Document:

Exhibit 10(c)(1)

                           SECOND AMENDED AND RESTATED

                         RECEIVABLES PURCHASE AGREEMENT

                            Dated as of June 14, 2000

                                      Among

                                SCI FUNDING, INC.

                                    as Seller

                              SCI TECHNOLOGY, INC.

                               as initial Servicer

                                SCI SYSTEMS, INC.

                                  as Guarantor

                        RECEIVABLES CAPITAL CORPORATION,

                              as Exiting Purchaser

                           QUINCY CAPITAL CORPORATION,

                         FOUR WINDS FUNDING CORPORATION

                                       and

                          AMSTERDAM FUNDING CORPORATION

                              as Conduit Purchasers

                                       and

                     BANK OF AMERICA, NATIONAL ASSOCIATION,

                         COMMERZBANK AKTIENGESELLSCHAFT,

                                       and

                               ABN AMRO BANK N.V.,

                               as Bank Purchasers

                      BANK OF AMERICA, NATIONAL ASSOCIATION

                             as Administrative Agent
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                                   Page
-------                                                                                                   ----
<S>          <C>                                                                                            <C>
ARTICLE I    PURCHASES AND REINVESTMENTS.....................................................................2
     1.01.   Purchases and Reinvestments.....................................................................2
     1.02.   Purchase and Reinvestment Limits................................................................4
     1.03.   Making Purchases from Seller....................................................................4
     1.04.   Assignment......................................................................................5
     1.05.   Facility Termination Date.......................................................................5
     1.06.   Purchase Termination Date.......................................................................5
     1.07.   Voluntary Termination of Facility or Reduction of Maximum Purchase Limit........................5
     1.08.   Limitation of Ownership Interest................................................................5
     1.09.   Assignments on Closing Date.....................................................................5

ARTICLE II   UNDIVIDED INTEREST AND PURCHASERS' SHARE........................................................6
     2.01.   Undivided Interest..............................................................................6
     2.02.   Required Allocation.............................................................................7
     2.03.   Purchaser's Investment..........................................................................7
     2.04.   Net Pool Balance................................................................................8
     2.05.   Purchasers' Share...............................................................................9

ARTICLE III  SETTLEMENTS....................................................................................10
     3.01.   Non-Run Off Settlement Procedures for Collections..............................................10
     3.02.   Run Off Settlement Procedures for Collections..................................................11
     3.03.   Special Settlement Procedures; Reduction of Purchaser's Investment, Etc........................12
     3.04.   Reporting......................................................................................14
     3.05.   Payments and Computations, Etc.................................................................14
     3.06.   Treatment of Collections and Deemed Collections................................................15

ARTICLE IV   FEES AND YIELD PROTECTION......................................................................15
     4.01.   Fees...........................................................................................15
     4.02.   Yield Protection...............................................................................15

ARTICLE V    CONDITIONS TO EFFECTIVENESS OF PURCHASES.......................................................17
     5.01.   Conditions Precedent to Initial Purchase.......................................................17
     5.02.   Conditions Precedent to All Purchases and Reinvestments........................................19

ARTICLE VI   REPRESENTATIONS AND WARRANTIES.................................................................19
     6.01.   Representations and Warranties - Seller........................................................19
     6.02.   Representations and Warranties - SCI...........................................................22
     6.03.   Representations and Warranties - Guarantor.....................................................24
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>          <C>                                                                                            <C>
ARTICLE VII  GENERAL COVENANTS..............................................................................26
     7.01.   Affirmative Covenants..........................................................................26
     7.02.   Reporting Requirements.........................................................................29
     7.03.   Negative Covenants.............................................................................31
     7.04.   Separate Corporate Existence...................................................................32
     7.05.   Financial Covenants............................................................................34

ARTICLE VIII ADMINISTRATION AND COLLECTION..................................................................35
     8.01.   Designation of Servicer........................................................................35
     8.02.   Duties of Servicer.............................................................................35
     8.03.   Rights of the Administrative Agent.............................................................37
     8.04.   Responsibilities of Seller.....................................................................38
     8.05.   Further Action Evidencing Purchases............................................................38
     8.06.   Application of Collections.....................................................................40

