied for the ratable benefit of the
         Lenders  (with  amounts  payable in respect of Swing Line  Outstandings
         being included in such calculation and paid to Bank of America);

                  (f) amounts due to the Issuing  Bank,  the Agent,  the Lenders
         and others pursuant to Sections 3.2(h), 9.15 and 13.9;

                  (g)  payments  of all other  amounts due under any of the Loan
         Documents,  if any,  to be  applied  for  the  ratable  benefit  of the
         recipients,  including  amounts  due to any of  the  Lenders  or  their
         affiliates in respect of Obligations  consisting of  liabilities  under
         any Swap Agreement with any of the Lenders or their affiliates on a pro
         rata basis according to the amounts owed; and

                  (h) any surplus  remaining  after  application as provided for
         herein,  to the Borrower or otherwise as may be required by  applicable
         law.

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<PAGE>

                                   ARTICLE XII

                                    The Agent

         12.1     Appointment,   Powers,  and  Immunities.  Each  Lender  hereby
irrevocably  appoints  and  authorizes  the Agent to act as its agent under this
Agreement and the other Loan  Documents  with such powers and  discretion as are
specifically delegated to the Agent by the terms of this Agreement and the other
Loan  Documents,  together with such other powers as are  reasonably  incidental
thereto.  The Agent (which term as used in this sentence and in Section 12.5 and
the first  sentence of Section 12.6 hereof shall include its  affiliates and its
own and its affiliates' officers, directors, employees, and agents):

                  (a) shall not have any duties or responsibilities except those
         expressly set forth in this  Agreement and the Loan Documents and shall
         not be a trustee or fiduciary for any Lender;

                  (b) shall not be  responsible  to the Lenders for any recital,
         statement,  representation,  or warranty (whether written or oral) made
         in or in connection  with any Loan Document or any certificate or other
         document  referred  to or  provided  for in, or received by any of them
         under, any Loan Document,  or for the value,  validity,  effectiveness,
         genuineness,  enforceability,  or sufficiency of any Loan Document,  or
         any other  document  referred  to or  provided  for  therein or for any
         failure by any Credit  Party or any other  Person to perform any of its
         obligations thereunder;

                  (c)  shall  not  be  responsible  for  or  have  any  duty  to
         ascertain, inquire into, or verify the performance or observance of any
         covenants or agreements by any Credit Party or the  satisfaction of any
         condition or to inspect the property  (including the books and records)
         of any Credit Party or any of its Subsidiaries or affiliates; and

                  (d) shall not be  responsible  for any action taken or omitted
         to be taken by it under or in connection with any Loan Document, except
         for its own gross negligence or willful misconduct.

The Agent may employ agents and  attorneys-in-fact  and shall not be responsible
for the  negligence  or  misconduct  of any  such  agents  or  attorneys-in-fact
selected  by it with  reasonable  care.  The  term  "Agent"  as used in the Loan
Documents  shall not connote any  fiduciary or other  implied  obligation  under
applicable  law,  and is used solely as a matter of market  custom to connote an
administrative relationship between independent contracting parties.

         12.2     Reliance  by Agent.  The Agent shall be entitled to rely,  and
shall be fully protected in relying, upon any certification, notice, instrument,
writing, or other communication (including,  without limitation,  any thereof by
telephone or telefacsimile) believed by it to be genuine and correct and to have
been signed,  sent or made by or on behalf of the proper Person or Persons,  and
upon advice and  statements of legal counsel  (including  counsel for any Credit
Party),  independent  accountants,  and other experts selected by the Agent. The
Agent may deem and treat the  payee of any Note as the  holder  thereof  for all
purposes  hereof  unless and until the

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Agent receives and accepts an Assignment  and Acceptance  executed in accordance
with  Section  13.1  hereof.  As to any action not  expressly  mandated  by this
Agreement,  the Agent shall not be required to exercise any  discretion  or take
any action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the  Required  Lenders,  and such  instructions  shall be  binding on all of the
Lenders;  provided,  however,  that the Agent  shall not be required to take any
action unless it shall first be indemnified to its  satisfaction  by the Lenders
against any and all  liability and expense which may be incurred by it by reason
of taking any such action.

         12.3     Defaults.  The Agent shall not be deemed to have  knowledge or
notice of the  occurrence of a Default or Event of Default  unless the Agent has
received written notice from a Lender or the Borrower specifying such Default or
Event of Default and stating that such notice is a "Notice of  Default".  In the
event that the Agent  receives  such a notice of the  occurrence of a Default or
Event of Default, the Agent shall give prompt notice thereof to the Lenders. The
Agent shall  (subject to Section  12.2  hereof) take such action with respect to
such Default or Event of Default as shall reasonably be directed by the Required
Lenders,  provided  that,  unless and until the Agent shall have  received  such
directions,  the Agent may (but shall not be obligated to) take such action,  or
refrain  from  taking  such  action,  with  respect to such  Default or Event of
Default as it shall deem advisable in the best interest of the Lenders.

         12.4     Rights  as  Lender.  With  respect  to  its  Revolving  Credit
Commitment  and the Loans made by it and Letters of Credit issued by it, Bank of
America  (and  any  successor  acting  as  Agent)  in its  capacity  as a Lender
hereunder  shall have the same rights and powers  hereunder  as any other Lender
and may  exercise  the same as though it were not acting as the  Agent,  and the
term  "Lender"  or  "Lenders"  shall,  unless the context  otherwise  indicates,
include the Agent in its individual capacity. Bank of America (and any successor
acting as Agent) and its affiliates may (without  having to account  therefor to
any Lender) accept  deposits from,  lend money to, make  investments in, provide
services  to,  and  generally  engage in any kind of  lending,  trust,  or other
business with any Credit Party or any of its Subsidiaries or affiliates as if it
were not  acting as Agent,  and Bank of  America  (and any  successor  acting as
Agent) and its  affiliates  may  accept  fees and other  consideration  from any
Credit Party or any of its Subsidiaries or affiliates for services in connection
with this  Agreement or otherwise  without having to account for the same to the
Lenders.

         12.5     Indemnification.  The Lenders agree to indemnify the Agent and
each of its  affiliates,  and their  respective  officers,  employees and agents
(each, an "Agent  Indemnitee")  (to the extent not reimbursed under Section 13.9
hereof, but without limiting the obligations of the Borrower under such Section)
ratably in accordance with their respective  Revolving Credit  Commitments,  for
any and all  liabilities,  obligations,  losses,  damages,  penalties,  actions,
judgments,  suits, costs,  expenses (including  reasonable  attorneys' fees), or
disbursements of any kind and nature whatsoever that may be imposed on, incurred
by or asserted  against any Agent  Indemnitees  (including by any Lender) in any
way  relating  to or  arising  out  of any  Loan  Document  or the  transactions
contemplated  thereby  or any action  taken or  omitted by any Agent  Indemnitee
under any Loan Document;  provided that no Lender shall be liable for any of the
foregoing  to the  extent  they  arise  from the  gross  negligence  or  willful
misconduct of the Person to be indemnified;  provided further,  however, that no
action or omission  taken or occurring at the

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<PAGE>

direction of the Required  Lenders shall  constitute  either gross negligence or
willful misconduct.  Without limitation of the foregoing,  each Lender agrees to
reimburse  the Agent  promptly upon demand for its ratable share of any costs or
expenses  payable by the Borrower  under  Section  13.5,  to the extent that the
Agent is not promptly  reimbursed  for such costs and expenses by the  Borrower.
The agreements  contained in this Section 12.5 shall survive  payment in full of
the Loans and all other amounts payable under this Agreement.

         12.6     Non-Reliance  on Agent and Other  Lenders.  Each Lender agrees
that it has,  independently  and  without  reliance  on the  Agent or any  other
Lender,   and  based  on  such  documents  and  information  as  it  has  deemed
appropriate,  made its own  credit  analysis  of the  Credit  Parties  and their
Subsidiaries  and  decision  to  enter  into  this  Agreement  and that it will,
independently and without reliance upon the Agent or any other Lender, and based
on such  documents and  information  as it shall deem  appropriate  at the time,
continue to make its own analysis and  decisions in taking or not taking  action
under the Loan Documents.  Except for notices,  reports, and other documents and
information  expressly  required  to be  furnished  to the  Lenders by the Agent
hereunder,  the Agent shall not have any duty or  responsibility  to provide any
Lender with any credit or other  information  concerning the affairs,  financial
condition,  or  business  of any  Credit  Party  or any of its  Subsidiaries  or
affiliates  that  may  come  into  the  possession  of the  Agent  or any of its
affiliates.

         12.7     Resignation  of Agent.  The  Agent  may  resign at any time by
giving  notice  thereof  to  the  Lenders  and  the  Borrower.   Upon  any  such
resignation,  the Required  Lenders  shall have the right to appoint a successor
Agent.  If no  successor  Agent  shall have been so  appointed  by the  Required
Lenders and shall have accepted such  appointment  within thirty (30) days after
the retiring  Agent's giving of notice of  resignation,  then the retiring Agent
may,  on behalf of the  Lenders,  appoint a  successor  Agent  which  shall be a
commercial  bank organized under the laws of the United States of America having
combined  capital and surplus of at least  $500,000,000.  Upon the acceptance of
any  appointment  as  Agent  hereunder  by a  successor,  such  successor  shall
thereupon succeed to and become vested with all the rights, powers,  discretion,
privileges,  and duties of the retiring  Agent,  and the retiring Agent shall be
discharged from its duties and obligations hereunder. After any retiring Agent's
resignation  hereunder  as  Agent,  the  provisions  of this  Article  XII shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as Agent.

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<PAGE>

                                  ARTICLE XIII

                                  Miscellaneous

         13.1     Assignments and Participations.  (a) Each Lender may assign to
one or more Eligible  Assignees  all or a portion of its rights and  obligations
under this Agreement  (including,  without  limitation,  all or a portion of its
Loans,  its Revolving  Note,  and its Revolving  Credit  Commitment);  provided,
however, that

                  (i) each such assignment shall be to an Eligible Assignee;

                  (ii) except in the case of an assignment to another  Lender or
an assignment of all of a Lender's rights and obligations  under this Agreement,
any such partial  assignment  shall be in an amount at least equal to $5,000,000
or an integral multiple of $1,000,000 in excess thereof;

                  (iii) each such assignment by a Lender shall be of a constant,
and not  varying,  percentage  of all of its rights and  obligations  under this
Agreement and its Revolving  Note (except that any assignment by Bank of America
shall not include its rights,  benefits or duties as the Issuing  Bank or as the
provider of Swing Line Loans); and

                  (iv) the parties to such assignment  shall execute and deliver
to the Agent for its  acceptance  an  Assignment  and  Acceptance in the form of
Exhibit B hereto,  together with any Revolving  Note subject to such  assignment
and a processing fee of $3,500.

Upon execution,  delivery, and acceptance of such Assignment and Acceptance, the
assignee  thereunder  shall  be a  party  hereto  and,  to the  extent  of  such
assignment, have the obligations, rights, and benefits of a Lender hereunder and
the assigning  Lender shall,  to the extent of such  assignment,  relinquish its
rights and be  released  from its  obligations  under this  Agreement.  Upon the
consummation of any assignment pursuant to this Section, the assignor, the Agent
and the Borrower shall make appropriate  arrangements so that, if required,  new
Revolving Notes are issued to the assignor and the assignee.  If the assignee is
not  incorporated  under the laws of the  United  States of  America  or a state
thereof,  it shall  deliver to the  Borrower and the Agent  certification  as to
exemption from deduction or withholding of Taxes in accordance with Section 6.6.

         (b)      The Agent shall maintain at its address referred to in Section
13.2 a copy of each  Assignment and  Acceptance  delivered to and accepted by it
and a register for the recordation of the names and addresses of the Lenders and
the Revolving Credit  Commitment of, and principal amount of the Revolving Loans
owing to,  each Lender  from time to time (the  "Register").  The entries in the
Register  shall be  conclusive  and binding for all  purposes,  absent  manifest
error,  and the Borrower,  the Agent and the Lenders may treat each Person whose
name is recorded in the Register as a Lender  hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower or any
Lender  at any  reasonable  time and from  time to time  upon  reasonable  prior
notice.

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<PAGE>

         (c)      Upon  its receipt of an Assignment and Acceptance  executed by
the parties thereto, together with any Revolving Note subject to such assignment
and payment of the  processing  fee, the Agent  shall,  if such  Assignment  and
Acceptance  has been  completed  and is in  substantially  the form of Exhibit B
hereto,  (i) accept such Assignment and Acceptance,  (ii) record the information
contained  therein in the Register and (iii) give prompt  notice  thereof to the
parties thereto.

         (d)      Each  Lender may sell participations to one or more Persons in
all or a portion of its rights, obligations or rights and obligations under this
Agreement  (including all or a portion of its Revolving Credit Commitment or its
Loans);  provided,  however,  that  (i) such  Lender's  obligations  under  this
Agreement  shall  remain  unchanged,   (ii)  such  Lender  shall  remain  solely
responsible to the other parties hereto for the performance of such obligations,
(iii) the participant  shall be entitled to the benefit of the yield  protection
provisions contained in Article VI and the right of set-off contained in Section
13.3, and (iv) the Borrower shall continue to deal solely and directly with such
Lender in  connection  with such  Lender's  rights  and  obligations  under this
Agreement,  and  such  Lender  shall  retain  the  sole  right  to  enforce  the
obligations  of the Borrower  relating to its Revolving  Loans and its Revolving
Note and to approve any amendment,  modification,  or waiver of any provision of
this Agreement (other than amendments,  modifications, or waivers decreasing the
amount  of  principal  of or the  rate at  which  interest  is  payable  on such
Revolving Loans or Revolving  Note,  extending any scheduled  principal  payment
date or date  fixed for the  payment  of  interest  on such  Revolving  Loans or
Revolving Note, or extending its Revolving Credit Commitment).

         (e)      Notwithstanding   any  other   provision  set  forth  in  this
Agreement,  any Lender may at any time  assign and pledge all or any  portion of
its  Revolving  Loans and its  Revolving  Note to any  Federal  Reserve  Bank as
collateral  security pursuant to Regulation A and any Operating  Circular issued
by such Federal  Reserve  Bank. No such  assignment  shall release the assigning
Lender from its obligations hereunder.

         (f)      Any Lender may furnish any information concerning the Borrower
or any of its Subsidiaries in the possession of such Lender from time to time to
assignees and participants (including prospective assignees and participants).

         (g)      Whenever  in  this  Agreement  any of the  parties  hereto  is
referred  to,  such  reference  shall be deemed to include  the  successors  and
permitted assigns of such party and all covenants,  provisions and agreements by
or on behalf of the Borrower  which are  contained in the Loan  Documents  shall
inure to the benefit of the successors and permitted  assigns of the Agent,  the
Lenders,  or any of them.  The Borrower may not assign or otherwise  transfer to
any other  Person any right,  power,  benefit,  or  privilege  (or any  interest
therein)  conferred  hereunder  or under any of the  other  Loan  Documents,  or
delegate (by assumption or otherwise) to any other Person any duty,  obligation,
or liability arising hereunder or under any of the other Loan Documents, and any
such purported assignment, delegation or other transfer shall be void.

         13.2     Notices.  Any notice shall be conclusively deemed to have been
received by any party hereto and be effective (i) on the day on which  delivered
(including hand delivery by commercial  courier  service) to such party (against
receipt  therefor),  (ii) on the date of

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<PAGE>

transmission  to such party, in the case of notice by  telefacsimile  (where the
proper  transmission  of such notice is either  acknowledged by the recipient or
electronically  confirmed  by the  transmitting  device),  or (iii) on the fifth
Business  Day after the day on which  mailed to such party,  if sent  prepaid by
certified or registered mail, return receipt requested,  in each case delivered,
transmitted  or  mailed,  as the case may be, to the  address  or  telefacsimile
number, as appropriate,  set forth below or such other address or number as such
party shall specify by notice hereunder:

                  (a)      if to the Borrower or to the Parent:

                           Covenant Asset Management, Inc.
                           400 Birmingham Highway
                           Chattanooga, Tennessee  37419
                           Attn: Joey B. Hogan
                           Telephone:       (423) 821-1212
                           Telefacsimile: (423) 821-5442

                  (b)      if to the Agent:

                           Bank of America, N.A.
                           101 North Tryon Street, 15th Floor
                           NC1-001-15-04
                           Charlotte, North Carolina  28255
                           Attention: Agency Services
                           Telephone:       (704) 386-____
                           Telefacsimile:   (704) 386-9923

                           with a copy to:

                           Bank of America, N.A.
                           TN6-300-02-03
                           633 Chestnut Street, 2nd Floor
                           Chattanooga, Tennessee  37450
                           Attention: Sybil Weldon
                           Telephone:       (423) 752-1222
                           Telefacsimile:   (423) 755-0689

                  (c)      if to the Lenders:

                           At the addresses set  forth on  the  signature  pages
                           hereof and on  the signature page of  each Assignment
                           and Acceptance;

                  (d)      if to any other  Credit  Party,  at the  address  set
                           forth on the signature page of the Facility  Guaranty
                           or Security Instrument executed by such Credit Party,
                           as the case may be.

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<PAGE>

         13.3     Right  of Set-off;  Adjustments.  (a) Upon the  occurrence and
during the  continuance  of any Event of  Default,  each Lender (and each of its
affiliates)  is  hereby  authorized  at any time and from  time to time,  to the
fullest  extent  permitted  by law,  to set off and apply  any and all  deposits
(general or special, time or demand,  provisional or final) at any time held and
other  indebtedness  at any time owing by such Lender (or any of its affiliates)
to or for the credit or the  account of the Parent or the  Borrower  (other than
any such deposits  being held in trust for the benefit of any  non-Credit  Party
third  parties)  against  any and all of the  obligations  of the  Parent or the
Borrower now or hereafter  existing  under this  Agreement  and the Note held by
such  Lender,  irrespective  of whether  such Lender  shall have made any demand
under  this  Agreement  or  such  Note  and  although  such  obligations  may be
unmatured.  Each Lender  agrees  promptly to notify the Borrower  after any such
set-off and application made by such Lender; provided, however, that the failure
to  give  such  notice  shall  not  affect  the  validity  of such  set-off  and
application.  The rights of each Lender  under this Section 13.3 are in addition
to other rights and remedies  (including,  without  limitation,  other rights of
set-off) that such Lender may have.

         (b)      If any Lender (a "benefited Lender") shall at any time receive
any  payment of all or part of the Loans owing to it, or  interest  thereon,  or
receive any collateral in respect thereof (whether voluntarily or involuntarily,
by set-off,  or otherwise),  in a greater proportion than any such payment to or
collateral  received  by any other  Lender,  if any,  in  respect  of such other
Lender's Revolving Loans owing to it, or interest thereon, such benefited Lender
shall purchase for cash from the other Lenders a participating  interest in such
portion  of each  such  other  Lender's  Revolving  Loans  owing to it, or shall
provide  such other  Lenders with the  benefits of any such  collateral,  or the
proceeds thereof,  as shall be necessary to cause such benefited Lender to share
the excess payment or benefits of such collateral or proceeds  ratably with each
of the  Lenders;  provided,  however,  that if all or any portion of such excess
payment or benefits is thereafter  recovered  from such  benefited  Lender or is
repaid in whole or in part by such benefited  Lender in good faith settlement of
a pending or threatened  avoidance claim, such purchase shall be rescinded,  and
the purchase  price and  benefits  returned,  to the extent of such  recovery or
settlement payment, but without interest. The Borrower agrees that any Lender so
purchasing a  participation  from a Lender pursuant to this Section 13.3 may, to
the  fullest  extent  permitted  by law,  exercise  all of its rights of payment
(including the right of set-off) with respect to such  participation as fully as
if such  Person were the direct  creditor of the  Borrower in the amount of such
participation.

         13.4     Survival.   All  covenants,  agreements,  representations  and
warranties  made herein shall survive the making by the Lenders of the Loans and
the  issuance of the  Letters of Credit and the  execution  and  delivery to the
Lenders of this  Agreement  and the Notes and shall  continue  in full force and
effect so long as any of  Obligations  remain  outstanding or any Lender has any
Revolving Credit Commitment hereunder or the Borrower has continuing obligations
hereunder unless otherwise provided herein.

         13.5     Expenses.  The Borrower  agrees to pay on demand all costs and
expenses  of  the  Agent  in  connection  with  the  syndication,   preparation,
execution,  delivery,  administration,   modification,  and  amendment  of  this
Agreement,  the other Loan  Documents,  and the other  documents to be delivered
hereunder,  including,  without limitation,  the reasonable fees and expenses of
counsel for the Agent  (with  limitations  as agreed by the Agent) with  respect
thereto

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<PAGE>

and with  respect to  advising  the Agent as to its rights and  responsibilities
under the Loan Documents. The Borrower further agrees to pay on demand all costs
and  expenses  of  the  Agent  and  the  Lenders,  if  any  (including,  without
limitation,  reasonable  attorneys'  fees and  expenses and the cost of internal
counsel),  in connection with the  enforcement  (whether  through  negotiations,
legal  proceedings,  or otherwise) of the Loan Documents and the other documents
to be delivered hereunder, including any costs and expenses paid by the Agent or
the Lenders to the Collateral Agent pursuant to Section 5.6 of the Intercreditor
Agreement.

         13.6     Amendments and Waivers. Any provision of this Agreement or any
other Loan Document may be amended or waived if, but only if, such  amendment or
waiver is in writing and is signed by the  Borrower or other  applicable  Credit
Party party to such Loan Document and either the Required Lenders or (as to Loan
Documents  other than the Credit  Agreement) the Agent on behalf of the Required
Lenders  (and,  if Article XII or the rights or duties of the Agent are affected
thereby, by the Agent);  provided that no such amendment or waiver shall, unless
signed by each Lender  directly  affected  thereby,  (i) increase the  Revolving
Credit  Commitments  or the Letter of Credit  Commitments of such Lenders (other
than  increases in Revolving  Credit  Commitments  effected  pursuant to Section
2.1(f)),  (ii)  reduce the  principal  of or rate of interest on any Loan or any
fees or other amounts payable  hereunder,  (iii) postpone any date fixed for the
payment of any scheduled  installment of principal of or interest on any Loan or
any fees or other amounts payable  hereunder or for termination of any Revolving
Credit  Commitment,  (iv) change the  percentage of the Total  Revolving  Credit
Commitment  or of the  unpaid  principal  amount  of the  Notes  which  shall be
required  for the Lenders or any of them to take any action  under this  Section
13.6 or any other provision of this  Agreement,  or change or amend this Section
13.6 or the definition of Required Lenders,  or (v) release any Guarantor or all
or substantially all of the Collateral  except as expressly  contemplated in the
Loan  Documents;  and provided,  further,  that no such amendment or waiver that
affects the rights, privileges or obligations of (A) Bank of America as provider
of Swing Line  Loans,  shall be  effective  unless  signed in writing by Bank of
America,  or (B) of the  Issuing  Bank as issuer of Letters  of Credit  shall be
effective  unless  signed in writing by the Issuing Bank, or (C) Bank of America
as Agent shall be effective unless signed in writing by Bank of America.

         No notice to or demand on the  Borrower  in any case shall  entitle the
Borrower  to any  other  or  further  notice  or  demand  in  similar  or  other
circumstances,  except  as  otherwise  expressly  provided  herein.  No delay or
omission on any Lender's or the Agent's part in exercising any right,  remedy or
option shall operate as a waiver of such or any other right, remedy or option or
of any Default or Event of Default.

         13.7     Counterparts;  Facsimile  Signatures.  This  Agreement  may be
executed  in any  number of  counterparts,  each of which when so  executed  and
delivered  shall be deemed an original,  and it shall not be necessary in making
proof  of  this  Agreement  to  produce  or  account  for  more  than  one  such
fully-executed counterpart. Signatures on communications and other documents may
be  transmitted  by facsimile only with the consent of the Agent in its sole and
absolute  discretion in each instance.  The effectiveness of any such signatures
accepted by the Agent shall,  subject to applicable law, have the same force and
effect as manual  signatures and shall be binding on all parties.  The Agent may
also require that any such signature be confirmed by a manually-signed hard copy
thereof.  Each party hereto hereby adopts as an original executed

                                       98

<PAGE>

signature  page each  signature  page  hereafter  furnished by such party to the
Agent (or an agent of the  Agent)  bearing  (with the  consent  of the  Agent) a
facsimile  signature  by or on behalf of such party.  Nothing  contained in this
Section shall limit the provisions of Section 12.2.

         13.8     Termination.  This Agreement  shall  terminate on the Facility
Termination  Date,  except that (x) those  provisions which by the express terms
thereof continue in effect  notwithstanding  the Facility  Termination Date, and
(y) obligations in the nature of continuing indemnities or expense reimbursement
obligations not yet due and payable,  shall continue in effect.  Notwithstanding
the  foregoing,  if  after  receipt  of any  payment  of all or any  part of the
Obligations, the Agent, the Issuing Bank or any Lender (including the Swing Line
Lender) is for any reason  compelled  to  surrender  such  payment to any Person
because  such  payment is  determined  to be void or voidable  as a  preference,
impermissible  setoff,  a diversion  of trust  funds or for any other  reason or
elects  to repay any such  amount  in good  faith  settlement  of a  pending  or
threatened  avoidance  claim,  (i)  this  Agreement  (including  the  provisions
pertaining to  Participations in Letters of Credit,  Reimbursement  Obligations,
and Swing Line Loans)  shall  continue in full force (or be  reinstated,  as the
case may be) and the Borrower  shall be liable to, and shall  indemnify and hold
the Agent,  the Issuing  Bank or such Lender  harmless  for,  the amount of such
payment  surrendered until the Agent, the Issuing Bank or such Lender shall have
been finally and irrevocably  paid in full, and (ii) in the event any portion of
any amount so required to be surrendered by the Agent or the Issuing Bank or the
Swing Line Lender shall have been distributed to the Lenders,  the Lenders shall
promptly  repay such  amounts to the Agent or the Issuing Bank or the Swing Line
Lender on demand therefor. The provisions of the foregoing sentence shall be and
remain effective  notwithstanding  any contrary action which may have been taken
by the Agent, the Issuing Bank or the Lenders in reliance upon such payment, and
any such contrary action so taken shall be without prejudice to the Agent's, the
Issuing  Bank's or the Lenders'  rights under this Agreement and shall be deemed
to have been conditioned upon such payment having become final and irrevocable.

         13.9     Indemnification;  Limitation  of  Liability.  (a)  Each of the
Borrower and the Parent  agrees to indemnify  and hold  harmless the Agent,  the
Collateral  Agent  and  each  Lender  and  each of their  affiliates  and  their
respective  officers,  directors,  employees,  agents,  and advisors  (each,  an
"Indemnified  Party")  from and  against any and all  claims,  damages,  losses,
liabilities,  costs, and expenses  (including,  without  limitation,  reasonable
attorneys'  fees) that may be incurred  by or  asserted  or awarded  against any
Indemnified  Party,  in each case  arising  out of or in  connection  with or by
reason of (including,  without limitation, in connection with any investigation,
litigation, or proceeding or preparation of defense in connection therewith) the
Loan Documents,  any of the  transactions  contemplated  herein or the actual or
proposed  use of the  proceeds  of the Loans  except to the extent  such  claim,
damage, loss,  liability,  cost, or expense is found in a final,  non-appealable
judgment by a court of competent  jurisdiction  to have resulted  primarily from
such Indemnified Party's gross negligence or willful misconduct.  In the case of
an investigation,  litigation or other proceeding to which the indemnity in this
Section 13.9  applies,  such  indemnity  shall be effective  whether or not such
investigation,  litigation or proceeding is brought by the Borrower,  the Parent
or  either  of their  respective  directors,  shareholders  or  creditors  or an
Indemnified  Party or any other Person or any  Indemnified  Party is otherwise a
party  thereto  and  whether  or not the  transactions  contemplated  hereby are
consummated.  Each of the  Borrower  and the Parent  agrees that no  Indemnified
Party shall have any liability (whether direct or

                                       99

<PAGE>

indirect, in contract or tort or otherwise) to it, any of its Subsidiaries,  any
Guarantor,  or any security holders or creditors thereof arising out of, related
to or in connection with the  transactions  contemplated  herein,  except to the
extent  that such  liability  is found in a final  non-appealable  judgment by a
court of competent  jurisdiction to have directly resulted from such Indemnified
Party's  gross  negligence or willful  misconduct.  Each of the Borrower and the
Parent agrees not to assert any claim against the Agent,  the Collateral  Agent,
any  Lender,  any of their  affiliates,  or any of their  respective  directors,
officers,  employees,   attorneys,  agents,  and  advisers,  on  any  theory  of
liability, for special, indirect, consequential, or punitive damages arising out
of or  otherwise  relating  to the  Loan  Documents,  any  of  the  transactions
contemplated herein or the actual or proposed use of the proceeds of the Loans.

         (b)      The  agreements and obligations of the Borrower and the Parent
contained  in this  Section 13.9 shall  continue in effect  notwithstanding  the
Facility Termination Date.

         13.10    Severability.  If any provision of this Agreement or the other
Loan Documents shall be determined to be illegal or invalid as to one or more of
the parties  hereto,  then such provision shall remain in effect with respect to
all parties,  if any, as to whom such provision is neither  illegal nor invalid,
and in any event all other provisions  hereof shall remain effective and binding
on the parties hereto.

         13.11    Entire Agreement. This Agreement, together with the other Loan
Documents,  constitutes  the entire  agreement among the parties with respect to
the subject matter hereof and supersedes all previous  proposals,  negotiations,
representations,  commitments  and  other  communications  between  or among the
parties, both oral and written, with respect thereto.

         13.12    Agreement  Controls.  In the event that any term of any of the
Loan Documents other than this Agreement conflicts with any express term of this
Agreement,  the terms and  provisions  of this  Agreement  shall  control to the
extent of such conflict.

         13.13    Usury  Savings  Clause.  Notwithstanding  any other  provision
herein,  the aggregate  interest rate charged under any of the Notes,  including
all  charges or fees in  connection  therewith  deemed in the nature of interest
under  applicable  law shall not exceed the Highest Lawful Rate (as such term is
defined  below).  If the rate of  interest  (determined  without  regard  to the
preceding  sentence) under this Agreement at any time exceeds the Highest Lawful
Rate (as defined  below),  the  outstanding  amount of the Loans made  hereunder
shall  bear  interest  at the  Highest  Lawful  Rate  until the total  amount of
interest due hereunder  equals the amount of interest  which would have been due
hereunder if the stated rates of interest set forth in this Agreement had at all
times been in effect.  In addition,  if when the Loans made hereunder are repaid
in full the total  interest  due  hereunder  (taking  into  account the increase
provided for above) is less than the total  amount of interest  which would have
been due  hereunder if the stated rates of interest set forth in this  Agreement
had at all times  been in  effect,  then to the  extent  permitted  by law,  the
Borrower  shall pay to the Agent an amount equal to the  difference  between the
amount of interest paid and the amount of interest which would have been paid if
the  Highest  Lawful Rate had at all times been in effect.  Notwithstanding  the
foregoing,  it is the  intention  of the  Lenders  and the  Borrower  to conform
strictly to any applicable usury laws. Accordingly, if any Lender contracts for,
charges, or receives any consideration  which constitutes  interest in

                                      100

<PAGE>

excess of the  Highest  Lawful  Rate,  then any such excess  shall be  cancelled
automatically  and, if previously paid, shall at such Lender's option be applied
to the  outstanding  amount of the Loans made  hereunder  or be  refunded to the
Borrower.  As used in this  paragraph,  the term "Highest Lawful Rate" means the
maximum lawful  interest rate, if any, that at any time or from time to time may
be contracted for, charged, or received under the laws applicable to such Lender
which are  presently  in effect  or, to the extent  allowed  by law,  under such
applicable  laws  which  may  hereafter  be in effect  and which  allow a higher
maximum nonusurious interest rate than applicable laws now allow.

         13.14    Governing Law; Waiver of Jury Trial.

                  (a) THIS  AGREEMENT AND THE OTHER LOAN  DOCUMENTS  (OTHER THAN
         THOSE SECURITY  INSTRUMENTS  WHICH EXPRESSLY PROVIDE THAT THEY SHALL BE
         GOVERNED BY THE LAWS OF ANOTHER JURISDICTION) SHALL BE GOVERNED BY, AND
         CONSTRUED  IN  ACCORDANCE  WITH,  THE LAWS OF THE  STATE  OF  TENNESSEE
         APPLICABLE TO CONTRACTS  EXECUTED,  AND TO BE FULLY PERFORMED,  IN SUCH
         STATE.

                  (b) THE BORROWER HEREBY  EXPRESSLY AND IRREVOCABLY  AGREES AND
         CONSENTS THAT ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
         TO THIS  AGREEMENT  AND THE  TRANSACTIONS  CONTEMPLATED  HEREIN  MAY BE
         INSTITUTED  IN ANY STATE OR  FEDERAL  COURT  SITTING  IN THE  COUNTY OF
         HAMILTON,  STATE OF  TENNESSEE,  UNITED  STATES OF AMERICA  AND, BY THE
         EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER EXPRESSLY WAIVES
         ANY OBJECTION  THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE
         IN, OR TO THE EXERCISE OF JURISDICTION OVER IT AND ITS PROPERTY BY, ANY
         SUCH COURT IN ANY SUCH SUIT,  ACTION OR  PROCEEDING,  AND THE  BORROWER
         HEREBY  IRREVOCABLY   SUBMITS  GENERALLY  AND  UNCONDITIONALLY  TO  THE
         JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.

                  (c) THE BORROWER AGREES THAT SERVICE OF PROCESS MAY BE MADE BY
         PERSONAL  SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT OR OTHER LEGAL
         PROCESS IN ANY SUCH SUIT,  ACTION OR  PROCEEDING,  OR BY  REGISTERED OR
         CERTIFIED  MAIL  (POSTAGE  PREPAID)  TO THE  ADDRESS  OF  THE  BORROWER
         PROVIDED IN SECTION  13.2,  OR BY ANY OTHER METHOD OF SERVICE  PROVIDED
         FOR UNDER THE APPLICABLE LAWS IN EFFECT IN THE STATE OF TENNESSEE.

                  (d) NOTHING  CONTAINED IN SUBSECTIONS  (b) OR (c) HEREOF SHALL
         PRECLUDE  THE AGENT OR ANY LENDER  FROM  BRINGING  ANY SUIT,  ACTION OR
         PROCEEDING  ARISING  OUT OF OR  RELATING  TO ANY LOAN  DOCUMENT  IN THE
         COURTS OF ANY JURISDICTION  WHERE THE

                                      101

<PAGE>

         BORROWER  OR ANY OF THE  BORROWER'S  PROPERTY OR ASSETS MAY BE FOUND OR
         LOCATED.  TO THE EXTENT  PERMITTED BY THE  APPLICABLE  LAWS OF ANY SUCH
         JURISDICTION,   THE  BORROWER   HEREBY   IRREVOCABLY   SUBMITS  TO  THE
         JURISDICTION OF ANY SUCH COURT AND EXPRESSLY  WAIVES, IN RESPECT OF ANY
         SUCH  SUIT,  ACTION  OR  PROCEEDING,   OBJECTION  TO  THE  EXERCISE  OF
         JURISDICTION OVER IT AND ITS PROPERTY BY ANY SUCH OTHER COURT OR COURTS
         WHICH NOW OR HEREAFTER MAY BE AVAILABLE UNDER APPLICABLE LAW.

                  (e) IN ANY  ACTION OR  PROCEEDING  TO  ENFORCE  OR DEFEND  ANY
         RIGHTS  OR  REMEDIES  UNDER  OR  RELATED  TO ANY LOAN  DOCUMENT  OR ANY
         AMENDMENT,  INSTRUMENT,  DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN
         THE FUTURE BE DELIVERED IN  CONNECTION  THEREWITH,  THE  BORROWER,  THE
         AGENT  AND  THE  LENDERS  HEREBY  AGREE,  TO THE  EXTENT  PERMITTED  BY
         APPLICABLE LAW, THAT ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE TRIED
         BEFORE A COURT AND NOT BEFORE A JURY AND HEREBY  IRREVOCABLY  WAIVE, TO
         THE EXTENT  PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PERSON MAY HAVE
         TO TRIAL BY JURY IN ANY SUCH ACTION, SUIT OR PROCEEDING.

                  (f) THE BORROWER HEREBY  EXPRESSLY WAIVES ANY OBJECTION IT MAY
         HAVE THAT ANY COURT TO WHOSE  JURISDICTION IT HAS SUBMITTED PURSUANT TO
         THE TERMS HEREOF IS AN INCONVENIENT FORUM.

                         [Signatures on following pages]

                                      102

<PAGE>

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

                                      COVENANT ASSET MANAGEMENT, INC.
WITNESS:

      Not required.                   By:     /s/ Joey B. Hogan
 ----------------------------
                                      Name:   Joey B. Hogan
                                      Title:  Treasurer, Chief Financial Officer
-----------------------------

                                     COVENANT TRANSPORT, INC.
WITNESS:

      Not required.                   By:     /s/ Joey B. Hogan
 ----------------------------
                                      Name:   Joey B. Hogan
                                      Title:  Treasurer, Chief Financial Officer
-----------------------------

                                      BANK OF AMERICA, N.A.,
                                      as Agent for the Lenders

                                      By:    /s/ Susan J. Ryan
                                      Name:  Susan J. Ryan
                                      Title: Vice President

                             Signature Page 1 of 6

<PAGE>

                                      BANK OF AMERICA, N.A.

                                      By:    /s/ Sybil H. Weldon
                                      Name:  Sybil H. Weldon
                                      Title: Senior Vice President

                                      Lending Office for Base Rate Loans:
                                            Bank of America, N.A.
                                            101 North Tryon Street, 15th Floor
                                            NC1-001-15-04
                                            Charlotte, North Carolina  28255
                                            Attention:  Agency Services
                                            Telephone:        (704) 386-
                                            Telefacsimile:    (704) 386-9923

                                      Wire Transfer Instructions:
                                            Bank of America, N.A.
                                            ABA#  053000196
                                            Account No.: 136 621 225 0600
                                            Reference: Covenant Transport
                                            Attention:  Agency Services

                                      Lending Office for Eurodollar Rate Loans:
                                            Bank of America, N.A.
                                            101 North Tryon Street, 15th Floor
                                            NC1-001-15-04
                                            Charlotte, North Carolina  28255
                                            Attention: Agency Services
                                            Telephone:        (704) 386-
                                            Telefacsimile:    (704) 386-9923

                                      Wire Transfer Instructions:
                                            Bank of America, N.A.
                                            ABA#  053000196
                                            Account No.: 136 621 225 0600
                                            Reference: Covenant Transport
                                            Attention: Agency Services

                             Signature Page 2 of 6

<PAGE>

                                      FLEET NATIONAL BANK

                                      By:    /s/ Robert L.Wallace
                                      Name:  Robert L. Wallace
                                      Title: Managing Director

                                      Lending Office for Base Rate Loans:
                                            Fleet National Bank
                                            100 Federal Street, MADE 10008D
                                            Boston, Massachusetts 02110
                                            Attention:  Richard T. Bridge, Jr.
                                            Telephone:  617-434-4082
                                            Telefacsimile:     617-434-4366

                                      Wire Transfer Instructions:
                                            Fleet National Bank
                                            ABA#  011000138
                                            Account No.:  151035166156
                                            Reference: Covenant Transport
                                            Attention:  ________________

                                      Lending Office for Eurodollar Rate Loans:
                                            Fleet National Bank
                                            100 Federal Street, MADE 10008D
                                            Boston, Massachusetts 02110
                                            Attention:  Richard T. Bridge, Jr.
                                            Telephone:  617-434-4082
                                            Telefacsimile:     617-434-4366

                                      Wire Transfer Instructions:
                                            Fleet National Bank
                                            ABA#  011000138
                                            Account No.:  151035166156
                                            Reference: Covenant Transport
                                            Attention:  ________________

                             Signature Page 3 of 6

<PAGE>

                                      SUNTRUST BANK

                                      By:    /s/ Renee D. Drake
                                      Name:  Renee D. Drake
                                      Title: Vice President

                                      Lending Office for Base Rate Loans:
                                            SunTrust Bank
                                            201 4th Avenue, 5th Floor
                                            Nashville, Tennessee 37230
                                            Attention:  Leigh Ann Gregory
                                            Telephone:        615-748-5461
                                            Telefacsimile:     615-748-4611

                                      Wire Transfer Instructions:
                                            SunTrust Bank
                                            ABA#  064-000-046
                                            Account No.:  9191004800
                                            Reference: Covenant Transport
                                            Attention:  Participation Desk

                                      Lending Office for Eurodollar Rate Loans:
                                            SunTrust Bank
                                            201 4th Avenue, 5th Floor
                                            Nashville, Tennessee 37230
                                            Attention:  Leigh Ann Gregory
                                            Telephone:        615-748-5461
                                            Telefacsimile:     615-748-4611

                                      Wire Transfer Instructions:
                                            SunTrust Bank
                                            ABA#  064-000-046
                                            Account No.:  9191004800
                                            Reference: Covenant Transport
                                            Attention:  Participation Desk

                             Signature Page 4 of 6

<PAGE>

                                      BANK ONE, N.A.

                                      By:    /s/ Kenneth J. Kramer
                                      Name:  Kenneth J. Kramer
                                      Title: Managing Director

                                      Lending Office for Base Rate Loans:
                                            Bank One, N.A.
                                            1 Bank One Plaza, IL1-0634
                                            Chicago, Illinois 60670
                                            Attention:  John Beirne
                                            Telephone:        312-732-3659
                                            Telefacsimile:     312-732-4840

                                      Wire Transfer Instructions:
                                            Bank One, N.A.
                                            ABA#  071-000-013
                                            Account No.:  481152860000
                                            Reference:  Covenant Transport
                                            Attention:  _________________

                                      Lending Office for Eurodollar Rate Loans:
                                            Bank One, N.A.
                                            1 Bank One Plaza, IL1-0634
                                            Chicago, Illinois 60670
                                            Attention:  John Beirne
                                            Telephone:        312-732-3659
                                            Telefacsimile:     312-732-4840

                                      Wire Transfer Instructions:
                                            Bank One, N.A.
                                            ABA#  071-000-013
                                            Account No.:  481152860000
                                            Reference:  Covenant Transport
                                            Attention:  _________________

                             Signature Page 5 of 6

<PAGE>

                                      FIRST UNION NATIONAL BANK

                                      By:    /s/ Todd Kidd
                                      Name:  Todd Kidd
                                      Title: Vice President

                                      Lending Office for Base Rate Loans:
                                            First Union National Bank
                                            11th Floor Widener Building
                                            1 South Pennsylvania Square, PA4827
                                            Philadelphia, Pennsylvania 19107
                                            Attention:  Peter Hill
                                            Telephone:        215-973-7050
                                            Telefacsimile:    215-973-6054

                                      Wire Transfer Instructions:
                                            First Union National Bank
                                            ABA#  031201467
                                            Account No.:  145316-5103160
                                            Reference:  Covenant
                                            Attention:  Peter Hill

                                      Lending Office for Eurodollar Rate Loans:
                                            First Union National Bank
                                            11th Floor Widener Building
                                            1 South Pennsylvania Square, PA4827
                                            Philadelphia, Pennsylvania 19107
                                            Attention:  Peter Hill
                                            Telephone:        215-973-7050
                                            Telefacsimile:    215-973-6054

                                      Wire Transfer Instructions:
                                            First Union National Bank
                                            ABA#  031201467
                                            Account No.:  145316-5103160
                                            Reference:  Covenant
                                            Attention:  Peter Hill

                             Signature Page 6 of 6

<PAGE>

                                    EXHIBIT A

                        Applicable Commitment Percentages

                                                                     Applicable
                                 Revolving Credit                    Commitment
Lender                              Commitment                       Percentage

Bank of America, N.A.               $30,000,000                     25.0000000 %
SunTrust Bank                       $25,000,000                     20.8333333 %
First Union National Bank           $25,000,000                     20.8333333 %
Fleet National Bank                 $25,000,000                     20.8333333 %
Bank One, N.A.                      $15,000,000                     12.5000000 %

                                      A-1

<PAGE>

                                    EXHIBIT B

                        Form of Assignment and Acceptance

         Reference is made to the Credit Agreement dated as of December 13, 2000
(the  "Credit  Agreement")  among  Covenant  Asset  Management,  Inc.,  a Nevada
corporation (the "Borrower"),  Covenant  Transport,  Inc., a Nevada corporation,
the Lenders (as defined in the Credit  Agreement) and Bank of America,  N.A., as
agent for the Lenders (the "Agent").  Terms defined in the Credit  Agreement are
used herein with the same meaning.

         The "Assignor"  and the  "Assignee"  referred to on Schedule 1 agree as
follows:

         1.       The Assignor hereby sells and assigns to the Assignee, WITHOUT
RECOURSE and without  representation  or warranty  except as expressly set forth
herein,  and the Assignee  hereby  purchases and assumes from the  Assignor,  an
interest  in and to the  Assignor's  rights  and  obligations  under the  Credit
Agreement  and the  other  Loan  Documents  as of the date  hereof  equal to the
percentage  interest  specified  on  Schedule  1 of all  outstanding  rights and
obligations  under the  Credit  Agreement  and the other Loan  Documents.  After
giving  effect to such sale and  assignment,  the  Assignee's  Revolving  Credit
Commitment  and the amount of the Revolving  Loans owing to the Assignee will be
as set forth on Schedule 1.

         2.       The  Assignor (i) represents and warrants that it is the legal
and  beneficial  owner of the interest  being  assigned by it hereunder and that
such  interest  is  free  and  clear  of  any  adverse  claim;   (ii)  makes  no
representation  or warranty  and assumes no  responsibility  with respect to any
statements, warranties or representations made in or in connection with the Loan
Documents or the execution,  legality,  validity,  enforceability,  genuineness,
sufficiency or value of the Loan  Documents or any other  instrument or document
furnished  pursuant  thereto;  (iii) makes no  representation  or  warranty  and
assumes no responsibility  with respect to the financial condition of any Credit
Party  or the  performance  or  observance  by any  Credit  Party  of any of its
obligations  under  the Loan  Documents  or any  other  instrument  or  document
furnished  pursuant  thereto;  and (iv) attaches the Revolving  Note held by the
Assignor  and  requests  that the Agent  exchange  such  Revolving  Note for new
Revolving  Notes  payable to the order of the Assignee in an amount equal to the
Revolving Credit  Commitment  assumed by the Assignee pursuant hereto and to the
Assignor in an amount equal to the Revolving Credit  Commitment  retained by the
Assignor, if any, as specified on Schedule 1.

         3.       The  Assignee (i) confirms  that it has received a copy of the
Credit Agreement,  together with copies of the financial  statements referred to
in Section 9.1 thereof and such other documents and information as it has deemed
appropriate  to make its own credit  analysis  and  decision  to enter into this
Assignment and Acceptance;  (ii) agrees that it will,  independently and without
reliance  upon the Agent,  the  Assignor  or any other  Lender and based on such
documents and information as it shall deem appropriate at the time,  continue to
make its own credit  decisions  in taking or not taking  action under the Credit
Agreement;  (iii)  confirms that it is an Eligible  Assignee;  (iv) appoints and
authorizes  the Agent to take such action as agent on its behalf and to exercise
such powers and  discretion  under the Credit  Agreement as are delegated to the
Agent by the terms  thereof,  together  with such powers and  discretion  as are
reasonably

                                      B-1

<PAGE>

incidental  thereto;  (v) agrees that it will perform in  accordance  with their
terms all of the  obligations  that by the  terms of the  Credit  Agreement  are
required to be performed by it as a Lender;  and (vi) attaches any U.S. Internal
Revenue Service or other forms required under Section 6.6.

         4.       Following the execution of this Assignment and Acceptance,  it
will be delivered to the Agent for  acceptance  and recording by the Agent.  The
effective date for this Assignment and Acceptance  (the "Effective  Date") shall
be the date of acceptance  hereof by the Agent,  unless  otherwise  specified on
Schedule 1.

         5.       Upon  such  acceptance  and recording by the Agent,  as of the
Effective  Date, (i) the Assignee shall be a party to the Credit  Agreement and,
to the extent provided in this  Assignment and  Acceptance,  have the rights and
obligations of a Lender  thereunder and (ii) the Assignor  shall,  to the extent
provided  in this  Assignment  and  Acceptance,  relinquish  its  rights  and be
released from its obligations under the Credit Agreement.

         6.       Upon  such  acceptance  and  recording by the Agent,  from and
after the  Effective  Date,  the Agent shall make all payments  under the Credit
Agreement and the  Revolving  Notes in respect of the interest  assigned  hereby
(including,   without  limitation,  all  payments  of  principal,  interest  and
commitment fees with respect thereto) to the Assignee. The Assignor and Assignee
shall make all  appropriate  adjustments in payments under the Credit  Agreement
and the Revolving Notes for periods prior to the Effective Date directly between
themselves.

         7.       This  Assignment  and  Acceptance  shall be  governed  by, and
construed in accordance with, the laws of the State of Tennessee.

         8.       This  Assignment  and Acceptance may be executed in any number
of counterparts and by different parties hereto in separate  counterparts,  each
of which when so  executed  shall be deemed to be an  original  and all of which
taken  together  shall  constitute  one and the same  agreement.  Delivery of an
executed  counterpart  of  Schedule  1 to  this  Assignment  and  Acceptance  by
telefacsimile shall be effective as delivery of a manually executed  counterpart
of this Assignment and Acceptance.

         IN WITNESS WHEREOF,  the Assignor and the Assignee have caused Schedule
1 to this  Assignment and Acceptance to be executed by their officers  thereunto
duly authorized as of the date specified thereon.

                                      B-2

<PAGE>

                                   Schedule 1

         Percentage interest assigned:                            ________%

         Assignee's Revolving Credit Commitment:                  $_______

         Aggregate outstanding principal amount
           of Revolving Loans assigned:                           $_______

         Principal amount of Revolving Note
           payable to Assignee:                                   $_______

         Principal amount of Revolving Note
           payable to Assignor:                                   $_______

         Effective Date (if other than date
           of acceptance by Agent):                               *_______, ____

                                         [NAME OF ASSIGNOR], as Assignor

                                         By:
                                         Title:

                                         Dated:  ____________________, 20__

                                         [NAME OF ASSIGNEE], as Assignee

                                         By:
                                         Title:

                                         Domestic Lending Office:

                                         Eurodollar Lending Office:

______________________________

    *  This date should be no earlier than five Business Days after the delivery
of this Assignment and Acceptance to the Agent.

                                      B-3

<PAGE>

Accepted [and Approved] **
this ___ day of ___________, 20 _

BANK OF AMERICA, N.A., as Agent

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

[Approved this ____ day
of ____________, ____

[NAME OF BORROWER]

By:                                     ]**
   -------------------------------------
Title:

      **   Required if the Assignee  is an Eligible Assignee solely by reason of
clause (iii) of the definition of "Eligible Assignee".