ARTICLE IX   SECURITY INTEREST..............................................................................40
     9.01.   Grant of Security Interest.....................................................................40
     9.02.   Further Assurances.............................................................................40
     9.03.   Remedies.......................................................................................40

ARTICLE X    TERMINATION EVENTS.............................................................................40
     10.01.  Termination Events.............................................................................40
     10.02.  Remedies.......................................................................................43

ARTICLE XI   THE ADMINISTRATIVE AGENT.......................................................................43
     11.01.  Authorization and Action.......................................................................43
     11.02.  Administrative Agent's Reliance, Etc...........................................................43
     11.03.  Administrative Agent and Affiliates............................................................44
     11.04.  Seller's Failure to Perform....................................................................44

ARTICLE XII  ASSIGNMENT OF PURCHASER'S INTEREST.............................................................44
     12.01.  Restrictions on Assignments....................................................................44
     12.02.  Rights of Assignee.............................................................................45
     12.03.  Notice of Assignment...........................................................................45
     12.04.  Evidence of Assignment.........................................................................45

ARTICLE XIII INDEMNIFICATION................................................................................46
     13.01.  Indemnities....................................................................................46

ARTICLE XIV  GUARANTEE......................................................................................48
     14.01.  Guarantee......................................................................................48
     14.02.  Maintenance of Ownership.......................................................................50
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>          <C>                                                                                           <C>
     14.03.  Representation and Warranty....................................................................50
     14.04.  Subrogation....................................................................................50

ARTICLE XV   MISCELLANEOUS..................................................................................51
     15.01.  Amendments, Etc................................................................................51
     15.02.  Notices, Etc...................................................................................51
     15.03.  No Waiver; Remedies............................................................................51
     15.04.  Binding Effect; Survival.......................................................................52
     15.05.  Costs, Expenses and Taxes......................................................................52
     15.06.  No Proceedings.................................................................................52
     15.07.  Confidentiality of Information.................................................................53
     15.08.  Captions and Cross References..................................................................55
     15.09.  Integration....................................................................................55
     15.10.  Governing Law..................................................................................55
     15.11.  Waiver Of Jury Trial...........................................................................56
     15.12.  Consent To Jurisdiction; Waiver Of Immunities..................................................56
     15.13.  Execution in Counterparts......................................................................56
     15.14.  Originators....................................................................................56
     15.15.  Confidentiality of SCI Information.............................................................57
     15.16.  Funding........................................................................................57
     15.17.  Sharing of Payments, Etc.......................................................................57
     15.18.  Excess Funds...................................................................................58

                                   APPENDICES

APPENDIX A - DEFINITIONS...................................................................................A-1

APPENDIX B - CALCULATION OF DISCOUNT AND RESERVE...........................................................B-1
</TABLE>

SCHEDULE I - Commitments

                                                     SCHEDULES

SCHEDULE 2.04(c)   Special Concentration Limits

SCHEDULE 6.01(d)   Litigation

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

SCHEDULE 6.01(l)   List of Lock-Box Banks

SCHEDULE 6.01(m)-1 Forms of Contracts

                                       iii
<PAGE>

SCHEDULE 6.01(m)-2 Description of Credit and Collection Procedure

SCHEDULE 15.02     Addresses

                                    EXHIBITS

EXHIBIT 1.03(a)    Form of Purchase Notice

EXHIBIT 3.04(a)    Form of Periodic Report

EXHIBIT 5.01(i)    Form of Lock-Box Agreement

EXHIBIT 12.04      Form of Assignment (for assignment to third
                   party)