                                      B-4

<PAGE>

                                    EXHIBIT C

       Notice of Appointment (or Revocation) of Authorized Representative

         Reference is hereby made to the Credit  Agreement  dated as of December
13, 2000 (the  "Agreement")  among  Covenant  Asset  Management,  Inc., a Nevada
corporation (the "Borrower"),  Covenant  Transport,  Inc., a Nevada  corporation
(the "Parent"), the Lenders (as defined in the Agreement),  and Bank of America,
N.A., as Agent for the Lenders ("Agent"). Capitalized terms used but not defined
herein shall have the respective meanings therefor set forth in the Agreement.

         The [Borrower][Parent] hereby nominates,  constitutes and appoints each
individual named below as an Authorized Representative under the Loan Documents,
and  hereby  represents  and  warrants  that (i) set  forth  opposite  each such
individual's name is a true and correct  statement of such  individual's  office
(to  which  such  individual  has been duly  elected  or  appointed),  a genuine
specimen  signature of such  individual and an address for the giving of notice,
and (ii) each such individual has been duly authorized by the [Borrower][Parent]
to act as Authorized Representative under the Loan Documents:

     Name and Address                 Office                  Specimen Signature

 __________________________   _________________________  _______________________
 __________________________
 __________________________

 __________________________   _________________________  _______________________
 __________________________
 __________________________

[Borrower][Parent]  hereby revokes  (effective upon receipt hereof by the Agent)
the prior appointment of ________________ as an Authorized Representative.

         This the ___ day of __________________, ____.

                                     [COVENANT ASSET MANAGEMENT, INC.]
                                     [COVENANT TRANSPORT, INC.]

                                     By:________________________________________
                                     Name:______________________________________
                                     Title:_____________________________________

                                      C-1

<PAGE>

                                   EXHIBIT D-1

                   Form of Borrowing Notice - Revolving Loans

To:      Bank of America, N.A.,
         as Agent
         101 North Tryon Street, 15th Floor
         NC1-001-15-04
         Charlotte, North Carolina  28255
         Attention: Agency Services
         Telefacsimile:  (704)386-9923

         Reference is hereby made to the Credit  Agreement  dated as of December
13,  2000  (the  "Agreement")   among  Covenant  Asset  Management,   Inc.  (the
"Borrower"),  Covenant Transport,  Inc., a Nevada  corporation,  the Lenders (as
defined in the Agreement),  and Bank of America,  N.A., as Agent for the Lenders
("Agent").  Capitalized  terms  used  but not  defined  herein  shall  have  the
respective meanings therefor set forth in the Agreement.

         The Borrower through its Authorized  Representative hereby gives notice
to the Agent that Revolving Loans of the type and amount set forth below be made
on the date indicated:

Type of Revolving Loan     Interest          Aggregate
(check one)                Period(1)         Amount(2)           Date of Loan(3)
 ---------                  ------            ------              ------------

Base Rate Loan:
             Option 1     ______________    _______________     ________________
             Option 2     ______________    _______________     ________________

Eurodollar Rate Loan      ______________    _______________     ________________

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

(1)  For any Eurodollar Rate Loan, one, two, three or six months.
(2)  Must be $1,000,000 or if greater an integral multiple of $1,000,000; unless
     a Base Rate Refunding Loan.
(3)  At least three (3) Business Days later if a Eurodollar Rate Loan.

         The Borrower  hereby  requests that the proceeds of Loans  described in
this  Borrowing  Notice be made  available to the  Borrower as follows:  [insert
transmittal instructions] .

         The undersigned hereby certifies that:

         1. No Default or Event of Default has occurred and is continuing either
now or after giving effect to the borrowing described herein; and

                                     D-1-1

<PAGE>

         2. All the  representations and warranties set forth in Article VIII of
the Agreement and in the Loan Documents  (other than those  expressly  stated to
refer to a  particular  date) are true and correct as of the date hereof  except
that  the  reference  to the  financial  statements  in  Section  8.6(a)  of the
Agreement  shall be deemed  (solely  for the purpose of the  representation  and
warranty  contained in such Section  8.6(a) but not for the purpose of any cross
reference  to such  Section  8.6(a)  or to the  financial  statements  described
therein  contained in any other provision of Section 8.6 or elsewhere in Article
VIII) to refer to those  financial  statements  most  recently  delivered to you
pursuant to Section 9.1 of the Agreement (it being understood that any financial
statements  delivered  pursuant  to Section  9.1(b) have not been  certified  by
independent public accountants).

         3. All conditions  contained in the Agreement to the making of any Loan
requested hereby have been met or satisfied in full .

                                      COVENANT ASSET MANAGEMENT, INC.

                                      BY:_______________________________________
                                           Authorized Representative

                                      DATE:_____________________________________

                                     D-1-2

<PAGE>

                                   EXHIBIT D-2

                   Form of Borrowing Notice--Swing Line Loans

To:      Bank of America, N.A.,
         101 North Tryon Street, 15th Floor
         NC1-001-15-04
         Charlotte, North Carolina  28255
         Attention: Agency Services
         Telefacsimile:  (704)386-9923

         Reference is hereby made to the Credit  Agreement  dated as of December
13,  2000  (the  "Agreement")   among  Covenant  Asset  Management,   Inc.  (the
"Borrower"),  Covenant Transport,  Inc., a Nevada  corporation,  the Lenders (as
defined in the Agreement),  and Bank of America,  N.A., as Agent for the Lenders
("Agent").  Capitalized  terms  used  but not  defined  herein  shall  have  the
respective meanings therefor set forth in the Agreement.

         The Borrower through its Authorized  Representative hereby gives notice
to Bank of America  that a Swing Line Loan of the amount set forth below be made
on the date indicated:

                     Amount(1)                          Date of Loan

                     __________________                 __________, ____

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

(1)      Must be $100,000 or if greater an integral multiple of $100,000, unless
         a Base Rate Refunding Loan.

         The  Borrower  hereby  requests  that the  proceeds of Swing Line Loans
described in this Borrowing Notice be made available to the Borrower as follows:
[insert transmittal instructions] .

         The undersigned hereby certifies that:

         1. No Default or Event of Default has occurred and is continuing either
now or after giving effect to the borrowing described herein; and

         2. All the  representations and warranties set forth in Article VIII of
the Agreement and in the Loan Documents  (other than those  expressly  stated to
refer to a  particular  date) are true and correct as of the date hereof  except
that  the  reference  to the  financial  statements  in  Section  8.6(a)  of the
Agreement  shall be deemed  (solely  for the purpose of the  representation  and
warranty  contained in such Section  8.6(a) but not for the purpose of any cross
reference  to such  Section  8.6(a)  or to the  financial  statements  described
therein  contained in any other provision of Section 8.6 or elsewhere in Article
VIII) to refer to those  financial  statements  most  recently  delivered to you
pursuant to Section 9.1 of the Agreement (it being understood that any financial

                                     D-2-1

<PAGE>

statements  delivered  pursuant  to Section  9.1(b) have not been  certified  by
independent public accountants).

         3. All conditions  contained in the Agreement to the making of any Loan
requested hereby have been met or satisfied in full.

                                      COVENANT ASSET MANAGEMENT, INC.

                                      BY:_______________________________________
                                           Authorized Representative

                                      DATE:_____________________________________

                                     D-2-2

<PAGE>

                                    EXHIBIT E

                     Form of Interest Rate Selection Notice

To:      Bank of America, N.A., as Agent
         101 North Tryon Street, 15th Floor
         NC1-001-15-04
         Charlotte, North Carolina  28255
         Attention:  Agency Services
         Telefacsimile:  (704) 386-9923

         Reference is hereby made to the Credit  Agreement  dated as of December
13,  2000  (the  "Agreement")   among  Covenant  Asset  Management,   Inc.  (the
"Borrower"),  Covenant Transport,  Inc., a Nevada  corporation,  the Lenders (as
defined in the Agreement),  and Bank of America,  N.A., as Agent for the Lenders
("Agent").  Capitalized  terms  used  but not  defined  herein  shall  have  the
respective meanings therefor set forth in the Agreement.

         The Borrower through its Authorized  Representative hereby gives notice
to the Agent of the following selection of a type of Loan and Interest Period:

Type of Revolving Loan     Interest          Aggregate
(check one)                Period(1)         Amount(2)           Date of Loan(3)
 ---------                  ------            ------              ------------

Base Rate Loan:
             Option 1     ______________    _______________     ________________
             Option 2     ______________    _______________     ________________

Eurodollar Rate Loan      ______________    _______________     ________________

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

(1)  For any Eurodollar Rate Loan, one, two, three or six months.
(2)  Must be $1,000,000 or if greater an integral multiple of $1,000,000, unless
     a Base Rate Refunding Loan.
(3)  At least three (3) Business Days later if a Eurodollar Rate Loan.

                                      COVENANT ASSET MANAGEMENT, INC.

                                      BY:_______________________________________
                                           Authorized Representative

                                      DATE:_____________________________________

                                      E-1

<PAGE>

                                   EXHIBIT F-1

                                  Form of Note

                                 Promissory Note
                                (Revolving Loan)

$___________________                                    ___________, ___________

                                                               December __, 2000

         FOR  VALUE  RECEIVED,   COVENANT  ASSET  MANAGEMENT,   INC.,  a  Nevada
corporation  having its  principal  place of  business  located in  Chattanooga,
Tennessee   (the   "Borrower"),   hereby   promises  to  pay  to  the  order  of
_______________________________________________    (the   "Lender"),    in   its
individual  capacity,  at the office of BANK OF AMERICA,  N.A., as agent for the
Lenders  (the  "Agent"),  located  at 101  North  Tryon  Street,  NC1-001-15-04,
Charlotte,  North  Carolina 28255 (or at such other place or places as the Agent
may designate in writing) at the times set forth in the Credit  Agreement  dated
as of ________________,  _____ among the Borrower,  Covenant Transport,  Inc., a
Nevada corporation, the financial institutions party thereto (collectively,  the
"Lenders") and the Agent (the "Agreement"  --all capitalized terms not otherwise
defined herein shall have the respective  meanings set forth in the  Agreement),
in lawful money of the United States of America, in immediately available funds,
the principal amount of ___________ DOLLARS  ($__________) or, if less than such
principal  amount,  the aggregate unpaid principal amount of all Revolving Loans
made by the Lender to the Borrower  pursuant to the  Agreement on the  Revolving
Credit  Termination Date or such earlier date as may be required pursuant to the
terms of the  Agreement,  and to pay interest from the date hereof on the unpaid
principal amount hereof,  in like money, at said office, on the dates and at the
rates provided in Articles II and IV of the Agreement. All or any portion of the
principal  amount of Loans may be prepaid or  required to be prepaid as provided
in the Agreement.

         If payment of all sums due hereunder is accelerated  under the terms of
the  Agreement  or under the  terms of the  other  Loan  Documents  executed  in
connection with the Agreement,  the then remaining  principal amount and accrued
but unpaid  interest  thereon  evidenced  by this  Revolving  Note shall  become
immediately due and payable, without presentation,  demand, protest or notice of
any kind, all of which are hereby waived by the Borrower.

         In the event this  Revolving Note is not paid when due at any stated or
accelerated  maturity,  the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees, and
interest due hereunder thereon at the rates set forth above.

         Interest hereunder shall be computed as provided in the Agreement.

                                     F-1-1

<PAGE>

         This  Revolving  Note is one of the Revolving  Notes referred to in the
Agreement and is issued pursuant to and entitled to the benefits and security of
the Agreement to which reference is hereby made for a more complete statement of
the terms and conditions upon which the Revolving Loans evidenced hereby were or
are made and are to be repaid.  This Note is subject to certain  restrictions on
transfer or assignment as provided in the Agreement.

         This  Revolving  Note shall be governed by and  construed in accordance
with the laws of the State of Tennessee.

         All Persons bound on this obligation,  whether primarily or secondarily
liable as principals, sureties, guarantors, endorsers or otherwise, hereby waive
to the  full  extent  permitted  by law all  defenses  based  on  suretyship  or
impairment of collateral  and the benefits of all  provisions of law for stay or
delay of execution or sale of property or other satisfaction of judgment against
any of them on account of  liability  hereon  until  judgment  be  obtained  and
execution issued against any other of them and returned  unsatisfied or until it
can be shown that the maker or any other party hereto had no property  available
for the  satisfaction  of the debt  evidenced by this  instrument,  or until any
other  proceedings  can be had against any of them, also their right, if any, to
require  the  holder  hereof to hold as  security  for this  Revolving  Note any
collateral  deposited  by any of said Persons as  security.  Protest,  notice of
protest, notice of dishonor,  diligence or any other formality are hereby waived
by all parties bound hereon.

         IN WITNESS  WHEREOF,  the Borrower has caused this Revolving Note to be
made,  executed and delivered by its duly  authorized  representative  as of the
date and year first above written, all pursuant to authority duly granted.

                                   COVENANT ASSET MANAGEMENT, INC.
WITNESS:

____________________________       By:__________________________________________
                                   Name:________________________________________
____________________________       Title:_______________________________________

                                      F-1-2

<PAGE>

                                   EXHIBIT F-2

                             Form of Swing Line Note

                                 Promissory Note
                                (Swing Line Loan)

$5,000,000                                                    ________, ________

                                                              _________ __,_____

         FOR  VALUE  RECEIVED,   COVENANT  ASSET  MANAGEMENT,   INC.,  a  Nevada
corporation  having its  principal  place of  business  located in  Chattanooga,
Tennessee  (the  "Borrower"),  hereby  promises  to pay to the  order of BANK OF
AMERICA, N.A. (the "Lender"),  in its individual capacity, at the office of BANK
OF AMERICA,  N.A., as agent for the Lenders (the "Agent"),  located at 101 North
Tryon Street,  NC1-001-15-04,  Charlotte, North Carolina 28255 (or at such other
place or places as the Agent may designate in writing) at the times set forth in
the Credit  Agreement  dated as of  ________________,  _____ among the Borrower,
Covenant Transport, Inc., a Nevada corporation, the financial institutions party
thereto  (collectively,  the  "Lenders")  and the Agent (the  "Agreement"  --all
capitalized  terms  not  otherwise  defined  herein  shall  have the  respective
meanings set forth in the  Agreement),  in lawful money of the United  States of
America,  in immediately  available  funds, the principal amount of FIVE MILLION
DOLLARS  ($5,000,000.00)  or, if less than such principal amount,  the aggregate
unpaid  principal  amount  of all Swing  Line  Loans  made by the  Lender to the
Borrower  pursuant to the Agreement on the Revolving Credit  Termination Date or
such earlier date as may be required pursuant to the terms of the Agreement, and
to pay interest from the date hereof on the unpaid principal  amount hereof,  in
like money,  at said office,  on the dates and at the rates provided in Articles
II and IV of the Agreement.  All or any portion of the principal amount of Swing
Line  Loans  may be  prepaid  or  required  to be  prepaid  as  provided  in the
Agreement.

         If payment of all sums due hereunder is accelerated  under the terms of
the  Agreement  or under the  terms of the  other  Loan  Documents  executed  in
connection with the Agreement,  the then remaining  principal amount and accrued
but unpaid  interest shall bear interest which shall be payable on demand at the
Default Rate until such principal and interest have been paid in full.  Further,
in the event of such acceleration,  this Note, and all other indebtedness of the
Borrower  to the  Lender  shall  become  immediately  due and  payable,  without
presentation,  demand,  protest  or notice of any kind,  all of which are hereby
waived by the Borrower.

         In the event this Swing Line Note is not paid when due at any stated or
accelerated  maturity,  the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees, and
interest thereon at the rates set forth above.

         Interest hereunder shall be computed on the basis of a 360 day year for
the actual number of days in the interest period.

                                     F-2-1

<PAGE>

         This  Swing  Line  Note  is the  Swing  Line  Note  referred  to in the
Agreement and is issued pursuant to and entitled to the benefits and security of
the Agreement to which reference is hereby made for a more complete statement of
the terms and conditions upon which the Swing Line Loans  evidenced  hereby were
or are made and are to be repaid.  This Note is subject to certain  restrictions
on transfer or assignment as provided in the Agreement.

         This Swing Line Note shall be governed by and  construed in  accordance
with the laws of the State of Tennessee.

         All Persons bound on this obligation,  whether primarily or secondarily
liable as principals, sureties, guarantors, endorsers or otherwise, hereby waive
to the  full  extent  permitted  by law all  defenses  based  on  suretyship  or
impairment of collateral  and the benefits of all  provisions of law for stay or
delay of execution or sale of property or other satisfaction of judgment against
any of them on account of  liability  hereon  until  judgment  be  obtained  and
execution issued against any other of them and returned  unsatisfied or until it
can be shown that the maker or any other party hereto had no property  available
for the  satisfaction  of the debt  evidenced by this  instrument,  or until any
other  proceedings  can be had against any of them, also their right, if any, to
require  the  holder  hereof to hold as  security  for this  Swing Line Note any
collateral  deposited  by any of said Persons as  security.  Protest,  notice of
protest, notice of dishonor,  diligence or any other formality are hereby waived
by all parties bound hereon.

         IN WITNESS WHEREOF,  the Borrower has caused this Swing Line Note to be
made,  executed and delivered by its duly  authorized  representative  as of the
date and year first above written, all pursuant to authority duly granted.

                                   COVENANT ASSET MANAGEMENT, INC.
WITNESS:

____________________________       By:__________________________________________
                                   Name:________________________________________
____________________________       Title:_______________________________________

                                     F-2-2

<PAGE>

                                    EXHIBIT G

                      Form of Opinion of Borrower's Counsel

                              December _____, 2000

Bank of America, N.A., as Agent
Bank of America Corporate Center
Charlotte, North Carolina 28255-0065

The banks listed on Schedule A hereto

Ladies and Gentlemen:

         We have acted as counsel  to  Covenant  Transport,  Inc.,  a  Tennessee
corporation  ("CTI"),  Covenant  Asset  Management,  Inc., a Nevada  corporation
("CAM"), Covenant.com, Inc., a Nevada corporation ("Covenant.com"), CIP, Inc., a
Nevada corporation ("CIP"),  Tony Smith Trucking,  Inc., an Arkansas corporation
("Tony Smith"),  Southern Refrigerated Transport,  Inc., an Arkansas corporation
("SRT"),  Harold Ives Trucking Co., an Arkansas corporation ("HITCO"),  Terminal
Truck Broker,  Inc., an Arkansas  corporation  ("TTB"),  and Covenant Transport,
Inc., a Nevada  corporation  (the "Parent";  CTI, CAM,  Covenant.com,  CIP, Tony
Smith,  SRT, HITCO, TTB, and the Parent,  together,  the "Credit  Parties"),  in
connection with (i) the Credit Agreement (the "Credit  Agreement"),  dated as of
December 13, 2000,  by and among the Parent,  CAM, the banks  signatory  thereto
(the "Banks"),  and Bank of America, N.A., as Agent (the "Agent"), and consented
to by each of the  Credit  Parties,  and (ii) the other  documents  executed  in
connection  therewith to which any of the Credit Parties are a party. Terms used
herein and not defined  herein  have their  respective  defined  meanings as set
forth in the Credit  Agreement and in the Accord (as defined  below);  provided,
however,  that in the event of any conflict in the definitions  contained in the
Credit  Agreement  (on the one hand) and the  Accord  (on the other  hand),  the
definitions in the Credit Agreement shall control.

         This opinion is governed  by, and shall be  interpreted  in  accordance
with, the Legal Opinion Accord (the "Accord") of the ABA Section of Business Law
(1991).  As a  consequence,  it  is  subject  to  a  number  of  qualifications,
exceptions, definitions,  limitations on coverage, and other limitations, all as
more  particularly  described in the Accord,  and this letter  should be read in
conjunction with the Accord. The law covered by the opinions expressed herein is
limited to the federal law of the United States, the law of the State of Nevada,
and the law of the State of Tennessee.  For purposes hereof, and notwithstanding
any  contrary  choice of law  provision  therein,  we have assumed that the Loan
Documents will be governed by the internal laws of the State of Tennessee.

                                      G-1

<PAGE>

Bank of America, N.A., as Agent
December ____, 2000
Page 2

         In connection  with this  representation,  we have  examined  copies of
fully executed  counterparts of the following  documents  (items (a) through (i)
below are collectively referred to herein as (the "Transaction Documents")):

         (a)      the Credit Agreement;

         (b)      the Notes;

         (c)      the Facility Guaranties;

         (d)      the Pledge Agreements;

         (e)      the Intercompany  Note Pledge  Agreements and the Intercompany
                  Notes with  endorsements in blank affixed thereto;

         (f)      the Certificates (as hereinafter defined), together with stock
                  powers in blank affixed thereto;

         (g)      the Security Instruments;

         (h)      the Intercreditor Agreement; and

         (i)      the Financing Statements (as hereinafter defined).

         We also have considered such matters of law and of fact,  including the
examination  of originals or copies,  certified or otherwise  identified  to our
satisfaction,  of (i) the  Articles of  Incorporation  and Bylaws of each of the
Credit Parties,  (ii) resolutions of the respective  Boards of Directors of each
of the Credit Parties with respect to the Transaction Documents,  and (iii) such
other records and documents of the Credit  Parties,  certificates of officers or
other  representatives of the Credit Parties,  certificates of public officials,
and such other documents, certificates,  opinions, and records as we have deemed
appropriate for the opinions and confirmations herein set forth.

         With your  permission in rendering the opinions and  confirmations  set
forth herein,  we have relied upon the following  assumptions in addition to the
assumptions set forth in the Accord, without any investigation or inquiry on our
part:

         (i)      that the only interest, fees, and other charges contracted for
                  or to be reserved,  charged, taken, or paid in connection with
                  the Obligations are those set forth in the Loan Documents, and
                  that all such  interest,  fees,  and charges will be reserved,
                  charged,  taken, and applied by the Agent and the Banks solely
                  as described in the Loan Documents; and

         (ii)     the  accuracy  of  the records, documents,  certificates,  and
                  information provided to us, including the representations  and
                  warranties in the Transaction Documents.

                                      G-2

<PAGE>

Bank of America, N.A., as Agent
December ____, 2000
Page 3
         Based  upon  the  foregoing,  and  subject  to  the  other  exceptions,
assumptions,  and qualifications set forth or incorporated  herein by reference,
it is our opinion that:

        1. Each of the Credit Parties was duly  organized as a corporation,  and
is existing under the laws of its respective  jurisdiction of  incorporation  as
set forth above,  and each is duly  qualified to transact  business as a foreign
corporation  and is in good standing in each  jurisdiction in which a failure to
be so qualified  reasonably would be expected to have a Material Adverse Effect,
except as previously  disclosed to the Agent in writing,  and each has the power
and  authority  to own its  properties  and carry on its  business  as now being
conducted.  For the purposes of the opinion as to corporate existence of each of
the  Credit   Parties  under  the  laws  of  its  respective   jurisdiction   of
incorporation,  we have  relied  with your  permission  on the  certificates  of
existence attached hereto as Exhibits A-1 through A-9.

        2. Each of the Credit Parties (a) has the corporate power to execute and
deliver the  Transaction  Documents  to which it is a party,  and to perform its
obligations  thereunder;  (b) has duly  authorized the execution and delivery of
the  Transaction  Documents  to which it is a party  and all  performance  by it
thereunder; and (c) has duly executed and delivered the Transaction Documents to
which it is a party.

        3. The  execution  and delivery by each Credit Party of the  Transaction
Documents  to  which it is a party  do not,  the  borrowings  under  the  Credit
Agreement  by CAM  will  not,  and  performance  by  each  Credit  Party  of its
agreements in each of the Transaction Documents to which it is a party does not,
result in any:

         (i)      violation of such Credit Party's Articles  of Incorporation or
                  Bylaws;

         (ii)     violation  of any  existing  federal  or  state  constitution,
                  statute, or, to our  knowledge, regulation, rule, or order, to
                  which any Credit Party or its properties is subject;

         (iii)    breach of or  default  under any  material  written  agreement
                  known  to us to  which  any  Credit  Party  or its  assets  is
                  subject;  provided,  however, that we express no opinion as to
                  the likelihood that borrowings  under the Credit Agreement may
                  result  in a  breach  of,  or  default  under,  the  financial
                  covenants of the Senior Note Purchase Agreements;

         (iv)     creation or  imposition  of any  contractual  lien or security
                  interest  in, on, or against any Credit  Party's  assets under
                  any material written  agreements known to us, other than under
                  the Transaction Documents; or

         (v)      violation  of any  judicial or  administrative  decree,  writ,
                  judgment,  or order to which,  to our  knowledge,  any  Credit
                  Party or its assets are subject.

For purposes of this letter, "material written agreements known to us" means the
agreements  filed as  exhibits to the  Parent's  most recent 10-Q and the Senior
Note Purchase Agreement.

                                      G-3

<PAGE>

Bank of America, N.A., as Agent
December ____, 2000
Page 4
                  4. Each  Transaction  Document  and each  Security  Instrument
         executed by any Credit Party is  enforceable  against such Credit Party
         in all material respects; provided, however, that our opinion as to the
         enforceability   of  such   documents  is  subject  to  the   following
         qualifications and exceptions: (a) in the case of all Loan Documents to
         the General  Qualifications  (including  the  Bankruptcy and Insolvency
         exceptions,   the  Equitable  Principle   Limitation,   and  all  other
         applicable  Other Common  Qualifications)  contained in the Accord (the
         "General  Qualifications");  and (b) we express no opinion herein as to
         the  enforceability  of any provision in any document which purports to
         waive any right to trial by jury or select any  governing  law or forum
         for litigation.

         5. Based upon our actual knowledge of the operations and affairs of the
Credit  Parties and except as  disclosed  in the Credit  Agreement,  there is no
pending or overtly threatened, action, suit, investigation, or proceeding before
or  by  any  court,  or  governmental  department,  commission,  board,  bureau,
instrumentality,  agency,  or arbitral  authority  which calls into question the
validity or enforceability of any of the Transaction Documents, or the titles to
their respective offices or authority of any officers,  members, or partners, as
applicable  of the Borrower or any other  Credit  Party or an adverse  result in
which could reasonably be expected to have a Material Adverse Effect.

         6. Based upon our actual knowledge of the operations and affairs of the
Credit Parties, there exists no event,  circumstance,  or condition (except that
we express no opinion to  financial  reporting  or  accounting  matters)  which,
immediately upon giving effect to the Transaction Documents,  would constitute a
Default or Event of Default under the Credit Agreement.

         7.  None of the  transactions  contemplated  by the  Credit  Agreement,
including, without limitation, the use of the proceeds of the Loans provided for
in the Transaction Documents, will violate or result in a violation of Section 7
of the  Exchange Act or  regulation  T, U, or X of the Board of Governors of the
Federal Reserve System.

         8.  The  rate or  rates of  interest  provided  for in the  Transaction
Documents,   including  all  late  payment  charges  and  any  Default  Rate  or
Post-Maturity Rate provided for therein, do not and will not violate or conflict
with, or give rise to any defense to payment of the Obligations or to any claim,
counterclaim,  setoff, or recoupment under, any usury or other law or regulation
of the State of  Tennessee  governing  the maximum rate of interest or amount of
other  charges  that may be  charged or  incurred  in  transactions  or the type
contemplated under the Transaction Documents.

         9. No consent, approval,  authorization,  or other action by, or notice
to or filing  with,  any court or  administrative  or  governmental  body of the
United  States or the State of  Tennessee  is  required in  connection  with the
execution and delivery by any Credit Party of the Transaction Documents to which
such  Credit  Party  is a party or the  incurrence  by any  Credit  Party of its

                                      G-4
<PAGE>

Bank of America, N.A., as Agent
December ____, 2000
Page 5

obligations  thereunder,  except  such  consents,   approvals,   authorizations,
registrations,  or filings as have been made or  obtained  and are in full force
and effect.

         10. The Collateral  Agent, for the benefit of the Agent and the Lenders
and the holders of the Senior Notes,  shall have perfected its security interest
in the Subsidiary  Securities and in the Intercompany Notes upon taking delivery
of the original stock  certificates  and stock powers  executed in blank and the
original  Intercompany  Notes  endorsed  (with  recourse) over to the Collateral
Agent.  No filings or  recordations  are  necessary  to  perfect  such  security
interests,  and,  assuming the  Collateral  Agent does not have knowledge of any
adverse  claim,  the security  interests as so perfected will have priority over
any other consensual security interests in the same securities or notes.

         11. All of the Pledged  Interests are duly authorized,  validly issued,
fully paid and nonassessable, and free of any preemptive rights except rights in
favor of each record  owner of such  Pledged  Interest.  Except as  specified on
Schedule B attached hereto, all Pledged Interests constitute "securities" within
the meaning of Article 8 of the Uniform  Commercial Code, and are represented by
the  Certificates  listed on such  Schedule  B (the  "Certificates").  The stock
powers affixed to the  Certificates  as delivered to you have been duly executed
in blank by a duly  authorized  representative  of the  pledgor  of the  related
Pledged  Interest.  Such stock powers conform to the  requirements of applicable
law and the Organization  Documents and Operating Documents of the issuer of the
related  Pledged  Interests with effect that such stock powers are sufficient to
permit  the  sale  or  transfer  of  the  related  Pledged  Interests  by you in
accordance  with the  terms  of the  applicable  Pledge  Agreement,  subject  to
applicable state and federal securities laws.

         12. The endorsements  affixed to the Intercompany Notes as delivered to
you have  been  executed  in blank by a duly  authorized  representative  of the
Borrower.  Such  endorsements  of the Borrower  conform to the  requirements  of
applicable law with the effect that such  endorsements  are sufficient to permit
the sale or transfer of the related Intercompany Notes by you in accordance with
the terms of the  Intercompany  Note Pledge  Agreements,  subject to  applicable
state and federal securities laws.

         13. The Security  Instruments  are effective to create a valid security
interest  in favor of the  Collateral  Agent for the  benefit of the Agent,  the
Lenders,  and the  holders  of the  Senior  Notes  in the  Collateral  described
therein.

         14. The Uniform  Commercial  Code  Financing  Statements  on Form UCC-1
described  on  Schedule  C  attached   hereto   (collectively,   the  "Financing
Statements") have been duly executed and delivered to the Agent and are in form,
number,  and content  sufficient  (together with the tender of necessary  filing
fees) for filing with the respective filing offices described on Schedule C with
the effect  that,  upon such  filing,  the  Collateral  Agent  shall have a duly
perfected  security  interest in all the  Collateral  described  in the Security
Instruments  to the extent that a security  interest in such  Collateral  can be
perfected by the filing of  financing  statements  under the Uniform  Commercial
Code as in effect in the appropriate jurisdictions.

                                      G-5

<PAGE>

Bank of America, N.A., as Agent
December ____, 2000
Page 6

         Based  upon  the  foregoing,  and  subject  to  the  other  exceptions,
assumptions,  and  qualifications set forth or incorporated by reference herein,
and noting in particular  that we do not serve as  litigation  counsel to any of
the  Credit  Parties,  we inform  you that we are aware of only the  actions  or
proceedings  pending  against the Parent or CAM that are listed on Schedule 8.10
to the Credit Agreement.  Based upon management's  descriptions of such actions,
we do not believe such actions or proceedings  would be likely,  individually or
in the aggregate, to have a Materially Adverse Effect upon CAM and Parent, taken
as a whole. We are not aware of any overtly threatening written communication.

                  The  opinions  expressed  herein are  matters of  professional
         judgment and not a guarantee of result.  This opinion  letter is solely
         for the  information  of the addressee and is not to be quoted in whole
         or in  part or  otherwise  referred  to  (except  in a list of  closing
         documents),  nor is it to be filed  with  any  governmental  entity  or
         provided to any other person without our prior written  consent.  Other
         than the addressee,  no one is entitled to rely upon this opinion.  The
         opinion is based upon the law and our  knowledge of the facts as of the
         date hereof.  We assume no duty to communicate with you with respect to
         any matter that comes to our attention hereafter.

                                          Very truly yours,

                                          SCUDDER LAW FIRM, P.C., L.L.O.

                                          By:___________________________________
                                               Mark A. Scudder, Principal

MAS:lkh
Enclosure

                                      G-6

<PAGE>

                                   SCHEDULE A

Bank of America, N.A.
Bank of America Corporate Center
Charlotte, North Carolina 28255-0065

First Union Securities, Inc.
150 4th Avenue North, Suite 200
Nashville, TN 37219

Bank One
1 Bank One Place
Mail Suite IL 1-0324
Chicago, IL 60670

SunTrust Bank
6410 Popler Ave., Suite 320
Memphis, TN 38119

Fleet National Bank
100 Federal Street
Transportation Division, MA DE 10008D
Boston, MA 02110

                                      G-7

<PAGE>

                                   SCHEDULE B
                                  CERTIFICATES

                                      G-8
<PAGE>

                                   SCHEDULE C
                              FINANCING STATEMENTS

                                      G-9

<PAGE>

                            EXHIBITS A-1 THROUGH A-9

                                      G-10

<PAGE>

                                    EXHIBIT H

                             Compliance Certificate

Bank of America, N.A.,
as Agent
101 North Tryon Street, 15th Floor
NC1-001-15-04
Charlotte, North Carolina  28255
Attention: Agency Services
Telefacsimile:  (704) 386-9923

Bank of America, N.A.,
as Agent
TN6-300-02-03
633 Chestnut Street, 2nd Floor
Chattanooga, Tennessee  37450
Attention: Sybil Weldon
Telephone:        (423) 752-1222
Telefacsimile:    (423) 755-0689

         Reference is hereby made to the Credit  Agreement  dated as of December
13 2000 (the  "Agreement")  among  Covenant  Asset  Management,  Inc.,  a Nevada
corporation (the "Borrower"),  Covenant  Transport,  Inc., a Nevada corporation,
the Lenders (as defined in the  Agreement)  and Bank of America,  N.A., as Agent
for the Lenders  ("Agent").  Capitalized  terms used but not  otherwise  defined
herein shall have the respective  meanings  therefor set forth in the Agreement.
The undersigned, a duly authorized and acting Authorized Representative,  hereby
certifies to you as of __________ (the "Determination Date") as follows:

1.       Calculations:

a.       Consolidated Tangible Net Worth (Section 10.01(a))

         Consolidated Tangible Net Worth:                      $________________

         Required  Tangible Net Worth shall not be less than $136,223,081 at any
         time during the Fiscal Quarter which contains the Closing Date.

         Thereafter,  for each  Fiscal  Quarter,  at no time shall  Consolidated
         Tangible Net Worth be less than the sum of:

         (a)      Minimum Consolidated Net Worth               $________________
                  Required for previous Fiscal Quarter

                                      H-1

<PAGE>

         (b)      50% of Consolidated Net Income               $________________
                  for Fiscal Quarter

         (c)      100% of the net proceeds of                  $________________
                  any equity issuance during
                  Fiscal Quarter

         (d)      Total: sum of (a) plus (b) plus (c)          $________________

b.       Consolidated Leverage Ratio (Section 10.01(b))

         The ratio of Consolidated Total Adjusted Indebtedness (determined as at
         such date) to (ii) Consolidated  EBITDAR shall not exceed 3.00 to 1.00,
         calculated at the end of each Four Quarter Period.

         (a)   Consolidated Total Adjusted Indebtedness        $________________
               With respect to the Parent and its Subsidiaries,
                   i.      Obligations under Capital Leases    $__________
                   ii.     Amounts outstanding under Permitted
                           Receivables Securitizations         $__________
                   iii.    Synthetic Lease Obligations         $__________
                   iv.     Amounts outstanding under Senior
                           Notes                               $__________
                   v.      Subordinated Indebtedness           $__________
                   vi.     Other Indebtedness for Money
                           Borrowed                            $__________
                   vii.    Present value of Consolidated
                           Lease Payments                      $__________
                   viii.   Contingent Obligations (Guaranties) $__________

                   TOTAL:  [i + ii +iii+ iv + v + vi +
                                            vii + viii] =      $__________

         (b)   Consolidated EBITDAR                            $
                                                                ================
                   i.      Consolidated Net Income             $__________
                   ii.     Consolidated Interest Expense       $__________
                   iii.    Taxes on income                     $__________
                   iv.     Depreciation                        $__________
                   v.      Amortization                        $__________
                   vi.     Consolidated Lease Payments         $__________

                   TOTAL:  [i + ii +iii+ iv + v + vi] =        $__________

         (c)   Actual Ratio of (a) to (b)                      $________________

                                      H-2

<PAGE>

                           Maximum Ratio: 3.00 to 1.00
                     --------------------------------------

c.       Consolidated Fixed Charge Coverage Ratio (Section 10.01(c))

         The ratio of (i)  Consolidated  EBITDAR for such  period less  (without
         duplication)  taxes on income paid in cash during such period,  to (ii)
         the sum of Consolidated  Fixed Charges for such period plus twenty-five
         percent  (25%)  of  Revolving  Credit  Outstandings  as of the  date of
         computation shall not be less than 1.20 to 1.00,  calculated at the end
         of each Fiscal Quarter.

         (a)  Consolidated EBITDAR (from (b) above)            $________________
         (b)  Taxes on income paid in cash                     $________________
         (c)  (a) minus (b)                                    $________________

         (d)  Consolidated Fixed Charges                       $________________
                 i.   Consolidated Interest Expense            $________________
                 ii.  Current maturities of
                      Consolidated Indebtedness                $________________
                 iii. Consolidated Lease Payments
         $________________
                      TOTAL: [i + ii +iii] =
         $________________

         (e)     25% times Revolving Credit Outstandings       $________________
         (f)     (d) plus (e)                                  $________________
         (c)     Actual Ratio of (c) to (f)                    $________________

                           Minimum Ratio: 1.20 to 1.00
                     --------------------------------------

d.       Restricted Payments (Section 10.8)

         The sum of the aggregate amount of Permitted Share Repurchases plus the
         aggregate  amount of cash dividends  declared by the board of directors
         of the Parent and paid  thereby to its  stockholders  from the  Closing
         Date until the Stated  Termination Date shall not exceed  [$20,000,000]
         plus  [50]%  of  Consolidated   Net  Income  for  each  Fiscal  Quarter
         commencing  [__________]  (as  reduced  by  100% of the  amount  of any
         negative Consolidated Net Income during any such period).

         (a)     Permitted Share Repurchases                   $________________
                 (aggregate amount since Closing Date)

                                      H-3

<PAGE>

         (b)     Permitted cash dividends by Parent            $________________
                 (aggregate amount since Closing Date)

         (c)     Sum of (a) plus (b)                           $________________

         (d)     $20,000,000                                   $20,000,000

         (e)     50% of the total aggregate amount of          $________________
                 Consolidated Net Income for each
                 Fiscal Quarter ending since the
                 Closing Date

         (f)     100% of the total aggregate amount of         $________________
                 negative Consolidated Net Income for
                 each Fiscal Quarter ending since the
                 Closing Date

         (g)     Sum of (d) plus (e), less (f)                 $________________

         Amount in (c) shall not exceed, at any time, the amount in (g).

                                      H-4

<PAGE>

2.       No Default

                  A.   Since   __________   (the   date  of  the  last   similar
         certification),  (a) the  Borrower  has not  defaulted  in the keeping,
         observance,  performance or fulfillment of its obligations  pursuant to
         any of the Loan  Documents;  and (b) no  Default  or  Event of  Default
         specified  in  Article  XI  of  the   Agreement  has  occurred  and  is
         continuing.

                  B. If a  Default  or  Event  of  Default  has  occurred  since
         __________ (the date of the last similar  certification),  the Borrower
         proposes to take the  following  action with respect to such Default or
         Event of Default: ____________________________________________________.
                  (Note, if no Default or Event of Default has occurred,  insert
         "Not Applicable").

         The  Determination  Date is the  date of the  last  required  financial
statements  submitted  to the  Lenders in  accordance  with  Section  9.1 of the
Agreement.

IN  WITNESS  WHEREOF,  I  have  executed  this  Certificate  this  _____  day of
__________, ____.

                                       By:______________________________________
                                               Authorized Representative

                                      Name:_____________________________________

                                      Title:____________________________________

                                      H-5

<PAGE>

                                   EXHIBIT I-1

                        Form of Parent Guaranty Agreement

                                  See attached.

                                     I-1-1

<PAGE>

                            PARENT GUARANTY AGREEMENT

                             Dated December 13, 2000

                  THIS  PARENT  GUARANTY  AGREEMENT  (this  "Guaranty")  made by
COVENANT  TRANSPORT,  INC., a Nevada corporation (the "Guarantor"),  in favor of
the financial institutions signatory to the Credit Agreement referenced below as
lenders  and any  assignees  which may  become  "Lenders"  as  provided  therein
(collectively,  the "Lenders"),  the Lenders that may serve from time to time as
the "Issuing Bank" under said Credit Agreement (the "Issuing Bank"), and Bank of
America,  N.A., as Agent under said Credit Agreement (the "Agent").  Capitalized
terms used herein and not otherwise  defined shall have the meaning  ascribed to
them in the Credit Agreement.

                              W I T N E S S E T H:

                  WHEREAS, Covenant Asset Management, Inc., a Nevada corporation
(the "Borrower"), a wholly-owned subsidiary of the Guarantor, has entered into a
certain Credit Agreement,  dated of even date herewith, with the Guarantor,  the
Lenders  signatories  thereto,  the  Issuing  Bank,  and the Agent (as  amended,
modified,  supplemented,  restated,  or replaced from time to time,  the "Credit
Agreement"),  pursuant to which the Lenders, the Issuing Bank and the Agent have
agreed to  provide a  revolving  credit and  letter of credit  facility  for the
benefit of the Borrower;

                  WHEREAS,  a  material  part  of  the  consideration  given  in
connection with and as an inducement to the execution and delivery of the Credit
Agreement by the Lenders,  the Issuing Bank, and the Agent was the obligation of
the Parent to enter into this Guaranty Agreement,  and the Lenders,  the Issuing
Bank and the Agent are unwilling to make Loans,  to purchase  participations  in
the  Letters of Credit and to issue  Letters  of  Credit,  unless the  Guarantor
guarantees the payment and performance of each and every one of the Obligations;

                  WHEREAS,  the  Subsidiaries  of  the  Parent  have  separately
entered into a Subsidiary  Guaranty  Agreement dated as of December 13, 2000, in
favor of the Lenders,  the Issuing Bank and the Agent,  guaranteeing payment and
performance of the Obligations under the Credit Agreement;

                  WHEREAS,  the Guarantor has agreed to enter into this Guaranty
in order to ensure the  benefits of the credit to be  provided  to the  Borrower
under the  Credit  Agreement,  and will  materially  benefit  from the Loans and
Advances made and to be made, and the Letters of Credit issued and to be issued,
under the Credit Agreement; and

                  NOW,  THEREFORE,  in order to induce the Lenders to make Loans
and to  purchase  participations  in Letters of Credit and to induce the Issuing
Bank to issue Letters of Credit and to induce the Agent to perform its duties as
Agent,  all as  provided  under the  Credit  Agreement,  and for other  good and
valuable  consideration  received by the Guarantor,  the parties hereto agree as
follows:

<PAGE>

                                   ARTICLE I.

                                  THE GUARANTEE

                  1.01. The Guarantee.  The Guarantor hereby unconditionally and
irrevocably,  guarantees to the Lenders, the Issuing Bank and the Agent, and any
transferee,   in  whole  or  in  part,  of  the  Obligations  or  this  Guaranty
(collectively,  the "Guaranteed Parties" and each,  individually,  a "Guaranteed
Party"),  the full and prompt payment and performance of all the Obligations and
all costs, charges and expenses (including  reasonable attorneys' fees) incurred
or  sustained  by such  Guaranteed  Party in enforcing  the  obligations  of the
Guarantor  hereunder.  If any portion of the  Obligations  is not paid when due,
whether  at  stated  maturity,  by  acceleration  or  otherwise,  the  Guarantor
unconditionally  and  irrevocably  hereby  agrees to and will pay same when due,
without  resort by the  Guaranteed  Parties  to any other  person or party.  The
obligation  of the  Guarantor to the  Guaranteed  Parties  hereunder is primary,
absolute, and unconditional, except as may be specifically set forth herein. The
Guarantor  hereby  acknowledges  that this Guaranty is a guaranty of payment and
not of collection  and that the  liability of the Guarantor  under this Guaranty
shall be immediate and primary and shall not be contingent  upon the exercise or
enforcement  by the  Guaranteed  Parties,  or any of them,  of any  remedies the
Guaranteed  Parties  may have  against the  Borrower or any other  person or the
enforcement of any lien or  realization  of any collateral any Guaranteed  Party
may at any time possess for any of the Obligations.  The Guarantor's obligations
are secured by various Security Instruments referred to in the Credit Agreement,
including without limitation the Second Amended and Restated Parent Stock Pledge
and Security  Agreement  dated as of the date hereof,  and all other  agreements
(including  control  agreements),  instruments and other documents,  whether now
existing or hereafter in effect,  pursuant to which the Guarantor shall grant or
convey to the Collateral  Agent for the benefit of the Agent,  the Lenders,  the
Issuing  Bank,  and the  holders of the Senior  Notes a Lien in, or  pursuant to
which any other Person shall  acknowledge any such Lien in, property as security
for all or any portion of the Obligations or any other obligation under any Loan
Document,  as any of them may be amended,  modified or supplemented from time to
time.

                  1.02.  Guarantee Unconditional.

                  (a)  This  Guaranty  is  continuing  in  nature  and  shall be
effective with respect to the full amount of all  outstanding  Obligations,  now
existing or hereafter made or extended,  regardless of the amount. The Guarantor
acknowledges  and agrees that the number and amounts of outstanding  Obligations
may  fluctuate  from  time to time  hereafter,  and that the  Borrower  may make
payments  to,  and  reborrow  from,  the  Guaranteed  Parties  from time to time
hereafter.  The Guarantor  expressly agrees that this Guaranty shall continue in
full force and effect notwithstanding such fluctuations and payments, regardless
of  any  invalidity  of the  underlying  obligations  and  whether  or  not  any
Obligations are outstanding at any particular  time, until the occurrence of the
Facility Termination Date.

                  (b) The  Guarantor  hereby  waives  notice  of the  Guaranteed
Parties'  acceptance of this Guaranty and the creation,  extension or renewal of
the Revolving Credit or Letter of Credit

                                      -2-

<PAGE>

Commitments, or of any Loan, Letter of Credit, Reimbursement Obligation or other
Obligation. The Guarantor hereby consents and agrees that, at any time or times,
without notice to or further approval from any Guarantor, and without in any way
affecting the obligations of the Guarantor hereunder,  the Guaranteed Party may,
with or without consideration (i) release, compromise with, or agree not to sue,
in  whole  or in  part,  the  Borrower,  the  Guarantor  or any  other  obligor,
guarantor,  endorser  or  surety on any Loan,  Letter of  Credit,  Reimbursement
Obligation or other Obligation,  (ii) renew, extend,  accelerate, or increase or
decrease  the  principal  amount  of any  Revolving  Credit  or Letter of Credit
Commitment,   Loan,  Letter  of  Credit,   Reimbursement   Obligation  or  other
Obligation,  either in whole or in part, (iii) amend, waive, or otherwise modify
any of the terms of any Revolving Credit or Letter of Credit  Commitment,  Loan,
Letter  of  Credit,  Reimbursement  Obligation  or other  Obligation,  or of any
Security  Instrument,  Loan  Document,  mortgage,  deed to secure debt,  deed of
trust,  security  agreement,  or other  undertaking of the Borrower or any other
obligor,  endorser,  guarantor or surety in connection with any Revolving Credit
or Letter of Credit Commitment, Loan, Letter of Credit, Reimbursement Obligation
or other  Obligation,  and (iv) apply any payment  received from the Borrower or
from any other obligor, guarantor, endorser or surety on any Loan, Reimbursement
Obligation or other  Obligation to any of the  liabilities of the Borrower or of
such other obligor,  guarantor,  endorser, or surety which such Guaranteed Party
may choose.

                  (c)  The  Guarantor   hereby  consents  and  agrees  that  any
Guaranteed Party may at any time or times, either with or without consideration,
surrender,  release or receive any property or other  collateral  of any kind or
nature whatsoever held by it or for its account securing any Loan, Reimbursement
Obligation or other  Obligation,  or substitute  any  collateral so held by such
Guaranteed Party for other collateral of like or different kind,  without notice
to or further consent from the Guarantor,  and such surrender,  receipt, release
or  substitution  shall not in any way affect the  obligations  of the Guarantor
hereunder. Any Guaranteed Party shall have full authority to adjust, compromise,
and  receive  less than the amount due upon any such  collateral,  and may enter
into any  accord and  satisfaction  agreement  with  respect to the same as such
Guaranteed  Party may deem advisable  without  affecting the  obligations of the
Guarantor hereunder. No Guaranteed Party shall be under any duty to undertake to
collect  upon  such  collateral  or  any  part  thereof,   and  the  Guarantor's
obligations  hereunder  shall not be affected by any Guaranteed  Party's alleged
negligence  or mistake in judgment in  handling,  disposing  of,  obtaining,  or
failing to collect upon or perfect a security interest in, any such collateral.

                  1.03. Waiver. The Guarantor hereby waives presentment, demand,
protest, and notice of dishonor of any of the liabilities  guaranteed hereby. No
Guaranteed Party shall have any duty or obligation (i) to proceed or exhaust any
remedy against the Borrower, any other obligor,  guarantor,  endorser, or surety
on any Loan, Reimbursement Obligation or other Obligation,  or any security held
by any  Guaranteed  Party  for  any  Loan,  Reimbursement  Obligation  or  other
Obligation,  or  (ii)  to  give  any  notice  whatsoever  to the  Borrower,  the
Guarantor,  or any other obligor,  guarantor,  endorser,  or surety on any Loan,
Reimbursement  Obligation or other Obligation,  before bringing suit, exercising
rights to any such security or  instituting  proceedings of any kind against the
Guarantor,  or the Borrower, and the Guarantor hereby waives any requirement for
such actions by any Guaranteed  Party. The Guarantor agrees that each Guaranteed
Party shall have a Lien for all the Guarantor's  obligations  hereunder upon all
deposits or deposit  accounts,  of any kind,  or any interest in any

                                      -3-

<PAGE>

deposits or deposit accounts, now or hereafter pledged,  mortgaged,  transferred
or assigned to such  Guaranteed  Party or otherwise in the possession or control
of such  Guaranteed  Party for any purpose (other than solely for safekeeping or
in its  capacity  as a trustee)  for the  account or benefit of such  Guarantor,
including any balance of any deposit  account or of any credit of such Guarantor
with the Guaranteed Party,  whether now existing or hereafter  established,  and
hereby  authorizes  each  Guaranteed  Party from and after the  occurrence of an
Event of Default at any time or times with or without prior notice to apply such
balances  or any part  thereof  to such of the  Guarantor's  obligations  to the
Guaranteed  Parties  then due and in such  amounts as provided for in the Credit
Agreement or otherwise as they may elect. For the purposes of this Section 1.03,
all  remittances  and  property  shall be  deemed to be in the  possession  of a
Guaranteed  Party  as soon as the same  may be put in  transit  to it by mail or
carrier or by other bailee.