EXHIBIT I-1        Form of Guaranty

                                       iv
<PAGE>

                           SECOND AMENDED AND RESTATED
                         RECEIVABLES PURCHASE AGREEMENT

                            Dated as of June 14, 2000

         THIS IS A SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT,
among SCI FUNDING, INC., a Delaware corporation ("Seller"), SCI TECHNOLOGY,
INC., an Alabama corporation ("SCI"), SCI SYSTEMS, INC., a Delaware corporation
(together with its successors and permitted assigns, "Guarantor"), RECEIVABLES
CAPITAL CORPORATION, a Delaware corporation ("RCC" or "Exiting Purchaser"),
QUINCY CAPITAL CORPORATION, a Delaware corporation, ("Quincy"), FOUR WINDS
FUNDING CORPORATION, a Delaware corporation ("Four Winds"), AMSTERDAM FUNDING
CORPORATION, a Delaware corporation ("Amsterdam", and together with Quincy and
Four Winds, individually a "Conduit Purchaser" and collectively the "Conduit
Purchasers"), BANK OF AMERICA, NATIONAL ASSOCIATION, a national banking
association ("BofA"), COMMERZBANK AKTIENGESELLSCHAFT, a bank organized under the
laws of Germany acting through its New York Branch ("Commerzbank"), ABN AMRO
BANK N.V., a bank organized under the laws of The Netherlands ("ABN", and
together with BofA and Commerzbank, individually a " Bank Purchaser" and
collectively the "Bank Purchasers", and together with the Conduit Purchasers,
individually a "Purchaser" and collectively the "Purchasers"), and BANK OF
AMERICA, NATIONAL ASSOCIATION, a national banking association, as administrative
agent for the Purchasers (together with its successors and assigns, in such
capacity, the "Administrative Agent"). Unless otherwise indicated, capitalized
terms used in this Agreement are defined in Appendix A.

                                   Background

         1. SCI, Guarantor, RCC and the Administrative Agent entered into a
Receivables Purchase Agreement, dated as of June 30, 1995, which was amended and
restated pursuant to the Amended and Restated Receivables Purchase Agreement,
dated as of September 27, 1996 (as heretofore amended, the "Original Receivables
Agreement").

         2. The parties hereto desire to amend and restate the Original
Receivables Agreement in its entirety as set forth herein in order to, among
other things, provide for the addition of Four Winds and Amsterdam as Conduit
Purchasers and the addition of the Bank Purchasers.

         3. Seller has, and expects to have, Pool Receivables in which Seller
intends to sell an undivided interest. Seller has requested the Conduit
Purchasers, and the Conduit Purchasers may, subject to the terms and conditions
contained in this Agreement, fund the purchase of such undivided interest,
referred to herein as the Undivided Interest, from Seller from time to time
during the term of this Agreement. In the event that any Conduit Purchaser
decides not to fund a
<PAGE>

Purchase or Reinvestment hereunder, subject to the terms and conditions
contained in this Agreement, such Conduit Purchaser's Related Bank Purchasers
shall fund such Purchase or Reinvestment.

         4. Seller and Purchasers also desire that, subject to the terms and
conditions of this Agreement, certain of the daily Collections be reinvested in
Pool Receivables through the sale by Seller to the Administrative Agent, for the
benefit of the Purchasers, of additional undivided interests in the Pool
Receivables, such daily reinvestment of Collections to be effected by an
automatic daily adjustment to the Undivided Interest, and to be intended to
permit each Purchaser then funding a portion of the Undivided Interest to
maintain its Purchaser's Investments fully invested in uncollected Pool
Receivables.

         5. The Conduit Purchasers expect generally to fund their respective
Purchases and Reinvestments through the issuance of Commercial Paper Notes. Each
Conduit Purchaser has entered into Program Support Agreements providing for the
purchase by a Program Support Provider of, or the making by a Program Support
Provider of loans secured by, such Conduit Purchaser's portion of the Undivided
Interest in the event such Conduit Purchaser is unable or unwilling to fund its
Purchases or Reinvestments pursuant to this Agreement by the issuance of
Commercial Paper Notes or otherwise prefers to fund such Purchases or
Reinvestments under its Program Support Agreements rather than by the issuance
of Commercial Paper Notes, or is unable to pay such Commercial Paper Notes at
maturity from the proceeds of Collections.