                  1.04.  Subordination.  Until the  occurrence  of the  Facility
Termination Date, the Guarantor hereby unconditionally  subordinates in right of
payment  all present  and future  debts,  liabilities,  and  obligations  now or
hereafter owing to the Guarantor (i) of the Borrower,  to the payment in full of
the  Borrower's  Obligations,  (ii) of  every  other  Guarantor  (an  "obligated
guarantor"),  to the  payment  in full  of the  obligations  of  such  obligated
guarantor  owing to any Guaranteed  Party and arising under the Loan  Documents,
and (iii) of each other Person now or hereafter  constituting a Credit Party, to
the  payment  in full of the  obligations  of such  Credit  Party  owing  to any
Guaranteed Party and arising under the Loan Documents,  provided,  however, that
the Guarantor may receive payment of any such debts,  liabilities or obligations
so long as no Event of Default shall have  occurred and be continuing  under the
Credit Agreement or hereunder.  All monies received from the Borrower or for its
account by the Guarantor with respect to such debts,  liabilities or obligations
after the occurrence and during the continuance of an Event of Default under the
Credit  Agreement  or  hereunder  shall be received in trust for the  Guaranteed
Parties,  and  promptly  upon receipt be paid over to the Agent upon its request
until the  Obligations  are fully paid,  satisfied  and  performed,  all without
prejudice to and without in any way affecting the  obligations  of the Guarantor
hereunder.

                  1.05.  Waiver of Subrogation.  The Guarantor  hereby waives to
the fullest  extent  possible as against the Borrower and its assets any and all
rights,  whether at law, in equity,  by agreement or otherwise,  to subrogation,
indemnity,  reimbursement,  contribution,  or any other similar claim,  cause of
action or remedy that otherwise would arise out of the  Guarantor's  performance
of its obligations to the Guaranteed Parties under this Guaranty.  The preceding
waiver is intended by the  Guarantor  and the  Guaranteed  Parties to be for the
benefit of the Borrower or any of its  successors  and  permitted  assigns as an
absolute  defense to any action by the  Guarantor  against  the  Borrower or its
assets  that  arise  out of the  Guarantor's  having  made  any  payment  to any
Guaranteed Parties with respect to any of the Borrower's  liabilities guaranteed
hereunder.

                  1.06.  Bankruptcy  of  Borrower.  Upon the  bankruptcy  of the
Borrower,  no Guaranteed  Party's rights hereunder shall be affected or impaired
by its  omission  to prove all or any portion of its claim,  and the  Guaranteed
Parties may in their  discretion value or refrain from valuing any security held
by them  without in any way  releasing,  reducing  or  otherwise  affecting  the
Guarantor's  obligations  hereunder.   Until  the  occurrence  of  the  Facility
Termination  Date,  the

                                      -4-

<PAGE>

Guaranteed  Parties shall have the right to include in their claim the amount of
all claims of the Guarantor  against the Borrower and to receive the full amount
of all  distributions  in  respect  thereto,  such  distributions  being  hereby
assigned and transferred to the Guaranteed  Parties.  The Guarantor  agrees that
this Guaranty shall  continue to be effective or be reinstated,  as the case may
be,  if at any  time  any  payment  of the  liabilities  hereby  guaranteed  are
rescinded or must  otherwise be returned or restored by the  Guaranteed  Parties
upon the  insolvency or  bankruptcy of the Borrower,  the Guarantor or any other
obligor,  guarantor,   endorser  or  surety  on  the  Loans,  the  Reimbursement
Obligations  or any other  Obligations,  all as though such payment had not been
made.

                                   ARTICLE II.

                         REPRESENTATIONS AND WARRANTIES

                  2.01 Reaffirmation of Credit Agreement. In order to induce the
Guaranteed Parties to accept this Guaranty,  to issue their Revolving Credit and
Letter of Credit  Commitments,  to make  Loans,  to purchase  participations  in
Letters of Credit, and to issue Letters of Credit, all as provided in the Credit
Agreement,  the Guarantor hereby repeats and reaffirms the  Representations  and
Warranties  contained  in the  Credit  Agreement  to the  extent  that  any such
representation  or warranty relates to the Guarantor or any of its Subsidiaries,
as of the  date of  this  Guaranty  and as of each  subsequent  date  that  such
Representations  and  Warranties  are  deemed  repeated  pursuant  to the Credit
Agreement.

                  2.02. Survival.  All representations and warranties under this
Guaranty  shall  survive the execution  and delivery of this  Guaranty,  and all
investigation and inquiry by the Guaranteed Parties.

                                  ARTICLE III.

                                EVENTS OF DEFAULT

                  3.01.   Events  of  Default.   Each  of  the  following  shall
constitute  an  "Event of  Default,"  unless  waived  by the  Agent in  writing,
whatever  the  reason  for such  event  and  whether  it shall be  voluntary  or
involuntary,  or within or without the control of the Guarantor,  or be effected
by  operation  of law or pursuant  to any  judgment or order of any court or any
order, rule or regulation of any governmental or non-governmental body:

                  (a) The Guarantor shall default in the payment,  observance or
         performance of any obligation hereunder; or

                  (b) An "Event of  Default"  under and as defined in the Credit
         Agreement or under any other Loan  Document  shall have occurred and be
         continuing.

                  3.02.  Remedies.  If any Event of Default  shall have occurred
and be  continuing,  the Agent,  for itself and on behalf of the Lenders and the
Issuing Bank,  in addition to enforcing all other rights and remedies  available
to it  under  Applicable  Law,  under  the Loan  Documents  and  otherwise,

                                      -5-

<PAGE>

may accelerate the Obligations and call upon this Guaranty. Any amounts not paid
when due under this Guaranty Agreement shall bear interest at the Default Rate.

                                   ARTICLE IV.

                                  MISCELLANEOUS

                  4.01. Rights Cumulative.  This Guaranty is in addition to, and
is not  intended  to  supersede  or be a  substitute  for any  other  suretyship
agreement or instrument that the Guaranteed  Parties may hold in connection with
the Loans, the Reimbursement Obligations or the other Obligations.

                  4.02  Attorney-in-Fact.  To the extent  permitted  by law, the
Guarantor hereby appoints the Agent, for the benefit of the Guaranteed  Parties,
as the  Guarantor's  attorney-in-fact  for  the  purposes  of  carrying  out the
provisions  of this  Guaranty  Agreement and taking any action and executing any
instrument  which the Agent may deem  necessary or advisable to  accomplish  the
purposes  hereof,   which  appointment  is  coupled  with  an  interest  and  is
irrevocable;  provided,  that the Agent shall have and may exercise rights under
this power of attorney only upon the occurrence and during the continuance of an
Event of Default.

                  4.03.  Rules of  Interpretation.  The rules of  interpretation
contained in Sections  1.2(c)  through 1.2(l) of the Credit  Agreement  shall be
applicable to this Guaranty Agreement and are hereby  incorporated by reference.
All representations  and warranties  contained herein shall survive the delivery
of  documents  and any  extension  of credit  referred  to herein or  guaranteed
hereby.

                  4.04.  Entire  Agreement.  This  Guaranty  contains the entire
agreement  between the parties  relating to the subject  matter  hereof,  and no
provision  hereof may be waived or modified except by a writing  executed by the
Guarantor  and the Agent,  on behalf of the  Lenders,  the Issuing  Bank and the
other Guaranteed  Parties.  There is no understanding that any Person other than
the Guarantor  shall execute this Guaranty.  The  Guarantor's  execution of this
Guaranty  was not based upon any facts or materials  provided by the  Guaranteed
Parties,  nor  was  the  Guarantor  induced  to  execute  this  Guaranty  by any
representation,  statement or  information  made or furnished by the Agent,  any
Issuing Bank or any Lender.  The Guarantor further  acknowledges and agrees that
the  Guarantor  assumes sole  responsibility  for  independently  obtaining  any
information or reports deemed necessary in reaching any decision to execute this
Guaranty.

                  4.05.  General Unsecured Claims.  Except as otherwise provided
herein or in any Security Instrument,  from the date hereof until the occurrence
of the Facility  Termination  date, the Guarantor shall ensure that at all times
the claims of the Guaranteed  Parties  hereunder against the Guarantor will rank
at least pari passu with the claims of all its other  creditors save those whose
claims are  preferred by any  bankruptcy,  insolvency  or other  similar laws of
general application.

                                      -6-

<PAGE>

                  4.06.  Waivers.  The failure or  forbearance of any Guaranteed
Party on any occasion to exercise any rights or remedies  hereunder or otherwise
granted to it by law or another  agreement  shall not affect the  obligations of
the  Guarantor  hereunder  and shall not  constitute  a waiver of such  right or
remedy or preclude the later or further exercise thereof. Time is of the essence
of this Guaranty and the Guarantor's obligations hereunder.

                  4.07. Notices. Any notice or demand which any Guaranteed Party
may be  required  to give to the  Guarantor  may be served,  at such  Guaranteed
Party's option,  on the Guarantor in person,  by telecopy or by sending the same
by reputable overnight courier or by registered or certified mail,  addressed to
the address of the Guarantor  indicated on the signature  page hereof or at such
other address as the Guarantor shall specify by written notice delivered to such
Guaranteed Party. Any notice in person, by telecopier or by such courier,  shall
be effective  when  received at the address set forth below.  Any notice by mail
shall be deemed to have been received on the fifth  Business Day following  that
on which it is mailed.

                  4.08.  Successors  and Assigns.  This Guaranty  shall bind and
inure to the benefit of the  successors of the Guarantor and the  successors and
assigns of the Guaranteed Parties.

                  4.09.  Severability  of  Provisions.  If any provision of this
Guaranty or the application  thereof to any Person or circumstance shall, to any
extent,  be invalid or  unenforceable,  the  remainder  of this  Guaranty or the
application of such provision to the other Persons or circumstances,  other than
those as to which it is held  invalid or  unenforceable,  shall not be  affected
thereby,  and each provision of this Guaranty shall be valid and  enforceable to
the full extent permitted by law.

                  4.10. Counterparts. This Guaranty Agreement may be executed in
any number of counterparts each of which when so executed and delivered shall be
deemed an  original,  and it shall  not be  necessary  in  making  proof of this
Guaranty  Agreement  to produce or  account  for more than one such  counterpart
executed by the Guarantor against whom enforcement is sought.

                  4.11.  Governing  Law;  Judicial  Proceedings;  Waiver of Jury
Trial.  (a) This  Guaranty  and the  rights  and  obligations  of the  Guarantor
hereunder  shall be construed in accordance  with,  and be governed by, the laws
(without  giving effect to the conflict of law principles  thereof) of the State
of Tennessee.

                  (b) ANY JUDICIAL PROCEEDING BROUGHT AGAINST THE GUARANTOR WITH
RESPECT TO THIS  AGREEMENT  OR ANY OTHER LOAN  DOCUMENTS,  MAY BE BROUGHT IN ANY
COURT OF COMPETENT JURISDICTION IN THE STATE OF TENNESSEE, AND, BY EXECUTION AND
DELIVERY  OF  THIS   AGREEMENT,   THE  GUARANTOR  (A)  ACCEPTS,   GENERALLY  AND
UNCONDITIONALLY,  THE  NONEXCLUSIVE  JURISDICTION OF SUCH COURTS AND ANY RELATED
APPELLATE COURT, AND IRREVOCABLY AGREES (WITHOUT WAIVING ANY RIGHT TO APPEAL) TO
BE BOUND BY ANY JUDGMENT  RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS, AND (B) IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR
HEREAFTER HAVE AS TO

                                      -7-

<PAGE>

THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT
SUCH COURT IS AN  INCONVENIENT  FORUM.  THE  GUARANTOR  HEREBY  WAIVES  PERSONAL
SERVICE OF PROCESS AND  CONSENTS  THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY
CERTIFIED  OR  REGISTERED  MAIL,  RETURN  RECEIPT  REQUESTED,  (WITH  A COPY  BY
OVERNIGHT  COURIER),  AT ITS ADDRESS  SPECIFIED OR DETERMINED IN ACCORDANCE WITH
THE PROVISIONS OF SECTION 4.07, AND SERVICE SO MADE SHALL BE DEEMED COMPLETED ON
THE FIFTH DAY AFTER SUCH SERVICE IS DEPOSITED IN THE MAIL.  NOTHING HEREIN SHALL
AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW OR SHALL
LIMIT  THE  RIGHT  OF THE  AGENT,  ANY  ISSUING  BANK  OR ANY  LENDER  TO  BRING
PROCEEDINGS AGAINST THE GUARANTOR IN THE COURTS OF ANY OTHER  JURISDICTION.  ANY
JUDICIAL  PROCEEDING BY THE GUARANTOR  AGAINST THE LENDERS,  THE ISSUING BANK OR
THE AGENT, INVOLVING,  DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT
OF,  RELATED TO, OR CONNECTED  WITH THIS  AGREEMENT OR THE OTHER LOAN  DOCUMENTS
SHALL BE BROUGHT ONLY IN A COURT  LOCATED IN THE CITY OF  CHATTANOOGA,  STATE OF
TENNESSEE.  THE GUARANTOR,  THE AGENT,  EACH ISSUING BANK AND EACH LENDER HEREBY
WAIVE  TRIAL  BY  JURY IN ANY  JUDICIAL  PROCEEDING  TO  WHICH  ANY ARE  PARTIES
INVOLVING,  DIRECTLY  OR  INDIRECTLY,  ANY  MATTER  (WHETHER  SOUNDING  IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,  RELATED TO, OR CONNECTED WITH
THIS  AGREEMENT  OR THE OTHER LOAN  DOCUMENTS  OR THE  RELATIONSHIP  ESTABLISHED
HEREUNDER  OR  THEREUNDER  AND WHETHER  ARISING OR ASSERTED  BEFORE OR AFTER THE
AGREEMENT DATE OR BEFORE OR AFTER PAYMENT, OBSERVANCE AND PERFORMANCE IN FULL OF
THE GUARANTOR'S OBLIGATIONS HEREUNDER OR THEREUNDER.

                  4.12. Limitation of Liability. None of the Guaranteed Parties,
nor any affiliates thereof, shall have any liability with respect to, and EXCEPT
AS OTHERWISE  EXPRESSLY PROVIDED HEREIN,  THE GUARANTOR HEREBY WAIVES,  RELEASES
AND AGREES NOT TO SUE UPON, ANY CLAIM FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL
DAMAGES (AS OPPOSED TO DIRECT  DAMAGES)  SUFFERED BY THE GUARANTOR IN CONNECTION
WITH,  ARISING OUT OF, OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS, OR THE TRANSACTIONS  CONTEMPLATED AND THE RELATIONSHIP ESTABLISHED BY
THIS  AGREEMENT  AND THE OTHER  LOAN  DOCUMENTS  OR ANY ACT,  OMISSION  OR EVENT
OCCURRING IN CONNECTION THEREWITH.

                  4.13.  Indemnification.  Without limitation of Section 13.9 of
the  Credit  Agreement  or any other  indemnification  provision  in the  Credit
Agreement or any other Loan Document, the Guarantor agrees to indemnify and hold
harmless each Guaranteed Party and each of their affiliates and their respective
officers,  directors,  employees,  agents,  and advisors  (each, an "Indemnified
Party")  from and  against  any and all claims,  damages,  losses,  liabilities,
costs, and expenses (including, without limitation,  reasonable attorneys' fees)
that may be incurred by or asserted or awarded against any Indemnified Party, in
each case  arising  out of or in  connection  with or by  reason

                                      -8-

<PAGE>

of  (including,  without  limitation,  in  connection  with  any  investigation,
litigation or proceeding or preparation of defense in connection  therewith) the
Loan Documents,  any of the  transactions  contemplated  herein or the actual or
proposed use of the proceeds of the Loans or other extension of credit under the
Loan Documents,  except to the extent such claim, damage, loss, liability, cost,
or expense is found in a final,  non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified  Party's gross negligence or
willful  misconduct.  In the  case  of an  investigation,  litigation  or  other
proceeding to which the indemnity in this Section 4.13 applies,  such  indemnity
shall be effective whether or not such  investigation,  litigation or proceeding
is brought by such Guarantor or any other Credit Party,  any of their respective
directors,  shareholders  or  creditors,  or an  Indemnified  Party or any other
Person, or any Indemnified Party is otherwise a party thereto and whether or not
the transactions contemplated hereby are consummated.

                  4.14.  Captions.  Captions in this  Agreement are included for
convenience  of reference  only and shall not constitute a part of this Guaranty
for any other purpose.

                  4.15 Swap  Agreements.  All  obligations of the Borrower under
Swap  Agreements  to which any  Lender or its  affiliates  are a party  shall be
deemed to be Obligations  guaranteed  hereby (unless otherwise agreed in writing
by such  Lender),  and Lender or  affiliate  of a Lender  party to any such Swap
Agreement shall be deemed to be a Guaranteed Party hereunder.

                  [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

                                      -9-

<PAGE>

                  IN  WITNESS  WHEREOF,   Guarantor  has  executed  this  Parent
Guaranty Agreement, as of the date first above written.

                                       GUARANTOR:

                                       COVENANT TRANSPORT, INC., a
                                       Nevada corporation

                                       By: __________________________
                                       Title: ______________________

                                       Address for Notices:
                                       400 Birmingham Highway
                                       Chattanooga, Tennessee  37404

                                       Telecopier No.:  (423) 821-5442
                                       Telephone No.:   (423) 821-1212

                                       Attention:   Joey B. Hogan
                                                    Treasurer

<PAGE>

                                   EXHIBIT I-2

                      Form of Subsidiary Guaranty Agreement

                                  See attached.

                                     I-2-1

<PAGE>

                          SUBSIDIARY GUARANTY AGREEMENT

                             Dated December 13, 2000

                  THIS SUBSIDIARY  GUARANTY  AGREEMENT (this "Guaranty") made by
the  corporations  executing the signature  page of this Agreement as Guarantors
(each a "Guarantor" and collectively as "Guarantors"), in favor of the financial
institutions  signatory to the Credit Agreement  referenced below as lenders and
any assignees which may become "Lenders" as provided therein (collectively,  the
"Lenders"),  the Lenders that may serve from time to time as the "Issuing  Bank"
under said Credit Agreement (the "Issuing Bank"), and Bank of America,  N.A., as
Agent under said Credit Agreement (the "Agent").  Capitalized  terms used herein
and not otherwise  defined shall have the meaning ascribed to them in the Credit
Agreement.

                              W I T N E S S E T H:

                  WHEREAS, Covenant Asset Management, Inc., a Nevada corporation
(the "Borrower") has entered into a certain Credit Agreement, dated of even date
herewith,  with Covenant  Transport,  Inc., a Nevada corporation (the "Parent"),
the Lenders  signatories  thereto,  the Issuing Bank, and the Agent (as amended,
modified,  supplemented,  restated,  or replaced from time to time,  the "Credit
Agreement"),  pursuant to which the Lenders, the Issuing Bank and the Agent have
agreed to  provide a  revolving  credit and  letter of credit  facility  for the
benefit of the Borrower;

                  WHEREAS,  a  material  part  of  the  consideration  given  in
connection with and as an inducement to the execution and delivery of the Credit
Agreement by the Lenders,  the Issuing Bank, and the Agent was the obligation of
the Borrower and the Parent to cause each  Guarantor to enter into this Guaranty
Agreement, and the Lenders, the Issuing Bank and the Agent are unwilling to make
Loans, to purchase  participations in the Letters of Credit and to issue Letters
of Credit,  unless the Guarantors  guarantee the payment and performance of each
and every one of the Obligations;

                  WHEREAS,  the  Parent  has  separately  entered  into a Parent
Guaranty  Agreement dated as of December 13, 2000, in favor of the Lenders,  the
Issuing  Bank  and  the  Agent,  guarantying  payment  and  performance  of  the
Obligations under the Credit Agreement;

                 WHEREAS,  each Guarantor is a direct or indirect  Subsidiary of
the Parent and a member, along with the Borrower,  of the Parent's  consolidated
group of companies,  and the making of the Loans and other  extensions of credit
under the Credit  Agreement  will  enhance the overall  financial  strength  and
stability  of the  Parent's  consolidated  group  of  companies,  including  the
Borrower and the Guarantors;

                  WHEREAS,  the  Guarantors  have  agreed  to  enter  into  this
Guaranty  in order to ensure the  benefits  of the credit to be  provided to the
Borrower under the Credit Agreement;

<PAGE>

                  NOW,  THEREFORE,  in order to induce the Lenders to make Loans
and to  purchase  participations  in Letters of Credit and to induce the Issuing
Bank to issue Letters of Credit and to induce the Agent to perform its duties as
Agent,  all as  provided  under the  Credit  Agreement,  and for other  good and
valuable consideration  received by the Guarantors,  the parties hereto agree as
follows:

                                   ARTICLE I.

                                  THE GUARANTEE

                  1.01. The Guarantee. (a) Each Guarantor hereby unconditionally
and  irrevocably,  and jointly and  severally,  guarantees  to the Lenders,  the
Issuing  Bank and the Agent,  and any  transferee,  in whole or in part,  of the
Obligations or this Guaranty  (collectively,  the "Guaranteed Parties" and each,
individually, a "Guaranteed Party"), the full and prompt payment and performance
of all the Obligations and all costs, charges and expenses (including reasonable
attorneys' fees) incurred or sustained by such Guaranteed Party in enforcing the
obligations of the Guarantors  hereunder.  If any portion of the  Obligations is
not paid when due,  whether at stated  maturity,  by  acceleration or otherwise,
each  Guarantor  unconditionally  and  irrevocably,  and jointly and  severally,
hereby agrees to and will pay same when due,  without  resort by the  Guaranteed
Parties to any other person or party.  The  obligation of each  Guarantor to the
Guaranteed  Parties  hereunder is primary,  absolute,  unconditional,  joint and
several,  except as may be specifically set forth herein.  Each Guarantor hereby
acknowledges  that this  Guaranty is a guaranty of payment and not of collection
and that the liability of each Guarantor  under this Guaranty shall be immediate
and primary and shall not be contingent  upon the exercise or enforcement by the
Guaranteed  Parties,  or any of them, of any remedies the Guaranteed Parties may
have against the Borrower or any other person or the  enforcement of any lien or
realization of any  collateral any Guaranteed  Party may at any time possess for
any of the  Obligations.  The Guarantors'  obligations  hereunder are secured by
various  Security  Instruments  referred to in the Credit  Agreement,  including
without  limitation the Second Amended and Restated  Guarantor  Stock Pledge and
Security  Agreement,  the  Intercompany  Note Pledge  Agreement,  the  Guarantor
Security  Agreement,  and all other agreements  (including control  agreements),
instruments  and other  documents,  whether now existing or hereafter in effect,
pursuant to which any Guarantor  shall grant or convey to the  Collateral  Agent
for the benefit of the Agent,  the Lenders,  the Issuing Bank and the holders of
the  Senior  Notes a Lien in,  or  pursuant  to which  any  other  Person  shall
acknowledge any such Lien in, property as security for all or any portion of the
Obligations or any other obligation under any Loan Document,  as any of them may
be amended, modified or supplemented from time to time.

                  (b) It is the intention of the  Guarantors  and the Guaranteed
Parties  that each  Guarantor's  obligations  hereunder  shall be in, but not in
excess of, the maximum amount (the "Maximum  Guaranty  Liability")  permitted by
applicable  federal  bankruptcy,  state  insolvency,  fraudulent  conveyance  or
transfer or similar laws ("Applicable Law"). To that end, but only to the extent
such obligations would otherwise be subject to avoidance under Applicable Law if
any Guarantor is not deemed to have received valuable consideration,  fair value
or reasonably equivalent value for its obligations  hereunder,  such Guarantor's
obligations hereunder shall be reduced to that amount which, after giving effect
thereto, would not render such Guarantor

                                       2

<PAGE>

insolvent, or leave such Guarantor with an unreasonably small capital to conduct
its business,  or cause such  Guarantor to have  incurred  debts (or intended to
have incurred debts) beyond its ability to pay such debts as they mature, at the
time such  obligations are deemed to have been incurred under Applicable Law. As
used herein,  the terms  "insolvent"  and  "unreasonably  small  capital"  shall
likewise be  determined  in  accordance  with  Applicable  Law.  This section is
intended  solely to preserve the rights of the Guaranteed  Parties  hereunder to
the maximum extent  permitted by Applicable  Law, and none of the Guarantors nor
any other  Persons  shall have any right or claim under this  section that would
not otherwise be available under  Applicable Law. Each Guarantor agrees that the
Guaranteed  Obligations may at any time and from time to time exceed the Maximum
Guaranty  Liability  of  such  Guarantor  without  impairing  this  Guaranty  or
affecting the rights and remedies of the Guaranteed Parties hereunder.

                  (c) If and to the extent that any Guarantor shall,  under this
Guaranty  make a payment (a  "Guarantor  Payment")  of all or any portion of the
Obligations,   then  such  Guarantor  shall  be  entitled  to  contribution  and
indemnification  from, and shall be reimbursed by, each of the other  Guarantors
(collectively  the  "Contributing  Guarantors")  in an  amount,  for  each  such
Contributing  Guarantor,  equal to a fraction  of such  Guarantor  Payment,  the
numerator of which fraction is such Contributing Guarantor's Allocable Amount of
such  Guarantor  Payment and the  denominator  of which is the sum of all of the
Allocable  Amounts  of  such  Guarantor  Payment  of  all  of  the  Contributing
Guarantors.  As of any date of  determination  thereof  and with  respect to any
Guarantor Payment,  the "Allocable Amount" of each Contributing  Guarantor shall
be equal to the maximum amount of liability which could be asserted against such
Contributing  Guarantor  under this  Guaranty  with  respect  to such  Guarantor
Payment  without (i)  rendering  such  Contributing  Guarantor  insolvent,  (ii)
leaving such Contributing  Guarantor with unreasonably  small capital to conduct
its  business,  or (iii)  causing such  Contributing  Guarantor to have incurred
debts  beyond  its  ability to pay such  debts as they  mature.  As used in this
Section 1.01(c), the terms "insolvent" and "unreasonably small capital" shall be
determined in accordance with Applicable  Laws. This Section 1.01(c) is intended
only to define  the  relative  rights and  obligations  of the  Guarantors  with
respect to any and all Guarantor Payments, and nothing set forth in this Section
1.01(c)  is  intended  to or  shall  otherwise  modify,  affect  or  impair  the
obligations of the Guarantors,  jointly and severally,  to pay any or all of the
Obligations as and when the same shall become due and payable in accordance with
the terms of this Guaranty.  Each of the Guarantors hereby acknowledges that the
rights of contribution and indemnification  hereunder shall constitute assets in
favor of each Guarantor to which such contribution and  indemnification is owing
hereunder.  The agreements  contained in this Section  1.01(c) shall continue in
full force and  effect and may not be  terminated  or  otherwise  revoked by any
Guarantor until all of the Obligations have been  indefeasibly paid in full, all
Commitments have terminated or expired, all Letters of Credit have been returned
for  cancellation,  and the Credit  Agreement and the other Loan Documents shall
have been terminated in accordance with the terms thereof.

                  1.02.    Guarantee Unconditional.

                  (a)  This  Guaranty  is  continuing  in  nature  and  shall be
effective with respect to the full amount of all  outstanding  Obligations,  now
existing or hereafter made or extended, regardless of the amount. Each Guarantor
acknowledges  and agrees that the number and

                                       3

<PAGE>

amounts of outstanding  Obligations  may fluctuate from time to time  hereafter,
and that the Borrower may make payments to, and reborrow  from,  the  Guaranteed
Parties from time to time hereafter.  Each Guarantor  expressly agrees that this
Guaranty  shall  continue  in  full  force  and  effect   notwithstanding   such
fluctuations  and  payments,  regardless  of any  invalidity  of the  underlying
obligations and whether or not any Obligations are outstanding at any particular
time, until the occurrence of the Facility Termination Date.

                  (b) Each  Guarantor  hereby  waives  notice of the  Guaranteed
Parties'  acceptance of this Guaranty and the creation,  extension or renewal of
the Revolving Credit and Letter of Credit Commitments, or of any Loan, Letter of
Credit,  Reimbursement  Obligation or other  Obligation.  Each Guarantor  hereby
consents and agrees  that,  at any time or times,  without  notice to or further
approval from any Guarantor, and without in any way affecting the obligations of
any Guarantor hereunder, the Guaranteed Party may, with or without consideration
(i)  release,  compromise  with,  or agree not to sue, in whole or in part,  the
Borrower, any Guarantor or any other obligor,  guarantor,  endorser or surety on
any Loan, Letter of Credit,  Reimbursement Obligation or other Obligation,  (ii)
renew, extend,  accelerate,  or increase or decrease the principal amount of any
Revolving  Credit  and  Letter of Credit  Commitment,  Loan,  Letter of  Credit,
Reimbursement Obligation or other Obligation,  either in whole or in part, (iii)
amend,  waive, or otherwise  modify any of the terms of any Revolving Credit and
Letter of Credit Commitment, Loan, Letter of Credit, Reimbursement Obligation or
other Obligation, or of any Security Instrument,  Loan Document,  mortgage, deed
to secure debt, deed of trust,  security agreement,  or other undertaking of the
Borrower or any other obligor, endorser,  guarantor or surety in connection with
any Revolving Credit and Letter of Credit  Commitment,  Loan,  Letter of Credit,
Reimbursement  Obligation  or other  Obligation,  and  (iv)  apply  any  payment
received  from the Borrower or from any other  obligor,  guarantor,  endorser or
surety on any Loan,  Reimbursement  Obligation or other Obligation to any of the
liabilities of the Borrower or of such other obligor,  guarantor,  endorser,  or
surety which such Guaranteed Party may choose.

                  (c)  Each  Guarantor  hereby  consents  and  agrees  that  any
Guaranteed Party may at any time or times, either with or without consideration,
surrender,  release or receive any property or other  collateral  of any kind or
nature whatsoever held by it or for its account securing any Loan, Reimbursement
Obligation or other  Obligation,  or substitute  any  collateral so held by such
Guaranteed Party for other collateral of like or different kind,  without notice
to or further consent from any Guarantor,  and such surrender,  receipt, release
or  substitution  shall not in any way affect the  obligations  of any Guarantor
hereunder. Any Guaranteed Party shall have full authority to adjust, compromise,
and  receive  less than the amount due upon any such  collateral,  and may enter
into any  accord and  satisfaction  agreement  with  respect to the same as such
Guaranteed  Party may deem advisable  without  affecting the  obligations of any
Guarantor hereunder. No Guaranteed Party shall be under any duty to undertake to
collect  upon  such  collateral  or  any  part  thereof,  and  each  Guarantor's
obligations  hereunder  shall not be affected by any Guaranteed  Party's alleged
negligence  or mistake in judgment in  handling,  disposing  of,  obtaining,  or
failing to collect upon or perfect a security interest in, any such collateral.

                  1.03.  Waiver.   Each  Guarantor  hereby  waives  presentment,
demand,  protest,  and notice of dishonor of any of the  liabilities  guaranteed
hereby.  No Guaranteed Party shall have any duty or obligation (i) to proceed or
exhaust any remedy against the Borrower, any other

                                       4

<PAGE>

obligor, guarantor, endorser, or surety on any Loan, Reimbursement Obligation or
other  Obligation,  or any security held by any  Guaranteed  Party for any Loan,
Reimbursement  Obligation  or  other  Obligation,  or (ii) to  give  any  notice
whatsoever to the Borrower,  any  Guarantor,  or any other  obligor,  guarantor,
endorser, or surety on any Loan,  Reimbursement  Obligation or other Obligation,
before  bringing  suit,  exercising  rights to any such security or  instituting
proceedings  of any  kind  against  any  Guarantor,  or the  Borrower,  and each
Guarantor  hereby  waives any  requirement  for such  actions by any  Guaranteed
Party.  Each Guarantor  agrees that each Guaranteed  Party shall have a Lien for
all the Guarantor's obligations hereunder upon all deposits or deposit accounts,
of any kind,  or any  interest  in any  deposits  or  deposit  accounts,  now or
hereafter pledged,  mortgaged,  transferred or assigned to such Guaranteed Party
or  otherwise  in the  possession  or control of such  Guaranteed  Party for any
purpose (other than solely for  safekeeping or in its capacity as a trustee) for
the account or benefit of such  Guarantor,  including any balance of any deposit
account or of any credit of such Guarantor with the  Guaranteed  Party,  whether
now existing or hereafter  established,  and hereby  authorizes  each Guaranteed
Party from and after the  occurrence of an Event of Default at any time or times
with or without  prior notice to apply such balances or any part thereof to such
of the  Guarantor's  obligations to the Guaranteed  Parties then due and in such
amounts as provided for in the Credit  Agreement or otherwise as they may elect.
For the purposes of this Section 1.03,  all  remittances  and property  shall be
deemed to be in the possession of a Guaranteed  Party as soon as the same may be
put in transit to it by mail or carrier or by other bailee.

                  1.04.  Subordination.  Until the  occurrence  of the  Facility
Termination Date, each Guarantor hereby unconditionally subordinates in right of
payment  all present  and future  debts,  liabilities,  and  obligations  now or
hereafter owing to such Guarantor (i) of the Borrower, to the payment in full of
the  Borrower's  Obligations,  (ii) of  every  other  Guarantor  (an  "obligated
guarantor"),  to the  payment  in full  of the  obligations  of  such  obligated
guarantor  owing to any Guaranteed  Party and arising under the Loan  Documents,
and (iii) of each other Person now or hereafter  constituting a Credit Party, to
the  payment  in full of the  obligations  of such  Credit  Party  owing  to any
Guaranteed Party and arising under the Loan Documents,  provided,  however, that
each Guarantor may receive payment of any such debts, liabilities or obligations
so long as no Event of Default shall have  occurred and be continuing  under the
Credit Agreement or hereunder.  All monies received from the Borrower or for its
account by any Guarantor with respect to such debts,  liabilities or obligations
after the occurrence and during the continuance of an Event of Default under the
Credit  Agreement  or  hereunder  shall be received in trust for the  Guaranteed
Parties,  and  promptly  upon receipt be paid over to the Agent upon its request
until the  Obligations  are fully paid,  satisfied  and  performed,  all without
prejudice to and without in any way affecting the  obligations of such Guarantor
hereunder.

                  1.05.  Waiver of Subrogation.  Each Guarantor hereby waives to
the fullest  extent  possible as against the Borrower and its assets any and all
rights,  whether at law, in equity,  by agreement or otherwise,  to subrogation,
indemnity,  reimbursement,  contribution,  or any other similar claim,  cause of
action or remedy that otherwise would arise out of such Guarantor's  performance
of its obligations to the Guaranteed Parties under this Guaranty.  The preceding
waiver is intended by each  Guarantor and each of the  Guaranteed  Parties to be
for the benefit of the Borrower or any of its successors  and permitted  assigns
as an absolute  defense to any action by any  Guarantor  against the Borrower or
its assets  that arise out of such  Guarantor's  having

                                       5

<PAGE>

made any payment to any Guaranteed Parties with respect to any of the Borrower's
liabilities guaranteed hereunder.

                  1.06.  Bankruptcy  of  Borrower.  Upon the  bankruptcy  of the
Borrower,  no Guaranteed  Party's rights hereunder shall be affected or impaired
by its  omission  to prove all or any portion of its claim,  and the  Guaranteed
Parties may in their  discretion value or refrain from valuing any security held
by them  without in any way  releasing,  reducing  or  otherwise  affecting  any
Guarantor's  obligations  hereunder.   Until  the  occurrence  of  the  Facility
Termination  Date,  the  Guaranteed  Parties  shall have the right to include in
their claim the amount of all claims of each Guarantor  against the Borrower and
to  receive  the full  amount of all  distributions  in  respect  thereto,  such
distributions  being hereby assigned and transferred to the Guaranteed  Parties.
Each  Guarantor  agrees that this Guaranty  shall continue to be effective or be
reinstated,  as the case may be, if at any time any  payment of the  liabilities
hereby  guaranteed is rescinded or must otherwise be returned or restored by the
Guaranteed  Parties upon the  insolvency  or  bankruptcy  of the  Borrower,  any
Guarantor or any other obligor, guarantor,  endorser or surety on the Loans, the
Reimbursement  Obligations or any other Obligations,  all as though such payment
had not been made.

                                   ARTICLE II.

                         REPRESENTATIONS AND WARRANTIES

                  2.01.  Reaffirmation of Credit  Agreement.  In order to induce
the Guaranteed Parties to accept this Guaranty,  to issue their Revolving Credit
and Letter of Credit Commitments,  to make Loans, to purchase  participations in
Letters of Credit, and to issue Letters of Credit, all as provided in the Credit
Agreement,  each Guarantor hereby repeats and reaffirms the  Representations and
Warranties  contained  in the  Credit  Agreement  to the  extent  that  any such
representation or warranty relates to such Guarantor or any of its Subsidiaries,
as of the  date of  this  Guaranty  and as of each  subsequent  date  that  such
Representations  and  Warranties  are  deemed  repeated  pursuant  to the Credit
Agreement.

                  2.02. Survival.  All representations and warranties under this
Guaranty  shall  survive the execution  and delivery of this  Guaranty,  and all
investigation and inquiry by the Guaranteed Parties.

                                  ARTICLE III.

                                EVENTS OF DEFAULT

                  3.01.   Events  of  Default.   Each  of  the  following  shall
constitute  an  "Event of  Default,"  unless  waived  by the  Agent in  writing,
whatever  the  reason  for such  event  and  whether  it shall be  voluntary  or
involuntary,  or within or without the control of any Guarantor,  or be effected
by  operation  of law or pursuant  to any  judgment or order of any court or any
order, rule or regulation of any governmental or non-governmental body:

                                       6

<PAGE>

                  (a) Any Guarantor shall default in the payment,  observance or
performance of any obligation hereunder; or

                  (b) An "Event of  Default"  under and as defined in the Credit
Agreement  or  under  any  other  Loan  Document  shall  have  occurred  and  be
continuing.

                  3.02.  Remedies.  If any Event of Default  shall have occurred
and be  continuing,  the Agent,  for itself and on behalf of the Lenders and the
Issuing Bank,  in addition to enforcing all other rights and remedies  available
to it  under  Applicable  Law,  under  the Loan  Documents  and  otherwise,  may
accelerate the  Obligations  and call upon this  Guaranty.  Any amounts not paid
when due under this Guaranty Agreement shall bear interest at the Default Rate.

                                   ARTICLE IV.

                                  MISCELLANEOUS

                  4.01. Rights Cumulative.  This Guaranty is in addition to, and
is not  intended  to  supersede  or be a  substitute  for any  other  suretyship
agreement or instrument that the Guaranteed  Parties may hold in connection with
the Loans, the Reimbursement Obligations or the other Obligations.

                  4.02  Attorney-in-Fact.  To the extent  permitted by law, each
Guarantor hereby appoints the Agent, for the benefit of the Guaranteed  Parties,
as such  Guarantor's  attorney-in-fact  for the  purposes  of  carrying  out the
provisions  of this  Guaranty  Agreement and taking any action and executing any
instrument  which the Agent may deem  necessary or advisable to  accomplish  the
purposes  hereof,   which  appointment  is  coupled  with  an  interest  and  is
irrevocable;  provided,  that the Agent shall have and may exercise rights under
this power of attorney only upon the occurrence and during the continuance of an
Event of Default.

                  4.03.  Rules of  Interpretation.  The rules of  interpretation
contained in Sections  1.2(c)  through 1.2(l) of the Credit  Agreement  shall be
applicable to this Guaranty Agreement and are hereby  incorporated by reference.
All representations  and warranties  contained herein shall survive the delivery
of  documents  and any  extension  of credit  referred  to herein or  guaranteed
hereby.

                  4.04.  Entire  Agreement.  This  Guaranty  contains the entire
agreement  between the parties  relating to the subject  matter  hereof,  and no
provision  hereof may be waived or modified except by a writing  executed by the
Guarantors  and the Agent,  on behalf of the  Lenders,  the Issuing Bank and the
other  Guaranteed  Parties.  The Guarantors'  execution of this Guaranty was not
based upon any facts or materials  provided by the Guaranteed  Parties,  nor was
any Guarantor induced to execute this Guaranty by any representation,  statement
or information  made or furnished by the Agent,  any Issuing Bank or any Lender.
Each Guarantor further  acknowledges and agrees that such Guarantor assumes sole
responsibility  for  independently  obtaining any  information or reports deemed
necessary in reaching any decision to execute this Guaranty.

                                       7

<PAGE>

                  4.05.  General Unsecured Claims.  Except as otherwise provided
herein or in any Security  Instrument  from the date hereof until the occurrence
of the Facility  Termination Date, each Guarantor shall ensure that at all times
the claims of the Guaranteed  Parties hereunder against such Guarantor will rank
at least pari passu with the claims of all its other  creditors save those whose
claims are  preferred by any  bankruptcy,  insolvency  or other  similar laws of
general application.

                  4.06.  Waivers.  The failure or  forbearance of any Guaranteed
Party on any occasion to exercise any rights or remedies  hereunder or otherwise
granted to it by law or another  agreement  shall not affect the  obligations of
any  Guarantor  hereunder  and shall not  constitute  a waiver of such  right or
remedy or preclude the later or further exercise thereof. Time is of the essence
of this Guaranty and each Guarantor's obligations hereunder.

                  4.07. Notices. Any notice or demand which any Guaranteed Party
may be  required  to give to any  Guarantor  may be served,  at such  Guaranteed
Party's option,  on such Guarantor in person, by telecopy or by sending the same
by reputable overnight courier or by registered or certified mail,  addressed to
the address of such Guarantor  indicated on the signature page hereof or at such
other address as such  Guarantor  shall specify by written  notice  delivered to
such Guaranteed  Party. Any notice in person,  by telecopier or by such courier,
shall be effective  when received at the address set forth below.  Any notice by
mail shall be deemed to have been  received on the fifth  Business Day following
that on which it is mailed.

                  4.08.  Successors  and Assigns.  This Guaranty  shall bind and
inure to the benefit of the  successors of the Guarantors and the successors and
assigns of the Guaranteed Parties.

                  4.09.  Severability  of  Provisions.  If any provision of this
Guaranty or the application  thereof to any Person or circumstance shall, to any
extent,  be invalid or  unenforceable,  the  remainder  of this  Guaranty or the
application of such provision to the other Persons or circumstances,  other than
those as to which it is held  invalid or  unenforceable,  shall not be  affected
thereby,  and each provision of this Guaranty shall be valid and  enforceable to
the full extent permitted by law.

                  4.10. Counterparts. This Guaranty Agreement may be executed in
any number of counterparts each of which when so executed and delivered shall be
deemed an  original,  and it shall  not be  necessary  in  making  proof of this
Guaranty  Agreement  to produce or  account  for more than one such  counterpart
executed by the Guarantor against whom enforcement is sought.

                  4.11.  Governing  Law;  Judicial  Proceedings;  Waiver of Jury
Trial.  (a) This  Guaranty  and the rights  and  obligations  of the  Guarantors
hereunder  shall be construed in accordance  with,  and be governed by, the laws
(without  giving effect to the conflict of law principles  thereof) of the State
of Tennessee.

                  (b) ANY JUDICIAL PROCEEDING BROUGHT AGAINST ANY GUARANTOR WITH
RESPECT TO THIS  AGREEMENT  OR ANY OTHER LOAN  DOCUMENTS,  MAY BE BROUGHT IN ANY
COURT OF COMPETENT JURISDICTION IN THE STATE OF TENNESSEE, AND, BY EXECUTION AND
DELIVERY  OF  THIS

                                       8

<PAGE>

AGREEMENT,  EACH  GUARANTOR  (A) ACCEPTS,  GENERALLY  AND  UNCONDITIONALLY,  THE
NONEXCLUSIVE  JURISDICTION OF SUCH COURTS AND ANY RELATED  APPELLATE  COURT, AND
IRREVOCABLY  AGREES  (WITHOUT  WAIVING  ANY RIGHT TO  APPEAL) TO BE BOUND BY ANY
JUDGMENT  RENDERED  THEREBY IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS, AND (B) IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE
AS TO THE VENUE OF ANY SUCH SUIT,  ACTION OR PROCEEDING  BROUGHT IN SUCH A COURT
OR THAT SUCH  COURT IS AN  INCONVENIENT  FORUM.  EACH  GUARANTOR  HEREBY  WAIVES
PERSONAL  SERVICE OF PROCESS AND CONSENTS THAT SERVICE OF PROCESS UPON IT MAY BE
MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED,  (WITH A COPY BY
OVERNIGHT  COURIER),  AT ITS ADDRESS  SPECIFIED OR DETERMINED IN ACCORDANCE WITH
THE PROVISIONS OF SECTION 4.07, AND SERVICE SO MADE SHALL BE DEEMED COMPLETED ON
THE FIFTH DAY AFTER SUCH SERVICE IS DEPOSITED IN THE MAIL.  NOTHING HEREIN SHALL
AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW OR SHALL
LIMIT  THE  RIGHT  OF THE  AGENT,  ANY  ISSUING  BANK  OR ANY  LENDER  TO  BRING
PROCEEDINGS AGAINST ANY GUARANTOR IN THE COURTS OF ANY OTHER  JURISDICTION.  ANY
JUDICIAL  PROCEEDING BY ANY GUARANTOR  AGAINST THE LENDERS,  THE ISSUING BANK OR
THE AGENT, INVOLVING,  DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT
OF,  RELATED TO, OR CONNECTED  WITH THIS  AGREEMENT OR THE OTHER LOAN  DOCUMENTS
SHALL BE BROUGHT ONLY IN A COURT  LOCATED IN THE CITY OF  CHATTANOOGA,  STATE OF
TENNESSEE.  EACH GUARANTOR,  THE AGENT, EACH ISSUING BANK AND EACH LENDER HEREBY
WAIVE,  TO THE MAXIMUM EXTENT  PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING TO WHICH ANY ARE PARTIES INVOLVING,  DIRECTLY OR INDIRECTLY,
ANY MATTER (WHETHER SOUNDING IN TORT,  CONTRACT OR OTHERWISE) IN ANY WAY ARISING
OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS
OR THE RELATIONSHIP  ESTABLISHED  HEREUNDER OR THEREUNDER AND WHETHER ARISING OR
ASSERTED  BEFORE  OR AFTER  THE  AGREEMENT  DATE OR  BEFORE  OR  AFTER  PAYMENT,
OBSERVANCE AND PERFORMANCE IN FULL OF EACH GUARANTOR'S  OBLIGATIONS HEREUNDER OR
THEREUNDER.

                  4.12. Limitation of Liability. None of the Guaranteed Parties,
nor any affiliates thereof, shall have any liability with respect to, and EXCEPT
AS OTHERWISE EXPRESSLY PROVIDED HEREIN,  EACH GUARANTOR HEREBY WAIVES,  RELEASES
AND AGREES NOT TO SUE UPON, ANY CLAIM FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL
DAMAGES (AS OPPOSED TO DIRECT DAMAGES)  SUFFERED BY SUCH GUARANTOR IN CONNECTION
WITH,  ARISING OUT OF, OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS, OR THE TRANSACTIONS  CONTEMPLATED AND THE RELATIONSHIP ESTABLISHED BY
THIS  AGREEMENT  AND THE OTHER  LOAN  DOCUMENTS  OR ANY ACT,  OMISSION  OR EVENT
OCCURRING IN CONNECTION THEREWITH.

                                       9

<PAGE>

                  4.13.  Indemnification.  Without limitation of Section 13.9 of
the  Credit  Agreement  or any other  indemnification  provision  in the  Credit
Agreement or any other Loan  Document,  each  Guarantor  agrees to indemnify and
hold  harmless  each  Guaranteed  Party and each of their  affiliates  and their
respective  officers,  directors,  employees,  agents,  and advisors  (each,  an
"Indemnified  Party")  from and  against any and all  claims,  damages,  losses,
liabilities,  costs, and expenses  (including,  without  limitation,  reasonable
attorneys'  fees) that may be incurred  by or  asserted  or awarded  against any
Indemnified  Party,  in each case  arising  out of or in  connection  with or by
reason of (including,  without limitation, in connection with any investigation,
litigation or proceeding or preparation of defense in connection  therewith) the
Loan Documents,  any of the  transactions  contemplated  herein or the actual or
proposed use of the proceeds of the Loans or other extension of credit under the
Loan Documents,  except to the extent such claim, damage, loss, liability, cost,
or expense is found in a final,  non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified  Party's gross negligence or
willful  misconduct.  In the  case  of an  investigation,  litigation  or  other
proceeding to which the indemnity in this Section 4.13 applies,  such  indemnity
shall be effective whether or not such  investigation,  litigation or proceeding
is brought by such Guarantor or any other Credit Party,  any of their respective
directors,  shareholders  or  creditors,  or an  Indemnified  Party or any other
Person, or any Indemnified Party is otherwise a party thereto and whether or not
the transactions contemplated hereby are consummated.

                  4.14.  Joint and  Several  Liability.  Each of the  Guarantors
shall be jointly and severally liable under this Guaranty.

                  4.15.  Captions.  Captions in this  Agreement are included for
convenience  of reference  only and shall not constitute a part of this Guaranty
for any other purpose.

                  4.16 Swap  Agreements.  All  obligations of the Borrower under
Swap  Agreements  to which any  Lender or its  affiliates  are a party  shall be
deemed to be Obligations  guaranteed  hereby (unless otherwise agreed in writing
by such  Lender),  and Lender or  affiliate  of a Lender  party to any such Swap
Agreement shall be deemed to be a Guaranteed Party hereunder.

                  [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

                                       10

<PAGE>

                  IN WITNESS WHEREOF, each Guarantor has executed this Guaranty,
as of the date first above written.

                                                    GUARANTORS:

Address for Notices:                       HAROLD IVES TRUCKING CO.
                                           TERMINAL TRUCK BROKER, INC.
c/o Covenant Transport, Inc.               COVENANT.COM, INC.
400 Birmingham Highway                     CIP, INC.
Chattanooga, Tennessee  37404              SOUTHERN REFRIGERATED TRANSPORT, INC.
Attention:   Joey B. Hogan                 TONY SMITH TRUCKING, INC.
Chief Financial Officer                    COVENANT TRANSPORT, INC., a Tennessee
Telecopier No.:  (423) 821-5442              corporation
Telephone No.:  (423) 821-1212

                                           By:__________________________________
                                           Name:    Joey B. Hogan
                                           Title: Treasurer

<PAGE>

                                   EXHIBIT J-1

                   Form of Second Amended and Restated Parent
                       Stock Pledge and Security Agreement

                                  See attached.

                                     J-1-1

<PAGE>

                       SECOND AMENDED AND RESTATED PARENT
                       STOCK PLEDGE AND SECURITY AGREEMENT

                  THIS  SECOND  AMENDED AND  RESTATED  PARENT  STOCK  PLEDGE AND
SECURITY  AGREEMENT (this  "Agreement"),  dated as of December 13, 2000, made by
COVENANT  TRANSPORT,  INC., a Nevada  corporation  (the  "Pledgor"),  to BANK OF
AMERICA, N.A., a national banking association,  acting as Collateral Agent under
the  Intercreditor   Agreement  (as  defined  below)  for  the  benefit  of  the
Participating  Creditors (as defined below) (in such capacity, and together with
any successor thereto, the "Collateral Agent" or the "Secured Party").

                              W I T N E S S E T H:

                  WHEREAS, Connecticut General Life Insurance Company, on behalf
of one or more separate accounts, Connecticut General Life Insurance Company and
Life  Insurance  Company of North  America  (collectively,  together  with their
successors and assigns, the "Noteholders") have heretofore purchased $25,000,000
in aggregate  principal amount of 7.39% Guaranteed  Senior Notes, due October 1,
2005 (the "Notes"), issued by Covenant Asset Management, Inc. (formerly known as
Covenant Leasing, Inc.), a Nevada corporation (the "Borrower"), pursuant to that
certain Note Purchase Agreement (as the same may hereafter be amended, modified,
supplemented, refinanced or replaced, the "Note Agreement"), dated as of May 15,
2000,  between the  Noteholders,  the Borrower  and the  Pledgor.  The Notes are
guaranteed  by the Pledgor  pursuant to the Note  Agreement  (the  "Parent  Note
Guarantee") and by the Subsidiary  Guarantors (as hereinafter  defined) pursuant
to a  Subsidiary  Guaranty  dated  as of May 15,  2000 (as it may  hereafter  be
amended, modified,  supplemented,  refinanced or replaced, and together with any
other  guaranty  agreement  hereafter  executed and delivered by any  Subsidiary
Guarantor  pursuant to the terms of the Note  Agreement,  the  "Subsidiary  Note
Guaranty"); and

                  WHEREAS,  the  Borrower  has  entered  into a  certain  Credit
Agreement (as amended, modified,  supplemented,  restated, or replaced from time
to time, the "Credit Agreement"),  dated of even date herewith, with the Parent,
the financial  institutions  signatory  thereto as lenders  (together  with each
other  institution  from time to time party to the Credit Agreement as a lender,
the  "Lenders"),  the Issuing Bank  thereunder,  and Bank of America,  N.A.,  as
administrative  agent  (together with any successor  thereto,  the "Agent";  the
Lenders,  the  Issuing  Bank and the Agent being  collectively  called the "Bank
Creditors"),  pursuant  to which the Bank  Creditors  have  agreed to  provide a
revolving credit facility and a letter of credit facility for the benefit of the
Obligors (as hereinafter defined); and

                  WHEREAS,  the revolving  credit  facility and letter of credit
facility are being provided  pursuant to the Credit Agreement to refinance those
certain  revolving  credit  and  letter of  credit  facilities  provided  to the
Borrower pursuant to the Prior Credit Agreement (as hereinafter defined); and

                  WHEREAS,  the  Pledgor  has  guaranteed  the  Obligations  (as
hereinafter  defined)  of the  Borrower  arising  under  the  Credit  Agreement,
pursuant to the Parent Guaranty Agreement (as amended,  modified,  supplemented,
restated,  or replaced from time to time, the "Parent Bank

<PAGE>

Guaranty"), dated of even date herewith, executed by the Pledgor in favor of the
Bank Creditors; and

                  WHEREAS,   the  Subsidiary   Guarantors  have  guaranteed  the
Obligations of the Borrower arising under the Credit Agreement,  pursuant to the
Subsidiary Guaranty Agreement (as amended, modified, supplemented,  restated, or
replaced  from time to time,  and  together  with any other  guaranty  agreement
hereafter  executed and delivered by any  Subsidiary  Guarantor  pursuant to the
terms of the Credit  Agreement,  the "Subsidiary Bank Guaranty"),  dated of even
date  herewith,  executed  by the  Subsidiary  Guarantors  in  favor of the Bank
Creditors; and

                  WHEREAS,  the Noteholders  previously  entered into an Amended
and Restated Master Collateral and Intercreditor Agreement,  dated as of June 6,
2000, among the Noteholders,  the Prior Bank Creditors (as hereinafter  defined)
and the Prior Collateral  Agent, and acknowledged and agreed to by the Obligors,
(the "Prior Intercreditor  Agreement"),  in order to acknowledge their agreement
that the Obligors'  obligations to each of the  Noteholders  under the Notes and
Note  Agreement and the Prior Bank  Creditors  under the Prior Credit  Agreement
would be secured on a pari passu basis, and to set forth their respective rights
in respect of any and all security or collateral securing the obligations of the
Obligors  or any other  guarantor  to the  Noteholders  under the Notes and Note
Agreement or to the Prior Bank Creditors under the Prior Credit Agreement; and

                  WHEREAS,  the Pledgor  previously  entered into an Amended and
Restated Parent Stock Pledge and Security  Agreement,  dated as of June 6, 2000,
among the  Pledgor  and the  Prior  Collateral  Agent,  for the  benefit  of the
Noteholders  and the Prior Bank  Creditors (the "Prior Stock Pledge and Security
Agreement"), in order to secure the prompt and complete payment, performance and
observance  of the  Obligations  under the Note  Agreement  and the Prior Credit
Agreement,  which security interest is intended to be continued hereby as to the
Noteholders; and

                  WHEREAS,  the  Noteholders  and the Bank  Creditors  under the
Credit Agreement (together, the "Participating  Creditors") have agreed that the
Borrower's  obligations  to each of them under the Note Agreement and the Credit
Agreement  shall be secured on a pari passu  basis,  and are  entering  into the
Second Amended and Restated Master Collateral and Intercreditor  Agreement dated
as of the date hereof (as it may hereafter be amended,  modified,  supplemented,
refinanced or replaced,  the "Intercreditor  Agreement"),  with Bank of America,
N.A. as the  Collateral  Agent,  to amend and  restate  the Prior  Intercreditor
Agreement  insofar  as the  revolving  credit  and  letter of credit  facilities
provided under the Credit Agreement refinance and replace those revolving credit
and letter of credit facilities provided pursuant to the Prior Credit Agreement,
and to set forth their  respective  rights in respect of any and all security or
collateral now or hereafter securing the current  Obligations of the Borrower or
any other Obligor to the  Noteholders  under the Notes and Note Agreement or the
Bank Creditors under the Credit Agreement; and

                  WHEREAS,   subject  to  the  terms  and   conditions   of  the
Intercreditor  Agreement,  the Noteholders and the Bank Creditors have appointed
the Collateral Agent to serve as collateral agent under this Agreement,  and the
Collateral  Agent has agreed to serve as collateral  agent under this Agreement;
and

                                      -2-

<PAGE>

                  WHEREAS,   the  Collateral  Agent,  for  the  benefit  of  the
Participating  Creditors,  and the Pledgor are entering into this Second Amended
and Restated Parent Stock Pledge and Security Agreement to amend and restate the
Prior Stock  Pledge and  Security  Agreement to secure or continue to secure the
prompt and complete payment, performance and observance of the Obligations under
the Note  Agreement,  the  Credit  Agreement  and the other  Credit  Transaction
Documents (as hereinafter defined).

                  NOW,  THEREFORE,  in consideration of the foregoing  premises,
the  mutual   covenants   contained   herein,   and  other  good  and   valuable
consideration,  the receipt and  adequacy of which is hereby  acknowledged,  the
Pledgor hereby agrees in favor of Secured Party as follows:

                  1.       DEFINED TERMS.

                  (a) When used  herein,  the  following  terms  shall  have the
following meanings:

                  "Actionable Default" shall mean any Event of Default under and
         as defined in the Credit Agreement or any Event of Default under and as
         defined in the Note Agreement.

                  "Affiliate" shall mean any Person (other than the Pledgor) (i)
         which  directly  or  indirectly  through  one  or  more  intermediaries
         controls,  or is controlled  by, or is under common  control with,  the
         Pledgor,  (ii) which beneficially owns or holds 5% or more of any class
         of the voting stock of the  Pledgor,  (iii) of which the Pledgor or the
         Borrower or shareholders of the Pledgor  beneficially own or hold 5% or
         more of the  voting  stock  (or in the case of a Person  which is not a
         corporation,  5% or  more of the  equity  interest),  or (iv)  who is a
         member  of the Board of  Directors  of the  Pledgor  or a member of the
         immediate family of any such Person. The term "immediate family" of any
         Person shall include the spouse,  brothers,  sisters and descendants of
         such  Person.  The term  "control"  means the  possession,  directly or
         indirectly,  of the  power to  direct  or cause  the  direction  of the
         management and policies of a Person,  whether  through the ownership of
         voting stock,  by contract or otherwise.  The term "voting stock" means
         the shares of stock or other equity  interest of a Person that,  in the
         normal  course of  affairs,  have the power to elect  directors  or the
         members of any policy making board of such Person.

                  "Agent"  shall  have the  meaning  set  forth in the  recitals
         hereto.

                  "Bank  Creditors"  shall  have the  meaning  set  forth in the
         recitals hereto.

                  "Bank  Guaranty"  shall  mean,  collectively,  the Parent Bank
         Guaranty and the Subsidiary Bank Guaranty.

                  "Borrower"   shall  mean  Covenant  Asset   Management,   Inc.
         (formerly known as Covenant Leasing, Inc.), a Nevada corporation.

                  "Code" shall mean the Uniform Commercial Code as the same may,
         from time to time,  be in effect in the State of  Tennessee;  provided,
         however,  in the event that, by reason of mandatory  provisions of law,
         any or all of the attachment, perfection or priority of

                                      -3-

<PAGE>

         Secured Party's security  interest in any Collateral is governed by the
         Uniform  Commercial Code as in effect in a jurisdiction  other than the
         State of Tennessee,  the term "Code" shall mean the Uniform  Commercial
         Code as in  effect  in such  other  jurisdiction  for  purposes  of the
         provisions  hereof relating to such attachment,  perfection or priority
         and for purposes of definitions related to such provisions.

                  "Collateral  Agent"  shall have the  meaning  set forth in the
         recitals hereto.

                  "Credit  Agreement"  shall have the  meaning  set forth in the
         recitals hereto.

                  "Credit Transaction  Documents" shall mean the Note Agreement,
         the  Notes,  the  Notes  Guarantee,   the  Bank  Guaranty,  the  Credit
         Agreement, the Security Documents, the other Loan Documents (as defined
         in the Credit Agreement) and the Intercreditor Agreement.

                  "CTI" means Covenant Transport, Inc., a Tennessee corporation,
         and its successors and assigns.

                  "Intercreditor  Agreement" shall have the meaning set forth in
         the recitals hereto.

                  "Lenders"  shall have the  meaning  set forth in the  recitals
         hereto.

                  "Lien", as applied to the property or assets (or the income or
         profits therefrom) of any Person, shall mean (in each case, whether the
         same is consensual or nonconsensual or arises by contract, operation of
         law,  legal process or  otherwise):  any mortgage,  security  interest,
         lien, pledge,  attachment,  financing statement, levy, charge, or other
         encumbrance  of any kind in respect of any  property  or assets of such
         Person, or upon the income or profits therefrom.  For this purpose, the
         Pledgor  shall be deemed to own subject to a Lien any asset that it has
         acquired or holds  subject to the  interest of a vendor or lessor under
         any conditional sale agreement,  capital lease or other title retention
         agreement relating to such asset.

                  "Note  Agreement"  shall  have the  meaning  set  forth in the
         recitals hereto.

                  "Noteholders" shall have the meaning set forth in the recitals
         hereto.

                  "Notes"  shall  have the  meaning  set  forth in the  recitals
         hereto.

                  "Notes  Guarantee" shall mean,  collectively,  the Parent Note
         Guarantee and the Subsidiary Note Guaranty.

                  "Obligations"  shall  mean all  indebtedness,  obligations  or
         liabilities (including,  without limitation,  all principal,  interest,
         premium,  fees,  reimbursement   obligations,   indemnity  obligations,
         collection  costs and other  amounts) now or hereafter  owing by any or
         all of the Obligors to any or all of the Participating Creditors and/or
         the  Collateral  Agent  under  any or all  of  the  Credit  Transaction
         Documents (and  specifically  including all

                                      -4-

<PAGE>

         "Obligations" as defined in the Credit Agreement and the obligations of
         the Parent under the Parent Bank Guaranty).

                  "Obligors"   shall  mean  the  Borrower,   the  Pledgor,   the
         Subsidiary  Guarantors,  and any  other  guarantor  of the  Obligations
         arising under the Notes and the Note Agreement or the Credit Agreement.

                  "Parent Bank Guaranty" shall have the meaning set forth in the
         recitals hereto.

                  "Parent  Note  Guarantee"  shall have the meaning set forth in
         the recitals hereto.

                  "Participating  Creditors" shall have the meaning set forth in
         the recitals hereto.

                  "Person"  means  an  individual,   corporation,   partnership,
         limited  liability  company,  trust or unincorporated  organization,  a
         government or any agency or political subdivision thereof.

                  "Pledged  Securities"  shall have the meaning assigned to such
         term in Section 4.2 hereof.

                  "Pledged  Stock" shall have the meaning  assigned to such term
         in Section 3 hereof.

                  "Pledgor"  shall  mean  Covenant  Transport,  Inc.,  a  Nevada
         corporation.

                  "Post-Maturity  Rate"  shall  mean (i) when used in respect of
         Obligations  owing  to  any  Noteholder,   the  applicable  default  or
         post-maturity  rate specified in the Note Agreement or the Notes,  (ii)
         when used in respect of  Obligations  owing to any Bank  Creditor,  the
         applicable Default Rate (as defined in the Credit Agreement), and (iii)
         when used in respect of any other Obligations hereunder, the highest of
         any of the foregoing default or post-maturity rates.

                  "Prior Bank Creditors" shall mean ABN AMRO Bank, N.V. ("ABN"),
         as agent under the Prior Credit Agreement,  and ABN, AmSouth Bank, N.A.
         (successor by merger to First American National Bank), Bank of America,
         N.A.,  Bank One,  N.A.,  and SunTrust  Bank, as lenders under the Prior
         Credit Agreement.

                  "Prior Collateral Agent" shall mean First Union National Bank,
         as Collateral Agent under the Prior Intercreditor Agreement.

                  "Prior Credit  Agreement"  shall mean that certain Amended and
         Restated  Credit  Agreement  dated as of June 18,  1999 among CTI,  the
         Borrower,  and the Prior Bank  Creditors,  as  further  amended in that
         certain  Amendment to Amended and Restated Credit Agreement dated as of
         June 6, 2000 among CTI, the Borrower,  and the Prior Bank Creditors (as
         the same may have been  amended,  restated,  supplemented  or otherwise
         modified from time to time).

                                      -5-

<PAGE>

                  "Prior  Intercreditor  Agreement"  shall have the  meaning set
         forth in the recitals hereto.

                  "Security  Document"  shall  mean  each of the  documents  and
         agreements defined as a "Security  Document" in the Note Agreement or a
         "Security Instrument" in the Credit Agreement and shall include any and
         all  agreements,   assignments,   mortgages,  deeds  or  other  similar
         documents under which the Collateral Agent in now or hereafter  granted
         a Lien in any collateral to secure the Obligations,  including  without
         limitation this Agreement.

                  "Subsidiary Bank Guaranty" shall have the meaning set forth in
         the recitals hereto.

                  "Subsidiary   Guarantors"   shall  mean   Covenant.com,   Inc.
         (formerly known as Covenant Acquisition Co. and C & F Acquisition Co.),
         a  Nevada  corporation,  CIP,  Inc.  (formerly  known  as  Intellectual
         Property Co.), a Nevada corporation,  Southern Refrigerated  Transport,
         Inc., an Arkansas corporation,  Tony Smith Trucking,  Inc., an Arkansas
         corporation,   Harold  Ives  Trucking  Co.,  an  Arkansas  corporation,
         Terminal  Truck  Broker,  Inc., an Arkansas  corporation,  CTI, and any
         other subsidiary, direct or indirect, of the Pledgor that may hereafter
         become a party to a  guaranty  agreement  pursuant  to the terms of the
         Credit Agreement or the Note Agreement.

                  "Subsidiary Note Guaranty" shall have the meaning set forth in
         the recitals hereto.

                  (b) The  definitions  in this Section 1 shall apply equally to
both the singular and plural forms of the terms  defined,  with the exception of
the term "Borrower." Whenever the context may require, any pronoun shall include
the  corresponding  masculine,  feminine and neuter forms.  The words "include",
"includes" and "including" shall be deemed to be followed by the phrase "without
limitation".  All  references  herein to Articles and  Sections  shall be deemed
references to Articles and Sections of this  Agreement  unless the context shall
otherwise require.  All references herein to any Person,  other than an Obligor,
shall be deemed to include such Person's  successors,  transferees  and assigns.
All  references  herein to any Obligor shall be deemed to include such Obligor's
successors. All references herein to any Credit Transaction Document shall be to
such document as the terms thereof may have been amended,  supplemented,  waived
or otherwise modified from time to time in accordance with the terms thereof and
hereof.

                  2. SECURITY FOR  OBLIGATIONS  ETC.  This  Agreement is for the
benefit  of the  Secured  Party,  as  collateral  agent for the  benefit  of the
Participating Creditors, to secure the prompt and complete payment,  performance
and observance of the Obligations,  including without limitation all Obligations
incurred by the Pledgor  pursuant to each of the Parent Note  Guarantee  and the
Parent Bank Guaranty.

                  3. PLEDGED  STOCK.  As used herein,  the term "Pledged  Stock"
shall mean all of the issued and  outstanding  shares of every  class of capital
stock of the  Subsidiaries of the Pledgor set forth on Schedule 1, and all other
shares  of  such  stock  or  other   equity   interests   issued

                                      -6-

<PAGE>

by or equity participations in any Subsidiary of the Pledgor which may be now or
hereafter owned by the Pledgor.  The Pledgor represents and warrants that on the
date hereof (a) the Pledged  Stock  consists of the number and type of shares of
the capital stock of the  Subsidiaries of the Pledgor as described on Schedule 1
attached  hereto;  (b) the  Pledgor is the holder of record and sole  beneficial
owner  of such  Pledged  Stock;  and  (c)  the  Pledged  Stock  constitutes  the
percentage  of the  issued  and  outstanding  capital  stock  of  each  of  such
Subsidiaries as set forth on Schedule 1.

                  4.    PLEDGE OF SECURITIES, ETC.

                  4.1   Pledge.   To  secure  the  full  and   timely   payment,
performance, and observance of the Obligations and for the purposes set forth in
Section 2, the Pledgor hereby pledges and grants to the Secured Party a security
interest in the Pledged Stock,  together with (i) the certificates  representing
such Pledged  Stock  accompanied  by stock powers duly  executed in blank by the
Pledgor, (ii) all dividends (whether in cash, stock, warrants, options, or other
securities),  cash,  instruments  or other  property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any and all
of the Pledged Stock,  and (iii) all proceeds of any of the  foregoing;  and the
Pledgor hereby  assigns,  transfers,  hypothecates  and sets over to the Secured
Party all of the Pledgor's right, title and interest in and to the Pledged Stock
(and in and to the certificates or instruments evidencing the items described in
clauses (i) and (ii) above) to be held by the Secured Party,  upon the terms and
conditions  set forth in this  Agreement.  The Pledgor  agrees to deliver to the
Secured  Party the items  described in clause (i) above on the date hereof,  and
all certificates  and instruments  evidencing the items described in clause (ii)
above promptly upon the Pledgor's receipt thereof.

                  4.2  Definition  of Pledged  Securities  and  Collateral.  The
Pledged  Stock  and all  items  described  in  clause  (ii) of  Section  4.1 are
hereinafter  called  the  "Pledged  Securities",  and  the  Pledged  Securities,
together with all other  securities and monies and other property pledged to the
Secured  Party  hereunder  and  any  proceeds  of  any  of  the  foregoing,  are
hereinafter called the "Collateral".

                  5. APPOINTMENT OF SUB-AGENTS;  ENDORSEMENTS,  ETC. The Secured
Party  shall have the right to  appoint  one or more  agents for the  purpose of
retaining  physical  possession  of the  Pledged  Stock or any other  Collateral
pledged hereunder, which may be held (if applicable and in the discretion of the
Secured  Party) in the name of the Pledgor,  endorsed or assigned in blank or in
favor of the Secured Party or any nominee or nominees of the Secured Party or an
agent appointed by the Secured Party.

                  6. VOTING,  ETC. Unless and until an Actionable  Default shall
have occurred and be continuing or would be caused thereby, the Pledgor shall be
entitled  to vote any and all  Pledged  Stock and to give  consents,  waivers or
ratifications  in respect  thereof;  provided  that no vote shall be cast or any
consent, waiver or ratification given or any action taken which would violate or
be  inconsistent  with any of the terms of this  Agreement  or any other  Credit
Transaction Document; provided, further, that the Pledgor shall give the Secured
Party at least ten (10) days'  written  notice of the manner in which it intends
to exercise,  or the reasons for refraining from  exercising,  any such right if
the  exercise  or  non-exercise  of such  right  potentially  may  violate or be
inconsistent with the aforementioned  agreements. All such rights of the Pledgor
to vote and to give

                                      -7-

<PAGE>

consents,  waivers and ratifications  shall cease in case an Actionable  Default
shall occur and be continuing, and Section 8 hereof shall become applicable.

                  7.  DIVIDENDS  AND OTHER  DISTRIBUTIONS.  In  accordance  with
Section  4.1,  the  Pledgor  shall at all times be  required  to  deliver to the
Collateral Agent,  promptly upon receipt thereof,  each of the following,  which
the Secured Party shall be allowed to retain as part of the Collateral:

                          (a) all other or  additional  stock or  securities  or
         property  (other than cash) paid or  distributed  by way of dividend in
         respect of the Pledged Securities;

                          (b) all other or additional  stock or other securities
         or  property  (including  cash) paid or  distributed  in respect of the
         Pledged   Securities  by  way  of  stock-split,   spin-off,   split-up,
         reclassification, combination of shares or similar rearrangement; and

                          (c) all other or additional  stock or other securities
         or property  which may be paid in respect of the Pledged  Securities by
         reason of any consolidation,  merger,  exchange of stock, conveyance of
         assets, liquidation or similar corporate reorganization.

         Unless an  Actionable  Default shall have occurred and be continuing or
would be caused  thereby,  all cash dividends  payable in respect of the Pledged
Securities  shall  be paid to the  Pledgor,  but  only to the  extent  (if  any)
permitted by the Credit  Transaction  Documents.  Upon the occurrence and at all
times during the continuance of an Actionable  Default,  the Secured Party shall
be entitled to receive  directly,  and to retain as part of the Collateral,  all
such cash dividends.  In the event that at any such time any such cash dividends
are paid  directly to the Pledgor,  the Pledgor shall hold the same in trust for
the  benefit  of the  Collateral  Agent and shall  promptly  cause all such cash
dividends to be delivered to the Agent.

                          7.1  Additional  Interests.  The  Pledgor  agrees  and
covenants  that it will cause each  Subsidiary  of the  Pledgor not to issue any
stock or other  securities  in  addition to or in  substitution  for the Pledged
Stock set forth on Schedule 1 except to the Pledgor. If the Pledgor shall at any
time acquire or hold any additional  Pledged Stock,  including any Pledged Stock
issued by any Subsidiary not listed on Schedule I hereto which is required to be
subject to a Lien  pursuant to the terms hereof or of Article V or Article IX of
the Credit Agreement or any other provision of any Credit  Transaction  Document
(any such  shares or other  equity  interests  or  equity  participations  being
referred to herein as the "Additional Interests"),  the Pledgor shall deliver to
the Secured Party for the benefit of the  Participating  Creditors (i) a revised
Schedule  I hereto  reflecting  the  ownership  and  pledge  of such  Additional
Interests,  (ii) a Pledge  Agreement  Supplement in the form of Exhibit A hereto
with respect to such  Additional  Interests  duly  completed and executed by the
Pledgor,  (iii) any other document  required in connection  with such Additional
Interests as  described  in Section 4.1 or as  otherwise  required by the Credit
Transaction  Documents  and (iv) any other  instruments,  agreements,  financing
statements  (and amendments  thereto and  continuations  thereof),  assignments,
control agreements, or other

                                      -8-

<PAGE>

writings  as the  Secured  Party may  request  from time to time to  protect  or
enforce the  Collateral  Agent's  Lien and security  interest in the  Additional
Interests  for the benefit of the  Participating  Creditors.  The Pledgor  shall
comply  with  the  requirements  of  this  Section  7.1  concurrently  with  the
acquisition  of any  such  Additional  Interests;  provided,  however,  that the
failure to comply with the  provisions  of this Section 7.1 shall not impair the
Lien on Additional  Interests  conferred by the Pledgor to the Collateral  Agent
for the benefit of the Participating Creditors hereunder.

                  8. DEFAULT; REMEDIES. In case an Actionable Default shall have
occurred and be continuing,  the Secured Party shall be entitled to exercise all
of the rights,  powers and remedies  (whether  vested in it by this Agreement or
any  other  Credit  Transaction  Document,  or by law,  and  including,  without
limitation,  all rights and  remedies of a secured  party of a debtor in default
under the Code) for the protection  and  enforcement of its rights in respect of
the Collateral,  and the Secured Party shall be entitled, without limitation, to
exercise  the  following   rights,   which  the  Pledgor  hereby  agrees  to  be
commercially reasonable:

                  (i)  upon  the  declaration  by the  applicable  Participating
         Creditor of any or all of the  Obligations  to be  immediately  due and
         payable or upon any or all of such Obligations  otherwise  becoming due
         and payable,  to foreclose  or  otherwise  enforce the Secured  Party's
         security  interest  in or  other  Lien  hereunder  on any or all of the
         Collateral  in any  manner  permitted  by law or  provided  for in this
         Agreement;

                  (ii) to  recover  from the  Pledgor  all  cost  and  expenses,
         including, without limitation,  reasonable attorney's fees, incurred or
         paid by or on behalf of the Secured  Party in  exercising  or enforcing
         any  right,  power,  or  remedy  with  respect  to  any  or  all of the
         Collateral  provided  to the  Secured  Party  by this  Agreement  or by
         applicable law;

                  (iii)  to  receive  all  amounts  payable  in  respect  of the
         Collateral  otherwise  payable  under  Section 7 to the  Pledgor and to
         enforce the payment of the Pledged  Securities  and to exercise  all of
         the rights, powers, and remedies of the Pledgor thereunder;

                  (iv) to transfer  all or any part of the  Collateral  into the
         Secured Party's name or the name of its nominee or nominees;

                  (v) to vote all or any part of the Collateral  (whether or not
         transferred  into the name of the Secured Party) and give all consents,
         waivers and  ratifications  in respect of the  Collateral and otherwise
         act with respect thereto as though it were the outright owner thereof;

                  (vi) at any  time or from  time to time to  sell,  assign  and
         deliver,  or  grant  options  to  purchase,  all  or  any  part  of the
         Collateral  in one or more  parcels,  or any interest  therein,  at any
         public or private sale at any exchange, broker's board or at any of the
         Secured  Party's offices or elsewhere,  without,  to the fullest extent
         permitted by law, demand of performance or  advertisement  of intention
         to sell or of the time or place of sale or  adjournment  thereof  or to
         redeem or otherwise (all of

                                      -9-
<PAGE>

         which are hereby expressly and irrevocably waived by the Pledgor),  for
         cash, on credit or for other property, for immediate or future delivery
         without any assumption of credit risk, and for such price or prices and
         on  such  terms  as the  Secured  Party  in  its  sole  discretion  may
         determine;  the Pledgor  agrees that at least ten (10) days'  notice of
         sale to the  Pledgor  of the time and place of any  public  sale or the
         time  after  which  any  private  sale is to be made  shall  constitute
         reasonable  notification;  the Secured  Party shall not be obligated to
         make any sale of  Collateral  regardless  of notice of sale having been
         given;  the Secured  Party may adjourn any public or private  sale from
         time to time by announcement at the time and place fixed therefor,  and
         any such  sale may,  without  further  notice,  be made at the time and
         place to which it was so  adjourned;  the  Pledgor  hereby  waives  and
         releases to the fullest extent  permitted by law any right or equity of
         redemption with respect to the Collateral, whether before or after sale
         hereunder,  and all rights,  if any, of marshalling  the Collateral and
         any other security for the Obligations or otherwise;  at any such sale,
         unless  prohibited by applicable law, the Secured Party may bid for and
         purchase all or any part of the  Collateral  so sold free from any such
         right or equity  of  redemption;  and the  Secured  Party  shall not be
         liable  for  failure  to  collect  or  realize  upon  any or all of the
         Collateral  or for any delay in so doing nor shall the Secured Party be
         under any obligation to take any action whatsoever with regard thereto.
         Pledgor  recognizes  that the  Secured  Party may be unable to effect a
         public  sale  of the  Collateral  by  reason  of  certain  prohibitions
         contained in the  Securities  Act of 1933, as amended (the  "Securities
         Act"),  and  applicable  state  law,  and may be  otherwise  delayed or
         adversely affected in effecting any sale by reason of present or future
         restrictions thereon imposed by governmental authorities, and that as a
         consequence of such prohibitions and restrictions the Secured Party may
         be compelled (i) to resort to one or more private sales to a restricted
         group of purchasers  who will be obliged to agree,  among other things,
         to acquire the Collateral for their own account, for investment and not
         with a view to the  distribution  or  resale  thereof,  or (ii) to seek
         regulatory  approval of any proposed  sale or sales,  or (iii) to limit
         the  amount of  Collateral  sold to any  Person or group.  The  Pledgor
         agrees and acknowledges that private sales so made may be at prices and
         upon terms less  favorable to Pledgor than if such  Collateral was sold
         either  at  public  sales or at  private  sales  not  subject  to other
         regulatory  restrictions,  and that the Secured Party has no obligation
         to  delay  the sale of any of the  Collateral  for the  period  of time
         necessary  to permit the issuer of the  Pledged  Stock to  register  or
         otherwise  qualify it,  even if such issuer  would agree to register or
         otherwise  qualify such Collateral for public sale under the Securities
         Act or applicable state law. The Pledgor further agrees,  to the extent
         permitted by  applicable  law, that the use of private sales made under
         the  foregoing  circumstances  to  dispose of the  Collateral  shall be
         deemed to be  dispositions  in a commercially  reasonable  manner.  The
         Pledgor hereby  acknowledges  that a ready market may not exist for the
         Pledged Stock if it is not traded on a national  securities exchange or
         quoted on an  automated  quotation  system and agrees and  acknowledges
         that in such  event the  Pledged  Stock may be sold for an amount  less
         than a pro rata share of the fair market value of the  issuer's  assets
         minus its liabilities.  In addition to the foregoing, the Secured Party
         may exercise

                                      -10-

<PAGE>

         such other  rights and  remedies as may be  available  under the Credit
         Transaction  Documents,  at law (including without limitation the Code)
         or in equity;

                  (vii) to settle, adjust,  compromise and arrange all accounts,
         controversies,  questions, claims and demands whatsoever in relation to
         all or any part of the Collateral;

                  (viii)  to  execute  all such  contracts,  agreements,  deeds,
         documents  and  instruments;  to bring,  defend  and  abandon  all such
         actions, suits and proceedings;  and to take all actions in relation to
         all or any  part of the  Collateral  as the  Secured  Party in its sole
         discretion may determine;

                  (ix) to appoint  managers,  agents,  officers and servants for
         any of the  purposes  mentioned  in the  foregoing  provisions  of this
         Section 8 and to dismiss the same, all as the Secured Party in its sole
         discretion may determine; and

                  (x)  generally,  to take all such other  action as the Secured
         Party in its sole  discretion  may determine as incidental or conducive
         to any of the matters or powers  mentioned in the foregoing  provisions
         of this  Section 8 and which the  Secured  Party may or can do lawfully
         and to use the name of the Pledgor for the  purposes  aforesaid  and in
         any proceedings arising therefrom.

                  9. REMEDIES, ETC., CUMULATIVE. Each right, power and remedy of
the Secured Party provided for in this Agreement or any other Credit Transaction
Document or now or hereafter existing at law or in equity or by statute shall be
cumulative  and  concurrent  and shall be in addition to every other such right,
power or remedy.  The exercise or beginning of the exercise by the Secured Party
of any  one or more of the  rights,  powers  or  remedies  provided  for in this
Agreement or any other Credit Transaction  Document or now or hereafter existing
at  law  or in  equity  or by  statute  or  otherwise  shall  not  preclude  the
simultaneous  or later  exercise by the Secured  Party of all such other rights,
powers or remedies,  and no failure or delay on the part of the Secured Party to
exercise any such right, power or remedy shall operate as a waiver thereof.

                  10.  APPLICATION  OF  PROCEEDS.  All monies  collected  by the
Secured Party upon any sale or other  disposition  of the  Collateral,  together
with all other monies received by the Secured Party hereunder,  shall be applied
in accordance with the terms of the Intercreditor Agreement.

                  11.  PURCHASERS  OF  COLLATERAL.  Upon  any sale of any of the
Collateral  hereunder  (whether by virtue of the power of sale  herein  granted,
pursuant to judicial process or otherwise),  the receipt of the Secured Party or
the officer making the sale shall be a sufficient  discharge to the purchaser or
purchasers of the Collateral so sold, and such purchaser or purchasers shall not
be obligated to see to the  application  of any part of the purchase  money paid
over to the Secured  Party or such officer or be  answerable  in any way for the
misapplication or nonapplication thereof.

                                      -11-

<PAGE>

                  12. FURTHER  ASSURANCES.  The Pledgor agrees that it will join
with the Secured  Party in executing  and, at its own  expense,  file and refile
under the Code such  financing  statements,  continuation  statements  and other
documents in such offices as the Secured Party may deem necessary or appropriate
and  wherever  required or permitted by law in order to perfect and preserve the
Secured Party's  security  interest in the Collateral and hereby  authorizes the
Secured Party to file financing  statements and amendments  thereto  relative to
all or any part of the  Collateral  without the  signature of the Pledgor  where
permitted  by law, and agrees to do such further acts and things and to promptly
execute  and  deliver  to  the  Secured  Party  such   additional   conveyances,
assignments,  agreements  and  instruments  as the Secured Party may  reasonably
require or deem advisable to carry into effect the purposes of this Agreement or
to further  assure and  confirm  unto the Secured  Party its rights,  powers and
remedies hereunder.

         All filing  fees,  advances,  charges,  costs and  expenses,  including
reasonable  attorneys'  fees,  incurred or paid by the  Collateral  Agent or any
Participating  Creditor in exercising  any right,  power or remedy  conferred by
this Pledge Agreement, or in the enforcement thereof, shall become a part of the
Obligations  secured hereunder and shall be paid to the Collateral Agent for the
benefit of the  Participating  Creditors by the Pledgor  immediately upon demand
therefor, and any amounts not so paid on demand (in addition to other rights and
remedies  resulting from such  nonpayment)  shall bear interest from the date of
demand until paid in full at the Post-Maturity Rate.

                  13.     THE SECURED PARTY AS COLLATERAL AGENT.

                  (a) The  Secured  Party  will  hold in  accordance  with  this
Agreement and the other Credit Transaction Documents all items of the Collateral
at any time received under this Agreement. It is expressly understood and agreed
that the  obligations  of the  Secured  Party as  holder of the  Collateral  and
interests  therein and with respect to the  disposition  thereof,  and otherwise
under this Agreement,  are only those expressly set forth in this Agreement, the
Intercreditor Agreement, and the other Credit Transaction Documents.

                  (b) The  Secured  Party  shall  be  deemed  to have  exercised
reasonable  care  in the  custody  and  preservation  of the  Collateral  in its
possession if the Collateral is accorded treatment  substantially  equal to that
which  the  Secured  Party  accords  other  similar  property  held in a similar
capacity as collateral  agent, it being  understood that the Secured Party shall
not have  responsibility  for (i)  ascertaining or taking action with respect to
calls, conversions,  exchanges, maturities, tenders or other matters relative to
any  Collateral,  whether  or not the  Secured  Party  has or is  deemed to have
knowledge of such matters, or (ii) taking any necessary steps to preserve rights
against any parties with respect to any Collateral.

                  14.   REPRESENTATIONS  AND  WARRANTIES.   The  Pledgor  hereby
represents and warrants that (i) it is the legal record and beneficial owner of,
and has good and marketable  title to, the Pledged Stock  described in Section 3
hereof, subject to no pledge, Lien, mortgage, hypothecation,  security interest,
charge,  option or other encumbrance  whatsoever,  except the Liens and security
interests created by this Agreement or expressly  permitted by this Agreement or
the other Credit Transaction  Documents;  (ii) it has full power,  authority and
legal right to pledge all the Pledged Stock pursuant to this Agreement; (iii) no
consent of any other party (including,

                                      -12-

<PAGE>

without  limitation,   any  stockholder  or  creditor  of  the  Pledgor  or  any
Subsidiary) and no order,  consent,  license,  permit,  approval,  validation or
authorization of, exemption by, notice to or registration,  recording, filing or
declaration with, any governmental or public body or authority is required to be
obtained  by  the  Pledgor  in  connection  with  the  execution,   delivery  or
performance of this Agreement or consummation of the  transactions  contemplated
hereby, including,  without limitation, the exercise by the Secured Party of the
voting or other rights provided for in this Agreement or the remedies in respect
of the  Collateral  pursuant  to this  Agreement,  except as may be  required in
connection with the disposition of the Pledged  Securities by laws affecting the
offering and sale of  securities  generally  (or except as may already have been
obtained);  (iv) all shares of Pledged Stock have been duly and validly  issued,
are fully paid and  nonassessable;  (v) the pledge and  delivery  of the Pledged
Securities  pursuant  to this  Agreement  creates  a valid and  perfected  first
priority security interest in the Pledged Securities,  and the proceeds thereof,
which  security  interest is not subject to any prior Lien or encumbrance or any
agreement  purporting to grant to any third party a Lien or  encumbrance  on the
property or assets of the Pledgor  which would  include the Pledged  Securities;
(vi) execution, delivery, and performance of this Agreement will not violate, or
cause default under or result in a Lien (other than the Secured Party's security
interest and Lien hereunder)  upon any property of the Pledgor  pursuant to, any
applicable law, rule or regulation or any agreement, indenture, judgment, order,
decree,  or  instrument  binding  upon or  affecting  the  Pledgor or any of the
Collateral;  (vii) all information heretofore,  herein, or hereafter supplied to
the  Secured  Party by or on behalf of the  Pledgor  with  respect to any of the
Collateral  is or will be true and correct in all material  respects at the time
so  supplied;  and (viii) the Pledgor  has  delivered  to the Secured  Party all
instruments,  documents,  and chattel  paper,  and other items of  Collateral in
which the Secured Party's security  interest or Lien hereunder must be perfected
by  possession,  together  with such  additional  writings,  including,  without
limitation,  duly executed blank and undated  assignments and stock powers, with
respect thereto as the Secured Party shall request.

                  15.     COVENANTS OF THE PLEDGOR.

                          (a) The  Pledgor  covenants  and  agrees  that (i) the
Pledgor will defend the Secured  Party's right,  title and security  interest in
and to the Pledged  Securities and the proceeds  thereof  against the claims and
demands of all persons whomsoever;  (ii) the Pledgor will have like title to and
right to pledge any other property at any time hereafter  pledged to the Secured
Party as Collateral  hereunder  and will  likewise  defend the right thereto and
security  interest therein of the Secured Party;  (iii) the Pledgor shall do all
acts that may be necessary to maintain,  preserve,  and protect the  Collateral;
(iv) the Pledgor shall not sell or encumber or otherwise  dispose of or transfer
any Collateral or any right or interest therein,  and the Pledgor shall keep the
Collateral  free of all levies,  security  interests or other liens,  charges or
encumbrances except those Liens and security interests created by this Agreement
or  expressly  permitted  by this  Agreement  or the  other  Credit  Transaction
Documents or those approved in writing by the Secured Party; and (v) the Pledgor
will not, with respect to any Collateral, enter into any shareholder agreements,
voting agreements,  voting trusts, trust deeds, irrevocable proxies or any other
similar agreements or instruments.

                          (b) At no time shall any Pledged  Stock (i) be held or
maintained in the form of a security  entitlement  or credited to any securities
account  or (ii)  which  constitutes  a  "security"  (or as to which the  issuer
thereof  has elected to have  treated as a  "security")  under

                                      -13-

<PAGE>

Article 8 of the Code, be maintained in the form of  uncertificated  securities.
With respect to Pledged  Stock that are  "securities"  under the Code,  or as to
which the issuer thereof has elected at any time to have such interests  treated
as  "securities"  under the Code,  such Pledged Stock is, and shall at all times
be,  represented by the share  certificates  listed on Schedule I hereto,  which
share  certificates,  with stock  powers  duly  executed in blank by the Pledgor
(which blank stock powers shall be sufficient to transfer title from the Pledgor
once  completed  and  dated),  have  been  delivered  to the  Agent or are being
delivered to the Agent  simultaneously  herewith  or, in the case of  Additional
Interests as defined in Section 7.1, shall be delivered pursuant to Section 7.1.
At no time shall the Pledgor elect,  or cause or allow any Subsidiary  Guarantor
or other issuer of Pledged  Stock to elect,  not to treat any Pledged Stock as a
"security" under Article 8 of the Code if such election is available.

                  16. PLEDGOR'S  OBLIGATIONS  ABSOLUTE,  ETC. The obligations of
the  Pledgor  under  this  Agreement  shall be  absolute  and  unconditional  in
accordance  with its terms and shall  remain in full  force and  effect  without
regard to,  and shall not be  released,  suspended,  discharged,  terminated  or
otherwise  affected by, any  circumstance or occurrence  whatsoever,  including,
without  limitation:  (a) any change in the time, place or manner of payment of,
or in any other term of, all or any of the Obligations,  any waiver, indulgence,
renewal,  extension,  amendment  or  modification  of or  addition,  consent  or
supplement  to or  deletion  from or any other  action or  inaction  under or in
respect  of the  Credit  Transaction  Documents  or any of the other  documents,
instruments or agreements relating to the Obligations or any other instrument or
agreement referred to therein or any assignment or transfer of any thereof;  (b)
any lack of validity or  enforceability of the Credit  Transaction  Documents or
any other  documents,  instruments  or  agreement  referred  to  therein  or any
assignment  or transfer of any thereof;  (c) any  furnishing  of any  additional
security to the Secured  Party or any  Participating  Creditor,  or any assignee
thereof or any acceptance  thereof or any release of any security by the Secured
Party or any Participating  Creditor or any assignee thereof; (d) any limitation
on any party's  liability or obligations  under any such instrument or agreement
or any  invalidity  or  unenforceability,  in  whole  or in  part,  of any  such
instrument or agreement or any term  thereof;  (e) any  bankruptcy,  insolvency,
reorganization,  composition, adjustment, dissolution, liquidation or other like
proceeding  relating to the Pledgor or the  Borrower,  or any action  taken with
respect to this  Agreement by any trustee or receiver,  or by any court,  in any
such  proceeding,  whether or not the Pledgor  shall have notice or knowledge of
any of the foregoing; or (f) any exchange, release or nonperfection of any other
collateral,  or any  release,  or amendment or waiver of or consent to departure
from any guaranty or security, for all or any of the Obligations.

                  17.   NOTICES,   ETC.   All   notices,   requests   and  other
communications  provided  for  hereunder  shall  be in  writing  and  personally
delivered (including overnight courier), mailed by certified or registered mail,
postage  prepaid and return receipt  requested,  or telecopied  (all  telecopier
notices promptly to be confirmed by mail or personal  delivery),  at the address
and telecopier  number of each party specified on the signature page hereof,  or
at such other  address or  telecopier  number as may be hereafter  designated by
notice  as  herein  provided.  All  such  notices  and  communications  shall be
effective or deemed  delivered or furnished  (i) if given by mail,  on the third
business day after such  communication  is  deposited in the mail,  addressed as
provided  herein,  (ii) if given  by  telecopier,  when  such  communication  is
transmitted  to the  appropriate  number  determined as provided  herein and the
appropriate  answer-back is received or receipt is otherwise

                                      -14-

<PAGE>

acknowledged,  and (iii) if given by hand  delivery or overnight  courier,  when
left at the address of the addressee  addressed as provided  above;  except that
notices of a change of address or telecopier number shall not be effective until
actually received.

                  18.  POWER OF  ATTORNEY.  The Pledgor  hereby  absolutely  and
irrevocably  constitutes  and appoints the Secured Party the Pledgor's  true and
lawful agent and attorney-in-fact,  with full power of substitution, in the name
of the Pledgor: (a) to execute and do all such assurances, acts and things which
the Pledgor ought to do but has failed to do under the covenants and  provisions
contained in this Agreement;  (b) to take any and all such action as the Secured
Party may, in its sole  discretion,  determine as necessary or advisable for the
purpose of  maintaining,  preserving or protecting  the security  constituted by
this  Agreement  or any of the rights,  remedies,  powers or  privileges  of the
Secured  Party  under  this  Agreement;  and (c)  generally,  in the name of the
Pledgor exercise all or any of the powers, authorities, and discretion conferred
on or  reserved  to the Secured  Party by or  pursuant  to this  Agreement,  and
(without  prejudice  to the  generality  of any of the  foregoing)  to seal  and
deliver  or  otherwise   perfect  any  instrument  or  document  of  conveyance,
agreement,  or act as the Secured Party may deem proper in or for the purpose of
exercising any of such powers,  authorities  or  discretion.  The Pledgor hereby
ratifies and confirms, and hereby agrees to ratify and confirm,  whatever lawful
acts the Secured Party shall do or purport to do in the exercise of the power of
attorney  granted to the Secured Party  pursuant to this Section 18, which power
of attorney, being given for security, is irrevocable.

                  19.  REINSTATEMENT.  This Agreement shall remain in full force
and effect and  continue  to be  effective  should any  petition  be filed by or
against the Pledgor or the Borrower for  liquidation or  reorganization,  should
the Pledgor or the  Borrower  become  insolvent  or make an  assignment  for the
benefit of creditors or should a receiver or trustee be appointed for all or any
significant part of their respective  assets, and shall continue to be effective
or be reinstated,  as the case may be, if at any time payment and performance of
the Obligations,  or any part thereof, is, pursuant to applicable law, rescinded
or reduced in amount,  or must  otherwise be restored or returned by any obligee
of the Obligations, whether as a "voidable preference",  "fraudulent conveyance"
or otherwise,  all as though such payment or  performance  had not been made. In
the event that any payment, or any part thereof, is rescinded, reduced, restored
or returned, the Obligations shall be reinstated and deemed reduced only by such
amount paid and not so rescinded, reduced, restored or returned.

                  20. TERMINATION,  RELEASE.  Subject to Section 19 hereof, this
Agreement  shall  terminate  upon the first day following the  occurrence of the
Facility Termination Date (as defined in the Credit Agreement) and the repayment
in full of all Obligations.

                  21.     MISCELLANEOUS.

                  (a) The Pledgor agrees with the Secured Party that each of the
obligations  and  liabilities  of the  Pledgor to the  Secured  Party under this
Agreement may be enforced  against the Pledgor  without the necessity of joining
the Borrower,  any other  holders of pledges of or security  interests in any of
the  Collateral,  or any  other  Person  as a  party.  This  Agreement  and  the
Intercreditor  Agreement  contain the entire agreement between the Secured Party
and the  Pledgor  with  respect  to the  Collateral  and  supersedes  all  prior
agreements, commitments,

                                      -15-

<PAGE>

understandings,  negotiations,  or  correspondence  between  them  with  respect
thereto.  This  Agreement  shall  create a continuing  security  interest in the
Collateral. This Agreement may be changed, waived, discharged or terminated only
in accordance with the provisions of the Credit  Transaction  Documents.  Unless
otherwise defined herein, terms defined in Article 9 of the Code in the State of
Tennessee are used herein as therein defined. The headings in this Agreement are
for purposes of reference only and shall not limit or define the meaning hereof.
This  Agreement  may be  executed in any number of  counterparts,  each of which
shall be an original,  but all of which shall constitute one instrument.  In the
event  that  any  provision  of this  Agreement  shall  prove to be  invalid  or
unenforceable,  such  provision  shall be deemed to be severable  from the other
provisions of this Agreement which shall remain binding on all parties hereto.

                  (b)  This  Pledge  Agreement,  and the  terms,  covenants  and
conditions hereof, shall be binding upon and inure to the benefit of the parties
hereto, and to their respective successors and assigns,  except that the Pledgor
shall not be permitted to assign this Pledge Agreement or any interest herein or
in the Collateral,  or any part thereof, or otherwise pledge,  encumber or grant
any option with respect to the Collateral,  or any part thereof,  or any cash or
property held by the Agent as Collateral  under this Pledge  Agreement.  Without
limiting the  generality of the foregoing  sentence of this Section  21(b),  any
Participating  Creditor  may assign to one or more  Persons,  or grant to one or
more  Persons  participations  in or to,  all  or any  part  of its  rights  and
obligations  under the Credit  Agreement (to the extent  permitted by the Credit
Agreement)  and  the  Note  Agreement  (to  the  extent  permitted  by the  Note
Agreement); and to the extent of any such assignment or participation such other
Person shall, to the fullest extent  permitted by law,  thereupon  become vested
with all the benefits in respect thereof granted to such Participating  Creditor
herein or otherwise,  subject  however,  to the provisions of the various Credit
Transaction  Documents.  All references  herein to the  Collateral  Agent or the
Secured  Party and to the  Participating  Creditors  shall include any successor
thereof or permitted  assignee,  and any other obligees from time to time of the
Obligations.

                  (c) The Secured  Party,  for the benefit of the  Participating
Creditors,  and the  Pledgor  hereby  consent to and agree with the terms of the
Intercreditor  Agreement and hereby  acknowledge and agree that each Lien in all
Collateral  now owned or  hereafter  acquired and all  remedies  available  with
respect  to such  Collateral  are  subject  to the  terms  of the  Intercreditor
Agreement.

                  22.   GOVERNING   LAW.  This  Agreement  and  the  rights  and
obligations of the parties  hereunder  shall be construed in accordance with and
be governed by the internal laws of the State of Tennessee.

                  23. Judicial  Proceedings;  Waiver of Jury Trial. ANY JUDICIAL
PROCEEDING  BROUGHT  AGAINST THE PLEDGOR WITH RESPECT TO THIS  AGREEMENT  MAY BE
BROUGHT IN ANY COURT OF COMPETENT  JURISDICTION IN THE STATE OF TENNESSEE,  AND,
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE PLEDGOR (A) ACCEPTS,  GENERALLY
AND  UNCONDITIONALLY,  THE  NONEXCLUSIVE  JURISDICTION  OF SUCH  COURTS  AND ANY
RELATED  APPELLATE COURT,  AND IRREVOCABLY  AGREES (WITHOUT WAIVING ANY RIGHT TO
APPEAL) TO BE BOUND BY ANY

                                      -16-

<PAGE>

JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT, AND (B) IRREVOCABLY
WAIVES ANY  OBJECTION IT MAY NOW OR  HEREAFTER  HAVE AS TO THE VENUE OF ANY SUCH
SUIT,  ACTION OR  PROCEEDING  BROUGHT  IN SUCH A COURT OR THAT SUCH  COURT IS AN
INCONVENIENT  FORUM.  THE PLEDGOR HEREBY WAIVES PERSONAL  SERVICE OF PROCESS AND
CONSENTS  THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED
MAIL,  RETURN  RECEIPT  REQUESTED  (WITH A COPY BY  OVERNIGHT  COURIER),  AT ITS
ADDRESS  SPECIFIED OR DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 17
HEREOF,  AND  SERVICE SO MADE SHALL BE DEEMED  COMPLETED  ON THE FIFTH DAY AFTER
SUCH SERVICE IS DEPOSITED IN THE MAIL.  NOTHING HEREIN SHALL AFFECT THE RIGHT TO
SERVE  PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF
THE SECURED PARTY TO BRING PROCEEDINGS  AGAINST THE PLEDGOR IN THE COURTS OF ANY
OTHER  JURISDICTION.  ANY JUDICIAL PROCEEDING BY THE PLEDGOR AGAINST THE SECURED
PARTY OR ANY  PARTICIPATING  CREDITOR  INVOLVING,  DIRECTLY OR  INDIRECTLY,  ANY
MATTER IN ANY WAY ARISING OUT OF,  RELATED TO, OR CONNECTED  WITH THIS AGREEMENT
SHALL BE BROUGHT ONLY IN A COURT  LOCATED IN THE CITY OF  CHATTANOOGA,  STATE OF
TENNESSEE. THE PLEDGOR AND THE SECURED PARTY, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW,  HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL  PROCEEDING TO WHICH
ANY ARE PARTIES INVOLVING,  DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING
IN TORT,  CONTRACT  OR  OTHERWISE)  IN ANY WAY  ARISING  OUT OF,  RELATED TO, OR
CONNECTED  WITH THIS  AGREEMENT OR THE  RELATIONSHIP  ESTABLISHED  HEREUNDER AND
WHETHER  ARISING OR  ASSERTED  BEFORE OR AFTER THE  AGREEMENT  DATE OR BEFORE OR
AFTER PAYMENT,  OBSERVANCE AND PERFORMANCE IN FULL OF THE PLEDGOR'S  OBLIGATIONS
HEREUNDER OR THEREUNDER.