         6. BofA has been requested, and is willing, to act as the
Administrative Agent.

         7. It is a condition precedent for Purchasers and the Administrative
Agent to enter into this Agreement that Guarantor guaranty the performance of
SCI and the Originators under the Agreement Documents, and Guarantor is willing
to guaranty such performance, in each case upon the terms and conditions set
forth herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby amend and restate the Original Receivables Agreement in its entirety, and
hereby agree, as follows:

                                    ARTICLE I

                           PURCHASES AND REINVESTMENTS

         SECTION 1.01. Purchases and Reinvestments. On the terms and subject to
the conditions set forth in this Agreement (including Article V):

                                        2
<PAGE>

                  (a) Purchases. Each Conduit Purchaser may, in its sole
         discretion, fund purchases from Seller of the Undivided Interest or
         increases therein from time to time during the period from the date
         hereof to the Purchase Termination Date. In the event that a Conduit
         Purchaser decides not to fund a Purchase or a Reinvestment, such
         Conduit Purchaser's Related Bank Purchasers, subject to the terms and
         conditions of this Agreement, shall fund such Purchase. Each such
         purchase and, as the context may require, the purchase price paid by
         the Purchasers funding such purchase to Seller in respect thereof
         (determined pursuant to Section 1.03(b)), is herein called a
         "Purchase".

                  (b) Reinvestments. Pursuant to Section 3.01, during the period
         from the date hereof to the Facility Termination Date, each Conduit
         Purchaser may, in its sole discretion, permit Servicer to cause certain
         of the Collections in respect of its Funded Percentage of the Undivided
         Interest to be applied to the purchase of additional undivided
         interests in the Pool Receivables, thereby resulting in an appropriate
         readjustment of the Undivided Interest. Pursuant to Section 3.01, but
         subject to the terms and conditions set forth herein, during the period
         from the date hereof to the Facility Termination Date, each Bank
         Purchaser shall permit Servicer to cause certain of the Collections in
         respect of its Funded Percentage of the Undivided Interest to be
         applied to the purchase of additional undivided interests in the Pool
         Receivables, thereby resulting in an appropriate readjustment of the
         Undivided Interest. Each such purchase of an additional undivided
         interest pursuant to Section 3.01 is herein called a "Reinvestment".

                  (c) Sale by Conduit Purchaser to Bank Purchaser. Quincy may at
         any time, at its discretion, sell all or any portion of its Funded
         Percentage of the Undivided Interest to its Related Bank Purchasers,
         and each Related Bank Purchaser shall purchase from Quincy its Conduit
         Related Percentage of the amount being so sold, (the related purchase
         price with respect to such sale not to exceed the purchase price Quincy
         would have received therefor under its Liquidity Agreement), provided
         that no Related Bank Purchaser shall be obligated to make any such
         purchase (i) after such Related Bank Purchaser's Support Termination
         Date; (ii) if Quincy is subject to an Event of Bankruptcy at the time
         of such purchase or (iii) to the extent that, after giving effect to
         such purchase, such Bank Purchaser's outstanding Purchaser's Investment
         would exceed its Commitment. Any such sale by Quincy shall be made upon
         notice given to its Related Bank Purchasers no later than 12:00 noon
         (New York time) on the date of such purchase.

Nothing set forth in this Agreement shall be deemed to be or shall be construed
as a commitment by any Conduit Purchaser to fund the purchase of, or increase
in, the Undivided Interest. However, so long as the conditions to Reinvestment
set forth in this Agreement are met, Servicer may presume that Collections may
be used to make Reinvestments on behalf of each Conduit Purchaser as provided
herein, absent notice from such Conduit Purchaser (through its Related
Administrator to the Administrative Agent) to the contrary (which notice may be
given at any time). Purchases and Reinvestments made hereunder shall be without
recourse with regard to

                                        3
<PAGE>

Defaulted Receivables (except as otherwise specifically provided in Article II
of this Agreement in connection with the calculation of the Undivided Interest).