                  24. Limitation of Liability. Neither the Secured Party nor any
Participating Creditor, nor any affiliate thereof, shall have any liability with
respect  to, and EXCEPT AS  OTHERWISE  EXPRESSLY  PROVIDED  HEREIN,  THE PLEDGOR
HEREBY  WAIVES,  RELEASES AND AGREES NOT TO SUE UPON, ANY CLAIM FOR ANY SPECIAL,
INDIRECT OR CONSEQUENTIAL DAMAGES (AS OPPOSED TO DIRECT DAMAGES) SUFFERED BY THE
PLEDGOR  IN  CONNECTION  WITH,  ARISING  OUT OF, OR IN ANY WAY  RELATED  TO THIS
AGREEMENT, OR THE TRANSACTIONS  CONTEMPLATED AND THE RELATIONSHIP ESTABLISHED BY
THIS AGREEMENT OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH.

                  25. Indemnification. Without limitation of Section 13.9 of the
Credit Agreement or any other indemnification  provision in the Credit Agreement
or any other Credit  Transaction  Document,  the Pledgor agrees to indemnify and
hold harmless the Secured Party, the Participating  Creditors, and each of their
affiliates,  and their respective officers,  directors,  employees,  agents, and
advisors (each, an  "Indemnified  Party"),  from and against any and all claims,
damages,   losses,   liabilities,   costs,  and  expenses  (including,   without
limitation,  reasonable

                                      -17-

<PAGE>

attorneys'  fees) that may be incurred  by or  asserted  or awarded  against any
Indemnified  Party,  in each case  arising  out of or in  connection  with or by
reason of (including,  without limitation, in connection with any investigation,
litigation or proceeding or preparation of defense in connection  therewith) the
Credit Transaction Documents, any of the transactions contemplated herein or the
actual or proposed  use of the  proceeds of the  extensions  of credit under the
Credit  Transaction  Documents  except to the extent such claim,  damage,  loss,
liability,  cost, or expense is found in a final,  non-appealable  judgment by a
court of competent  jurisdiction to have resulted from such Indemnified  Party's
gross  negligence  or  willful  misconduct.  In the  case  of an  investigation,
litigation  or other  proceeding  to which  the  indemnity  in this  Section  25
applies,  such indemnity shall be effective  whether or not such  investigation,
litigation or  proceeding  is brought by the Borrower,  the Pledgor or any other
Obligor,  any of their respective  directors,  shareholders or creditors,  or an
Indemnified  Party or any other Person,  or any Indemnified Party is otherwise a
party  thereto  and  whether  or not the  transactions  contemplated  hereby are
consummated.

                  26. Swap  Agreements.  All  obligations  of the Borrower under
Swap Agreements (as defined in the Credit  Agreement) to which any Participating
Creditor or its affiliates are a party shall be deemed to be Obligations secured
hereby (unless otherwise agreed in writing by such Participating  Creditor), and
each  Participating  Creditor or affiliate of a Participating  Creditor party to
any such Swap Agreement shall be deemed to be a Secured Party hereunder.

                  [Remainder of page intentionally left blank]

                                      -18-

<PAGE>

                  IN WITNESS  WHEREOF,  the Pledgor has caused this Agreement to
be executed by its duly authorized officer as of the date first above written.

                                       COVENANT TRANSPORT, INC.,
                                       a Nevada corporation

                                       By:______________________________________
                                       Name:        Joey B. Hogan
                                       Title:       Treasurer

                                       Address for Notices:

                                       Covenant Transport, Inc.
                                       400 Birmingham Highway
                                       Chattanooga, Tennessee  37404

                                       Telecopier No.:  (423) 821-5442
                                       Telephone No.:   (423) 821-1212

                                       Attention:   Joey B. Hogan
                                                    Treasurer

ACCEPTED BY:

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

By:______________________________________
Name:
Title:

Address for Notices:
Bank of America, N.A.
TN6-300-02-03
633 Chestnut Street, 2nd Floor
Chattanooga, Tennessee  37450
Attention: Sybil Weldon
Telephone:        (423) 752-1222
Telefacsimile:    (423) 755-0689

     Second Amended and Restated Parent Stock Pledge and Security Agreement
                              Signature Page 1 of 1

<PAGE>

<TABLE>
<CAPTION>

                                   SCHEDULE 1

                                  Pledged Stock

<S>                             <C>                                   <C>                       <C>
                                                                                                Percentage of
Name of Corporation             Number and Type of Shares             Certificate No(s).        Total Shares
-------------------             -------------------------             ------------------        --------------

Covenant Transport, Inc. a      2,000 shares of no par value                  4                      100%
Tennessee corporation           common stock

Covenant Asset Management,      10,000 shares of $.01 par value               2                      100%
Inc., a Nevada corporation      common stock

Southern Refrigerated           300 shares of $1.00 par value                 5                      100%
Transport, Inc.,an Arkansas     common stock
corporation

Tony Smith Trucking, Inc., an   1,000 shares of $1.00 par value             00004                    100%
Arkansas  corporation           common stock

</TABLE>

                                      S-1

<PAGE>

                                    EXHIBIT A

                 STOCK PLEDGE AND SECURITY AGREEMENT SUPPLEMENT

         THIS STOCK PLEDGE AND SECURITY  AGREEMENT  SUPPLEMENT  (as from time to
time  amended,   modified  or  restated,  this  "  Supplement"),   dated  as  of
_______________,  20__ is made by and between COVENANT TRANSPORT, INC., a Nevada
corporation  (the  "Pledgor"),  and BANK OF AMERICA,  N.A.,  a national  banking
association,  as Collateral Agent for the Participating  Creditors (as described
in the Pledge  Agreement  referred to below) All capitalized  terms used but not
otherwise defined herein shall have the respective  meanings assigned thereto in
the Pledge Agreement (as defined below).

         WHEREAS,  the  Pledgor  is  required  under  the  terms  of the  Credit
Transaction  Documents and that certain Second Amended and Restated Parent Stock
Pledge and Security  Agreement  dated as of December ___, 2000 by the Pledgor in
favor of the Collateral Agent for the benefit of the Participating Creditors (as
from time to time amended,  modified,  supplemented or amended and restated, the
"Pledge  Agreement"),  to cause  certain  Pledged Stock held by it and listed on
Annex A to this  Supplement  (the  "Additional  Interests")  to be  specifically
identified as subject to the Pledge Agreement; and

         WHEREAS, a material part of the consideration  given in connection with
and as an  inducement  to the  execution  and  delivery  of the  various  Credit
Transaction  Documents by the Participating  Creditors was the obligation of the
Pledgor to pledge to the Collateral  Agent for the benefit of the  Participating
Creditors the Additional Interests,  whether then owned or subsequently acquired
or created; and

         WHEREAS,  the Pledgor has acquired  rights in the Additional  Interests
and desires to pledge,  and evidence its prior pledge,  to the Collateral  Agent
for the benefit of the Participating  Creditors all of the Additional  Interests
in  accordance  with the terms of the  Pledge  Agreement  and the  other  Credit
Transaction Documents;

         NOW,  THEREFORE,   the  Pledgor  hereby  agrees  as  follows  with  the
Collateral Agent, for the benefit of the Participating Creditors:

         The Pledgor hereby reaffirms and acknowledges the pledge and collateral
assignment to, and the grant of security  interest in, the Additional  Interests
contained in the Pledge  Agreement and pledges and  collaterally  assigns to the
Collateral Agent for the benefit of the Participating  Creditors,  and grants to
the  Collateral  Agent for the  benefit of the  Participating  Creditors a first
priority lien and security interest in, the Additional  Interests and all of the
following:

                  (a) all dividends (whether in cash, stock, warrants,  options,
         or other securities),  cash, instruments or other property from time to
         time received, receivable, or otherwise distributed in respect of or in
         exchange for any and all of the Additional Interests;

                                      A-1

<PAGE>

                  (b) all other property  hereafter  delivered to the Collateral
         Agent in  substitution  for or as an addition to any of the  foregoing,
         and all  certificates  and instruments  representing or evidencing such
         property; and

                  (c) all proceeds of any of the foregoing.

The Pledgor  hereby  acknowledges,  agrees and confirms by its execution of this
Supplement that the Additional  Interests  constitute  "Pledged Stock" under and
are subject to the Pledge  Agreement,  and the items of property  referred to in
clauses (a) through (c) above (the "Additional  Collateral")  shall collectively
constitute  "Collateral" under and are subject to the Pledge Agreement.  Each of
the  representations and warranties with respect to Pledged Stock and Collateral
contained in the Pledge  Agreement is hereby made by the Pledgor with respect to
the  Additional  Interests  and the  Additional  Collateral,  respectively.  The
Pledgor  further  represents  and  warrants  that a true,  correct and  complete
revised Schedule I to the Pledge Agreement  reflecting the Additional  Interests
and all other  Pledged  Stock is  attached  hereto  and hereby  incorporated  by
reference into the Pledge Agreement, and that all other documents required to be
furnished  to the  Collateral  Agent  pursuant  to  Section  4.1  of the  Pledge
Agreement in connection  with the Additional  Collateral  have been delivered or
are being delivered simultaneously herewith to the Collateral Agent.

         IN WITNESS  WHEREOF,  the Pledgor has caused this Supplement to be duly
executed by its authorized officer as of the day and year first above written.

                                    PLEDGOR:

                                    By:_________________________________________
                                    Name:_______________________________________
                                    Title:______________________________________

Acknowledged and accepted:

BANK OF AMERICA, N.A.,
as Collateral Agent for the Participating Creditors

By:__________________________________
Name:________________________________
Title:_______________________________

                                      A-2

<PAGE>

<TABLE>
<CAPTION>

                                     ANNEX A
         (to Pledge Agreement Supplement of __________ dated __________)

                              Additional Interests

<S>                             <C>                                     <C>                        <C>
Name of Corporation             Number and Type of Shares               Certificate No(s).         Percentage of Total Shares
-------------------             -------------------------               ------------------         --------------------------

</TABLE>

                                      A-3

<PAGE>

<TABLE>
<CAPTION>

                REVISED SCHEDULE I TO SECURITIES PLEDGE AGREEMENT

                                 Date: _________

                                   SCHEDULE 1

                                  Pledged Stock

<S>                              <C>                                       <C>                         <C>
Name of Corporation              Number and Type of Shares                 Certificate No(s).          Percentage of Total Shares
-------------------              -------------------------                 ------------------          --------------------------

</TABLE>

                                      A-4

<PAGE>

                                   EXHIBIT J-2

                  Form of Second Amended and Restated Guarantor
                       Stock Pledge and Security Agreement

                                  See attached.

                                     J-2-1

<PAGE>

                      SECOND AMENDED AND RESTATED GUARANTOR
                       STOCK PLEDGE AND SECURITY AGREEMENT

                  THIS SECOND  AMENDED AND RESTATED  GUARANTOR  STOCK PLEDGE AND
SECURITY  AGREEMENT (this  "Agreement"),  dated as of December 13, 2000, made by
COVENANT TRANSPORT,  INC., a Tennessee  corporation (the "Pledgor"),  to BANK OF
AMERICA, N.A., a national banking association,  acting as Collateral Agent under
the  Intercreditor   Agreement  (as  defined  below)  for  the  benefit  of  the
Participating  Creditors (as defined below) (in such capacity, and together with
any successor thereto, the "Collateral Agent" or the "Secured Party").

                              W I T N E S S E T H:

                  WHEREAS, Connecticut General Life Insurance Company, on behalf
of one or more separate accounts, Connecticut General Life Insurance Company and
Life  Insurance  Company of North  America  (collectively,  together  with their
successors and assigns, the "Noteholders") have heretofore purchased $25,000,000
in aggregate  principal amount of 7.39% Guaranteed  Senior Notes, due October 1,
2005  (the  "Notes"),  issued  by  Covenant  Asset  Management,  Inc.,  a Nevada
corporation (the "Borrower"),  pursuant to that certain Note Purchase  Agreement
(as the same may  hereafter be amended,  modified,  supplemented,  refinanced or
replaced,  the  "Note  Agreement"),  dated  as of  May  15,  2000,  between  the
Noteholders,  the Borrower and Covenant  Transport,  Inc., a Nevada  corporation
(the  "Parent").  The Notes are  guaranteed  by the Parent  pursuant to the Note
Agreement (the "Parent Note  Guarantee"),  and by the Subsidiary  Guarantors (as
hereinafter defined), including Pledgor, pursuant to a Subsidiary Guaranty dated
as of May 15,  2000 (as it may  hereafter  be amended,  modified,  supplemented,
refinanced or replaced, and together with any other guaranty agreement hereafter
executed and delivered by any Subsidiary  Guarantor pursuant to the terms of the
Note Agreement, the "Subsidiary Note Guaranty"); and

                  WHEREAS,  the  Borrower  has  entered  into a  certain  Credit
Agreement (as amended, modified,  supplemented,  restated, or replaced from time
to time, the "Credit Agreement"),  dated of even date herewith, with the Parent,
the financial  institutions  signatory  thereto as lenders  (together  with each
other  institution  from time to time party to the Credit Agreement as a lender,
the  "Lenders"),  the Issuing Bank  thereunder,  and Bank of America,  N.A.,  as
administrative  agent  (together with any successor  thereto,  the "Agent";  the
Lenders,  the  Issuing  Bank and the Agent being  collectively  called the "Bank
Creditors"),  pursuant  to which the Bank  Creditors  have  agreed to  provide a
revolving credit facility and a letter of credit facility for the benefit of the
Obligors (as hereinafter defined); and

                  WHEREAS,  the revolving  credit  facility and letter of credit
facility are being provided  pursuant to the Credit Agreement to refinance those
certain  revolving  credit  and  letter of  credit  facilities  provided  to the
Borrower pursuant to the Prior Credit Agreement (as hereinafter defined); and

                  WHEREAS,  the  Pledgor  has  guaranteed  the  Obligations  (as
hereinafter  defined)  of the  Borrower  arising  under  the  Credit  Agreement,
pursuant  to  the   Subsidiary   Guaranty   Agreement

<PAGE>

(as amended,  modified,  supplemented,  restated, or replaced from time to time,
and together with any other guaranty agreement  hereafter executed and delivered
by any Subsidiary  Guarantor pursuant to the terms of the Credit Agreement,  the
"Subsidiary  Bank  Guaranty"),  dated of even  date  herewith,  executed  by the
Pledgor and certain other Subsidiary  Guarantors in favor of the Bank Creditors;
and

                  WHEREAS,  the Parent has  guaranteed  the  Obligations  of the
Borrower  arising under the Credit  Agreement,  pursuant to the Parent  Guaranty
Agreement (as amended, modified,  supplemented,  restated, or replaced from time
to time, the "Parent Bank Guaranty"),  dated of even date herewith,  executed by
the Parent in favor of the Bank Creditors; and

                  WHEREAS,  the Noteholders  previously  entered into an Amended
and Restated Master Collateral and Intercreditor Agreement,  dated as of June 6,
2000, among the Noteholders,  the Prior Bank Creditors (as hereinafter  defined)
and the Prior Collateral  Agent, and acknowledged and agreed to by the Obligors,
(the "Prior Intercreditor  Agreement"),  in order to acknowledge their agreement
that the Obligors'  obligations to each of the  Noteholders  under the Notes and
Note  Agreement and the Prior Bank  Creditors  under the Prior Credit  Agreement
would be secured on a pari passu basis, and to set forth their respective rights
in respect of any and all security or collateral securing the obligations of the
Obligors  or any other  guarantor  to the  Noteholders  under the Notes and Note
Agreement or to the Prior Bank Creditors under the Prior Credit Agreement; and

                  WHEREAS,  the Pledgor  previously  entered into an Amended and
Restated  Guarantor  Stock  Pledge and Security  Agreement,  dated as of June 6,
2000, among the Pledgor and the Prior  Collateral  Agent, for the benefit of the
Noteholders  and the Prior Bank  Creditors (the "Prior Stock Pledge and Security
Agreement"), in order to secure the prompt and complete payment, performance and
observance  of the  Obligations  under the Note  Agreement  and the Prior Credit
Agreement,  which security interest is intended to be continued hereby as to the
Noteholders; and

                  WHEREAS,  the  Noteholders  and the Bank  Creditors  under the
Credit Agreement (together, the "Participating  Creditors") have agreed that the
Borrower's  obligations  to each of them under the Note Agreement and the Credit
Agreement  shall be secured on a pari passu  basis,  and are  entering  into the
Second Amended and Restated Master Collateral and Intercreditor  Agreement dated
as of the date hereof (as it may hereafter be amended,  modified,  supplemented,
refinanced or replaced,  the "Intercreditor  Agreement"),  with Bank of America,
N.A. as Collateral Agent, to amend and restate the Prior Intercreditor Agreement
insofar as the revolving credit and letter of credit  facilities  provided under
the Credit Agreement  refinance and replace those revolving credit and letter of
credit facilities  provided  pursuant to the Prior Credit Agreement,  and to set
forth their  respective  rights in respect of any and all security or collateral
now or hereafter  securing the current  Obligations of the Borrower or any other
Obligor  to the  Noteholders  under  the Notes  and Note  Agreement  or the Bank
Creditors under the Credit Agreement; and

                  WHEREAS,   subject  to  the  terms  and   conditions   of  the
Intercreditor  Agreement,  the Noteholders and the Bank Creditors have appointed
the Collateral Agent to serve as collateral agent

                                      -2-

<PAGE>

under this Agreement, and the Collateral Agent has agreed to serve as collateral
agent under this Agreement; and

                  WHEREAS,   the  Collateral  Agent,  for  the  benefit  of  the
Participating  Creditors,  and the Pledgor are entering into this Second Amended
and Restated  Guarantor Stock Pledge and Security Agreement to amend and restate
the Prior Stock  Pledge and  Security  Agreement to secure or continue to secure
the prompt and complete  payment,  performance and observance of the Obligations
under the Note Agreement,  the Credit Agreement and the other Credit Transaction
Documents (as hereinafter defined).

                  NOW,  THEREFORE,  in consideration of the foregoing  premises,
the  mutual   covenants   contained   herein,   and  other  good  and   valuable
consideration,  the receipt and  adequacy of which is hereby  acknowledged,  the
Pledgor hereby agrees in favor of Secured Party as follows:

                  1.       DEFINED TERMS.

                  (a) When used  herein,  the  following  terms  shall  have the
following meanings:

                  "Actionable Default" shall mean any Event of Default under and
         as defined in the Credit Agreement or any Event of Default under and as
         defined in the Note Agreement.

                  "Affiliate" shall mean any Person (other than the Pledgor) (i)
         which  directly  or  indirectly  through  one  or  more  intermediaries
         controls,  or is controlled  by, or is under common  control with,  the
         Pledgor,  (ii) which beneficially owns or holds 5% or more of any class
         of the  voting  stock of the  Pledgor,  (iii) of which the  Pledgor  or
         shareholders of the Pledgor  beneficially own or hold 5% or more of the
         voting stock (or in the case of a Person which is not a corporation, 5%
         or more of the equity  interest),  or (iv) who is a member of the Board
         of Directors of the Pledgor or a member of the immediate  family of any
         such Person.  The term  "immediate  family" of any Person shall include
         the spouse, brothers,  sisters and descendants of such Person. The term
         "control" means the possession, directly or indirectly, of the power to
         direct or cause the  direction  of the  management  and  policies  of a
         Person,  whether  through the ownership of voting stock, by contract or
         otherwise.  The term "voting  stock" means the shares of stock or other
         equity interest of a Person that, in the normal course of affairs, have
         the power to elect  directors or the members of any policy making board
         of such Person.

                  "Agent"  shall  have the  meaning  set  forth in the  recitals
         hereto.

                  "Bank  Creditors"  shall  have the  meaning  set  forth in the
         recitals hereto.

                  "Bank  Guaranty"  shall  mean,  collectively,  the Parent Bank
         Guaranty and the Subsidiary Bank Guaranty.

                  "Code" shall mean the Uniform Commercial Code as the same may,
         from time to time,  be in effect in the State of  Tennessee;  provided,
         however,  in the event that, by reason of mandatory  provisions of law,
         any or all of the attachment, perfection or priority of

                                      -3-

<PAGE>

         Secured Party's security  interest in any Collateral is governed by the
         Uniform  Commercial Code as in effect in a jurisdiction  other than the
         State of Tennessee,  the term "Code" shall mean the Uniform  Commercial
         Code as in  effect  in such  other  jurisdiction  for  purposes  of the
         provisions  hereof relating to such attachment,  perfection or priority
         and for purposes of definitions related to such provisions.

                  "Collateral  Agent"  shall have the  meaning  set forth in the
         recitals hereto.

                  "Credit  Agreement"  shall have the  meaning  set forth in the
         recitals hereto.

                  "Credit Transaction  Documents" shall mean the Note Agreement,
         the  Notes,  the  Notes  Guarantee,   the  Bank  Guaranty,  the  Credit
         Agreement, the Security Documents, the other Loan Documents (as defined
         in the Credit Agreement) and the Intercreditor Agreement.

                  "CTI" means Covenant Transport, Inc., a Tennessee corporation,
         and its successors and assigns.

                  "Intercreditor  Agreement" shall have the meaning set forth in
         the recitals hereto.

                  "Lenders"  shall have the  meaning  set forth in the  recitals
         hereto.

                  "Lien", as applied to the property or assets (or the income or
         profits therefrom) of any Person, shall mean (in each case, whether the
         same is consensual or nonconsensual or arises by contract, operation of
         law,  legal process or  otherwise):  any mortgage,  security  interest,
         lien, pledge,  attachment,  financing statement, levy, charge, or other
         encumbrance  of any kind in respect of any  property  or assets of such
         Person, or upon the income or profits therefrom.  For this purpose, the
         Pledgor  shall be deemed to own subject to a Lien any asset that it has
         acquired or holds  subject to the  interest of a vendor or lessor under
         any conditional sale agreement,  capital lease or other title retention
         agreement relating to such asset.

                  "Note  Agreement"  shall  have the  meaning  set  forth in the
         recitals hereto.

                  "Noteholders" shall have the meaning set forth in the recitals
         hereto.

                  "Notes"  shall  have the  meaning  set  forth in the  recitals
         hereto.

                  "Notes  Guarantee" shall mean,  collectively,  the Parent Note
         Guarantee and the Subsidiary Note Guaranty.

                  "Obligations"  shall  mean all  indebtedness,  obligations  or
         liabilities (including,  without limitation,  all principal,  interest,
         premium,  fees,  reimbursement   obligations,   indemnity  obligations,
         collection costs and other amounts,  ) now or hereafter owing by any or
         all of the Obligors to any or all of the Participating Creditors and/or
         the  Collateral  Agent  under  any or all  of  the  Credit  Transaction
         Documents (and  specifically  including all

                                      -4-

<PAGE>

         "Obligations" as defined in the Credit Agreement and the obligations of
         the Subsidiary Guarantors under the Subsidiary Bank Guaranty).

                  "Obligors"  shall mean the  Borrower,  the Pledgor,  the other
         Subsidiary  Guarantors,  the  Parent and each  other  guarantor  of the
         Obligations  arising  under  the Notes  and the Note  Agreement  or the
         Credit Agreement.

                  "Parent"  shall  have the  meaning  set forth in the  recitals
         hereto.

                  "Parent Bank Guaranty" shall have the meaning set forth in the
         recitals hereto.

                  "Parent  Note  Guarantee"  shall have the meaning set forth in
         the recitals hereto.

                  "Participating  Creditors" shall have the meaning set forth in
         the recitals hereto.

                  "Person"  means  an  individual,   corporation,   partnership,
         limited  liability  company,  trust or unincorporated  organization,  a
         government or any agency or political subdivision thereof.

                  "Pledged  Securities"  shall have the meaning assigned to such
         term in Section 4.2 hereof.

                  "Pledged  Stock" shall have the meaning  assigned to such term
         in Section 3 hereof.

                  "Pledgor"  shall mean  Covenant  Transport,  Inc., a Tennessee
         corporation.

                  "Post-Maturity  Rate"  shall  mean (i) when used in respect of
         Obligations  owing  to  any  Noteholder,   the  applicable  default  or
         post-maturity  rate specified in the Note Agreement or the Notes,  (ii)
         when used in respect of  Obligations  owing to any Bank  Creditor,  the
         applicable Default Rate (as defined in the Credit Agreement), and (iii)
         when used in respect of any other Obligations hereunder, the highest of
         any of the foregoing default or post-maturity rates.

                  "Prior Bank Creditors" shall mean ABN AMRO Bank, N.V. ("ABN"),
         as agent under the Prior Credit Agreement,  and ABN, AmSouth Bank, N.A.
         (successor by merger to First American National Bank), Bank of America,
         N.A.,  Bank One,  N.A.,  and SunTrust  Bank, as lenders under the Prior
         Credit Agreement.

                  "Prior Collateral Agent" shall mean First Union National Bank,
         as Collateral Agent under the Prior Intercreditor Agreement.

                  "Prior Credit  Agreement"  shall mean that certain Amended and
         Restated  Credit  Agreement  dated as of June 18,  1999 among CTI,  the
         Borrower,  and the Prior Bank  Creditors,  as  further  amended in that
         certain  Amendment to Amended and Restated Credit Agreement dated as of
         June 6, 2000 among CTI, the Borrower,  and the Prior Bank

                                      -5-
<PAGE>

         Creditors (as the same may have been amended, restated, supplemented or
         otherwise modified from time to time).

                  "Prior  Intercreditor  Agreement"  shall have the  meaning set
         forth in the recitals hereto.

                  "Security  Document"  shall  mean  each of the  documents  and
         agreements defined as a "Security  Document" in the Note Agreement or a
         "Security Instrument" in the Credit Agreement and shall include any and
         all  agreements,   assignments,   mortgages,  deeds  or  other  similar
         documents under which the Collateral Agent is now or hereafter  granted
         a Lien in any collateral to secure the Obligations,  including  without
         limitation this Agreement.

                  "Subsidiary Bank Guaranty" shall have the meaning set forth in
         the recitals hereto.

                  "Subsidiary   Guarantors"   shall  mean   Covenant.com,   Inc.
         (formerly known as Covenant Acquisition Co. and C & F Acquisition Co.),
         a  Nevada  corporation,  CIP,  Inc.  (formerly  known  as  Intellectual
         Property Co.), a Nevada corporation,  Southern Refrigerated  Transport,
         Inc., an Arkansas corporation,  Tony Smith Trucking,  Inc., an Arkansas
         corporation,   Harold  Ives  Trucking  Co.,  an  Arkansas  corporation,
         Terminal Truck Broker, Inc., an Arkansas corporation,  Pledgor, and any
         other subsidiary,  direct or indirect, of the Parent that may hereafter
         become a party to a  guaranty  agreement  pursuant  to the terms of the
         Credit Agreement or the Note Agreement.

                  "Subsidiary Note Guaranty" shall have the meaning set forth in
         the recitals hereto.

                  (b) The  definitions  in this Section 1 shall apply equally to
both the singular and plural forms of the terms  defined,  with the exception of
the term "Borrower." Whenever the context may require, any pronoun shall include
the  corresponding  masculine,  feminine and neuter forms.  The words "include",
"includes" and "including" shall be deemed to be followed by the phrase "without
limitation".  All  references  herein to Articles and  Sections  shall be deemed
references to Articles and Sections of this  Agreement  unless the context shall
otherwise require.  All references herein to any Person,  other than an Obligor,
shall be deemed to include such Person's  successors,  transferees  and assigns.
All  references  herein to any Obligor shall be deemed to include such Obligor's
successors. All references herein to any Credit Transaction Document shall be to
such document as the terms thereof may have been amended,  supplemented,  waived
or otherwise modified from time to time in accordance with the terms thereof and
hereof.

                  2. SECURITY FOR  OBLIGATIONS  ETC.  This  Agreement is for the
benefit  of the  Secured  Party,  as  collateral  agent for the  benefit  of the
Participating Creditors, to secure the prompt and complete payment,  performance
and observance of the Obligations,  including without limitation all Obligations
incurred by the Pledgor pursuant to each of the Subsidiary Note Guaranty and the
Subsidiary Bank Guaranty.

                                      -6-

<PAGE>

                  3. PLEDGED  STOCK.  As used herein,  the term "Pledged  Stock"
shall mean all of the issued and  outstanding  shares of every  class of capital
stock of the  Subsidiaries of the Pledgor set forth on Schedule 1, and all other
shares  of  such  stock  or  other   equity   interests   issued  by  or  equity
participations  in any  Subsidiary  of the Pledgor which may be now or hereafter
owned by the  Pledgor.  The Pledgor  represents  and  warrants  that on the date
hereof (a) the  Pledged  Stock  consists of the number and type of shares of the
capital  stock of the  Subsidiaries  of the Pledgor as  described  on Schedule 1
attached  hereto;  (b) the  Pledgor is the holder of record and sole  beneficial
owner  of such  Pledged  Stock;  and  (c)  the  Pledged  Stock  constitutes  the
percentage  of the  issued  and  outstanding  capital  stock  of  each  of  such
Subsidiaries as set forth on Schedule 1.

                  4.    PLEDGE OF SECURITIES, ETC.

                  4.1   Pledge.   To  secure  the  full  and   timely   payment,
performance, and observance of the Obligations and for the purposes set forth in
Section 2, the Pledgor hereby pledges and grants to the Secured Party a security
interest in the Pledged Stock,  together with (i) the certificates  representing
such Pledged  Stock  accompanied  by stock powers duly  executed in blank by the
Pledgor, (ii) all dividends (whether in cash, stock, warrants, options, or other
securities),  cash,  instruments  or other  property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any and all
of the Pledged Stock,  and (iii) all proceeds of any of the  foregoing;  and the
Pledgor hereby  assigns,  transfers,  hypothecates  and sets over to the Secured
Party all of the Pledgor's right, title and interest in and to the Pledged Stock
(and in and to the certificates or instruments evidencing the items described in
clauses (i) and (ii) above) to be held by the Secured Party,  upon the terms and
conditions  set forth in this  Agreement.  The Pledgor  agrees to deliver to the
Secured  Party the items  described in clause (i) above on the date hereof,  and
all certificates  and instruments  evidencing the items described in clause (ii)
above promptly upon the Pledgor's receipt thereof.

                  4.2  Definition  of Pledged  Securities  and  Collateral.  The
Pledged  Stock  and all  items  described  in  clause  (ii) of  Section  4.1 are
hereinafter  called  the  "Pledged  Securities",  and  the  Pledged  Securities,
together with all other  securities and monies and other property pledged to the
Secured  Party  hereunder  and  any  proceeds  of  any  of  the  foregoing,  are
hereinafter called the "Collateral".

                  5. APPOINTMENT OF SUB-AGENTS;  ENDORSEMENTS,  ETC. The Secured
Party  shall have the right to  appoint  one or more  agents for the  purpose of
retaining  physical  possession  of the  Pledged  Stock or any other  Collateral
pledged hereunder, which may be held (if applicable and in the discretion of the
Secured  Party) in the name of the Pledgor,  endorsed or assigned in blank or in
favor of the Secured Party or any nominee or nominees of the Secured Party or an
agent appointed by the Secured Party.

                  6. VOTING,  ETC. Unless and until an Actionable  Default shall
have occurred and be continuing or would be caused thereby, the Pledgor shall be
entitled  to vote any and all  Pledged  Stock and to give  consents,  waivers or
ratifications  in respect  thereof;  provided  that no vote shall be cast or any
consent, waiver or ratification given or any action taken which would violate or
be  inconsistent  with any of the terms of this  Agreement  or any other  Credit
Transaction Document; provided, further, that the Pledgor shall give the Secured
Party at least ten (10) days'

                                      -7-

<PAGE>

written notice of the manner in which it intends to exercise, or the reasons for
refraining  from  exercising,  any such right if the exercise or non-exercise of
such right  potentially may violate or be inconsistent  with the  aforementioned
agreements. All such rights of the Pledgor to vote and to give consents, waivers
and ratifications  shall cease in case an Actionable  Default shall occur and be
continuing, and Section 8 hereof shall become applicable.

                  7.  DIVIDENDS  AND OTHER  DISTRIBUTIONS.  In  accordance  with
Section  4.1,  the  Pledgor  shall at all times be  required  to  deliver to the
Collateral Agent,  promptly upon receipt thereof,  each of the following,  which
the Secured Party shall be allowed to retain as part of the Collateral:

                          (a) all other or  additional  stock or  securities  or
         property  (other than cash) paid or  distributed  by way of dividend in
         respect of the Pledged Securities;

                          (b) all other or additional  stock or other securities
         or  property  (including  cash) paid or  distributed  in respect of the
         Pledged   Securities  by  way  of  stock-split,   spin-off,   split-up,
         reclassification, combination of shares or similar rearrangement; and

                          (c) all other or additional  stock or other securities
         or property  which may be paid in respect of the Pledged  Securities by
         reason of any consolidation,  merger,  exchange of stock, conveyance of
         assets, liquidation or similar corporate reorganization.

         Unless an  Actionable  Default shall have occurred and be continuing or
would be caused  thereby,  all cash dividends  payable in respect of the Pledged
Securities  shall  be paid to the  Pledgor,  but  only to the  extent  (if  any)
permitted by the Credit  Transaction  Documents.  Upon the occurrence and at all
times during the continuance of an Actionable  Default,  the Secured Party shall
be entitled to receive  directly,  and to retain as part of the Collateral,  all
such cash dividends.  In the event that at any such time any such cash dividends
are paid  directly to the Pledgor,  the Pledgor shall hold the same in trust for
the  benefit  of the  Collateral  Agent and shall  promptly  cause all such cash
dividends to be delivered to the Agent.

                          7.1  Additional  Interests.  The  Pledgor  agrees  and
covenants  that it will cause each  Subsidiary  of the  Pledgor not to issue any
stock or other  securities  in  addition to or in  substitution  for the Pledged
Stock set forth on Schedule 1 except to the Pledgor. If the Pledgor shall at any
time acquire or hold any additional  Pledged Stock,  including any Pledged Stock
issued by any Subsidiary not listed on Schedule I hereto which is required to be
subject to a Lien  pursuant to the terms hereof or of Article V or Article IX of
the Credit Agreement or any other provision of any Credit  Transaction  Document
(any such  shares or other  equity  interests  or  equity  participations  being
referred to herein as the "Additional Interests"),  the Pledgor shall deliver to
the Secured Party for the benefit of the  Participating  Creditors (i) a revised
Schedule  I hereto  reflecting  the  ownership  and  pledge  of such  Additional
Interests,  (ii) a Pledge  Agreement  Supplement in the form of Exhibit A hereto
with respect to such  Additional  Interests  duly  completed and executed by the
Pledgor,  (iii) any other document  required in connection  with

                                      -8-

<PAGE>

such Additional  Interests as described in Section 4.1 or as otherwise  required
by the Credit Transaction Documents and (iv) any other instruments,  agreements,
financing  statements  (and  amendments  thereto  and  continuations   thereof),
assignments,  control  agreements,  or other  writings as the Secured  Party may
request from time to time to protect or enforce the Collateral  Agent's Lien and
security   interest  in  the  Additional   Interests  for  the  benefit  of  the
Participating  Creditors. The Pledgor shall comply with the requirements of this
Section 7.1 concurrently with the acquisition of any such Additional  Interests;
provided,  however,  that the  failure  to comply  with the  provisions  of this
Section 7.1 shall not impair the Lien on Additional  Interests  conferred by the
Pledgor to the Collateral Agent for the benefit of the  Participating  Creditors
hereunder.

                  8. DEFAULT; REMEDIES. In case an Actionable Default shall have
occurred and be continuing,  the Secured Party shall be entitled to exercise all
of the rights,  powers and remedies  (whether  vested in it by this Agreement or
any  other  Credit  Transaction  Document,  or by law,  and  including,  without
limitation,  all rights and  remedies of a secured  party of a debtor in default
under the Code) for the protection  and  enforcement of its rights in respect of
the Collateral,  and the Secured Party shall be entitled, without limitation, to
exercise  the  following   rights,   which  the  Pledgor  hereby  agrees  to  be
commercially reasonable:

                  (i)  upon  the  declaration  by the  applicable  Participating
         Creditor of any or all of the  Obligations  to be  immediately  due and
         payable or upon any or all of such Obligations  otherwise  becoming due
         and payable,  to foreclose  or  otherwise  enforce the Secured  Party's
         security  interest  in or  other  Lien  hereunder  on any or all of the
         Collateral  in any  manner  permitted  by law or  provided  for in this
         Agreement;

                  (ii) to  recover  from the  Pledgor  all  cost  and  expenses,
         including, without limitation,  reasonable attorney's fees, incurred or
         paid by or on behalf of the Secured  Party in  exercising  or enforcing
         any  right,  power,  or  remedy  with  respect  to  any  or  all of the
         Collateral  provided  to the  Secured  Party  by this  Agreement  or by
         applicable law;

                  (iii)  to  receive  all  amounts  payable  in  respect  of the
         Collateral  otherwise  payable  under  Section 7 to the  Pledgor and to
         enforce the payment of the Pledged  Securities  and to exercise  all of
         the rights, powers, and remedies of the Pledgor thereunder;

                  (iv)  to transfer all or any part of the  Collateral  into the
         Secured  Party's name or the name of its nominee or nominees;

                  (v) to vote all or any part of the Collateral  (whether or not
         transferred  into the name of the Secured Party) and give all consents,
         waivers and  ratifications  in respect of the  Collateral and otherwise
         act with respect thereto as though it were the outright owner thereof;

                  (vi) at any  time or from  time to time to  sell,  assign  and
         deliver,  or  grant  options  to  purchase,  all  or  any  part  of the
         Collateral  in one or more  parcels,  or any interest  therein,  at any
         public or private sale at any exchange, broker's board or at any

                                      -9-

<PAGE>

         of the Secured  Party's offices or elsewhere,  without,  to the fullest
         extent  permitted by law,  demand of  performance or  advertisement  of
         intention  to  sell  or of the  time or  place  of sale or  adjournment
         thereof or to redeem or  otherwise  (all of which are hereby  expressly
         and  irrevocably  waived by the  Pledgor),  for cash,  on credit or for
         other property, for immediate or future delivery without any assumption
         of credit  risk,  and for such price or prices and on such terms as the
         Secured Party in its sole discretion may determine;  the Pledgor agrees
         that at least ten (10) days'  notice of sale to the Pledgor of the time
         and place of any public sale or the time after  which any private  sale
         is to be made shall  constitute  reasonable  notification;  the Secured
         Party shall not be obligated to make any sale of Collateral  regardless
         of notice of sale having been given;  the Secured Party may adjourn any
         public or private  sale from time to time by  announcement  at the time
         and  place  fixed  therefor,  and any such sale  may,  without  further
         notice, be made at the time and place to which it was so adjourned; the
         Pledgor hereby waives and releases to the fullest  extent  permitted by
         law any right or equity of redemption  with respect to the  Collateral,
         whether  before or after sale  hereunder,  and all  rights,  if any, of
         marshaling the Collateral and any other security for the Obligations or
         otherwise;  at any such sale,  unless prohibited by applicable law, the
         Secured  Party  may  bid  for  and  purchase  all  or any  part  of the
         Collateral  so sold free from any such  right or equity of  redemption;
         and the  Secured  Party  shall not be liable for  failure to collect or
         realize upon any or all of the  Collateral or for any delay in so doing
         nor shall the Secured Party be under any  obligation to take any action
         whatsoever  with regard  thereto.  Pledgor  recognizes that the Secured
         Party may be unable to effect a public sale of the Collateral by reason
         of certain  prohibitions  contained in the  Securities  Act of 1933, as
         amended (the  "Securities  Act"),  and applicable state law, and may be
         otherwise delayed or adversely affected in effecting any sale by reason
         of  present or future  restrictions  thereon  imposed  by  governmental
         authorities,  and  that  as a  consequence  of  such  prohibitions  and
         restrictions the Secured Party may be compelled (i) to resort to one or
         more private  sales to a  restricted  group of  purchasers  who will be
         obliged to agree,  among other things,  to acquire the  Collateral  for
         their  own  account,  for  investment  and  not  with  a  view  to  the
         distribution or resale thereof,  or (ii) to seek regulatory approval of
         any proposed sale or sales,  or (iii) to limit the amount of Collateral
         sold to any Person or group. The Pledgor agrees and  acknowledges  that
         private sales so made may be at prices and upon terms less favorable to
         Pledgor than if such  Collateral  was sold either at public sales or at
         private sales not subject to other  regulatory  restrictions,  and that
         the  Secured  Party has no  obligation  to delay the sale of any of the
         Collateral for the period of time necessary to permit the issuer of the
         Pledged Stock to register or otherwise  qualify it, even if such issuer
         would agree to register or otherwise qualify such Collateral for public
         sale under the  Securities  Act or  applicable  state law.  The Pledgor
         further agrees, to the extent permitted by applicable law, that the use
         of private sales made under the foregoing  circumstances  to dispose of
         the  Collateral  shall be deemed to be  dispositions  in a commercially
         reasonable manner. The Pledgor hereby  acknowledges that a ready market
         may not exist for the  Pledged  Stock if it is not traded on a national
         securities  exchange  or quoted on an  automated  quotation  system and
         agrees and  acknowledges  that in such event the  Pledged  Stock may be
         sold for an amount less

                                      -10-

<PAGE>

         than a pro rata share of the fair market value of the  issuer's  assets
         minus its liabilities.  In addition to the foregoing, the Secured Party
         may exercise  such other rights and remedies as may be available  under
         the Credit Transaction Documents,  at law (including without limitation
         the Code) or in equity;

                  (vii) to settle, adjust,  compromise and arrange all accounts,
         controversies,  questions, claims and demands whatsoever in relation to
         all or any part of the Collateral;

                  (viii)  to  execute  all such  contracts,  agreements,  deeds,
         documents  and  instruments;  to bring,  defend  and  abandon  all such
         actions, suits and proceedings;  and to take all actions in relation to
         all or any  part of the  Collateral  as the  Secured  Party in its sole
         discretion may determine;

                  (ix) to appoint  managers,  agents,  officers and servants for
         any of the  purposes  mentioned  in the  foregoing  provisions  of this
         Section 8 and to dismiss the same, all as the Secured Party in its sole
         discretion may determine; and

                  (x)  generally,  to take all such other  action as the Secured
         Party in its sole  discretion  may determine as incidental or conducive
         to any of the matters or powers  mentioned in the foregoing  provisions
         of this  Section 8 and which the  Secured  Party may or can do lawfully
         and to use the name of the Pledgor for the  purposes  aforesaid  and in
         any proceedings arising therefrom.

                  9. REMEDIES, ETC., CUMULATIVE. Each right, power and remedy of
the Secured Party provided for in this Agreement or any other Credit Transaction
Document or now or hereafter existing at law or in equity or by statute shall be
cumulative  and  concurrent  and shall be in addition to every other such right,
power or remedy.  The exercise or beginning of the exercise by the Secured Party
of any  one or more of the  rights,  powers  or  remedies  provided  for in this
Agreement or any other Credit Transaction  Document or now or hereafter existing
at  law  or in  equity  or by  statute  or  otherwise  shall  not  preclude  the
simultaneous  or later  exercise by the Secured  Party of all such other rights,
powers or remedies,  and no failure or delay on the part of the Secured Party to
exercise any such right, power or remedy shall operate as a waiver thereof.

                  10.  APPLICATION  OF  PROCEEDS.  All monies  collected  by the
Secured Party upon any sale or other  disposition  of the  Collateral,  together
with all other monies received by the Secured Party hereunder,  shall be applied
in accordance with the terms of the Intercreditor Agreement.

                  11.  PURCHASERS  OF  COLLATERAL.  Upon  any sale of any of the
Collateral  hereunder  (whether by virtue of the power of sale  herein  granted,
pursuant to judicial process or otherwise),  the receipt of the Secured Party or
the officer making the sale shall be a sufficient  discharge to the purchaser or
purchasers of the Collateral so sold, and such purchaser or purchasers shall not
be obligated to see to the  application  of any part of the purchase  money paid
over to the Secured  Party or such officer or be  answerable  in any way for the
misapplication or nonapplication thereof.

                                      -11-

<PAGE>

                  12. FURTHER  ASSURANCES.  The Pledgor agrees that it will join
with the Secured  Party in executing  and, at its own  expense,  file and refile
under the Code such  financing  statements,  continuation  statements  and other
documents in such offices as the Secured Party may deem necessary or appropriate
and  wherever  required or permitted by law in order to perfect and preserve the
Secured Party's  security  interest in the Collateral and hereby  authorizes the
Secured Party to file financing  statements and amendments  thereto  relative to
all or any part of the  Collateral  without the  signature of the Pledgor  where
permitted  by law, and agrees to do such further acts and things and to promptly
execute  and  deliver  to  the  Secured  Party  such   additional   conveyances,
assignments,  agreements  and  instruments  as the Secured Party may  reasonably
require or deem advisable to carry into effect the purposes of this Agreement or
to further  assure and  confirm  unto the Secured  Party its rights,  powers and
remedies hereunder.

         All filing  fees,  advances,  charges,  costs and  expenses,  including
reasonable  attorneys'  fees,  incurred or paid by the  Collateral  Agent or any
Participating  Creditor in exercising  any right,  power or remedy  conferred by
this Pledge Agreement, or in the enforcement thereof, shall become a part of the
Obligations  secured hereunder and shall be paid to the Collateral Agent for the
benefit of the  Participating  Creditors by the Pledgor  immediately upon demand
therefor, and any amounts not so paid on demand (in addition to other rights and
remedies  resulting from such  nonpayment)  shall bear interest from the date of
demand until paid in full at the Post-Maturity Rate.

                  13.     THE SECURED PARTY AS COLLATERAL AGENT.

                  (a) The  Secured  Party  will  hold in  accordance  with  this
Agreement and the other Credit Transaction Documents all items of the Collateral
at any time received under this Agreement. It is expressly understood and agreed
that the  obligations  of the  Secured  Party as  holder of the  Collateral  and
interests  therein and with respect to the  disposition  thereof,  and otherwise
under this Agreement,  are only those expressly set forth in this Agreement, the
Intercreditor Agreement, and the other Credit Transaction Documents.

                  (b) The  Secured  Party  shall  be  deemed  to have  exercised
reasonable  care  in the  custody  and  preservation  of the  Collateral  in its
possession if the Collateral is accorded treatment  substantially  equal to that
which  the  Secured  Party  accords  other  similar  property  held in a similar
capacity as collateral  agent, it being  understood that the Secured Party shall
not have  responsibility  for (i)  ascertaining or taking action with respect to
calls, conversions,  exchanges, maturities, tenders or other matters relative to
any  Collateral,  whether  or not the  Secured  Party  has or is  deemed to have
knowledge of such matters, or (ii) taking any necessary steps to preserve rights
against any parties with respect to any Collateral.

                  14.   REPRESENTATIONS  AND  WARRANTIES.   The  Pledgor  hereby
represents and warrants that (i) it is the legal record and beneficial owner of,
and has good and marketable  title to, the Pledged Stock  described in Section 3
hereof, subject to no pledge, Lien, mortgage, hypothecation,  security interest,
charge,  option or other encumbrance  whatsoever,  except the Liens and security
interests created by this Agreement or expressly  permitted by this Agreement or
the other Credit Transaction  Documents;  (ii) it has full power,  authority and
legal right to pledge

                                      -12-

<PAGE>

all the Pledged Stock pursuant to this Agreement;  (iii) no consent of any other
party (including, without limitation, any stockholder or creditor of the Pledgor
or any Subsidiary) and no order, consent, license, permit, approval,  validation
or authorization of, exemption by, notice to or registration,  recording, filing
or declaration with, any governmental or public body or authority is required to
be  obtained  by the  Pledgor in  connection  with the  execution,  delivery  or
performance of this Agreement or consummation of the  transactions  contemplated
hereby, including,  without limitation, the exercise by the Secured Party of the
voting or other rights provided for in this Agreement or the remedies in respect
of the  Collateral  pursuant  to this  Agreement,  except as may be  required in
connection with the disposition of the Pledged  Securities by laws affecting the
offering and sale of  securities  generally  (or except as may already have been
obtained);  (iv) all shares of Pledged Stock have been duly and validly  issued,
are fully paid and  nonassessable;  (v) the pledge and  delivery  of the Pledged
Securities  pursuant  to this  Agreement  creates  a valid and  perfected  first
priority security interest in the Pledged Securities,  and the proceeds thereof,
which  security  interest is not subject to any prior Lien or encumbrance or any
agreement  purporting to grant to any third party a Lien or  encumbrance  on the
property or assets of the Pledgor  which would  include the Pledged  Securities;
(vi) execution, delivery, and performance of this Agreement will not violate, or
cause default under or result in a Lien (other than the Secured Party's security
interest and Lien hereunder)  upon any property of the Pledgor  pursuant to, any
applicable law, rule or regulation or any agreement, indenture, judgment, order,
decree,  or  instrument  binding  upon or  affecting  the  Pledgor or any of the
Collateral;  (vii) all information heretofore,  herein, or hereafter supplied to
the  Secured  Party by or on behalf of the  Pledgor  with  respect to any of the
Collateral  is or will be true and correct in all material  respects at the time
so  supplied;  and (viii) the Pledgor  has  delivered  to the Secured  Party all
instruments,  documents,  and chattel  paper,  and other items of  Collateral in
which the Secured Party's security  interest or lien hereunder must be perfected
by  possession,  together  with such  additional  writings,  including,  without
limitation,  duly executed blank and undated  assignments and stock powers, with
respect thereto as the Secured Party shall request.

                  15.     COVENANTS OF THE PLEDGOR.

                          (a) The  Pledgor  covenants  and  agrees  that (i) the
Pledgor will defend the Secured  Party's right,  title and security  interest in
and to the Pledged  Securities and the proceeds  thereof  against the claims and
demands of all persons whomsoever;  (ii) the Pledgor will have like title to and
right to pledge any other property at any time hereafter  pledged to the Secured
Party as Collateral  hereunder  and will  likewise  defend the right thereto and
security  interest therein of the Secured Party;  (iii) the Pledgor shall do all
acts that may be necessary to maintain,  preserve,  and protect the  Collateral;
(iv) the Pledgor shall not sell or encumber or otherwise  dispose of or transfer
any Collateral or any right or interest therein,  and the Pledgor shall keep the
Collateral  free of all levies,  security  interests or other liens,  charges or
encumbrances except those Liens and security interests created by this Agreement
or  expressly  permitted  by this  Agreement  or the  other  Credit  Transaction
Documents or those approved in writing by the Secured Party; and (v) the Pledgor
will not, with respect to any Collateral, enter into any shareholder agreements,
voting agreements,  voting trusts, trust deeds, irrevocable proxies or any other
similar agreements or instruments.

                          (b) At no time shall any Pledged  Stock (i) be held or
maintained in the form of a security  entitlement  or credited to any securities
account  or (ii)  which  constitutes  a

                                      -13-

<PAGE>

"security"  (or as to which the issuer  thereof has elected to have treated as a
"security")  under  Article  8 of  the  Code,  be  maintained  in  the  form  of
uncertificated  securities.  With respect to Pledged Stock that are "securities"
under the Code,  or as to which the issuer  thereof  has  elected at any time to
have such interests  treated as "securities"  under the Code, such Pledged Stock
is, and shall at all times be, represented by the share  certificates  listed on
Schedule I hereto, which share certificates,  with stock powers duly executed in
blank by the Pledgor  (which blank stock powers shall be  sufficient to transfer
title from the Pledgor once  completed  and dated),  have been  delivered to the
Agent or are being  delivered  to the Agent  simultaneously  herewith or, in the
case of  Additional  Interests  as defined in Section  7.1,  shall be  delivered
pursuant to Section 7.1. At no time shall the Pledgor  elect,  or cause or allow
any Subsidiary Guarantor or other issuer of Pledged Stock to elect, not to treat
any Pledged  Stock as a "security"  under Article 8 of the Code if such election
is available.

                  16. PLEDGOR'S  OBLIGATIONS  ABSOLUTE,  ETC. The obligations of
the  Pledgor  under  this  Agreement  shall be  absolute  and  unconditional  in
accordance  with its terms and shall  remain in full  force and  effect  without
regard to,  and shall not be  released,  suspended,  discharged,  terminated  or
otherwise  affected by, any  circumstance or occurrence  whatsoever,  including,
without  limitation:  (a) any change in the time, place or manner of payment of,
or in any other term of, all or any of the Obligations,  any waiver, indulgence,
renewal,  extension,  amendment  or  modification  of or  addition,  consent  or
supplement  to or  deletion  from or any other  action or  inaction  under or in
respect  of the  Credit  Transaction  Documents  or any of the other  documents,
instruments or agreements relating to the Obligations or any other instrument or
agreement referred to therein or any assignment or transfer of any thereof;  (b)
any lack of validity or  enforceability of the Credit  Transaction  Documents or
any other  documents,  instruments  or  agreement  referred  to  therein  or any
assignment  or transfer of any thereof;  (c) any  furnishing  of any  additional
security to the Secured  Party or any  Participating  Creditor,  or any assignee
thereof or any acceptance  thereof or any release of any security by the Secured
Party or any Participating  Creditor or any assignee thereof; (d) any limitation
on any party's  liability or obligations  under any such instrument or agreement
or any  invalidity  or  unenforceability,  in  whole  or in  part,  of any  such
instrument or agreement or any term  thereof;  (e) any  bankruptcy,  insolvency,
reorganization,  composition, adjustment, dissolution, liquidation or other like
proceeding  relating to the Pledgor,  the Borrower or the Parent,  or any action
taken with  respect to this  Agreement  by any  trustee or  receiver,  or by any
court, in any such  proceeding,  whether or not the Pledgor shall have notice or
knowledge of any of the foregoing; or (f) any exchange, release or nonperfection
of any other collateral, or any release, or amendment or waiver of or consent to
departure from any guaranty or security, for all or any of the Obligations.

                  17.   NOTICES,   ETC.   All   notices,   requests   and  other
communications  provided  for  hereunder  shall  be in  writing  and  personally
delivered (including overnight courier), mailed by certified or registered mail,
postage  prepaid and return receipt  requested,  or telecopied  (all  telecopier
notices promptly to be confirmed by mail or personal  delivery),  at the address
and telecopier  number of each party specified on the signature page hereof,  or
at such other  address or  telecopier  number as may be hereafter  designated by
notice  as  herein  provided.  All  such  notices  and  communications  shall be
effective or deemed  delivered or furnished  (i) if given by mail,  on the third
business day after such  communication  is  deposited in the mail,  addressed as
provided  herein,  (ii) if given  by  telecopier,  when  such  communication  is
transmitted  to the  appropriate  number

                                      -14-

<PAGE>

determined as provided  herein and the  appropriate  answer-back  is received or
receipt  is  otherwise  acknowledged,  and  (iii) if given by hand  delivery  or
overnight  courier,  when left at the  address  of the  addressee  addressed  as
provided above;  except that notices of a change of address or telecopier number
shall not be effective until actually received.

                  18.  POWER OF  ATTORNEY.  The Pledgor  hereby  absolutely  and
irrevocably  constitutes  and appoints the Secured Party the Pledgor's  true and
lawful agent and attorney-in-fact,  with full power of substitution, in the name
of the Pledgor: (a) to execute and do all such assurances, acts and things which
the Pledgor ought to do but has failed to do under the covenants and  provisions
contained in this Agreement;  (b) to take any and all such action as the Secured
Party may, in its sole  discretion,  determine as necessary or advisable for the
purpose of  maintaining,  preserving or protecting  the security  constituted by
this  Agreement  or any of the rights,  remedies,  powers or  privileges  of the
Secured  Party  under  this  Agreement;  and (c)  generally,  in the name of the
Pledgor exercise all or any of the powers, authorities, and discretion conferred
on or  reserved  to the Secured  Party by or  pursuant  to this  Agreement,  and
(without  prejudice  to the  generality  of any of the  foregoing)  to seal  and
deliver  or  otherwise   perfect  any  instrument  or  document  of  conveyance,
agreement,  or act as the Secured Party may deem proper in or for the purpose of
exercising any of such powers,  authorities  or  discretion.  The Pledgor hereby
ratifies and confirms, and hereby agrees to ratify and confirm,  whatever lawful
acts the Secured Party shall do or purport to do in the exercise of the power of
attorney  granted to the Secured Party  pursuant to this Section 18, which power
of attorney, being given for security, is irrevocable.

                  19.  REINSTATEMENT.  This Agreement shall remain in full force
and effect and  continue  to be  effective  should any  petition  be filed by or
against  the   Pledgor,   the  Borrower  or  the  Parent  for   liquidation   or
reorganization,  should the Pledgor, the Borrower or the Parent become insolvent
or make an  assignment  for the  benefit of  creditors  or should a receiver  or
trustee be appointed for all or any significant part of their respective assets,
and shall continue to be effective or be  reinstated,  as the case may be, if at
any time payment and performance of the  Obligations,  or any part thereof,  is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by any obligee of the  Obligations,  whether as a "voidable
preference", "fraudulent conveyance" or otherwise, all as though such payment or
performance  had not been  made.  In the  event  that any  payment,  or any part
thereof, is rescinded,  reduced,  restored or returned, the Obligations shall be
reinstated  and deemed  reduced  only by such amount paid and not so  rescinded,
reduced, restored or returned.

                  20. TERMINATION,  RELEASE.  Subject to Section 19 hereof, this
Agreement  shall  terminate  upon the first day following the  occurrence of the
Facility Termination Date (as defined in the Credit Agreement) and the repayment
in full of all Obligations.

                  21.     MISCELLANEOUS.

                          (a) The Pledgor  agrees  with the  Secured  Party that
each of the  obligations  and  liabilities  of the Pledgor to the Secured  Party
under this Agreement may be enforced  against the Pledgor  without the necessity
of joining the Borrower,  any other holders of pledges of or security  interests
in any of the Collateral, or any other Person as a party. This Agreement and the
Intercreditor  Agreement  contain the entire agreement between the Secured Party

                                      -15-

<PAGE>

and the  Pledgor  with  respect  to the  Collateral  and  supersedes  all  prior
agreements, commitments, understandings, negotiations, or correspondence between
them with respect  thereto.  This Agreement  shall create a continuing  security
interest in the Collateral. This Agreement may be changed, waived, discharged or
terminated  only in accordance  with the  provisions  of the Credit  Transaction
Documents.  Unless otherwise  defined herein,  terms defined in Article 9 of the
Code in the State of Tennessee are used herein as therein defined.  The headings
in this  Agreement  are for  purposes of  reference  only and shall not limit or
define the  meaning  hereof.  This  Agreement  may be  executed in any number of
counterparts,  each of  which  shall  be an  original,  but all of  which  shall
constitute  one  instrument.  In the event that any provision of this  Agreement
shall prove to be invalid or unenforceable, such provision shall be deemed to be
severable from the other provisions of this Agreement which shall remain binding
on all parties hereto.

                          (b) This Pledge  Agreement,  and the terms,  covenants
and  conditions  hereof,  shall be binding  upon and inure to the benefit of the
parties hereto, and to their respective successors and assigns,  except that the
Pledgor  shall not be permitted to assign this Pledge  Agreement or any interest
herein or in the Collateral,  or any part thereof, or otherwise pledge, encumber
or grant any option with respect to the Collateral,  or any part thereof, or any
cash or property  held by the Agent as Collateral  under this Pledge  Agreement.
Without limiting the generality of the foregoing sentence of this Section 21(b),
any Participating Creditor may assign to one or more Persons, or grant to one or
more  Persons  participations  in or to,  all  or any  part  of its  rights  and
obligations  under the Credit  Agreement (to the extent  permitted by the Credit
Agreement)  and  the  Note  Agreement  (to  the  extent  permitted  by the  Note
Agreement); and to the extent of any such assignment or participation such other
Person shall, to the fullest extent  permitted by law,  thereupon  become vested
with all the benefits in respect thereof granted to such Participating  Creditor
herein or otherwise,  subject  however,  to the provisions of the various Credit
Transaction  Documents.  All references  herein to the  Collateral  Agent or the
Secured  Party and to the  Participating  Creditors  shall include any successor
thereof or permitted  assignee,  and any other obligees from time to time of the
Obligations.

                          (c)  The  Secured  Party,   for  the  benefit  of  the
Participating  Creditors,  and the Pledgor  hereby consent to and agree with the
terms of the Intercreditor  Agreement and hereby acknowledge and agree that each
Lien in all  Collateral  now  owned  or  hereafter  acquired  and  all  remedies
available  with  respect  to such  Collateral  are  subject  to the terms of the
Intercreditor Agreement.

                  22.   GOVERNING   LAW.  This  Agreement  and  the  rights  and
obligations of the parties  hereunder  shall be construed in accordance with and
be governed by the internal laws of the State of Tennessee.

                  23. Judicial  Proceedings;  Waiver of Jury Trial. ANY JUDICIAL
PROCEEDING  BROUGHT  AGAINST THE PLEDGOR WITH RESPECT TO THIS  AGREEMENT  MAY BE
BROUGHT IN ANY COURT OF COMPETENT  JURISDICTION IN THE STATE OF TENNESSEE,  AND,
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE PLEDGOR (A) ACCEPTS,  GENERALLY
AND  UNCONDITIONALLY,  THE  NONEXCLUSIVE  JURISDICTION  OF SUCH  COURTS  AND ANY
RELATED  APPELLATE COURT,  AND IRREVOCABLY  AGREES

                                      -16-

<PAGE>

(WITHOUT  WAIVING  ANY RIGHT TO  APPEAL)  TO BE BOUND BY ANY  JUDGMENT  RENDERED
THEREBY  IN  CONNECTION  WITH THIS  AGREEMENT,  AND (B)  IRREVOCABLY  WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT,  ACTION
OR  PROCEEDING  BROUGHT  IN SUCH A COURT OR THAT SUCH  COURT IS AN  INCONVENIENT
FORUM.  THE PLEDGOR HEREBY WAIVES PERSONAL  SERVICE OF PROCESS AND CONSENTS THAT
SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED  MAIL,  RETURN
RECEIPT REQUESTED (WITH A COPY BY OVERNIGHT  COURIER),  AT ITS ADDRESS SPECIFIED
OR  DETERMINED  IN  ACCORDANCE  WITH THE  PROVISIONS  OF SECTION 17 HEREOF,  AND
SERVICE SO MADE SHALL BE DEEMED COMPLETED ON THE FIFTH DAY AFTER SUCH SERVICE IS
DEPOSITED IN THE MAIL. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN
ANY OTHER MANNER  PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE SECURED PARTY
TO  BRING   PROCEEDINGS   AGAINST  THE  PLEDGOR  IN  THE  COURTS  OF  ANY  OTHER
JURISDICTION.  ANY JUDICIAL  PROCEEDING BY THE PLEDGOR AGAINST THE SECURED PARTY
OR ANY PARTICIPATING CREDITOR INVOLVING,  DIRECTLY OR INDIRECTLY,  ANY MATTER IN
ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED  WITH THIS  AGREEMENT  SHALL BE
BROUGHT ONLY IN A COURT LOCATED IN THE CITY OF CHATTANOOGA,  STATE OF TENNESSEE.
THE PLEDGOR AND THE SECURED PARTY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW,  HEREBY  WAIVE TRIAL BY JURY IN ANY  JUDICIAL  PROCEEDING  TO WHICH ANY ARE
PARTIES INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,  RELATED TO, OR CONNECTED WITH
THIS AGREEMENT OR THE RELATIONSHIP  ESTABLISHED HEREUNDER AND WHETHER ARISING OR
ASSERTED  BEFORE  OR AFTER  THE  AGREEMENT  DATE OR  BEFORE  OR  AFTER  PAYMENT,
OBSERVANCE  AND  PERFORMANCE IN FULL OF THE PLEDGOR'S  OBLIGATIONS  HEREUNDER OR
THEREUNDER.

                  24. Limitation of Liability. Neither the Secured Party nor any
Participating Creditor, nor any affiliate thereof, shall have any liability with
respect  to, and EXCEPT AS  OTHERWISE  EXPRESSLY  PROVIDED  HEREIN,  THE PLEDGOR
HEREBY  WAIVES,  RELEASES AND AGREES NOT TO SUE UPON, ANY CLAIM FOR ANY SPECIAL,
INDIRECT OR CONSEQUENTIAL DAMAGES (AS OPPOSED TO DIRECT DAMAGES) SUFFERED BY THE
PLEDGOR  IN  CONNECTION  WITH,  ARISING  OUT OF, OR IN ANY WAY  RELATED  TO THIS
AGREEMENT, OR THE TRANSACTIONS  CONTEMPLATED AND THE RELATIONSHIP ESTABLISHED BY
THIS AGREEMENT OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH.

                  25. Indemnification. Without limitation of Section 13.9 of the
Credit Agreement or any other indemnification  provision in the Credit Agreement
or any other Credit  Transaction  Document,  the Pledgor agrees to indemnify and
hold harmless the Secured Party, the Participating  Creditors, and each of their
affiliates,  and their respective officers,  directors,  employees,  agents, and
advisors (each, an  "Indemnified  Party"),  from and against any and all

                                      -17-

<PAGE>

claims, damages, losses,  liabilities,  costs, and expenses (including,  without
limitation,  reasonable  attorneys' fees) that may be incurred by or asserted or
awarded  against  any  Indemnified  Party,  in each  case  arising  out of or in
connection with or by reason of (including,  without  limitation,  in connection
with any  investigation,  litigation or proceeding or  preparation of defense in
connection therewith) the Credit Transaction Documents,  any of the transactions
contemplated  herein  or the  actual  or  proposed  use of the  proceeds  of the
extensions of credit under the Credit Transaction Documents except to the extent
such  claim,  damage,  loss,  liability,  cost,  or expense is found in a final,
non-appealable  judgment by a court of competent  jurisdiction  to have resulted
from such  Indemnified  Party's gross negligence or willful  misconduct.  In the
case of an investigation,  litigation or other proceeding to which the indemnity
in this Section 25 applies,  such  indemnity  shall be effective  whether or not
such  investigation,  litigation or  proceeding is brought by the Borrower,  the
Pledgor or any other Obligor, any of their respective directors, shareholders or
creditors, or an Indemnified Party or any other Person, or any Indemnified Party
is otherwise a party  thereto and whether or not the  transactions  contemplated
hereby are consummated.

                  26. Swap  Agreements.  All  obligations  of the Borrower under
Swap Agreements (as defined in the Credit  Agreement) to which any Participating
Creditor or its affiliates are a party shall be deemed to be Obligations secured
hereby (unless otherwise agreed in writing by such Participating  Creditor), and
each  Participating  Creditor or affiliate of a Participating  Creditor party to
any such Swap Agreement shall be deemed to be a Secured Party hereunder.

                  [Remainder of page intentionally left blank]

                                      -18-

<PAGE>

                  IN WITNESS  WHEREOF,  the Pledgor has caused this Agreement to
be executed by its duly authorized officer as of the date first above written.

                                       COVENANT TRANSPORT, INC.,
                                       a Tennessee corporation

                                       By:______________________________________
                                       Name:  Joey B. Hogan
                                       Title:    Treasurer

                                       Address for Notices:

                                       Covenant Transport, Inc.
                                       400 Birmingham Highway
                                       Chattanooga, Tennessee  37404

                                       Telecopier No.:  (423) 821-5442
                                       Telephone No.:   (423) 821-1212

                                       Attention:   Joey B. Hogan
                                                    Treasurer

ACCEPTED BY:

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

By:_____________________________________
Name:
Title:

Address for Notices:
Bank of America, N.A.
TN6-300-02-03
633 Chestnut Street, 2nd Floor
Chattanooga, Tennessee  37450
Attention: Sybil Weldon
Telephone:        (423) 752-1222
Telefacsimile:    (423) 755-0689

   Second Amended and Restated Guarantor Stock Pledge and Security Agreement
                              Signature Page 1 of 1

<PAGE>

<TABLE>
<CAPTION>

                                   SCHEDULE 1

                                  Pledged Stock

<S>                                      <C>                                       <C>                        <C>
                                                                                                              Percentage of
Name of Corporation                      Number and Type of Shares                 Certificate No(s).          Total Shares
-------------------                      -------------------------                 -----------------           ------------

Covenant.com, Inc., a Nevada             10,000 shares of $.01 par value                   3                      100%
corporation                              common stock

CIP, Inc., a Nevada corporation          10,000 shares of $.01 par value                   3                      100%
                                         common stock

Harold Ives Trucking Co., an             2,000 shares of $1.00 par value                   7                      100%
Arkansas corporation                     common stock

Terminal Truck Broker, Inc.,             61 shares of no par value common                  13                     100%
an Arkansas corporation                  stock

</TABLE>

                                      S-1

<PAGE>

                                    EXHIBIT A

                 STOCK PLEDGE AND SECURITY AGREEMENT SUPPLEMENT

         THIS STOCK PLEDGE AND SECURITY  AGREEMENT  SUPPLEMENT  (as from time to
time  amended,   modified  or  restated,  this  "  Supplement"),   dated  as  of
______________  ___,  20__ is made by and between  Covenant  Transport,  Inc., a
Tennessee  corporation  (the "Pledgor"),  and BANK OF AMERICA,  N.A., a national
banking  association,  as Collateral Agent for the  Participating  Creditors (as
described in the Pledge Agreement referred to below). All capitalized terms used
but not otherwise  defined  herein shall have the respective  meanings  assigned
thereto in the Pledge Agreement (as defined below).

         WHEREAS,  the  Pledgor  is  required  under  the  terms  of the  Credit
Transaction  Documents and that certain  Second  Amended and Restated  Guarantor
Stock  Pledge and  Security  Agreement  dated as of  December  ___,  2000 by the
Pledgor in favor of the  Collateral  Agent for the benefit of the  Participating
Creditors (as from time to time amended,  modified,  supplemented or amended and
restated, the "Pledge Agreement"), to cause certain Pledged Stock held by it and
listed  on  Annex  A to  this  Supplement  (the  "Additional  Interests")  to be
specifically identified as subject to the Pledge Agreement; and

         WHEREAS, a material part of the consideration  given in connection with
and as an  inducement  to the  execution  and  delivery  of the  various  Credit
Transaction  Documents by the Participating  Creditors was the obligation of the
Pledgor to pledge to the Collateral  Agent for the benefit of the  Participating
Creditors the Additional Interests,  whether then owned or subsequently acquired
or created; and

         WHEREAS,  the Pledgor has acquired  rights in the Additional  Interests
and desires to pledge,  and evidence its prior pledge,  to the Collateral  Agent
for the benefit of the Participating  Creditors all of the Additional  Interests
in  accordance  with the terms of the  Pledge  Agreement  and the  other  Credit
Transaction Documents;

         NOW,  THEREFORE,   the  Pledgor  hereby  agrees  as  follows  with  the
Collateral Agent, for the benefit of the Participating Creditors:

         The Pledgor hereby reaffirms and acknowledges the pledge and collateral
assignment to, and the grant of security  interest in, the Additional  Interests
contained in the Pledge  Agreement and pledges and  collaterally  assigns to the
Collateral Agent for the benefit of the Participating  Creditors,  and grants to
the  Collateral  Agent for the  benefit of the  Participating  Creditors a first
priority lien and security interest in, the Additional  Interests and all of the
following:

                  (a) all dividends (whether in cash, stock, warrants,  options,
         or other securities),  cash, instruments or other property from time to
         time received, receivable, or otherwise distributed in respect of or in
         exchange for any and all of the Additional Interests;

                                      A-1

<PAGE>

                  (b) all other property  hereafter  delivered to the Collateral
         Agent in  substitution  for or as an addition to any of the  foregoing,
         and all  certificates  and instruments  representing or evidencing such
         property; and

                  (c) all proceeds of any of the foregoing.

The Pledgor  hereby  acknowledges,  agrees and confirms by its execution of this
Supplement that the Additional  Interests  constitute  "Pledged Stock" under and
are subject to the Pledge  Agreement,  and the items of property  referred to in
clauses (a) through (c) above (the "Additional  Collateral")  shall collectively
constitute  "Collateral" under and are subject to the Pledge Agreement.  Each of
the  representations and warranties with respect to Pledged Stock and Collateral
contained in the Pledge  Agreement is hereby made by the Pledgor with respect to
the  Additional  Interests  and the  Additional  Collateral,  respectively.  The
Pledgor  further  represents  and  warrants  that a true,  correct and  complete
revised Schedule I to the Pledge Agreement  reflecting the Additional  Interests
and all other  Pledged  Stock is  attached  hereto  and hereby  incorporated  by
reference into the Pledge Agreement, and that all other documents required to be
furnished  to the  Collateral  Agent  pursuant  to  Section  4.1  of the  Pledge
Agreement in connection  with the Additional  Collateral  have been delivered or
are being delivered simultaneously herewith to the Collateral Agent.

         IN WITNESS  WHEREOF,  the Pledgor has caused this Supplement to be duly
executed by its authorized officer as of the day and year first above written.

                                       PLEDGOR:

                                       By:______________________________________
                                       Name:____________________________________
                                       Title:___________________________________

Acknowledged and accepted:

BANK OF AMERICA, N.A.,
as Collateral Agent for the Participating Creditors

By:__________________________________________
Name:________________________________________
Title:_______________________________________

                                      A-2

<PAGE>

<TABLE>
<CAPTION>

                                     ANNEX A
         (to Pledge Agreement Supplement of __________ dated __________)

                              Additional Interests

<S>                                      <C>                                      <C>                    <C>
                                                                                                         Percentage of
Name of Corporation                      Number and Type of Shares                Certificate No(s).      Total Shares
-------------------                      -------------------------                -----------------       ------------

</TABLE>

                                      A-3

<PAGE>

<TABLE>
<CAPTION>

                REVISED SCHEDULE I TO SECURITIES PLEDGE AGREEMENT

                                Date: __________

                                  Pledged Stock

<S>                                      <C>                                       <C>                       <C>
                                                                                                             Percentage of Total
Name of Corporation                      Number and Type of Shares                 Certificate No(s).               Shares
-------------------                      -------------------------                 -----------------                ------

</TABLE>

                                      A-4

<PAGE>

                                    EXHIBIT K

                       Form of Borrowing Base Certificate

Bank of America, N.A., successor
  to NationsBank, N.A.
Independence Center, 15th Floor
NC1-001-15-04
Charlotte, North Carolina  28255
Attention: Agency Services
Telefacsimile:  (704) 386-9436

         Reference is hereby made to the Credit  Agreement  dated as of December
13  2000,  (as from  time to time  amended,  restated,  modified,  replaced,  or
supplemented the "Agreement")  among Covenant Asset  Management,  Inc., a Nevada
corporation ("Borrower"),  Covenant Transport,  Inc., a Nevada corporation,  the
Lenders (as defined in the  Agreement)  and Bank of America,  N.A., as Agent for
the Lenders  ("Agent").  Capitalized terms used but not otherwise defined herein
shall have the  respective  meanings  therefor set forth in the  Agreement.  The
undersigned,  duly  authorized  and  acting  Authorized  Representatives  of the
Borrower and the Parent, hereby certifies to you as of _____________, 20___ (the
"Determination Date") as follows:

Availability under Revolving Credit Facility

<TABLE>
<CAPTION>

I.       Eligible Revenue Equipment

<S>                                         <C>            <C>           <C>           <C>
                                                                                        Borrowing
Revenue Equipment:                          Gross          Eligible      Advance %     Base Amount
-----------------                           -----          --------      ---------     -----------

Southern Refrigerated Transport, Inc.       ______          ______         ______        ______
Covenant Transport, Inc.                    ______          ______         ______        ______

Total:                                      ______          ______         ______        ______ (I)

II.      Aggregate Senior Note Outstandings:                                             ______ (II)

</TABLE>

         TOTAL BORROWING BASE (I-II):       __________________________*
                                            *Not to exceed Total Revolving
                                                  Credit Commitment.

                                      K-1

<PAGE>

III.

1.  Total Borrowing Base:                                $______________________
2.  Revolving Credit Outstandings                        $______________________
3.  Availability [1-2]                                   $_____________________*

         * If negative,  immediate  prepayment  of the amount of such deficit is
required.

         IN WITNESS  WHEREOF,  we have executed this  Certificate this __ day of
__________, 20___.

                                       COVENANT ASSET MANAGEMENT, INC.

                                       By:______________________________________

                                       Name:____________________________________

                                       Title:___________________________________

                                       COVENANT TRANSPORT, INC.

                                       By:______________________________________

                                       Name:____________________________________

                                       Title:___________________________________

                                      K-2

<PAGE>

                                    EXHIBIT L

                      Form of Commitment Increase Agreement

Date: ___________________

Bank of America, N.A.,
as Agent
TN6-300-02-03
633 Chestnut Street, 2nd Floor
Chattanooga, Tennessee  37450
Attention: Sybil Weldon
Telephone:        (423) 752-1222
Telefacsimile:    (423) 755-0689

Covenant Asset Management, Inc.
400 Birmingham Highway
Chattanooga, Tennessee  37419
Attn: _________________
Telephone:     (___) ___-____
Telefacsimile: (___) ___-____

Ladies and Gentlemen:

         We refer to the Credit  Agreement  dated as of  December  13,  2000 (as
amended,  restated,  modified,  supplemented  or renewed from time to time,  the
"Credit Agreement") among Covenant Asset Management,  Inc., a Nevada corporation
(the "Borrower"),  Covenant Transport,  Inc., a Nevada corporation,  the Lenders
referred to therein, and Bank of America, N.A., as administrative agent (in such
capacity,  "Agent").  Terms  defined in the Credit  Agreement are used herein as
therein defined.

         This Commitment  Increase  Agreement is made and delivered  pursuant to
Section 2.1(f) of the Credit Agreement.

         Subject to the terms and  conditions  of  Section  2.1(f) of the Credit
Agreement,  _______________________________  ("Increasing Lender") will increase
its  Revolving  Credit  Commitment  to an amount equal to  $___________,  on the
Increased  Commitment  Date  applicable  to it.  The  Increasing  Lender  hereby
confirms  and agrees  that with  effect on and after such  Increased  Commitment
Date,  the  Revolving  Credit  Commitment  of the  Increasing  Lender  shall  be
increased to the amount set forth above,  and the  Increasing  Lender shall have
all of the rights and be obligated to perform all of the obligations of a Lender
under the Credit Agreement with a Revolving Credit  Commitment in the amount set
forth above.

         Effective the on the Increased  Commitment  Date  applicable to it, the
Increasing  Lender (i) accepts and assumes from the assigning  Lenders,  without
recourse, such assignment of

                                      L-1

<PAGE>

Revolving   Credit   Outstandings  as  shall  be  necessary  to  effectuate  the
adjustments in the pro rata shares of Lenders  contemplated by Section 2.1(f) of
the Credit Agreement,  and (ii) agrees to fund on such Increased Commitment Date
such assumed amounts of Revolving  Credit  Outstandings to Agent for the account
of the  assigning  Lenders  in  accordance  with the  provisions  of the  Credit
Agreement, in the amount notified to Increasing Lender by Agent.

         THIS COMMITMENT  INCREASE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN  ACCORDANCE  WITH,  THE LAW OF THE STATE OF  TENNESSEE,  NOTWITHSTANDING  ITS
EXECUTION OUTSIDE SUCH STATE.

         IN  WITNESS  WHEREOF,  Increasing  Lender has  caused  this  Commitment
Increase   Agreement  to  be  duly  executed  and  delivered  in  _____________,
______________, by its proper and duly authorized officer as of the day and year
first above written.

                                       [INCREASING LENDER]

                                       By:______________________________________
                                       Name:____________________________________
                                       Title:___________________________________

CONSENTED TO as of ___________________:

COVENANT ASSET MANAGEMENT, INC.

By:____________________________________
Name:__________________________________
Title:_________________________________

BANK OF AMERICA, N.A.,
as Agent

By:____________________________________
Name:__________________________________
Title:_________________________________

                                       L-2

<PAGE>

                                    EXHIBIT M

                         Form of Added Lender Agreement

Date: ___________________

Bank of America, N.A.,
as Agent
TN6-300-02-03
633 Chestnut Street, 2nd Floor
Chattanooga, Tennessee  37450
Attention: Sybil Weldon
Telephone:        (423) 752-1222
Telefacsimile:    (423) 755-0689

Covenant Asset Management, Inc.
400 Birmingham Highway
Chattanooga, Tennessee  37419
Attn: _________________
Telephone:     (___) ___-____
Telefacsimile: (___) ___-____

Ladies and Gentlemen:

         We refer to the Credit  Agreement  dated as of  December  13,  2000 (as
amended,  restated,  modified,  supplemented  or renewed from time to time,  the
"Credit Agreement") among Covenant Asset Management,  Inc., a Nevada corporation
(the "Borrower"),  Covenant  Transport,  Inc., a Nevada  corporation the Lenders
referred to therein, and Bank of America, N.A., as administrative agent (in such
capacity,  "Agent").  Terms  defined in the Credit  Agreement are used herein as
therein defined.

         This Added Lender  Agreement is made and delivered  pursuant to Section
2.1(f) of the Credit Agreement.

         Subject to the terms and  conditions  of  Section  2.1(f) of the Credit
Agreement, _________________________ (the "Added Lender") will become a party to
the Credit Agreement as a Lender,  with a Revolving  Credit  Commitment equal to
$___________,  on the  Increased  Commitment  Date  applicable  to it. The Added
Lender hereby  confirms and agrees that with effect on and after such  Increased
Commitment  Date,  the Added  Lender  shall be and  become a party to the Credit
Agreement as a Lender and have all of the rights and be obligated to perform all
of the obligations of a Lender  thereunder with a Revolving Credit Commitment in
the amount set forth above.

         Effective the on the Increased  Commitment  Date  applicable to it, the
Added  Lender (i)  accepts  and  assumes  from the  assigning  Lenders,  without
recourse, such assignment of Revolving Credit Outstandings as shall be necessary
to effectuate the adjustments in the pro rata

                                      M-1

<PAGE>

shares of the Lenders  contemplated  by Section 2.1(f) of the Credit  Agreement,
and (ii) agrees to fund on such Increased  Commitment  Date such assumed amounts
of  Revolving  Credit  Outstandings  to Agent for the  account of the  assigning
Lenders in accordance with the provisions of the Credit Agreement, in the amount
notified to the Added Lender by the Agent. The following  administrative details
apply to the Added Lender:

         (A)      Lending Office(s):
                  -----------------

                  Lender name:         ______________________________
                  Address:             ______________________________
                                       ______________________________
                                       ______________________________
                                       ______________________________
                  Attention:           ______________________________
                  Telephone:           (___)_________________________
                  Facsimile:           (___)_________________________

                  Lender name:         ______________________________
                  Address:             ______________________________
                                       ______________________________
                                       ______________________________
                                       ______________________________
                  Attention:           ______________________________
                  Telephone:           (___)_________________________
                  Facsimile:           (___)_________________________

         (B)      Notice Address:
                  --------------

                  Lender name:         ______________________________
                  Address:             ______________________________
                                       ______________________________
                                       ______________________________
                                       ______________________________
                  Attention:           ______________________________
                  Telephone:           (___)_________________________
                  Facsimile:           (___)_________________________

         (C)      Payment Instructions:
                  --------------------

                  Account No.:         ______________________________
                  At:                  ______________________________
                                       ______________________________
                                       ______________________________
                                       ______________________________
                  Reference:           ______________________________
                  Attention:           ______________________________

                                      M-2

<PAGE>

THIS ADDED LENDER  AGREEMENT  SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF TENNESSEE,  NOTWITHSTANDING  ITS EXECUTION OUTSIDE
SUCH STATE.

         IN WITNESS  WHEREOF,  the Added  Lender has  caused  this Added  Lender
Agreement to be duly executed and delivered in _____________, ______________, by
its  proper  and duly  authorized  officer  as of the day and year  first  above
written.

                                       [ADDED LENDER]

                                       By:______________________________________
                                       Name:____________________________________
                                       Title:___________________________________

CONSENTED TO as of ___________________:

COVENANT ASSET MANAGEMENT, INC.

By:____________________________________
Name:__________________________________
Title:_________________________________

BANK OF AMERICA, N.A.,
as Agent

By:____________________________________
Name:__________________________________
Title:_________________________________

                                      M-3

<PAGE>
                                   EXHIBIT N-1

               Form of Borrower Intercompany Note Pledge Agreement

                                  See attached.

                                     N-1-1

<PAGE>

                       INTERCOMPANY NOTE PLEDGE AGREEMENT

         THIS  INTERCOMPANY NOTE PLEDGE AGREEMENT (as from time to time amended,
restated,  modified or  supplemented,  the "Note Pledge  Agreement") is made and
entered into as of this 13th day of December, 2000 by and between COVENANT ASSET
MANAGEMENT,  INC., a Nevada Corporation (the "Pledgor" or "Borrower"),  and BANK
OF AMERICA,  N.A., a national banking  association  organized and existing under
the  laws  of  the  United  States,   acting  as  Collateral   Agent  under  the
Intercreditor  Agreement  (defined  below) for the benefit of the  Participating
Creditors (as defined below) (in such capacity,  and together with any successor
thereto,  the "Collateral Agent" or the "Secured Party").  All capitalized terms
used  but not  otherwise  defined  herein  shall  have the  respective  meanings
assigned thereto in the Intercreditor Agreement.

                              W I T N E S S E T H:

         WHEREAS,  Connecticut  General Life Insurance Company, on behalf of one
or more separate accounts,  Connecticut  General Life Insurance Company and Life
Insurance Company of North America (collectively, together with their successors
and  assigns,  the  "Noteholders")  have  heretofore  purchased  $25,000,000  in
aggregate principal amount of 7.39% Guaranteed Senior Notes, due October 1, 2005
(the  "Notes"),  issued by the Pledgor,  pursuant to that certain Note  Purchase
Agreement  (as the  same  may  hereafter  be  amended,  modified,  supplemented,
refinanced or replaced, the "Note Agreement"), dated as of May 15, 2000, between
the Noteholders, the Borrower and Covenant Transport, Inc., a Nevada corporation
(the "Parent"); and

         WHEREAS,  the Borrower has entered into a certain Credit  Agreement (as
amended,  modified,  supplemented,  restated, or replaced from time to time, the
"Credit Agreement"), dated of even date herewith, with the Parent, the financial
institutions  signatory thereto as lenders (together with each other institution
from time to time party to the Credit Agreement as a lender, the "Lenders"), the
Issuing Bank  thereunder,  and Bank of America,  N.A., as  administrative  agent
(together with any successor thereto, the "Agent"; the Lenders, the Issuing Bank
and the Agent being collectively called the "Bank Creditors"), pursuant to which
the Bank  Creditors  have agreed to provide a revolving  credit  facility  and a
letter of credit facility for the benefit of the Borrower,  the Parent,  and the
Subsidiary Guarantors; and

         WHEREAS,  the revolving  credit  facility and letter of credit facility
are being provided  pursuant to the Credit  Agreement to refinance those certain
facilities  provided  to the  Borrower  pursuant  to that  certain  Amended  and
Restated  Credit  Agreement  dated  as of  June  18,  1999  (the  "Prior  Credit
Agreement")  among  Covenant  Transport,  Inc.,  a  Tennessee  corporation,  the
Borrower,  ABN AMRO Bank, N.V. ("ABN") as agent, and ABN, BankOne, N.A., AmSouth
Bank,  N.A.  (successor  by merger to First  American  National  Bank),  Bank of
America, N.A., and SunTrust Bank, as lenders  (collectively,  with ABN as agent,
the "Prior Bank Creditors"); and

         WHEREAS,  the  Noteholders  previously  entered  into  an  Amended  and
Restated  Master  Collateral and  Intercreditor  Agreement,  dated as of June 6,
2000, among the  Noteholders,  the Prior Bank Creditors and the Prior Collateral
Agent,  and  acknowledged  and agreed to by the  Borrower

<PAGE>

and the Parent, (the "Prior Intercreditor  Agreement"),  in order to acknowledge
their agreement that the Borrower's obligations to each of the Noteholders under
the Notes and Note Agreement and the Prior Bank Creditors under the Prior Credit
Agreement  would be  secured  on a pari  passu  basis,  and to set  forth  their
respective rights in respect of any and all security or collateral  securing the
obligations  of the Borrower,  the Parent,  or any  Subsidiary  Guarantor to the
Noteholders  under the Notes and Note  Agreement or to the Prior Bank  Creditors
under the Prior Credit Agreement; and

         WHEREAS pursuant to the Prior Credit Agreement,  the Note Agreement and
the  Security  Documents,  the  Noteholders  and the Prior Bank  Creditors  were
previously granted a security interest in the Intercompany  Notes, as defined in
the  Credit  Agreement,  in order to secure the  prompt  and  complete  payment,
performance  and  observance  of  the  Borrower's  obligations  under  the  Note
Agreement,  which security interest is intended to be continued hereby as to the
Noteholders; and

         WHEREAS,  the  Noteholders  and the Bank  Creditors  under  the  Credit
Agreement  (together,  the  "Participating  Creditors")  have  agreed  that  the
Borrower's  obligations  to each of them under the Note Agreement and the Credit
Agreement  shall be secured on a pari passu  basis,  and are  entering  into the
Second Amended and Restated Master Collateral and Intercreditor  Agreement dated
as of the date hereof (as it may hereafter be amended,  modified,  supplemented,
refinanced or replaced,  the  "Intercreditor  Agreement")  with Bank of America,
N.A. as Collateral Agent, to amend and restate the Prior Intercreditor Agreement
insofar as the revolving credit and letter of credit  facilities  provided under
the Credit Agreement  refinance and replace those revolving credit and letter of
credit facilities  provided  pursuant to the Prior Credit Agreement,  and to set
forth their  respective  rights in respect of any and all security or collateral
now or hereafter securing the current obligations of the Borrower, the Parent or
any Subsidiary  Guarantor to the Noteholders  under the Notes and Note Agreement
or to the Bank Creditors under the Credit Agreement; and

         WHEREAS,  subject  to the terms  and  conditions  of the  Intercreditor
Agreement,  the Noteholders and the Bank Creditors have appointed the Collateral
Agent to serve as  collateral  agent under this  Agreement,  and the  Collateral
Agent has agreed to serve as collateral agent under this Agreement; and

         WHEREAS, to secure or continue to secure, as applicable, the prompt and
complete  payment and  performance of its  Obligations (as defined in the Credit
Agreement) to the Bank Creditors under the Credit  Agreement and its obligations
to  the  Noteholders  under  the  Note  Agreement   (collectively  the  "Secured
Obligations"),  the Pledgor is willing to pledge and grant to the Secured Party,
for the  benefit of the  Participating  Creditors,  a security  interest  in all
Intercompany  Notes, as described in the Credit Agreement,  at any time and from
time to time held by and payable to the order of it (or endorsed and assigned to
the order of it) from time to time evidencing  indebtedness owing to the Pledgor
from the Parent,  each  Subsidiary  of the Parent,  and  certain  affiliates  of
Pledgor,  whether now in existence or hereafter  issued (the  "Pledged  Notes"),
including without  limitation the Pledged Notes more  particularly  described on
Schedule I hereto;

                                       2

<PAGE>

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

         1.       Pledge of  Notes; Other Collateral.

                  (a) As collateral  security for the payment and performance of
         all  Secured  Obligations  now  or  hereafter  existing,   absolute  or
         contingent,  the Pledgor hereby pledges and collaterally assigns to the
         Collateral Agent for the benefit of the  Participating  Creditors,  and
         grants to the  Collateral  Agent for the  benefit of the  Participating
         Creditors pursuant to the Tennessee Uniform Commercial Code (the "UCC")
         a first priority security interest in, the Pledged Notes and all of the
         following:

                           (i) all cash, securities,  rights, and other property
                  at any time and from time to time declared or  distributed  in
                  respect of or in exchange for or as payment for any  principal
                  amount of or interest  accrued on, or any other  amount due in
                  accordance with the terms of, any or all of the Pledged Notes,
                  other than  payments of principal  and  interest  under and in
                  accordance  with the  terms  of such  Pledged  Notes  that are
                  permitted  to be retained by the Pledgor  hereunder  and under
                  the other Credit Transaction Documents;

                           (ii) all other  property  hereafter  delivered to the
                  Collateral  Agent in substitution for or in addition to any of
                  the foregoing,  all certificates and instruments  representing
                  or  evidencing   such  property  and  all  cash,   securities,
                  interest,  dividends,  rights,  and other property at any time
                  and from time to time declared or distributed in respect of or
                  in exchange for any or all of the Pledged Notes; and

                           (iii) all proceeds of any of the foregoing.

         All such Pledged Notes,  certificates,  instruments,  cash, securities,
         interest,  rights and other property referred to in this Section 1, are
         herein  collectively  referred  to as  the  "Collateral."  Each  of the
         Pledged  Notes  described on Schedule I in effect from time to time are
         currently owned by the Pledgor as thereon indicated.  The Pledged Notes
         as of the Closing Date,  each together with an assignment duly executed
         in blank by the Pledgor  substantially  in the form of Exhibit A and an
         estoppel notice executed by the obligor thereunder substantially in the
         form of Exhibit B, have been delivered to the Collateral Agent.

                  (b) The Pledgor  agrees to deliver all the  Collateral  to the
         Collateral  Agent at such location as the  Collateral  Agent shall from
         time to time designate by written notice  pursuant to Section 20 hereof
         for its  custody at all times  until  termination  of this Note  Pledge
         Agreement  in  accordance  with Section 22 hereof,  together  with such
         instruments  of assignment  and transfer as requested by the Collateral
         Agent.

                  (c) If the  Parent or any  Subsidiary  of the Parent or of the
         Borrower makes any loan or advance to the Pledgor,  as permitted by the
         Credit Transaction Documents, such

                                       3

<PAGE>

         loan or advance  must be  evidenced by an  Intercompany  Note  (whether
         previously  issued  providing for future advances or newly issued as an
         additional  Intercompany  Note)  which is  subject to the terms of this
         Note Pledge  Agreement and is deemed a Pledged Note hereunder,  and the
         Pledgor  shall  deliver  each  such  additional  Pledged  Note  to  the
         Collateral  Agent,  together  with (i) an  assignment  duly executed in
         blank by the  Pledgor  substantially  in the form of Exhibit A, (ii) an
         estoppel notice executed by the obligor thereunder substantially in the
         form of  Exhibit B, (iii) a revised  Schedule I hereto  reflecting  the
         additional  Pledged  Note,  and (iv) any other  document or  instrument
         required pursuant to the terms of this Note Pledge Agreement.

                  (d) The  Pledgor  agrees  to  deliver  all  notes,  documents,
         agreements,  financing statements,  amendments thereto,  assignments or
         other  writings  as the  Collateral  Agent may request to carry out the
         terms of this Note Pledge  Agreement  or to protect or enforce the Lien
         in the Collateral hereunder granted thereby to the Collateral Agent for
         the benefit of the Participating Creditors and further agrees to do and
         cause to be done all things  determined by the  Collateral  Agent to be
         necessary to perfect and keep in full force such Lien,  including,  but
         not limited to, the prompt payment of all documented out-of-pocket fees
         and expenses incurred in connection with any filings made to perfect or
         continue such Lien. The Pledgor agrees to make appropriate entries upon
         its books and records  disclosing the Lien in the Collateral  hereunder
         granted  thereby  to  the  Collateral  Agent  for  the  benefit  of the
         Participating Creditors hereunder.

                  (e) All  advances,  charges,  costs  and  expenses,  including
         reasonable attorneys' fees, incurred or paid by the Collateral Agent or
         any  Participating  Creditor in exercising  any right,  power or remedy
         conferred by this Note Pledge Agreement, or in the enforcement thereof,
         shall become a part of the Secured Obligations and shall be paid to the
         Collateral Agent for the benefit of the Participating  Creditors by the
         Pledgor  immediately upon demand therefor,  with interest thereon until
         paid in full at the higher of the applicable  default or  post-maturity
         rate  specified in the Note  Agreement or the Notes,  or the applicable
         Default Rate as defined in the Credit Agreement.

                  (f) The Collateral Agent, for the benefit of the Participating
         Creditors,  and the Pledgor  hereby consent to and agree with the terms
         of the  Intercreditor  Agreement and hereby  acknowledge and agree that
         each Lien in all  Collateral  now owned or  hereafter  acquired and all
         remedies  available with respect to such  Collateral are subject to the
         terms of the Intercreditor Agreement.

         2. Status of Pledged Notes. The Pledgor hereby  represents and warrants
to the Collateral Agent for the benefit of the Participating  Creditors that (i)
the Pledged Notes payable to it or its order  evidence,  and constitute the only
instruments  evidencing,  all  indebtedness  outstanding  from any entity to the
Pledgor,  (ii) the  Pledgor is the record and  beneficial  owner of the  Pledged
Notes  payable to it or its order,  such  ownership  being free and clear of all
Liens,  charges,  equities,  encumbrances and restrictions on pledge or transfer
(other than the pledge hereunder and applicable restrictions pursuant to federal
and state securities  laws),  (iii) the Pledgor has full corporate power,  legal
right and lawful  authority to execute this Note Pledge Agreement and to pledge,
assign and  transfer the Pledged  Notes in the manner and form hereof,

                                       4

<PAGE>

and (iv) the pledge,  assignment and delivery of the Pledged Notes payable to it
or its  order to the  Collateral  Agent  for the  benefit  of the  Participating
Creditors  pursuant to this Note Pledge  Agreement  creates,  together  with the
delivery of the Pledged Notes,  which delivery has heretofore been accomplished,
a valid and perfected first priority  security  interest in the Pledged Notes in
favor of the Collateral  Agent for the benefit of the  Participating  Creditors,
securing the payment of the Secured  Obligations.  Except as otherwise expressly
permitted  herein  or in the other  Credit  Transaction  Documents,  none of the
Pledged Notes (nor any interest  therein or thereto) shall be sold,  transferred
or assigned,  nor any Lien  created  therein  other than  pursuant to the Credit
Transaction  Documents,  without the Collateral  Agent's prior written  consent,
which may be withheld for any reason.

         3.       Preservation and Protection of Collateral.

                  (a) The  Collateral  Agent shall be under no duty or liability
         with  respect to the  collection,  protection  or  preservation  of the
         Collateral,  or  otherwise,  beyond the use of  reasonable  care in the
         custody and preservation thereof while in its possession.

                  (b) The  Pledgor  agrees to pay when due all  taxes,  charges,
         Liens and assessments against the Collateral, unless being contested in
         good faith by appropriate  proceedings diligently conducted and against
         which adequate  reserves have been  established in accordance with GAAP
         and evidenced to the  satisfaction of the Collateral Agent and provided
         further  that all  enforcement  proceedings  in the  nature  of levy or
         foreclosure are effectively  stayed. Upon the failure of the Pledgor to
         so pay or  contest  such  taxes,  charges,  Liens or  assessments,  the
         Collateral  Agent at its  option  may pay or  contest  any of them (the
         Collateral  Agent  having the sole right to  determine  the legality or
         validity and the amount  necessary to  discharge  such taxes,  charges,
         Liens or assessments).

         4. Rights and Remedies Upon Default. Upon the occurrence and during the
continuance of any Actionable Default,  the Collateral Agent is given full power
and authority  (a) to enforce the Pledged Notes in accordance  with their terms,
in its own name or in the  name of the  Pledgor,  and to  receive,  endorse  and
collect all cash,  checks and other orders for the payment of money made payable
to the Pledgor  representing any interest  payment,  principal  payment or other
distribution payable or distributable in respect of, or otherwise  constituting,
the  Collateral or any part thereof and to give full discharge for the same, and
(b) to  sell,  assign  and  deliver  or  collect  the  whole  or any part of the
Collateral,  or any substitute  therefor or any addition thereto, in one or more
sales,  with or without any previous demands or demand of performance or, to the
extent  permitted  by  law,  notice  or  advertisement,  in  such  order  as the
Collateral  Agent may elect;  and any such sale may be made  either at public or
private sale at the  Collateral  Agent's place of business or elsewhere,  either
for cash or upon credit or for future delivery,  at such price as the Collateral
Agent may reasonably deem fair; and the Collateral Agent may be the purchaser of
any or all Collateral so sold and hold the same thereafter in its own right free
from any claim of the Pledgor or right of  redemption.  Demands of  performance,
advertisements  and  presence of property and sale and notice of sale are hereby
waived to the extent  permissible by law. Any sale hereunder may be conducted by
an  auctioneer  or any  officer or agent of the  Collateral  Agent.  The Pledgor
recognizes  that the  Collateral  Agent may be unable to effect a public sale of

                                       5

<PAGE>

the Collateral by reason of certain prohibitions contained in the Securities Act
of 1933, as amended (the "Securities Act"), and applicable state law, and may be
otherwise  delayed or  adversely  affected  in  effecting  any sale by reason of
present or future restrictions thereon imposed by governmental authorities,  and
that as a consequence of such prohibitions and restrictions the Collateral Agent
may be  compelled  (i) to resort to one or more  private  sales to a  restricted
group of purchasers who will be obliged to agree, among other things, to acquire
the Collateral for their own account,  for investment and not with a view to the
distribution  or resale  thereof,  or (ii) to seek  regulatory  approval  of any
proposed sale or sales,  or (iii) to limit the amount of Collateral  sold to any
Person or group. The Pledgor agrees and acknowledges  that private sales so made
may be at prices and upon  terms  less  favorable  to the  Pledgor  than if such
Collateral  was sold either at public  sales or at private  sales not subject to
other regulatory  restrictions,  and that the Collateral Agent has no obligation
to delay the sale of any of the  Collateral  for the period of time necessary to
permit the issuer of such  Collateral  to  register  or  otherwise  qualify  the
Pledged  Notes,  even if any issuer or maker of the Pledged Notes would agree to
register  or  otherwise  qualify  such  Collateral  for  public  sale  under the
Securities  Act or  applicable  state law. The Pledgor  further  agrees,  to the
extent permitted by applicable law, that the use of private sales made under the
foregoing  circumstances  to  dispose  of the  Collateral  shall be deemed to be
dispositions   in  a  commercially   reasonable   manner.   The  Pledgor  hereby
acknowledges that a ready market does not exist for the Pledged Notes and agrees
and  acknowledges  that as a result thereof the Pledged Notes may be sold for an
amount less than the face amount  thereof.  In  addition to the  foregoing,  the
Secured  Party may  exercise  such other rights and remedies as may be available
under the Credit Transaction Documents, at law (including without limitation the
UCC) or in equity.

         5. Proceeds of Sale.  All sums received or collected from or on account
of such Collateral  from and after the occurrence of any Actionable  Default and
the proceeds of the sale of any of the  Collateral  shall be applied as provided
in the Intercreditor Agreement.

         6. Presentments, Demands and Notices. The Collateral Agent shall not be
under  any  duty or  obligation  whatsoever  to make or give  any  presentments,
demands for performances, notices of nonperformance, protests, notice of protest
or notice of  dishonor  in  connection  with any  obligations  or  evidences  of
indebtedness  held thereby as collateral,  or in connection with any obligations
or evidences of  indebtedness  which  constitute in whole or in part the Secured
Obligations.

         7.  Anti-Marshalling  Provisions.  The  right  is  hereby  given by the
Pledgor to the Collateral Agent, for the benefit of the Participating Creditors,
to make  releases  (whether  in  whole  or in  part)  of all or any  part of the
Collateral  agreeable to the Collateral Agent without notice to, or the consent,
approval or agreement of other parties and interests,  including junior lienors,
which releases shall not impair in any manner the validity of or priority of the
Liens and security  interests in the remaining  Collateral  conferred under such
documents,  nor release  the Pledgor  from  personal  liability  for the Secured
Obligations hereby secured.  Notwithstanding the existence of any other security
interest in the Collateral held by the Collateral  Agent, for the benefit of the
Participating  Creditors, the Collateral Agent shall have the right to determine
the  order in which  any or all of the  Collateral  shall  be  subjected  to the
remedies provided in this Note Pledge Agreement.  The proceeds realized upon the
exercise of the  remedies  provided

                                       6

<PAGE>

herein  shall  be  applied  by the  Collateral  Agent,  for the  benefit  of the
Participating  Creditors, in the manner provided in the Intercreditor Agreement.
The Pledgor hereby waives any and all right to require the marshalling of assets
in connection  with the exercise of any of the remedies  permitted by applicable
law or provided herein.

         8.  Attorney-in-Fact.  The Pledgor hereby appoints the Collateral Agent
as  the  Pledgor's  attorney-in-fact  for  the  purposes  of  carrying  out  the
provisions of this Note Pledge Agreement and taking any action and executing any
instrument  which  the  Collateral  Agent may deem  necessary  or  advisable  to
accomplish the purposes  hereof,  which  appointment is coupled with an interest
and is  irrevocable;  provided,  that the  Collateral  Agent  shall have and may
exercise rights under this power of attorney only upon the occurrence and during
the continuance of an Actionable Default.

         9. Absolute  Rights and  Obligations.  All rights of the Secured Party,
and  all   obligations  of  the  Pledgor   hereunder,   shall  be  absolute  and
unconditional irrespective of:

                  (a) any  lack of  validity  or  enforceability  of the  Credit
         Agreement, the Note Agreement, any other Credit Transaction Document or
         any  other  agreement  or  instrument  relating  to any of the  Secured
         Obligations;

                  (b) any change in the time,  manner or place of payment of, or
         in any other term of,  all or any of the  Secured  Obligations,  or any
         other  amendment or waiver of or any consent to any departure  from the
         Credit  Agreement,  the Note  Agreement,  any other Credit  Transaction
         Document or any other  agreement or  instrument  relating to any of the
         Secured Obligations;

                  (c) any  exchange,  release  or  non-perfection  of any  other
         collateral,  or any  release  or  amendment  or waiver of or consent to
         departure from any guaranty, for all or any of the Secured Obligations;
         or

                  (d) any other circumstances which might otherwise constitute a
         defense  available to, or a discharge of, the Pledgor in respect of the
         Secured Obligations or of this Note Pledge Agreement.

         10. Waiver by Pledgor.  The Pledgor waives (to the extent  permitted by
applicable  law) any right to require the Secured  Party or any other obligee of
the Secured  Obligations to (a) proceed  against any Person,  including  without
limitation  the  Parent or any  Subsidiary  Guarantor,  (b)  proceed  against or
exhaust any  collateral  securing  payment or  performance of any of the Secured
Obligations,  or (c)  pursue any other  remedy in its power;  and waives (to the
extent  permitted  by  applicable  law) any  defense  arising  by  reason of any
disability or other defense of any other Person,  including  without  limitation
the Parent or any Subsidiary  Guarantor,  or by reason of the cessation from any
cause  whatsoever  of the  liability  of any  other  Person,  including  without
limitation the Parent or any Subsidiary  Guarantor.  The Collateral Agent may at
any time deliver (without  representation,  recourse or warranty) the Collateral
or any part thereof to the Pledgor and the receipt  thereof by the Pledgor shall
be a complete and full  acquittance  for the

                                       7

<PAGE>

Collateral  so delivered,  and the Secured Party shall  thereafter be discharged
from any liability or responsibility therefor.

         11.      Payments and Enforcement Rights.

                  (a) All  payments  of  principal,  interest,  fees  and  other
         amounts  with  respect  to the  Pledged  Notes  shall be subject to the
         pledge  hereunder,  except for those payments of principal and interest
         which, to the extent  permitted to be made under the Credit  Agreement,
         the Note Agreement, or any other Credit Transaction Documents,  and the
         terms  (including any  subordination  provisions) of the Pledged Notes,
         are  permitted to be retained by the Pledgor to which each such Pledged
         Note is payable,  and any such  payments may be retained by the Pledgor
         free  from any Lien  hereunder.  Upon the  occurrence  and  during  the
         continuance  of any  Actionable  Default,  all such  payments and other
         amounts  received  in respect of the  Pledged  Notes  shall be promptly
         delivered to the Collateral Agent for the benefit of the  Participating
         Creditors  (together,  if the  Collateral  Agent  shall  request,  with
         undated instruments of assignment duly executed in blank affixed to any
         negotiable  document or instrument so distributed) to be applied to the
         Secured Obligations pursuant to Section 5 hereof.

                  (b) So long as no  Actionable  Default shall have occurred and
         be continuing,  the Pledgor shall be entitled to exercise all rights of
         enforcement,  and other rights and powers  pertaining to the Collateral
         for all purposes not inconsistent with the terms hereof.

                  (c) Upon the  occurrence  and  during the  continuance  of any
         Actionable  Default,  at the option of the Collateral Agent, all rights
         of the  Pledgor  to  receive  and  retain  payments  in  respect of the
         Collateral  shall cease and shall thereupon be vested in the Collateral
         Agent for the benefit of the Participating Creditors.

                  (d) Upon the  occurrence  and  during the  continuance  of any
         Actionable  Default,  at the option of the Collateral Agent, all rights
         of the Pledgor to exercise  rights of  enforcement  or other rights and
         powers in respect of the  Pledged  Notes which they are  authorized  to
         exercise   pursuant  to  subsection  (b)  above  shall  cease  and  the
         Collateral  Agent may thereupon (but shall not be obligated to), at its
         request,  cause such  Collateral  to be  registered  in the name of the
         Collateral  Agent  or its  nominee  or  agent  for the  benefit  of the
         Participating  Creditors and exercise such enforcement and other rights
         and powers as appertain to  ownership of such  Collateral,  pursuant to
         the power of attorney conferred under Section 8 hereof, and the Pledgor
         hereby  agrees  to  provide  such  further  powers of  attorney  as the
         Collateral Agent may request;  provided,  however,  that the Collateral
         Agent in its discretion may from time to time refrain from  exercising,
         and shall not be obligated to exercise,  any such  enforcement or other
         power or right.

         12. Power of Sale.  Until  termination of this Note Pledge Agreement in
accordance  with Section 22 hereof,  the power of sale and other rights,  powers
and  remedies   granted  to  the  Collateral   Agent  for  the  benefit  of  the
Participating  Creditors  hereunder shall continue to exist and may be exercised
by the Collateral  Agent at any time and from time to time  irrespective  of

                                       8

<PAGE>

the fact that any Secured Obligations or any part thereof may have become barred
by any  statute of  limitations  or that the  liability  of any Pledgor may have
ceased.

         13.  Other  Rights.  The  rights,  powers  and  remedies  given  to the
Collateral  Agent for the benefit of the  Participating  Creditors  by this Note
Pledge  Agreement shall be in addition to all rights,  powers and remedies given
to the Secured Party, for the benefit of the Participating  Creditors, by virtue
of any  statute  or rule of law.  Any  forbearance  or  failure  or delay by the
Collateral Agent in exercising any right, power or remedy hereunder shall not be
deemed to be a waiver of such right,  power or remedy, and any single or partial
exercise of any right,  power or remedy hereunder shall not preclude the further
exercise thereof;  and every right,  power and remedy of the Secured Party shall
continue  in full  force  and  effect  until  such  right,  power or  remedy  is
specifically waived by the Participating  Creditors by an instrument in writing,
in accordance with the Intercreditor Agreement.

         14.  Definitions.  All terms used herein shall be defined in accordance
with the appropriate  definitions appearing in the UCC, and such definitions are
hereby incorporated herein by reference and made a part hereof.

         15. Entire  Agreement.  This Note Pledge  Agreement,  together with the
Credit  Agreement,   the  Note  Agreement,  and  the  other  Credit  Transaction
Documents,  constitutes  and  expresses  the entire  understanding  between  the
parties  hereto with respect to the subject  matter  hereof,  and supersedes all
prior  agreements and  understandings,  inducements,  commitments or conditions,
express or implied,  oral or written,  except as herein  contained.  The express
terms hereof  control and  supersede any course of  performance  or usage of the
trade  inconsistent  with any of the terms  hereof.  Neither  this  Note  Pledge
Agreement nor any portion or provision hereof may be changed, altered, modified,
supplemented,  discharged,  canceled,  terminated,  or amended  orally or in any
manner other than by an agreement, in writing signed by the parties hereto.

         16.  Further  Assurances.  The Pledgor  agrees at its own expense to do
such  further  acts and  things,  and to execute  and  deliver  such  additional
conveyances,  assignments,  financing statements, agreements and instruments, as
the Collateral  Agent may at any time reasonably  request in connection with the
administration  or enforcement  of this Note Pledge  Agreement or related to the
Collateral or any part thereof or in order better to assure and confirm unto the
Collateral  Agent  its  rights,  powers  and  remedies  for the  benefit  of the
Participating  Creditors hereunder.  The Pledgor hereby consents and agrees that
the  issuers of or obligors  in respect of the  Collateral  shall be entitled to
accept  the  provisions  hereof  as  conclusive  evidence  of the  right  of the
Collateral  Agent,  on behalf of the  Participating  Creditors,  to exercise its
rights  hereunder  with  respect to the  Collateral,  notwithstanding  any other
notice or direction to the contrary heretofore or hereafter given by the Pledgor
or any other Person to any of such issuers or obligors.

         17. Binding Agreement;  Assignment. This Note Pledge Agreement, and the
terms,  covenants and conditions hereof,  shall be binding upon and inure to the
benefit of the parties hereto,  and to their respective  successors and assigns,
except  that the  Pledgor  shall not be  permitted  to assign  this Note  Pledge
Agreement or any interest herein or in the Collateral,  or any part thereof,  or
otherwise  pledge,  encumber or grant any option with respect to the Collateral,
or

                                       9

<PAGE>

any  part  thereof,  or any cash or  property  held by the  Collateral  Agent as
Collateral under this Note Pledge Agreement.  Without limiting the generality of
the foregoing sentence of this Section 17, any Participating Creditor may assign
to one or more Persons, or grant to one or more Persons participations in or to,
all or any part of its rights and obligations under the Credit Agreement (to the
extent permitted by the Credit  Agreement) and the Note Agreement (to the extent
permitted by the Note  Agreement);  and to the extent of any such  assignment or
participation  such other Person shall, to the fullest extent  permitted by law,
thereupon become vested with all the benefits in respect thereof granted to such
Participating  Creditor herein or otherwise,  subject however, to the provisions
of the  various  Credit  Transaction  Documents.  All  references  herein to the
Secured Party or the Collateral Agent and to the  Participating  Creditors shall
include any successor thereof or permitted assignee, and any other obligees from
time to time of the Secured Obligations.

         18.  Swap  Agreements.  All  obligations  of the  Borrower  under  Swap
Agreements to which any  Participating  Creditor or its  affiliates  are a party
shall be deemed to be  Secured  Obligations  secured  hereby  (unless  otherwise
agreed  in  writing  by such  Participating  Creditor),  and each  Participating
Creditor  or  affiliate  of a  Participating  Creditor  party to any  such  Swap
Agreement shall be deemed to be a Secured Party hereunder.

         19. Severability. In case any Lien, security interest or other right of
the  Secured  Party,  for the  benefit of the  Participating  Creditors,  or any
provision  hereof shall be held to be invalid,  illegal or  unenforceable,  such
invalidity,  illegality  or  unenforceability  shall not affect any other  Lien,
security interest or other right granted hereby or provision hereof.

         20.  Counterparts.  This Note Pledge  Agreement  may be executed in any
number of counterparts and all the  counterparts  taken together shall be deemed
to constitute one and the same instrument.

         21.  Indemnification.  Without limitation of Section 12.9 of the Credit
Agreement  or any other  indemnification  provision  in any  Credit  Transaction
Document,  the Pledgor hereby covenants and agrees to pay,  indemnify,  and hold
the Secured Party, the  Participating  Creditors,  and each of their affiliates,
and their  respective  officers,  directors,  employees,  agents,  and advisors,
harmless from and against any and all other  out-of-pocket  liabilities,  costs,
expenses or disbursements of any kind or nature whatsoever arising in connection
with  any  claim or  litigation  by any  Person  resulting  from the  execution,
delivery,  enforcement,  performance  and  administration  of this  Note  Pledge
Agreement or any of the other Credit Transaction Documents,  or the transactions
contemplated  hereby or thereby, or in any respect relating to the Collateral or
any  transaction  pursuant  to  which  the  Pledgor  has  incurred  any  Secured
Obligation (all the foregoing,  collectively,  the  "indemnified  liabilities");
provided,  however,  that the Pledgor  shall not have any  obligation to a party
seeking  indemnification  hereunder  with  respect  to  indemnified  liabilities
directly arising from the willful  misconduct or gross negligence of such party.
The  agreements  in this  subsection  shall  survive  repayment  of all  Secured
Obligations,  termination  or  expiration  of this Note Pledge  Agreement in any
manner,  including but not limited to termination in accordance  with Section 22
hereof, and occurrence of the Facility Termination Date.

                                       10

<PAGE>

         22. Termination.  This Note Pledge Agreement and all obligations of the
Pledgor hereunder shall terminate upon the first day following the occurrence of
the  Facility  Termination  Date  and  the  repayment  in  full  of all  Secured
Obligations,  at which time the Liens and rights granted to the Collateral Agent
for the benefit of the  Participating  Creditors  hereunder shall  automatically
terminate and no longer be in effect, and the Collateral shall  automatically be
released  from the Liens  created  hereby.  Upon such  termination  of this Note
Pledge  Agreement,  the  Collateral  Agent  shall,  at the sole  expense  of the
Pledgor,  deliver to the  Pledgor  the  Pledged  Notes  (and any other  property
received as a dividend or  distribution  or  otherwise in respect of the Pledged
Notes  then in its  custody),  together  with any  cash  then  constituting  the
Collateral,  not then  sold or  otherwise  disposed  of in  accordance  with the
provisions  hereof and execute and deliver to the Pledgor such  documents as the
Pledgor  shall  reasonably  request  and take  such  further  actions  as may be
necessary  to  effect  the same and as shall  be  reasonably  acceptable  to the
Collateral Agent.

         23. Remedies Cumulative.  All remedies hereunder are cumulative and are
not  exclusive of any other rights and remedies of the  Collateral  Agent or any
Participating  Creditor provided by law or under the Credit Agreement,  the Note
Agreement,  or the other Credit Transaction Documents.  The extensions of credit
to the Borrower pursuant to the Credit Agreement and the Note Agreement shall be
conclusively presumed to have been made or extended,  respectively,  in reliance
upon the Pledgor's pledge of the Pledged Notes pursuant to the terms hereof.

         24. Notices. Any notice required or permitted hereunder shall be given,
(a) with respect to the Pledgor, at the address of the Borrower indicated in the
Intercreditor  Agreement and (b) with respect to the  Collateral  Agent,  at the
Collateral  Agent's address indicated in the Intercreditor  Agreement.  All such
notices  shall be given and shall be effective as provided in the  Intercreditor
Agreement.

         25.      Governing Law; Venue; Waiver of Jury Trial.

                  (a) THIS NOTE  PLEDGE  AGREEMENT  SHALL BE  GOVERNED  BY,  AND
         CONSTRUED  IN  ACCORDANCE  WITH,  THE LAWS OF THE  STATE  OF  TENNESSEE
         APPLICABLE TO CONTRACTS  EXECUTED,  AND TO BE FULLY PERFORMED,  IN SUCH
         STATE NOTWITHSTANDING ITS EXECUTION AND DELIVERY OUTSIDE SUCH STATE.

                  (b) THE PLEDGOR HEREBY  EXPRESSLY AND  IRREVOCABLY  AGREES AND
         CONSENTS THAT ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
         TO THIS NOTE PLEDGE AGREEMENT AND THE TRANSACTIONS  CONTEMPLATED HEREIN
         MAY BE  INSTITUTED  IN ANY STATE OR FEDERAL COURT SITTING IN THE COUNTY
         OF HAMILTON,  STATE OF TENNESSEE,  UNITED STATES OF AMERICA AND, BY THE
         EXECUTION AND DELIVERY OF THIS NOTE PLEDGE AGREEMENT,  EXPRESSLY WAIVES
         ANY  OBJECTION  THAT IT MAY NOW OR HEREAFTER  HAVE TO THE LAYING OF THE
         VENUE IN, OR TO THE EXERCISE OF  JURISDICTION  OVER IT AND ITS PROPERTY
         BY

                                       11

<PAGE>

         ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING,  AND IRREVOCABLY
         SUBMITS GENERALLY AND  UNCONDITIONALLY  TO THE JURISDICTION OF ANY SUCH
         COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.

                  (c) THE PLEDGOR  AGREES THAT SERVICE OF PROCESS MAY BE MADE BY
         PERSONAL  SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT OR OTHER LEGAL
         PROCESS IN ANY SUCH SUIT,  ACTION OR  PROCEEDING,  OR BY  REGISTERED OR
         CERTIFIED  MAIL  (POSTAGE  PREPAID)  TO THE  ADDRESS  OF  THE  BORROWER
         PROVIDED  BY THE  INTERCREDITOR  AGREEMENT,  OR BY ANY OTHER  METHOD OF
         SERVICE  PROVIDED FOR UNDER THE APPLICABLE  LAWS IN EFFECT IN THE STATE
         OF TENNESSEE.

                  (d) NOTHING  CONTAINED IN SUBSECTIONS  (b) OR (c) HEREOF SHALL
         PRECLUDE ANY SECURED PARTY FROM BRINGING ANY SUIT, ACTION OR PROCEEDING
         ARISING  OUT OF OR  RELATING  TO THIS  AGREEMENT  OR ANY  OTHER  CREDIT
         TRANSACTION  DOCUMENT  IN THE COURTS OF ANY PLACE  WHERE THE PLEDGOR OR
         ANY OF THE PLEDGOR'S PROPERTY OR ASSETS MAY BE FOUND OR LOCATED. TO THE
         EXTENT PERMITTED BY THE APPLICABLE LAWS OF ANY SUCH  JURISDICTION,  THE
         PLEDGOR  HEREBY  IRREVOCABLY  SUBMITS TO THE  JURISDICTION  OF ANY SUCH
         COURT AND  EXPRESSLY  WAIVES,  IN RESPECT  OF ANY SUCH SUIT,  ACTION OR
         PROCEEDING,  OBJECTION TO THE EXERCISE OF JURISDICTION  OVER IT AND ITS
         PROPERTY BY ANY SUCH OTHER COURT OR COURTS WHICH NOW OR  HEREAFTER  MAY
         BE AVAILABLE UNDER APPLICABLE LAW.

                  (e) IN ANY  ACTION OR  PROCEEDING  TO  ENFORCE  OR DEFEND  ANY
         RIGHTS OR REMEDIES UNDER OR RELATED TO THIS AGREEMENT OR ANY AMENDMENT,
         INSTRUMENT,  DOCUMENT OR AGREEMENT  DELIVERED OR THAT MAY IN THE FUTURE
         BE  DELIVERED IN  CONNECTION  WITH THE  FOREGOING,  THE PLEDGOR AND THE
         COLLATERAL AGENT ON BEHALF OF THE PARTICIPATING CREDITORS HEREBY AGREE,
         TO THE EXTENT  PERMITTED  BY  APPLICABLE  LAW,  THAT ANY SUCH ACTION OR
         PROCEEDING  SHALL BE TRIED  BEFORE  A COURT  AND NOT  BEFORE A JURY AND
         HEREBY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH
         PERSON MAY HAVE TO TRIAL BY JURY IN ANY SUCH ACTION OR PROCEEDING.

                            [Signature pages follow.]

<PAGE>

         IN WITNESS  WHEREOF,  the parties have duly  executed  this Note Pledge
Agreement on the day and year first written above.

                                       PLEDGOR:

                                       COVENANT ASSET MANAGEMENT, INC.

WITNESS:
                                       By:______________________________________
_____________________                  Name:____________________________________
                                       Title:___________________________________

                  INTERCOMPANY NOTE PLEDGE AGREEMENT (Borrower)
                              Signature Page 1 of 2

<PAGE>

                                       COLLATERAL AGENT:

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

                                       By:______________________________________
                                       Name:
                                       Title:

                                       Address for Notices:
                                       Bank of America, N.A.
                                       TN6-300-02-03
                                       633 Chestnut Street, 2nd Floor
                                       Chattanooga, Tennessee  37450
                                       Attention: Sybil Weldon
                                       Telephone:     (423) 752-1222
                                       Telefacsimile: (423) 755-0689

                  INTERCOMPANY NOTE PLEDGE AGREEMENT (Borrower)
                              Signature Page 2 of 2

<PAGE>

                                    Exhibit A

                               Form of Assignment

                          ASSIGNMENT OF PROMISSORY NOTE

         KNOW ALL MEN by these  presents that the  undersigned  is the owner and
holder  of  that  certain  promissory  note  dated  [_____________]  payable  by
[_____________]   to  the  undersigned  in  the  original  principal  amount  of
$[_____________]  (the "Promissory Note") and has sold,  assigned,  transferred,
endorsed  and set over,  and by this  assignment  does sell,  assign,  transfer,
endorse and set over to [_____________], all of its right title, and interest in
the Promissory  Note, and the obligations  described  therein and the monies due
and to become due thereunder.

         TO HAVE AND TO HOLD the same unto  [_____________],  its successors and
assigns forever.

         IN WITNESS  WHEREOF,  the  undersigned has caused this Assignment to be
executed as of the [___] day of [_______________], [_____].

                                       [__________________________]

                                       By: __________________________________
                                       Name: ________________________________
                                       Title: _______________________________

                                      A-1

<PAGE>

                                    Exhibit B

                             Form of Estoppel Notice

TO:      Bank of America, N.A., as Collateral Agent
         TN6-300-02-03
         633 Chestnut Street, 2nd Floor
         Chattanooga, Tennessee  37450
         Attention: Sybil Weldon
         Telephone:        (423) 752-1222
         Telefacsimile:    (423) 755-0689

Re:      That certain Note Purchase  Agreement dated as of May 15, 2000, between
         Connecticut  General Life Insurance  Company,  on behalf of one or more
         separate accounts,  Connecticut General Life Insurance Company and Life
         Insurance Company of North America  (collectively,  together with their
         successors and assigns, the "Noteholders"),  Covenant Asset Management,
         Inc., a Nevada  corporation  (the  "Borrower") and Covenant  Transport,
         Inc.,  a Nevada  corporation  (the  "Parent")  (as  amended,  modified,
         supplemented,  restated  or  replaced  from  time to  time,  the  "Note
         Agreement"),   pursuant  to  which  the  Noteholders   have  heretofore
         purchased $25,000,000 in aggregate principal amount of 7.39% Guaranteed
         Senior Notes, due October 1, 2005 (the "Senior  Notes"),  issued by the
         Borrower;  and that certain  Credit  Agreement  (as amended,  modified,
         supplemented,  restated,  or  replaced  from time to time,  the "Credit
         Agreement"),  dated as of December  __, 2000 by an among the  Borrower,
         the  Parent,  the  financial  institutions   signatories  thereto  (the
         "Lenders"),  the Issuing Bank thereunder (the "Issuing Bank"), and Bank
         of America,  N.A., as Agent (the "Agent"; the Lenders, the Issuing Bank
         and the Agent being collectively called the "Bank Creditors"), pursuant
         to which the Bank Creditors  have agreed to provide a revolving  credit
         facility  and a  letter  of  credit  facility  for the  benefit  of the
         Borrower,  the Parent, and the other Credit Parties.  Capitalized terms
         used but not otherwise  defined herein shall have the meanings ascribed
         thereto in the Credit Agreement.

         The undersigned,  _____________________ (the "Issuer") is the issuer of
and obligor under that certain  promissory note payable to the order of Covenant
Asset   Management,   Inc.,  a  Nevada   corporation  (the   "Obligee"),   dated
______________, in the principal amount of $_______________ (the "Note").

         Issuer  acknowledges that the total amount presently  outstanding under
the Note is $__________________.

         Issuer  acknowledges  that (i) the Note evidences,  and constitutes the
only  instrument  evidencing,  all  indebtedness  of the  Issuer in favor of the
Obligee,  and (ii) it has no existing defense,  counterclaim,  set off, right of
recoupment,  claim  or  demand  of any  kind or  nature  whatsoever  that can be
asserted to eliminate or reduce all or any part of its  liability to pay in full
the indebtedness outstanding under the Note.

                                       2

<PAGE>

         Issuer  acknowledges and recognizes that,  pursuant to the terms of the
Intercompany Note Pledge Agreement dated as of December __, 2000 by the Borrower
in favor of the  Collateral  Agent,  upon the  occurrence of an Event of Default
under  and as  defined  in the  Credit  Agreement  or the  Note  Agreement,  the
Collateral Agent, for the benefit of the Bank Creditors and the Noteholders,  is
given the full power and  authority to (i) enforce the Note in  accordance  with
its  terms,  in its own name or in the  name of the  Obligee,  (ii) to  receive,
endorse and collect all cash,  checks and other  orders for the payment of money
made payable to the Obligee representing any interest payment, principal payment
or other  distribution  payable or  distributable  in respect of the Note and to
give full  discharge  for the same,  and (iii) to sell,  assign  and  deliver or
collect  the whole or any part of the Note,  or any  substitute  therefor or any
addition thereto,  in one or more sales, with or without any previous demands or
demand  of  performance   or,  to  the  extent   permitted  by  law,  notice  or
advertisement.  Without  limiting the  foregoing,  the Issuer  acknowledges  and
agrees that upon notice to it by the  Collateral  Agent of the occurrence of any
such Event of Default, the Issuer shall thereafter deliver all payments under or
in respect of the Note directly to the Collateral Agent or its assignee,  as the
Collateral Agent may designate.

                                       ISSUER:

                                       _________________________________________

                                       By:______________________________________
                                       Name:____________________________________
                                       Title:___________________________________

                                       3

<PAGE>

<TABLE>
<CAPTION>

                                   SCHEDULE I

<S>                                            <C>                              <C>                         <C>
============================================== ================================ =========================== ========================
               Name of Obligor                         Name of Obligee                     Date                     Face Amount
               ---------------                         ---------------                     ----                     -----------

---------------------------------------------- -------------------------------- --------------------------- ------------------------
---------------------------------------------- -------------------------------- --------------------------- ------------------------
Covenant Transport, Inc., a Tennessee          Covenant Asset Management, Inc.  January 1, 2000             $100,000,000
corporation
---------------------------------------------- -------------------------------- --------------------------- ------------------------
---------------------------------------------- -------------------------------- --------------------------- ------------------------
Harold Ives Trucking Co., an Arkansas          Covenant Asset Management, Inc.  January 1, 2000             $75,000,000
corporation
---------------------------------------------- -------------------------------- --------------------------- ------------------------
---------------------------------------------- -------------------------------- --------------------------- ------------------------
Southern Refrigerated Transport, Inc., an      Covenant Asset Management, Inc.  January 1, 2000             $30,000,000
Arkansas corporation
---------------------------------------------- -------------------------------- --------------------------- ------------------------
---------------------------------------------- -------------------------------- --------------------------- ------------------------
CIP, Inc., a Nevada corporation                Covenant Asset Management, Inc.  January 1, 2000             $1,000,000

---------------------------------------------- -------------------------------- --------------------------- ------------------------
---------------------------------------------- -------------------------------- --------------------------- ------------------------
Covenant.com, Inc., a Nevada corporation       Covenant Asset Management, Inc.  January 1, 2000             $1,000,000
---------------------------------------------- -------------------------------- --------------------------- ------------------------
---------------------------------------------- -------------------------------- --------------------------- ------------------------
Covenant Transport, Inc., a Tennessee          Covenant Asset Management, Inc.  January 1, 2000             $100,000,000
corporation
---------------------------------------------- -------------------------------- --------------------------- ------------------------
---------------------------------------------- -------------------------------- --------------------------- ------------------------
Southern Refrigerated Transport, Inc., an      Covenant Asset Management, Inc.  January 1, 2000             $10,693,014
Arkansas corporation
---------------------------------------------- -------------------------------- --------------------------- ------------------------
---------------------------------------------- -------------------------------- --------------------------- ------------------------
Terminal Trucker Broker, Inc., an Arkansas     Covenant Asset Management, Inc.  January 1, 2000             $4,647,439
corporation
============================================== ================================ =========================== ========================

</TABLE>

                                      A-4

<PAGE>

                                   EXHIBIT O-1

                      Form of Guarantor Security Agreement

                                  See attached.

                                     O-1-1

<PAGE>

                    SECOND CONSOLIDATING AMENDED AND RESTATED
                          GUARANTOR SECURITY AGREEMENT

                  This  Consolidating  Amended and Restated  Guarantor  Security
Agreement,  dated as of June 6, 2000,  made by the  corporations  executing  the
signature page of this agreement as Pledgors (each a "Pledgor"), each having its
chief executive  office and its principal place of business at the addresses set
forth in Schedule II hereto,  in favor of FIRST UNION  NATIONAL BANK, a national
banking  association  which is the  successor  to First Union  National  Bank of
Georgia,  acting as Collateral Agent under the Intercreditor  Agreement (defined
below) for the benefit of the  Participating  Creditors  (as defined  below) (in
such capacity, the "Collateral Agent" or the "Secured Party").

                              W I T N E S S E T H:

                  WHEREAS, Connecticut General Life Insurance Company, on behalf
of one or more separate accounts, Connecticut General Life Insurance Company and
Life  Insurance  Company of North  America  (collectively,  together  with their
successors and assigns, the "Noteholders") have heretofore purchased $25,000,000
in aggregate  principal amount of 7.39% Guaranteed  Senior Notes, due October 1,
2005 (the "Notes"), issued by Covenant Asset Management, Inc. (formerly known as
Covenant  Leasing,  Inc.), a Nevada  corporation (the  "Borrower"),  pursuant to
those  certain  Note  Purchase  Agreements  (as they may  hereafter  be amended,
modified, supplemented, refinanced or replaced, the "Note Agreements"), dated as
of May 15, 2000, between the Noteholders,  the Borrower and Covenant  Transport,
Inc., a Nevada  corporation  (the  "Parent").  The Notes are  guaranteed  by the
Parent  pursuant to the Note  Agreements  (the  "Parent  Guarantee")  and by the
Subsidiary Guarantors (as hereinafter defined) pursuant to a Subsidiary Guaranty
dated  as  of  May  15,  2000  (as  it  may  hereafter  be  amended,   modified,
supplemented, refinanced or replaced, the "Subsidiary Guaranty"); and

                  WHEREAS, the Note Agreements are intended to be the successors
to the  separate  Note  Purchase  Agreements  dated as of October 15, 1995 among
Covenant Transport,  Inc., a Tennessee  corporation  ("CTI"), the Parent and the
purchasers  named  therein (the "1995 Note  Agreements").  The 7.39%  Guaranteed
Senior  Notes due  October 1, 2005 issued  pursuant to the 1995 Note  Agreements
were   prepaid  in  full  with  the  proceeds  of  the  Notes  as  part  of  the
reorganization of the Parent and its Subsidiaries; and

                  WHEREAS,  each of the  Pledgors has  guaranteed  or may in the
future  guarantee  the  obligations  of the  Borrower  arising  under  the  Note
Agreements,  pursuant  to that  separate  Guaranty  Agreement  executed or to be
executed by each of the Pledgors in favor of the Noteholders; and

                  WHEREAS, the Borrower and CTI (collectively,  the "Borrowers")
have heretofore entered into a certain Credit Agreement, dated as of January 17,
1995,  with the banks  signatories  thereto (the "Banks"),  the Banks serving as
letter of credit banks  thereunder,  and ABN AMRO Bank N.V.  (the  "Agent";  the
Banks,  the Letter of Credit Banks and the Agent being  collectively  called the
"Bank Creditors"), as amended by a number of amendments, as amended and restated
by that certain Amended and Restated Credit  Agreement dated as of June 18, 1999
among the Borrowers and the Bank  Creditors and as further  amended by Amendment
to Amended and

<PAGE>

Restated Credit  Agreement dated as of June __, 2000 among the Borrowers and the
Bank Creditors pursuant to which, inter alia, CTI was released as a borrower (as
amended and restated through the date hereof, and as further amended,  modified,
supplemented,  restated, or replaced from time to time, the "Credit Agreement"),
pursuant to which the Bank Creditors have agreed to provide a revolving  credit,
term loan and letter of credit facility for the benefit of the Obligors; and

                  WHEREAS,  the Parent has  guaranteed  the  obligations  of the
Borrower  arising  under the  Credit  Agreement,  pursuant  to the  Amended  and
Restated Parent Guaranty  Agreement (the "Bank Guaranty"),  dated as of June __,
2000,  executed  by the  Parent  in  favor of the Bank  Creditors  amending  and
restating the Guaranty  Agreement  dated as of January 17, 1995 by the Parent in
favor of the Banks and the Agent; and

                  WHEREAS,   each  of  the  Pledgors  has  also  guaranteed  the
obligations  of the Borrower  arising  under the Credit  Agreement,  pursuant to
Consolidating  Amended and Restated Guaranty Agreement dated as of June __, 2000
by the  direct  and  indirect  Subsidiaries  of the  Parent in favor of the Bank
Creditors consolidating, amending and restating (a) the Guaranty Agreement dated
as of March 31, 1997 by C&F Acquisition Co. (now known as Covenant.com, Inc.), a
Nevada  corporation,  and Intellectual  Property Co. (now known as CIP, Inc.), a
Nevada  corporation,  in favor of the Bank Creditors,  (b) the Joinder Agreement
dated as of  December  31,  1997 by Bud Meyer  Truck  Lines,  Inc.,  a Minnesota
corporation,  in favor of the Bank Creditors, (c) the Joinder Agreement dated as
of November  13,  1998 by Southern  Refrigerated  Transport,  Inc.,  an Arkansas
corporation, and Tony Smith Trucking, Inc., an Arkansas corporation, in favor of
the Bank Creditors,  and the Joinder  Agreement dated as of November 16, 1999 by
Harold Ives Trucking  Co., an Arkansas  corporation  and Terminal  Truck Broker,
Inc., an Arkansas corporation, in favor of the Bank Creditors.

                  WHEREAS,  the  Noteholders  and the Bank Creditors have agreed
that the Grantor's and the Parent's obligations to each of them shall be secured
on  a  pari  passu  basis,  and  have  entered  into  a  Master  Collateral  and
Intercreditor  Agreement,  dated as of October 15, 1995,  among the Noteholders,
the  Agent and the  Collateral  Agent,  and  acknowledged  and  agreed to by the
Obligors,  as amended by First Amendment to Master  Collateral and Intercreditor
Agreement, dated as of March 31, 1997, among the Noteholders,  the Agent and the
Collateral  Agent, and  acknowledged  and agreed to by the Obligors,  as further
amended by the Second Amendment to Master Collateral and Intercreditor Agreement
dated as of June 18, 1999, among the  Noteholders,  the Agent and the Collateral
Agent and  acknowledged  by the  Obligors,  and as amended  and  restated by the
Amended and Restated Master Collateral and  Intercreditor  Agreement dated as of
June __,  2000 among the  Noteholders,  the Agent and the  Collateral  Agent and
acknowledged  by the Obligors (as amended,  restated,  supplemented or otherwise
modified  from time to time,  the  "Intercreditor  Agreement"),  in order to set
forth their  respective  rights in respect of any and all security or collateral
now or hereafter  securing the obligations of the Obligors to the Noteholders or
the Bank Creditors; and

                  WHEREAS,  each of the Pledgors  have  previously  entered into
Security  Agreements as follows:  (a) Security Agreement dated as of January 17,
1995 by CTI in favor of the Agent,  (b) Security  Agreement  dated as of October
15,  1995 by CTI in favor of the  Collateral  Agent,  as  amended  by the  First
Amendment  to  Security  Agreement  dated as of March  31,  1997,  (c)

                                      -2-

<PAGE>

separate  Security  Agreements  each dated as of March 31, 1997 by  Intellectual
Property  Co.  (now known as CIP,  Inc.),  a Nevada  corporation,  and  Covenant
Leasing,  Inc., a Nevada  corporation,  in favor of the  Collateral  Agent,  (d)
Security Agreement dated as of December 31, 1997 by Bud Meyer Truck Lines, Inc.,
a Minnesota corporation in favor of the Collateral Agent, (e) Security Agreement
dated as of November  13,  1998 by Southern  Refrigerated  Transport,  Inc.,  an
Arkansas  corporation and Tony Smith Trucking,  Inc., an Arkansas corporation in
favor of the Collateral  Agent (f) Security  Agreement  dated as of November 16,
1999 by Harold Ives Trucking  Co., an Arkansas  corporation  and Terminal  Truck
Broker,  Inc., an Arkansas corporation in favor of the Collateral Agent, whereby
each  Pledgor  granted  to the  Collateral  Agent  a  security  interest  in the
Collateral (as defined below) to secure repayment of the Obligations (as defined
below) which security interests are intended to be continued hereby; and

                  WHEREAS,   subject  to  the  terms  and   conditions   of  the
Intercreditor  Agreement,  the Noteholders and the Bank Creditors have agreed to
appoint the Collateral  Agent to serve as collateral agent under this Agreement,
and the  Collateral  Agent has agreed to serve as  collateral  agent  under this
Agreement.

                  NOW,  THEREFORE,  in consideration of the foregoing  premises,
the  mutual   covenants   contained   herein,   and  other  good  and   valuable
consideration,  the receipt and  adequacy of which is hereby  acknowledged,  the
parties hereto hereby agree as follows:

                  1.       DEFINED TERMS.

                  a.       When used herein, the following terms shall  have the
 following meanings:

                  "Account   Debtor"  shall  mean  any  Person  who  may  become
         obligated  to a Pledgor  under,  with  respect to, or on account of, an
         Account.

                  "Accounts" shall mean all "accounts",  as such term is defined
         in the Code,  now owned or  hereafter  acquired by each of the Pledgors
         and,  in any event,  including,  without  limitation  (a) all  accounts
         receivable,   other   receivables,   book  debts  and  other  forms  of
         obligations now owned or hereafter received or acquired by or belonging
         or owing to such Pledgor,  whether  arising out of goods sold or leased
         or  for  services   rendered  by  it  or  from  any  other  transaction
         (including,  without  limitation,  any such  obligations  which  may be
         characterized  as an account or contract right under the Code), (b) all
         accounts  receivable,   notes  receivable  and  other  obligations  and
         indebtedness  of any  Affiliate  now  owned or  hereafter  received  or
         acquired  by or  belonging  or owing to such  Pledgor,  (c) all of such
         Pledgor's rights in, to and under all licenses of patents,  trademarks,
         trade names,  service marks,  copyrights,  trade  secrets,  know-how or
         other intellectual property, or other similar agreements, all leases or
         subleases of equipment (including without limitation Revenue Equipment)
         or similar agreements, and all purchase orders or receipts now owned or
         hereafter  acquired by it for goods or services,  (d) all monies due or
         to  become  due  to  such  Pledgor   under  all  licenses  of  patents,
         trademarks,  trade names,  service  marks,  copyrights,  trade secrets,
         know-how or other intellectual  property,  or other similar agreements,
         all leases or  subleases  of equipment  (including  without  limitation
         Revenue Equipment) or similar  agreements,  and all purchase orders and
         contracts for the sale of goods or the

                                      -3-

<PAGE>

         performance  of services or both by such Pledgor or in connection  with
         any other transaction  (whether or not yet earned by performance on the
         part of such Pledgor) now or hereafter in existence, including, without
         limitation, the right to receive the proceeds of said licenses, leases,
         subleases,  agreements,  purchase  orders  and  contracts,  and (e) all
         collateral   security,   instruments,   guarantees  and  other  general
         intangibles  of any kind,  now or hereafter in existence,  given by any
         Person with respect by any of the foregoing.

                  "Actionable Default" shall mean any Event of Default under and
         as defined in the Credit Agreement or any Event of Default under and as
         defined in the Note Agreements.

                  "Affiliate"  shall mean any Person (other than the Parent) (i)
         which  directly  or  indirectly  through  one  or  more  intermediaries
         controls,  or is controlled  by, or is under common  control with,  the
         Parent,  (ii) which  beneficially owns or holds 5% or more of any class
         of the  voting  stock of the  Parent,  (iii) of which the Parent or any
         Pledgor or  shareholders of the Parent  beneficially  own or hold 5% or
         more of the  voting  stock  (or in the case of a Person  which is not a
         corporation,  5% or  more of the  equity  interest),  or (iv)  who is a
         member  of the  Board of  Directors  of the  Parent  or a member of the
         immediate family of any such Person. The term "immediate family" of any
         Person shall include the spouse,  brothers,  sisters and descendants of
         such  Person.  The term  "control"  means the  possession,  directly or
         indirectly,  of the  power to  direct  or cause  the  direction  of the
         management and policies of a Person,  whether  through the ownership of
         voting stock,  by contract or otherwise.  The term "voting stock" means
         the shares of stock or other equity  interest of a Person that,  in the
         normal  course of  affairs,  have the power to elect  directors  or the
         members of any policy making board of such Person.

                  "Agent" shall mean ABN AMRO Bank N.V.,  acting in the capacity
         of agent under the Credit Agreement, and any successor thereto.

                  "Bank  Creditors"  shall mean the Banks,  the Letter of Credit
         Banks and the Agent.

                  "Bank  Guaranty"  shall  have  the  meaning  set  forth in the
         recitals hereto.

                  "Bank Subsidiary Guaranty" shall have the meaning set forth in
         the recitals hereto.

                  "Banks"  shall  have the  meaning  set  forth in the  recitals
         hereto,  and each other  institution party to the Credit Agreement as a
         "Bank" from time to time..

                  "Borrower"   shall  mean  Covenant  Asset   Management,   Inc.
         (formerly known as Covenant Leasing, Inc.), a Nevada corporation.

                  "Code" shall mean the Uniform Commercial Code as the same may,
         from time to time,  be in effect  in the  State of  Georgia;  provided,
         however,  in the event that, by reason of mandatory  provisions of law,
         any or all of the  attachment,  perfection  or  priority of the Secured
         Party's security  interest in any Collateral is governed by the Uniform
         Commercial Code as in effect in a jurisdiction  other than the State of
         Georgia,  the term "Code" shall

                                      -4-

<PAGE>

         mean  the  Uniform   Commercial   Code  as  in  effect  in  such  other
         jurisdiction  for purposes of the  provisions  hereof  relating to such
         attachment,  perfection  or priority  and for  purposes of  definitions
         related to such provisions.

                  "Collateral"  shall have the meaning  assigned to such term in
         Section 2 hereof.

                  "Collection Account" shall mean any account,  lockbox or other
         depository into which any Pledgor  deposits or receives the proceeds of
         Accounts.

                  "Contract"   shall  mean  an   indenture,   agreement,   other
         contractual  restriction,   lease,  instrument,  deed,  certificate  or
         incorporation or charter, or bylaw.

                  "Credit  Agreement"  shall have the  meaning  set forth in the
         third recital paragraph hereof.

                  "Credit Transaction Documents" shall mean the Note Agreements,
         the Notes,  the Notes  Guarantee,  the Credit  Agreement,  the Security
         Documents,   the  other  Loan  Documents  (as  defined  in  the  Credit
         Agreement), and the Intercreditor Agreement.

                  "Intercreditor  Agreement" shall have the meaning set forth in
         the recitals hereto.

                  "Lien", as applied to the property or assets (or the income or
         profits therefrom) of any Person, shall mean (in each case, whether the
         same is consensual or nonconsensual or arises by Contract, operation of
         law,  legal  process  or  otherwise):   any  mortgage,   lien,  pledge,
         attachment,  financing  statement,  levy,  charge,  or  other  security
         interest  or  encumbrance  of any kind in  respect of any  property  or
         assets of such  Person,  or upon the income or profits  therefrom.  For
         this purpose,  each of the Pledgors shall be deemed to own subject to a
         Lien any asset that it has acquired or holds subject to the interest of
         a vendor or lessor under any conditional sale agreement,  capital lease
         or other title retention agreement relating to such asset.

                  "Note  Agreements"  shall  have the  meaning  set forth in the
         recitals hereto.

                  "Noteholders" shall have the meaning set forth in the recitals
         hereto.

                  "Notes"  shall  have the  meaning  set  forth in the  recitals
         hereto.

                  "Notes  Guarantee"  shall  mean,   collectively,   the  Parent
         Guarantee and the Subsidiary Guaranty.

                  "Obligations"  shall  mean all  indebtedness,  obligations  or
         liabilities (including,  without limitation,  all principal,  interest,
         premium,  fees,  reimbursement   obligations,   indemnity  obligations,
         collection  costs  and other  amounts)  now or  hereafter  owing by any
         Pledgor  and/or any or all of the other  Obligors  to any or all of the
         Participating Creditors and/or the Collateral Agent under any or all of
         the Credit Transaction Documents.

                                      -5-

<PAGE>

                  "Obligors"  shall mean the Borrower,  the Parent,  each of the
         Pledgors and each other guarantor of the Obligations  arising under the
         Notes or the Credit Agreement.

                  "Parent"  shall  mean  Covenant  Transport,   Inc.,  a  Nevada
         corporation.

                  "Participating  Creditors"  shall mean the Bank  Creditors and
         the Noteholders.

                  "Permitted  Lien"  shall mean (i) a Lien  listed in Schedule I
         hereto or  consented  to in writing by the Secured  Party,  (ii) a Lien
         securing  a  tax  assessment  or  other  governmental  charge  or  levy
         (excluding any Lien arising under any of the provisions of the Employee
         Retirement  Income  Security Act of 1975,  as amended),  the claim of a
         materialman,  mechanic,  carrier,  warehouseman  or landlord for labor,
         materials,  supplies  or rentals  incurred  in the  ordinary  course of
         business,  or a money  judgment  rendered by a court or  administrative
         tribunal,  but in each  case  only if (A)  such  amount  is not due and
         payable  or,  in the case of a tax  assessment  or  other  governmental
         charge or levy, if payment thereof shall not at the time be required to
         be made in  accordance  with Section 5.1 of the Credit  Agreement,  (B)
         foreclosure, distraint, sale or other similar proceeding shall not have
         been commenced or if commenced,  such  proceeding is being contested in
         good faith by appropriate  action and any execution in respect  thereof
         has been bonded or stayed,  and (C) such Lien,  together with all other
         such Liens,  secures  obligations  which do not exceed  $100,000 in the
         aggregate,  (iii) a Lien upon Revenue Equipment securing Purchase Money
         Debt,  to the  extent  such Lien is a  Permitted  Lien under the Credit
         Agreement,  and (iv) a Lien created in favor of the Secured Party under
         any of the Security Documents.

                  "Person"  means  an  individual,   corporation,   partnership,
         limited  liability  company,  trust or unincorporated  organization,  a
         government or any agency or political subdivision thereof.

                  "Post-Maturity  Rate"  shall  mean (i) when used in respect of
         Obligations  owing  to  any  Noteholder,   the  applicable  default  or
         post-maturity  rate specified in the Note Agreements or the Notes, (ii)
         when used in respect of  Obligations  owing to any Bank  Creditor,  the
         applicable  default  or  post-maturity  rate  specified  in the  Credit
         Agreement,  and (iii)  when used in  respect  of any other  Obligations
         hereunder, the highest of any of the foregoing default or post-maturity
         rates.

                  "Proceeds" shall mean  "proceeds",  as such term is defined in
         the Code,  whether  now owned or  hereafter  acquired,  and in whatever
         form, and, in any event, shall include,  without limitation (i) any and
         all proceeds of any insurance,  indemnity, warranty or guaranty payable
         to any Pledgor from time to time with respect to any of the Collateral,
         (ii)  any and all  payments  (in any form  whatsoever)  made or due and
         payable  to any  Pledgor  from  time  to time in  connection  with  any
         requisition,  confiscation,  condemnation, seizure or forfeiture of all
         or any part of the  Collateral  by any  governmental  body,  authority,
         bureau or agency  (or any person  acting  under  color of  governmental
         authority),  (iii) any recoveries by any Pledgor  against third parties
         with  respect  to  any  litigation  or  dispute  concerning  any of the
         Collateral,  and (iv) any and all other  amounts from time to time paid
         or payable  under or in  connection  with any of the  Collateral,  upon
         disposition or otherwise.

                                      -6-

<PAGE>

                  "Revenue  Equipment"  shall mean all  tractors,  trailers  and
         other similar  equipment now or hereafter  used in the operation of any
         Pledgor's  or any  Affiliate's  trucking  business  and  owned  by such
         Pledgor,  wherever located, and all replacements and substitutions for,
         and accessions to, such equipment.

                  "Security  Document"  shall  mean  each of the  documents  and
         agreements  defined as a "Security  Document" in the Note Agreements or
         the  Credit  Agreement  and  shall  include  any  and  all  agreements,
         assignments,  mortgages,  deeds or other similar  documents under which
         the  Collateral  Agent  in  now or  hereafter  granted  a  Lien  in any
         collateral to secure the Obligations, including without limitation this
         Agreement.

                  "Subsidiary   Guarantors"   shall  mean   Covenant.com,   Inc.
         (formerly known as Covenant Acquisition Co. and C & F Acquisition Co.),
         a  Nevada  corporation,  CIP,  Inc.  (formerly  known  as  Intellectual
         Property Co.), a Nevada corporation,  Southern Refrigerated  Transport,
         Inc., an Arkansas corporation,  Tony Smith Trucking,  Inc., an Arkansas
         corporation,   Harold  Ives  Trucking  Co.,  an  Arkansas  corporation,
         Terminal  Truck  Broker,  Inc.,  an  Arkansas   corporation,   Covenant
         Transport,  Inc., a Tennessee  corporation,  and any other  Subsidiary,
         direct or indirect,  of the Parent that may hereafter become a party to
         the Subsidiary Guaranty or the Bank Guaranty.

                  b. The  definitions  in this Section 1 shall apply  equally to
both the singular and plural forms of the terms  defined,  with the exception of
the term "Borrower." Whenever the context may require, any pronoun shall include
the  corresponding  masculine,  feminine and neuter forms.  The words "include",
"includes" and "including" shall be deemed to be followed by the phrase "without
limitation".  All  references  herein to Articles and  Sections  shall be deemed
references to Articles and Sections of this  Agreement  unless the context shall
otherwise require.  All references herein to any Person,  other than an Obligor,
shall be deemed to include such Person's  successors,  transferees  and assigns.
All  references  herein to any Obligor shall be deemed to include such Obligor's
successors. All references herein to any Credit Transaction Document shall be to
such document as the terms thereof may have been amended,  supplemented,  waived
or otherwise modified from time to time in accordance with the terms thereof and
hereof.

                  2.       GRANT OF SECURITY INTEREST.

                  a. To secure the prompt and complete payment,  performance and
observance of the Obligations, each of the Pledgors hereby grants to the Secured
Party a security interest in all of such Pledgor's right, title and interest in,
to and  under the  following  whether  now  owned by or owing  to, or  hereafter
acquired by or arising in favor of such Pledgor (including,  without limitation,
under any trade names,  styles or divisions  thereof),  and  regardless of where
located  (all  of  which  being  hereinafter  collectively  referred  to as  the
"Collateral",  but excluding, however, any property of such Pledgor which is the
subject of prior financing and for which such Pledgor is prohibited by the terms
of such financing from granting a Lien in favor of the Collateral  Agent, for so
long as such prohibition shall remain in effect):

                           (i)  all Accounts;

                                      -7-

<PAGE>

                           (ii) all Revenue  Equipment,  all leases or subleases
                  thereof or similar  agreements  (including  all rights of such
                  Pledgor  as lessor  or  sublessor,  or  lessee  or  sublessee,
                  thereunder), and all general intangibles relating thereto;

                           (iii) all patents,  trademarks,  trade names, service
                  marks,   copyrights,   trade   secrets,   know-how  and  other
                  intellectual  property,  all licenses  thereof  (including all
                  rights of such  Pledgor as licensor  or licensee  thereunder),
                  and all general intangibles relating thereto;

                           (iv) all rights,  titles and interest of such Pledgor
                  in, to or under any and all collection accounts, concentration
                  accounts,  disbursement  accounts,  cash management  accounts,
                  lockbox  accounts,  cash  collateral  accounts  and other bank
                  accounts or other accounts into which there shall be deposited
                  at any time any Proceeds of the Collateral,  and in all monies
                  or other  property of such Pledgor now or hereafter on deposit
                  therein;

                           (v)  all  books  and   records   (including   without
                  limitation  credit  files,  customer  lists,  computer  files,
                  computer  programs,  computer  printouts,  or  other  computer
                  material of such Pledgor  pertaining to any of the  Collateral
                  described above); and

                           (vi) all Proceeds of  any of the Collateral described
                  above.

                  b. In  addition,  to secure the prompt and  complete  payment,
performance  and  observance  of the  Obligations,  each of the Pledgors  hereby
grants to Secured  Party,  a security  interest in all  property of such Pledgor
held by the Secured  Party or any  Participating  Creditor,  including,  without
limitation,  all  property  of  every  description,  now  or  hereafter  in  the
possession or custody of or in transit to the Secured Party or any Participating
Creditor for any purpose,  including safekeeping,  collection or pledge, for the
account  of such  Pledgor,  or as to which  such  Pledgor  may have any right or
power.

                  3.      SECURED PARTY'S RIGHTS; LIMITATIONS ON SECURED PARTY'S
 OBLIGATIONS.

                  a. The Secured  Party may at any time after the  occurrence of
and during the  continuance  of an  Actionable  Default,  (i) upon notice to the
Pledgors  (which may be  simultaneous  with notice to Account  Debtors),  notify
Account  Debtors that the Accounts  have been  assigned to the Secured Party and
that payments shall be made directly to the Secured Party,  and upon the request
of the Secured Party, such Pledgor shall so notify Account Debtors.

                  b. Upon  reasonable  prior notice to the Pledgors and not more
than once per fiscal  year of the  Pledgors  (unless an  Actionable  Default has
occurred  and is  continuing  in which case no notice is  necessary  and no such
limit  shall  apply),  the  Secured  Party  shall  have the  right to

                                      -8-

<PAGE>

make test  verifications of the Accounts and verifications and appraisals of the
other Collateral in a commercially  reasonable  manner and the Pledgors agree to
furnish all such  assistance and information as the Secured Party may reasonably
require in  connection  therewith.  The  Secured  Party may at any time while an
Actionable  Default  has  occurred  and is  continuing,  and  otherwise  no more
frequently than once per fiscal year of the Pledgors, in the Secured Party's own
name or in the name of such Pledgor  communicate with Account Debtors, to verify
with such Persons, to the Secured Party's  satisfaction,  the existence,  amount
and terms of any such  Accounts.  Upon the  occurrence  and  continuation  of an
Actionable Default, each Pledgor, at its own expense,  shall cause the certified
public  accountant  then engaged by such Pledgor,  to prepare and deliver to the
Secured  Party  at any  time and from  time to time  promptly  upon the  Secured
Party's request the following  reports:  (i) a  reconciliation  of all Accounts;
(ii)  an  aging  of  all  Accounts;  (iii)  trial  balances;  and  (iv)  a  test
verification of such Accounts as Secured Party may request.

                  4.       REPRESENTATIONS AND WARRANTIES.  Each of the Pledgors
hereby  represents and warrants that:

                  a.  Except for the  security  interest  granted to the Secured
Party under this Security  Agreement and any other Permitted Liens, such Pledgor
is the sole owner of each item of the Collateral in which it purports to grant a
security interest  hereunder,  having good and marketable title thereto free and
clear of any and all liens, security interests or other encumbrances.

                  b.  No  effective  security  agreement,  financing  statement,
equivalent security or lien instrument or continuation statement covering all or
any part of the Collateral is on file or of record in any public office,  except
as may be set forth on Schedule I hereto,  or such as may have been filed by the
Pledgors in favor of the Secured Party pursuant to this Security Agreement.

                  c. This  Security  Agreement,  upon being deemed  effective as
provided  in  Section  5.21 of the  Credit  Agreement,  will  create a valid and
continuing  lien on and security  interest in favor of the Secured  Party in the
Collateral,  which lien and security  interest  will be prior to all other Liens
except those Liens  specifically  designated on Schedule I as being prior to the
Secured  Party's Liens,  and except  Permitted  Liens that would be prior to the
Secured  Party's  Liens as a matter  of law or that  were in place  prior to the
effectiveness of this Agreement,  and will be enforceable as such as against all
third parties.

                  d. Each of the Pledgors'  chief  executive  office,  principal
place of business,  corporate  offices,  all premises within which Collateral is
stored  and  located,  the  locations  of  all  of its  records  concerning  the
Collateral and each of the Pledgors'  taxpayer  identification  number,  are set
forth on Schedule II hereto,  and no Pledgor  shall change such chief  executive
office,  principal place of business,  corporate offices or Collateral locations
or location of its records  concerning  the  Collateral,  or remove such records
unless it shall  have  notified  the  Secured  Party in writing at least 30 days
prior to such  change and shall take such  action as is  necessary  to cause the
Lien of the Secured  Party in the  Collateral  to continue to be  perfected.  No
Pledgor shall change its chief  executive  office,  principal place of business,
corporate offices,  or location of its records concerning the Collateral without
giving at least thirty (30) days' prior  written  notice  thereof to the Secured
Party.

                                      -9-

<PAGE>

                  e. Since its incorporation,  each of the Pledgors has not been
known as or used and each of the Pledgors  presently  does not use any corporate
name other  than its name as set forth in its  signature  below and those  other
corporate,  fictitious  or trade names (if any) of such  Pledgor as disclosed on
Schedule II hereto.  If such schedule  sets forth any  fictitious or trade names
for any Pledgor (collectively, the "Trade Names"), such Pledgor certifies to and
agrees with the Secured Party that: (i) any Collateral  arising out of any sales
under and of the Trade Names is the  property  of and  belongs to such  Pledgor;
(ii)  each of the  Trade  Names  is a trade  name or  trade  style  (and  not an
independent or separate corporation or other legal entity) by which such Pledgor
may  identify  or market  itself or under which such  Pledgor  may sell  certain
products,  render  certain  services  or  otherwise  conduct  some or all of its
business;  (iii) any  Collateral  which  arises  from any sales  made,  services
rendered or other business conducted under any of the Trade Names shall be owned
solely by such Pledgor;  and (iv) such Pledgor hereby appoints the Secured Party
to be its  attorney-in-fact to file such certificates  disclosing such Pledgor's
use of the Trade Names and to take such other actions on such  Pledgor's  behalf
as the  Secured  Party  considers  appropriate  to comply  with any  statutes or
regulations relating to the use of fictitious or assumed business names.

                  f. (i) The Accounts  represent bona fide sales of inventory or
the  provision of services to customers in the ordinary  course of the Pledgors'
business completed in accordance with the terms and provisions  contained in the
documents  available  to the  Secured  Party with  respect  thereto  and are not
evidenced by a judgment,  instrument or chattel paper; (ii) the amounts shown on
any aged receivables  trial balance or Borrowing Base  Certificate  delivered by
the Pledgors to the Secured Party or any Participating  Creditor pursuant to the
terms of this Security Agreement or any Credit  Transaction  Document and on the
Pledgors'  books  and  records  and all  invoices  and  statements  which may be
delivered to the Secured Party with respect  thereto are actually and absolutely
owing to such Pledgor and are not in any way contingent;  (iii) no payments have
been or  shall  be made  thereon  except  payments  immediately  delivered  to a
Collection  Account  and  payments  made  prior  to the  date of  this  Security
Agreement;  (iv) there are no setoffs,  claims or disputes  existing or asserted
with  respect  thereto  and no Pledgor has made any  agreement  with any Account
Debtor for any  deduction  therefrom  except a discount or allowance  allowed by
such Pledgor in the ordinary course of its business for prompt  payment;  (v) to
the best of each of the  Pledgors'  knowledge,  there  are no  facts,  events or
occurrences which in any way impair the validity or enforcement  thereof or tend
to reduce  the  amount  payable  thereunder  (net of  reserves)  as shown on the
respective aged receivable trial balances, Borrowing Base Certificates,  each of
the Pledgors' books and records and all invoices and statements delivered to the
Secured  Party with respect  thereto;  (vi) to the best of each of the Pledgors'
knowledge,  all Account Debtors have the capacity to contract;  (vii) no Pledgor
has received  notice of  proceedings  or actions which are threatened or pending
against any Account Debtor which might result in any material  adverse change in
such Account Debtor's financial  condition;  and (viii) no Pledgor has knowledge
that any Account Debtor is unable generally to pay its debts as they become due.

                  g. With respect to all Revenue Equipment, (i) such property is
located at, or is in transit to, one of the  locations set forth on Schedule II,
and (ii) each of the Pledgors has good and  merchantable  title to such property
and such  property is not  subject to any lien or security  interest or document
whatsoever  except  for the  security  interest  granted  to the  Secured  Party
hereunder and other Permitted Liens.

                                      -10-

<PAGE>

                  5.       COVENANTS. Each of the Pledgors covenants  and agrees
with the Secured Party that from and after the date of  this Security  Agreement
and u ntil the  termination  of this Security  Agreement  pursuant to Section 16
hereof:

                  a. Further Assurances;  Pledge of Instruments. At any time and
from time to time, upon the written request of the Secured Party and at the sole
expense of the Pledgors,  each of the Pledgors  shall  promptly and duly execute
and deliver any and all such further  instruments  and  documents  and take such
further action as the Secured Party may reasonably  deem desirable to obtain for
the  Secured  Party the full  benefits  of this  Security  Agreement  and of the
interests,  rights  and  powers  herein  granted,  including  (i) using its best
efforts to secure all consents and approvals  necessary or  appropriate  for the
assignment to or for the benefit of the Secured Party of any Collateral  held by
such  Pledgor or in which such Pledgor has any rights not  heretofore  assigned,
(ii) filing any financing or continuation statements under the Code with respect
to the liens and security  interests  intended to be granted  hereunder or under
any other Credit Transaction Document, and (iii) transferring  Collateral to the
Secured  Party's  possession (if a security  interest in such  Collateral can be
perfected only by possession).  Each of the Pledgors also hereby  authorizes the
Secured  Party to file any  financing  or  continuation  statement  without  the
signature of such  Pledgor to the extent  permitted  by  applicable  law. If any
amount  payable  under or in connection  with any of the  Collateral is or shall
become evidenced by any instrument, such instrument, other than checks and notes
received in the  ordinary  course of business  (which  shall be  deposited  to a
Collection  Account),  shall be duly  endorsed in a manner  satisfactory  to the
Secured Party promptly upon such Pledgor's  receipt thereof and delivered to the
Secured Party.

                  b. Maintenance of Records. Each of the Pledgors shall keep and
maintain, at its own cost and expense,  satisfactory and complete records of the
Collateral,  including a record of any and all payments received and any and all
credits  granted with respect to the  Collateral and all other dealings with the
Collateral.  Each of the Pledgors shall mark its books and records pertaining to
the  Collateral to evidence this Security  Agreement and the security  interests
granted hereby.  For the Secured Party's further security,  each of the Pledgors
agrees that the Secured Party shall have a special  property  right and security
interest in all of such Pledgor's books and records pertaining to the Collateral
and, upon the occurrence and during the continuation of any Actionable  Default,
such  Pledgor  shall  deliver  and turn over any such  books and  records to the
Secured  Party or to its  representatives  at any time on demand of the  Secured
Party.  Prior to the  occurrence  of an Actionable  Default and upon  reasonable
notice  from  the  Secured  Party,   each  of  the  Pledgors  shall  permit  any
representative  of the Secured Party to inspect such books and records and shall
provide  photocopies thereof to the Secured Party as more specifically set forth
in Section 5(g) below.

                  c. Indemnification.  In any suit, proceeding or action brought
by the Secured Party relating to any Account or for any sum owing thereunder, or
to enforce  any  provision  of any  contract or other  agreement  relating to an
Account,  each of the Pledgors shall save,  indemnify and keep the Secured Party
harmless from and against all expense,  loss or damage suffered by reason of any
claim,  defense,  setoff,  counterclaim,  recoupment  or  reduction of liability
whatsoever of the obligor  thereunder arising out of a breach by such Pledgor of
any obligation thereunder or arising out of any other agreement, indebtedness or
liability at any time owing to, or in favor of, such  obligor or its  successors
from such Pledgor,  and all such obligations of such Pledgor shall be and

                                      -11-

<PAGE>

remain  enforceable  against,  and only  against,  such Pledgor and shall not be
enforceable against the Secured Party or any Participating Creditor.

                  d.  Compliance  with Terms of  Accounts,  etc. In all material
respects,  each of the Pledgors shall perform and comply with all obligations in
respect of all Accounts,  contracts and other  agreements to which it is a party
or by which it or any of its property is bound.

                  e.  Limitation  on Liens on  Collateral.  Each of the Pledgors
shall not create,  permit or suffer to exist,  and shall  defend the  Collateral
against and take such other action as is  necessary  to remove,  any Lien on the
Collateral except for Permitted Liens. Each of the Pledgors shall further defend
the  right,  title  and  interest  of the  Secured  Party  in and to any of such
Pledgor's  rights under the Accounts and to the Revenue  Equipment and any other
Collateral,  and in and to the Proceeds thereof,  against the claims and demands
of all Persons  whomsoever other than the holders of Permitted Liens solely with
respect to such Permitted Liens.

                  f.  Limitations  on   Modifications  of  Accounts.   Upon  the
occurrence and during the  continuation of any Actionable  Default,  each of the
Pledgors shall not, without the Secured Party's prior written consent, (i) grant
any extension of the time of payment of any of the Account;  (ii)  compromise or
settle the same for less than the full amount thereof;  (iii) release,  in whole
or in part, any Person liable for the payment thereof;  or (iv) allow any credit
or  discount  whatsoever  thereon  other  than  trade  discounts  granted in the
ordinary course of business of such Pledgor.

                  g. Right of Inspection. Upon reasonable notice to the Pledgors
(unless an Actionable  Default has occurred and is continuing,  in which case no
notice is  necessary),  the Secured  Party shall at all times have full and free
access  during  normal   business  hours  to  all  the  books  and  records  and
correspondence of the Pledgors, and the Secured Party or its representatives may
examine the same, take extracts therefrom and make photocopies thereof, and each
of the Pledgors  agrees to render to the Secured  Party,  at such Pledgor's cost
and expense,  such clerical and other assistance as may be reasonably  requested
with  regard  thereto.  Upon  reasonable  notice  to  the  Pledgors  (unless  an
Actionable  Default has occurred and is  continuing,  in which case no notice is
necessary),  the Secured Party and its representatives shall also have the right
to enter into and upon any premises  where any of the  Collateral is located for
the purpose of inspecting  the same,  observing its use or otherwise  protecting
the Secured Party's interests in the Collateral.

                  h.  Continuous  Perfection.  No Pledgor shall change its name,
identity or corporate  structure in any manner which might make any financing or
continuation  statement filed in connection herewith seriously misleading within
the  meaning  of  Section  9-402(7)  of the Code or any  other  then  applicable
provision of the Code unless such Pledgor  shall have given the Secured Party at
least thirty (30) days' prior  written  notice  thereof and shall have taken all
action (or made  arrangements to take such action  substantially  simultaneously
with such change if it is impossible  to take such action in advance)  necessary
or reasonably  requested by the Secured Party to amend such financing  statement
or continuation statement so that it is not seriously misleading.

                                      -12-

<PAGE>

                  6.       SECURED PARTY'S APPOINTMENT AS ATTORNEY-IN-FACT.

                  a. Each of the Pledgors  hereby  irrevocably  constitutes  and
appoints the Secured Party and any officer or agent thereof,  with full power of
substitution,  as its true and  lawful  attorney-in-fact  with full  irrevocable
power and  authority  in the place and stead of such  Pledgor and in the name of
such  Pledgor  or in its own  name,  from  time to time in the  Secured  Party's
discretion,  for the  purpose  of  carrying  out  the  terms  of  this  Security
Agreement, to take any and all appropriate action and to execute and deliver any
and all documents and instruments which may be necessary or reasonably desirable
to accomplish the purposes of this Security  Agreement and, without limiting the
generality  of the  foregoing,  hereby grants to the Secured Party the power and
right,  on behalf of such Pledgor,  without notice to or assent by such Pledgor,
upon the occurrence and during the continuation of an Actionable  Default, to do
the following:

                  (i) in the name of such Pledgor, in its own name or otherwise,
         take possession of, endorse and receive payment of any checks,  drafts,
         notes, acceptances,  or other instruments for the payment of monies due
         under any Collateral;

                  (ii) continue any insurance  existing pursuant to the terms of
         any  Credit  Transaction  Document,  and  pay  all or any  part  of the
         premiums therefor and the costs thereof;

                  (iii) receive payment of any and all monies, claims, and other
         amounts  due or to become due at any time  arising out of or in respect
         of any Collateral;

                  (iv) ask, demand,  collect,  receive and give acquittances and
         receipts  for  any  and  all  money  due or to  become  due  under  any
         Collateral;

                  (v) pay or discharge  taxes,  liens,  security  interests,  or
         other  encumbrances  levied  or  placed on or  threatened  against  the
         Collateral;

                  (vi)  obtain  any  insurance  called  for by the  terms of any
         Credit  Transaction  Document  and pay all or any part of the  premiums
         therefor and costs thereof;

                  (vii)  direct  any party  liable for any  payment  under or in
         respect of any of the  Collateral to make payment of any and all monies
         due or to become due  thereunder,  directly to the Secured  Party or as
         the Secured Party shall direct;

                  (viii)   sign   and   endorse   any   invoices,   assignments,
         verifications,  and  notices  in  connection  with  Accounts  and other
         documents constituting or related to the Collateral;

                  (ix) file any claim or take or  commence  any other  action or
         proceeding  in  any  court  of  law  or  equity  or  otherwise   deemed
         appropriate  by the Secured Party for the purpose of collecting any and
         all such monies due under any Collateral whenever payable;

                                      -13-

<PAGE>

                  (x) commence and prosecute any suits,  actions or  proceedings
         of law or equity in any court of competent  jurisdiction to collect the
         Collateral  or any part  thereof  and to  enforce  any  other  right in
         respect of any Collateral;

                  (xi) defend any suit, action or proceeding brought against any
         Pledgor with respect to any  Collateral if such Pledgor does not defend
         such suit,  action or proceeding or if the Secured Party  believes that
         such  Pledgor  is not  pursuing  such  defense  in a manner  that  will
         maximize the recovery with respect to such Collateral;

                  (xii)  settle,  compromise  or  adjust  any suit,  action,  or
         proceeding  described  above and, in  connection  therewith,  give such
         discharges or releases as the Secured Party may deem appropriate; and

                  (xiii) sell, transfer, pledge, make any agreement with respect
         to,  or  otherwise  deal  with  any  of the  Collateral  as  fully  and
         completely as though the Secured Party were the absolute  owner thereof
         for all  purposes,  and to do, at the Secured  Party's  option and such
         Pledgor's  expense,  at any time,  or from  time to time,  all acts and
         things which the Secured Party  reasonably  deems necessary to perfect,
         preserve,  or realize upon the Collateral and the Secured  Party's Lien
         thereon in order to effect the intent of this Security  Agreement,  all
         as fully and effectively as such Pledgor might do.

                  b.  Each  of the  Pledgors  hereby  ratifies,  to  the  extent
permitted by law, all that said attorneys-in-fact  shall lawfully do or cause to
be done by virtue hereof. The power of attorney granted pursuant to this Section
6 is a power coupled with an interest and shall be irrevocable until all Letters
of Credit  have  been  terminated,  and all  Obligations  have  been  completely
discharged  and such Pledgor shall have no further right to borrow any monies or
obtain other extensions of credit or financial  accommodations  under the Credit
Transaction Documents.

                  c. The powers  conferred on the Secured  Party  hereunder  are
solely to protect the Secured Party's  interests in the Collateral and shall not
impose any duty upon it to exercise any such powers.  The Secured Party shall be
accountable  only for  amounts  that it  actually  receives  as a result  of the
exercise of such powers and none of its officers,  directors,  employees, agents
or representatives  shall be responsible to such Pledgor for any failure to act,
and in taking affirmative  action,  shall be liable only to the extent that such
Persons are finally determined by a court of competent jurisdiction to be guilty
of gross negligence or willful misconduct.

                  d. Each of the Pledgors also  authorizes the Secured Party, at
any time and from time to time upon the occurrence of and during  continuance of
an Actionable  Default, to (i) communicate in its own name with any party to any
Account with regard to the  assignment of the right,  title and interest of such
Pledgor in and under the Accounts and other matters relating  thereto,  and (ii)
execute,  in  connection  with the sale  provided  for in Section 8 hereof,  any
endorsements,  assignments  or other  instruments of conveyance or transfer with
respect to the Collateral.

                  7. PERFORMANCE BY SECURED PARTY OF EACH PLEDGOR'S OBLIGATIONS.
If any Pledgor fails to perform or comply with any of its  agreements  contained
herein or in any of the other  Credit  Transaction  Documents,  and the  Secured
Party,  as provided  for

                                      -14-

<PAGE>

by the terms of this Security  Agreement or any of the other Credit  Transaction
Documents,  shall itself perform or comply, or otherwise cause performance of or
compliance,  with such agreement, the reasonable expenses,  including attorneys'
fees,  of the Secured  Party  incurred in connection  with such  performance  or
compliance, together with interest thereon at the applicable Post-Maturity Rate,
shall be  payable  by such  Pledgor  to the  Secured  Party on demand  and shall
constitute Obligations secured hereby.

                  8.       REMEDIES; RIGHTS UPON DEFAULT.

                  a. If any Event of Default shall occur and be continuing,  the
Secured Party may exercise in addition to all other rights and remedies  granted
to it under this Security Agreement or the other Credit  Transaction  Documents,
or under any other instrument or agreement securing, evidencing, guaranteeing or
otherwise relating to the Obligations,  all rights and remedies that it has as a
secured party under the Code.  Without limiting the generality of the foregoing,
each of the Pledgors  expressly agrees that in any such event the Secured Party,
without demand of performance  or other demand,  advertisement  or notice of any
kind (except the notice  specified  below of time and place of public or private
sale)  to or upon  such  Pledgor  or any  other  Person  (all  and each of which
demands,  advertisements  and notices are hereby expressly waived to the maximum
extent permitted by the Code and other applicable law), may forthwith enter upon
the premises where any Collateral is located through self-help, without judicial
process,  without first obtaining a final judgment or giving such Pledgor notice
and  opportunity  for a hearing on the  Secured  Party's  claim or  action,  and
without paying rent to such Pledgor, and collect,  receive,  assemble,  process,
appropriate  and  realize  upon the  Collateral,  or any part  thereof,  and may
forthwith sell, lease, assign, give an option or options to purchase, or sell or
otherwise  dispose of and deliver said Collateral (or contract to do so), or any
part thereof,  in one or more parcels at public or private sale or sales, at any
exchange at such prices as it may deem best, for cash or on credit or for future
delivery without assumption of any credit risk. The Secured Party shall have the
right upon any such public sale or sales,  and, to the extent  permitted by law,
upon any such private sale or sales,  to purchase for the benefit of the Secured
Party the  whole or any part of said  Collateral  so sold,  free of any right or
equity of redemption,  which equity of redemption such Pledgor hereby  releases.
Such  sales may be  adjourned  and  continued  from time to time with or without
notice.  The Secured  Party  shall have the right to conduct  such sales on such
Pledgor's  premises or elsewhere and shall have the right to use such  Pledgor's
premises  without  charge  for such  time or times as the  Secured  Party  deems
necessary or advisable.

                  Each of the Pledgors  further  agrees,  at the Secured Party's
request,  to assemble the  Collateral and make it available to the Secured Party
at such places which the Secured Party shall reasonably select,  whether at such
Pledgor's  premises or  elsewhere.  Until the Secured  Party is able to effect a
sale,  lease, or other  disposition of Collateral,  the Secured Party shall have
the right to use,  operate or  administer  Collateral  on behalf of the  Secured
Party,  or any part  thereof,  to the extent that it deems  appropriate  for the
purpose of preserving  Collateral  or its value or for any other purpose  deemed
appropriate by the Secured Party.  The Secured Party shall have no obligation to
each of the  Pledgors  to maintain  or  preserve  the rights of such  Pledgor as
against third parties with respect to any Collateral while such Collateral is in
the  possession  of the Secured  Party.  The Secured Party may, if it so elects,
seek the  appointment  of a receiver or keeper to take  possession of Collateral
and to  enforce  any of the  Secured  Party's  remedies  with  respect  to  such
appointment

                                      -15-

<PAGE>

without prior notice or hearing.  The Secured Party shall apply the net proceeds
of any such collection, recovery, receipt, appropriation, realization or sale as
provided  in  Section  8(d)  hereof,  such  Pledgor  remaining  liable  for  any
deficiency  remaining  unpaid after such  application,  and only after so paying
over such net proceeds  and after the payment by the Secured  Party of any other
amount required by any provision of law,  including  Section  9-504(1)(c) of the
Code (but only after the  Secured  Party has  received  what the  Secured  Party
considers reasonable proof of a subordinate party's security interest), need the
Secured Party account for the surplus,  if any, to such Pledgor.  To the maximum
extent  permitted by  applicable  law,  each of the Pledgors  waives all claims,
damages,  and demands  against the Secured Party or any  Participating  Creditor
arising out of the repossession,  liquidation,  collection, retention or sale of
the Collateral except to the extent that such claims or damages arise solely out
of the  gross  negligence  or  willful  misconduct  of such  party.  Each of the
Pledgors  agrees  that ten (10) days' prior  notice by the Secured  Party of the
time and place of any public sale or of the time after which a private  sale may
take place is  reasonable  notification  of such  matters.  Each of the Pledgors
shall  remain  liable  for  any  deficiency  if  the  proceeds  of any  sale  or
disposition of the Collateral are  insufficient  to pay all amounts to which the
Secured  Party or any  Participating  Creditor are  entitled,  such Pledgor also
being liable for any reasonable attorneys' fees incurred by the Secured Party or
the Participating Creditors to collect such deficiency.

                  b. Each of the Pledgors agrees to pay any and all costs of the
Secured Party and the Participating  Creditors,  including,  without limitation,
reasonable  attorneys' fees,  incurred in connection with the enforcement of any
of the Secured Party's rights and remedies hereunder.

                  c. Except as otherwise  specifically  provided herein, each of
the Pledgors hereby waives  presentment,  demand,  protest or any notice (to the
maximum extent  permitted by applicable law) of any kind in connection with this
Security Agreement, any other Credit Transaction Document or any Collateral.

                  d. The Proceeds of any sale,  disposition or other realization
upon all or any part of the Collateral shall be distributed by the Secured Party
upon receipt, in accordance with the terms of the Intercreditor Agreement.

                  9. GRANT OF LICENSE  TO USE PATENT AND  TRADEMARK  COLLATERAL.
For the purpose of enabling  the Secured  Party to exercise  rights and remedies
under  Section 8 hereof  (including,  without  limiting  the terms of  Section 8
hereof,  in order to take  possession  of, hold,  preserve,  process,  assemble,
prepare for sale,  market for sale,  sell,  liquidate  or  otherwise  dispose of
Collateral)  at such time as the Secured  Party  shall be  lawfully  entitled to
exercise  such rights and  remedies,  each of the Pledgors  hereby grants to the
Secured Party an irrevocable, non-exclusive license (exercisable without payment
of royalty or other compensation to such Pledgor) to use,  transfer,  license or
sublicense any patent, trademark,  trade secret, copyright or other intellectual
property now owned or hereafter acquired by such Pledgor,  and wherever the same
may be located,  and including in such license reasonable access to all media in
which any of the  licensed  items may be recorded or stored and to all  computer
and  automatic  machinery  software and  programs  used for the  compilation  or
printout thereof.

                                      -16-

<PAGE>

                  10.   LIMITATION  ON  SECURED   PARTY'S  DUTY  IN  RESPECT  OF
COLLATERAL.  The Secured  Party shall use  reasonable  care with  respect to the
Collateral in its  possession or under its control.  The Secured Party shall not
have any other duty as to any  Collateral in its possession or control or in the
possession  or  control of any agent or nominee  of the  Secured  Party,  or any
income thereon or as to the  preservation of rights against prior parties or any
other rights pertaining thereto. Upon request of such Pledgor, the Secured Party
shall  account for any monies  received  by the Secured  Party in respect of any
foreclosure on or disposition of the Collateral.

                  11.  REINSTATEMENT.  This Security  Agreement  shall remain in
full force and effect and continue to be effective  should any petition be filed
by or against any Pledgor for liquidation or reorganization, should such Pledgor
become  insolvent or make an assignment for the benefit of creditors or should a
receiver  or  trustee  be  appointed  for  all or any  significant  part of such
Pledgor's  assets,  and shall continue to be effective or be reinstated,  as the
case may be, if at any time payment and performance of the  Obligations,  or any
part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or
must  otherwise  be restored  or  returned  by any  obligee of the  Obligations,
whether as a "voidable preference", "fraudulent conveyance" or otherwise, all as
though  such  payment or  performance  had not been made.  In the event that any
payment, or any part thereof, is rescinded,  reduced,  restored or returned, the
Obligations  shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

                  12. NOTICES.  All notices,  requests and other  communications
provided for hereunder shall be in writing and personally  delivered  (including
overnight courier),  mailed by certified or registered mail, postage prepaid and
return receipt  requested,  or telecopied (all telecopier notices promptly to be
confirmed by mail or personal delivery), at the address and telecopier number of
each party  specified on the signature page hereof,  or at such other address or
telecopier  number as may be hereafter  designated by notice as herein provided.
All such notices and  communications  shall be effective or deemed  delivered or
furnished  (i)  if  given  by  mail,  on  the  third  business  day  after  such
communication is deposited in the mail,  addressed as provided  herein,  (ii) if
given by telecopier,  when such  communication is transmitted to the appropriate
number determined as provided herein and the appropriate answer-back is received
or receipt is  otherwise  acknowledged,  and (iii) if given by hand  delivery or
overnight  courier,  when left at the  address  of the  addressee  addressed  as
provided above;  except that notices of a change of address or telecopier number
shall not be effective until actually received.

                  13.  SEVERABILITY;  COMPLETE AGREEMENT.  Any provision of this
Security  Agreement  which is prohibited or  unenforceable  in any  jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability  without  invalidating the remaining  provisions hereof, and
any  such  prohibition  or   unenforceability  in  any  jurisdiction  shall  not
invalidate or render  unenforceable  such  provision in any other  jurisdiction.
This Security  Agreement is to be read,  construed and applied together with the
other Credit Transaction Documents which, taken together, set forth the complete
understanding  and  agreement of the Secured Party and each of the Pledgors with
respect to the matters  referred to herein and therein and  supersede  all prior
agreements, understandings or inducements whether express or implied, or oral or
written.

                                      -17-

<PAGE>

                  14. NO WAIVER;  CUMULATIVE  REMEDIES.  The Secured Party shall
not by any act, delay, omission or otherwise be deemed to have waived any of its
rights or remedies  hereunder,  and no waiver  shall be valid unless in writing,
signed by the Secured  Party and then only to the extent  therein  set forth.  A
waiver by the Secured Party of any right or remedy hereunder on any one occasion
shall not be construed  as a bar to any right or remedy which the Secured  Party
would otherwise have had on any future occasion.  No failure to exercise nor any
delay in  exercising  on the part of the  Secured  Party,  any  right,  power or
privilege hereunder,  shall operate as a waiver thereof, nor shall any single or
partial exercise of any right,  power or privilege  hereunder preclude any other
or  future  exercise  thereof  or the  exercise  of any  other  right,  power or
privilege.  The rights and remedies hereunder provided are cumulative and may be
exercised  singly or  concurrently,  and are not  exclusive  of any  rights  and
remedies  provided  by law.  None of the terms or  provisions  of this  Security
Agreement may be waived, altered, modified or amended except by an instrument in
writing, duly executed by the Secured Party and each of the Pledgors.

                  15. LIMITATION BY LAW; TIME OF ESSENCE.  All rights,  remedies
and powers  provided in this  Security  Agreement  may be exercised  only to the
extent that the exercise  thereof does not violate any  applicable  provision of
law,  and all the  provisions  of this  Security  Agreement  are  intended to be
subject to all  applicable  mandatory  provisions of law that may be controlling
and to be  limited to the extent  necessary  so that they shall not render  this
Security Agreement invalid,  unenforceable, in whole or in part, or not entitled
to be recorded, registered, or filed under the provisions of any Applicable Law.
Time is of the essence of this Security Agreement.

                  16. TERMINATION OF THIS SECURITY AGREEMENT. Subject to Section
11 hereof,  this Security Agreement shall terminate upon the first day following
the  termination of the Commitments  (as defined in the Credit  Agreement),  the
cancellation  and return of all Letters of Credit and the  repayment  in full of
all Obligations.

                  17.  SUCCESSORS AND ASSIGNS.  This Security  Agreement and all
obligations  of each  of the  Pledgors  hereunder  shall  be  binding  upon  the
successors and assigns of such Pledgor, and shall,  together with the rights and
remedies of the  Secured  Party  hereunder,  inure to the benefit of the Secured
Party,  all future holders of any instrument  evidencing any of the  Obligations
and their respective  successors and assigns. No sales of participations,  other
sales,  assignments,  transfers or other dispositions of any agreement governing
or instrument  evidencing  the  Obligations  or any portion  thereof or interest
therein shall in any manner affect the security  interest granted to the Secured
Party hereunder.  No Pledgor may assign,  sell or otherwise transfer an interest
in this Security Agreement.

                  18. EXECUTION IN COUNTERPARTS.  This Security Agreement may be
executed  in any number of  counterparts,  all of which shall  collectively  and
separately constitute one agreement.

                  19.  GOVERNING  LAW. THIS  AGREEMENT  SHALL BE EFFECTIVE  UPON
ACCEPTANCE BY THE SECURED PARTY IN ATLANTA, GEORGIA, AND THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE  WITH,  AND
                                      -18-

<PAGE>

GOVERNED BY, THE LAW OF THE STATE OF GEORGIA  WITHOUT  REGARD TO CONFLICT OF LAW
PRINCIPLES.

                  20.  MUTUAL  WAIVER OF JURY  TRIAL.  ANY  JUDICIAL  PROCEEDING
BROUGHT  AGAINST EACH OF THE  PLEDGORS  WITH  RESPECT TO THIS  AGREEMENT  MAY BE
BROUGHT IN ANY COURT OF COMPETENT  JURISDICTION IN THE STATE OF GEORGIA, AND, BY
EXECUTION OF THIS  AGREEMENT,  EACH OF THE PLEDGORS (A) ACCEPTS,  GENERALLY  AND
UNCONDITIONALLY,  THE  NONEXCLUSIVE  JURISDICTION OF SUCH COURTS AND ANY RELATED
APPELLATE COURT, AND IRREVOCABLY AGREES (WITHOUT WAIVING ANY RIGHT TO APPEAL) TO
BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT, AND
(B)  IRREVOCABLY  WAIVES ANY  OBJECTION IT MAY NOW OR  HEREAFTER  HAVE AS TO THE
VENUE OF ANY SUCH  SUIT,  ACTION OR  PROCEEDING  BROUGHT IN SUCH A COURT OR THAT
SUCH COURT IS AN INCONVENIENT FORUM. EACH OF THE PLEDGORS HEREBY WAIVES PERSONAL
SERVICE OF PROCESS AND  CONSENTS  THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY
CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED (WITH A COPY BY OVERNIGHT
COURIER),  AT ITS  ADDRESS  SPECIFIED  OR  DETERMINED  IN  ACCORDANCE  WITH  THE
PROVISIONS  OF SECTION 12, AND SERVICE SO MADE SHALL BE DEEMED  COMPLETED ON THE
FIFTH DAY AFTER SUCH  SERVICE IS  DEPOSITED  IN THE MAIL.  NOTHING  HEREIN SHALL
AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW OR SHALL
LIMIT THE RIGHT OF THE SECURED PARTY TO BRING  PROCEEDINGS  AGAINST SUCH PLEDGOR
IN THE  COURTS OF ANY OTHER  JURISDICTION.  ANY  JUDICIAL  PROCEEDING  BY EITHER
PLEDGOR AGAINST THE SECURED PARTY, INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT SHALL BE
BROUGHT ONLY IN A COURT LOCATED IN THE CITY OF ATLANTA, IN THE STATE OF GEORGIA.
EACH OF THE  PLEDGORS  AND THE SECURED  PARTY  HEREBY WAIVE TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING TO WHICH ANY ARE PARTIES INVOLVING,  DIRECTLY OR INDIRECTLY,
ANY MATTER (WHETHER SOUNDING IN TORT,  CONTRACT OR OTHERWISE) IN ANY WAY ARISING
OUT OF,  RELATED  TO, OR  CONNECTED  WITH  THIS  AGREEMENT  OR THE  RELATIONSHIP
ESTABLISHED  HEREUNDER  AND  WHETHER  ARISING  OR  ASSERTED  BEFORE OR AFTER THE
AGREEMENT DATE OR BEFORE OR AFTER PAYMENT, OBSERVANCE AND PERFORMANCE IN FULL OF
SUCH PLEDGOR'S OBLIGATIONS HEREUNDER OR THEREUNDER.

         21. AGREEMENT DELIVERED IN ESCROW. This Agreement is being delivered by
each of the  Pledgors  to the  Secured  Party to be held in escrow  pursuant  to
Section  5.21  of the  Credit  Agreement.  This  Agreement  and  the  terms  and
provisions hereof shall become operative and effective only upon notice from the
Collateral  Agent or the Agent to the  Borrower  and the  Parent  following  the
occurrence of an Actionable  Default,  as provided in Section 5.21 of the Credit
Agreement,  and the Secured Party shall have no rights hereunder until such time
as this Agreement is deemed  effective as provided in Section 5.21 of the Credit
Agreement.

                                      -19-

<PAGE>

                  IN WITNESS  WHEREOF,  each of the  Pledgors  has  caused  this
Consolidating  Amended and Restated  Guarantor Security Agreement to be executed
and  delivered  by its duly  authorized  officer  as of the date first set forth
above.

                                           PLEDGORS:

Address for Notices:                       HAROLD IVES TRUCKING CO.
                                           TERMINAL TRUCK BROKER, INC.
c/o Covenant Transport, Inc.               COVENANT.COM, INC.
400 Birmingham Highway                     CIP, INC.
Chattanooga, Tennessee  37404              SOUTHERN REFRIGERATED TRANSPORT, INC.
Attention:   Joey B. Hogan                 TONY SMITH TRUCKING, INC.
Treasurer                                  COVENANT TRANSPORT, INC., a Tennessee
Telecopier No.:  (423) 821-5442              corporation
Telephone No.:  (423) 821-1212

                                           By:__________________________________
                                           Name:  Joey B. Hogan
                                           Title: Treasurer

                                           ACCEPTED BY:

Address for Notices:                       FIRST UNION NATIONAL BANK,
                                           as Collateral Agent
First Union National Bank
Capital Management Group
Corporate Trust Department                 By:__________________________________
999 Peachtree Street                       Name:    April Lipscomb
11th Floor                                 Title:   Trust Officer
Atlanta, Georgia  30309
Attention:  April Lipscomb
Telecopier No.:  (404) 827-7305
Telephone No.:  (404) 827-7342

                                      -20-

<PAGE>

                                   SCHEDULE I
                                       to
         CONSOLIDATING AMENDED AND RESTATED GUARANTOR SECURITY AGREEMENT
                            Dated as of June __, 2000

                                 PERMITTED LIENS

                                   [complete]

<PAGE>

                                   SCHEDULE II
                                       to
         CONSOLIDATING AMENDED AND RESTATED GUARANTOR SECURITY AGREEMENT
                            Dated as of June __, 2000

                   SCHEDULE OF OFFICES AND RECORDS CONCERNING
                           COLLATERAL AND OTHER NAMES

I.       Chief Executive Office  and principal place  of business of each of the
         Pledgors:

         (a)      Chief Executive Office:
                  400 Birmingham Highway, Chattanooga, Tennessee  37404

         (b)      Principal Place of Business:
                  411 East Michigan Avenue, P.O. Box 1984, Stuttgart, Arkansas
                  72160

II.      Other Corporate Offices of each of the Pledgors:

                  None

III.     Locations of each of the Pledgors' Records Concerning Collateral:

                  400 Birmingham Highway, Chattanooga, Tennessee  37404

IV.      Locations of each of the Pledgors' Equipment:

                  411 East Michigan Avenue, P.O. Box 1984, Stuttgart, Arkansas
                  72160
                  No. 1 Harold Ives Drive, North Little Rock, Arkansas 72117

VI.      Other Corporate, Fictitious or Trade Names of each of the Pledgors:

                  None

VIII.    Tax Identification Number for each of the Pledgors:

         Harold Ives Trucking Co.:  72-0555622

         Terminal Truck Broker, Inc.:  71-0349128

<PAGE>

                                  Schedule 5.6

                        Information Regarding Collateral

1. Basic Corporate Information

   A. Covenant Transport, Inc. (Nevada)
      1. Legal Name:  Covenant Transport, Inc.
      2. Current Address of Chief Executive Office:  400 Birmingham Highway,
         Chattanooga, TN  37419
      3. Other Locations of Chief Executive Office Since December 1, 1995:  None
      4. State of Formation:  Nevada

   B. Covenant Transport, Inc. (Tennessee)
      1. Legal Name:  Covenant Transport, Inc.
      2. Current Address of Chief Executive Office:  400 Birmingham Highway,
         Chattanooga, TN  37419
      3. Other Locations of Chief Executive Office Since December 1, 1995:  None
      4. State of Formation:  Tennessee

   C. Covenant Asset Management, Inc.
      1. Legal Name:  Covenant Asset Management, Inc.
      2. Current Address of Chief Executive Office:  639 Isbell Road, Suite 390,
         Reno, NV  89509
      3. Other Locations of Chief Executive Office Since December 1, 1995:  None
      4. State of Formation:  Nevada

   D. Southern Refrigerated Transport, Inc.
      1. Legal Name:  Southern Refrigerated Transport, Inc.
      2. Current Address of Chief Executive Office:  210 Highway 71 N.,
         Ashdown, AR  71822
      3. Other Locations of Chief Executive Office Since December 1, 1995:  None
      4. State of Formation:  Arkansas

   E. Tony Smith Trucking, Inc.
      1. Legal Name:  Tony Smith Trucking, Inc.
      2. Current Address of Chief Executive Office:  210 Highway 71 N.,
         Ashdown, AR  71822
      3. Other Locations of Chief Executive Office Since December 1, 1995:  None
      4. State of Formation:  Arkansas

   F. Harold Ives Trucking Co.
      1. Legal Name:  Harold Ives Trucking Co.
      2. Current Address of Chief Executive Office:  Rt. 1 #1 Ives Drive,
         Little Rock, AR  72117

                                      S-1

<PAGE>

      3. Other Locations of Chief Executive Office Since December 1, 1995:  None
      4. State of Formation:  Arkansas

   G. Terminal Truck Broker, Inc.
      1. Legal Name:  Terminal Truck Broker, Inc.
      2. Current Address of Chief Executive Office: 411 East Michigan,
         Stuttgart, AR  72160
      3. Other Locations of Chief Executive Office Since December 1, 1995:  None
      4. State of Formation:  Arkansas

   H. Covenant.com, Inc.
      1. Legal Name:  Covenant.com, Inc.
      2. Current Address of Chief Executive Office:  6100 Neil Road, Suite 500,
         Reno, NV  89511
      3. Other Locations of Chief Executive Office Since December 1, 1995:  None
      4. State of Formation:  Nevada

   I. CIP, Inc.
      1. Legal Name:  CIP, Inc.
      2. Current Address of Chief Executive Office:  639 Isbell Road, Suite 390,
         Reno, NV  89509
      3. Other Locations of Chief Executive Office Since December 1, 1995:  None
      4. State of Formation:  Nevada

2.  Trade Names, Trademarks, and Other Trade Styles used by Grantors Since
    January 1, 2000 and the Purposes for Which They Were Used:

   A. Trade Names
      1. Covenant Transport, Inc.
      2. Covenant Asset Management, Inc.
      3. Southern Refrigerated Transport, Inc.
      4. Tony Smith Trucking, Inc.
      5. Harold Ives Trucking Co.
      6. Terminal Truck Broker, Inc.
      7. Covenant.com, Inc.
      8. CIP, Inc.
      9. Abbreviations and modifications of the names listed in A1. through A8.

   B. Trademarks
      1. None

   C. Trade Styles
      1. None

   D. Purposes for Which Trade Names Were Used
      1. Trade  Names were used in the ordinary course of conducting  interstate
         freight  transportation business

                                      S-2

<PAGE>

<TABLE>
<CAPTION>

                                  Schedule 8.4

                  Subsidiaries and Investments in Other Persons

<S>                                        <C>           <C>                    <C>                    <C>
-------------------------------------------------------------------------------------------------------------------
                                SUBSIDIARIES OF COVENANT TRANSPORT, INC. (NEVADA)
-------------------------------------------------------------------------------------------------------------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Name of Subsidiary/Investment              % Owned       State of Formation     Authorized/Issued      Entity Form
                                                                                Shares
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Covenant Transport, Inc. (TN)              100%          Tennessee              3,000/2,000            Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Covenant Asset Management, Inc.            100%          Nevada                 10,000/10,000          Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Southern Refrigerated Transport, Inc.      100%          Arkansas               10,000/300             Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Tony Smith Trucking, Inc.                  100%          Arkansas               1,000/1,000            Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------

</TABLE>

<TABLE>
<CAPTION>

<S>                                        <C>            <C>                   <C>                    <C>
-------------------------------------------------------------------------------------------------------------------
                               SUBSIDIARIES OF COVENANT TRANSPORT, INC. (TENNESSEE)
-------------------------------------------------------------------------------------------------------------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Name of Subsidiary/Investment              % Owned       State of Formation     Authorized/Issued      Entity Form
                                                                                Shares
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Harold Ives Trucking Co.                   100%          Arkansas               10,000/2,000           Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Terminal Truck Broker, Inc.                100%          Arkansas               1,000/61               Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Covenant.com, Inc.                         100%          Nevada                 25,000/10,000          Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
CIP, Inc.                                  100%          Nevada                 10,000/10,000          Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
CVTI Receivables Corp.                     90%           Nevada                 1,000/100              Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------

</TABLE>

<TABLE>
<CAPTION>

<S>                                        <C>           <C>                    <C>                    <C>
-------------------------------------------------------------------------------------------------------------------
                              SUBSIDIARIES OF SOUTHERN REFRIGERATED TRANSPORT, INC.
-------------------------------------------------------------------------------------------------------------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
Name of Subsidiary/Investment              % Owned       State of Formation     Authorized/Issued      Entity Form
                                                                                Shares
------------------------------------------ ------------- ---------------------- ---------------------- ------------
------------------------------------------ ------------- ---------------------- ---------------------- ------------
CVTI Receivables Corp.                      10%          Nevada                 1,000/100              Corp.
------------------------------------------ ------------- ---------------------- ---------------------- ------------

</TABLE>

There are no other Subsidiaries.

                                      S-3

<PAGE>

                                  Schedule 8.6

                                  Indebtedness

                                      NONE

                                      S-4

<PAGE>

                                  Schedule 8.7

                                      Liens

                                      NONE

                                      S-5

<PAGE>

                                  Schedule 8.8

                                   Tax Matters

                                      NONE

                                      S-6

<PAGE>

                                  Schedule 8.10

                                   Litigation

                                      NONE

                                      S-7

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