         SECTION 1.02. Purchase and Reinvestment Limits. Under no circumstances
shall any Purchaser fund any Purchase or Reinvestment to the extent that, after
giving effect to such Purchase or Reinvestment, as the case may be:

                  (a) Purchase Limit. The Total Purchasers' Investments would
         exceed an amount (the "Purchase Limit") equal to $300,000,000, as such
         amount may be reduced pursuant to Section 1.07;

                  (b) Required Allocation Limit. The Required Allocation would
         exceed an amount (the "Required Allocation Limit") equal to 100% of the
         Net Pool Balance;

                  (c) Percentage. Such Purchaser's Purchaser's Investment would
         exceed an amount equal to such Purchaser's Percentage of the Total
         Purchasers' Investments or the aggregate of the Purchaser's Investments
         for all members of such Purchaser's Related Group would exceed an
         amount equal to the Group Percentage of such Purchaser's Related Group
         of the Total Purchasers' Investments; or

                  (d) Commitment. Such Purchaser's Purchaser's Investment would
         exceed an amount equal to such Purchaser's Commitment or the
         Purchaser's Investments for all members of such Purchaser's Related
         Group would exceed an amount equal to the aggregate Commitments of the
         Bank Purchasers in such Purchaser's Related Group.

Each Purchaser's Commitment is several and not joint.

         SECTION 1.03. Making Purchases from Seller. (a) Notice of Purchase.
Each Purchase from Seller shall be made on notice from Seller to the
Administrative Agent and each Related Administrator received not later than
11:00 a.m. (New York time) on the Business Day next preceding the date of such
proposed Purchase. Each such notice of a proposed Purchase shall be in
substantially the form attached as Exhibit 1.03(a) and shall specify the desired
amount and date of such Purchase. In the event that a Conduit Purchaser elects
not to fund such Purchase hereunder, it shall notify Seller and the
Administrative Agent thereof by the close of business on the Business Day next
preceding the date of proposed Purchase.

         (b) Amount of Purchase. The amount of each Purchase shall be equal to
the lesser of (x) the amount proposed by Seller pursuant to Section 1.03(a) and
(y) the maximum amount permitted under Section 1.02. All Purchases hereunder
other than on the date hereof shall be made by each Related Group on a pro rata
basis (based on the aggregate Percentages of the Bank Purchasers in each Related
Group).

                                        4
<PAGE>

         (c) Funding of Purchase. On the date of each Purchase, each Conduit
Purchaser and/or each Bank Purchaser funding such Purchase shall, upon
satisfaction of the applicable conditions set forth in Article V, make available
to the Administrative Agent at the Administrative Agent's Account not later than
11:00 a.m. (New York time) the amount of its Purchase (determined pursuant to
Section 1.03(b)) in same day funds, and after receipt by the Administrative
Agent of such funds, the Administrative Agent will make such funds immediately
available to Seller at such office.

         SECTION 1.04. Assignment. Seller hereby sells, assigns and transfers to
the Administrative Agent, for the benefit of the applicable Purchasers, the
Undivided Interest in the Pool.

         SECTION 1.05. Facility Termination Date. (a) The "Facility Termination
Date" shall be the earlier to occur of (i) June 13, 2001 (herein, as the same
may be extended, called the "Scheduled Facility Termination Date"), and (ii) the
date of termination of the Facility pursuant to Section 1.07 or 10.02.

         (b) The then Scheduled Facility Termination Date may be extended from
time to time for successive periods of 364 days by written notice of request
given by Seller to the Administrative Agent and each Bank Purchaser at least 90
days prior to the then Scheduled Facility Termination Date and written notice of
acceptance given by each Bank Purchaser to the Administrative Agent and Seller
not later than 5 Business Days prior to such Scheduled Facility Termination
Date. Failure of any Bank Purchaser to respond in such time frame shall be
deemed to be a rejection of such request.

         SECTION 1.06. Purchase Termination Date. (a) The "Purchase Termination
Date" shall be the earlier to occur of (i) the Facility Termination Date and
(ii) the date of termination of the purchase facility with respect to Purchases
pursuant to subsection (b).

         (b) The Facility shall terminate with respect to Purchases by a Conduit
Purchaser on the scheduled date of termination of any Program Support Agreement
for such Conduit Purchaser. Each Conduit Purchaser agrees to give Seller at
least 30 days' prior written notice of the termination of the Facility (if such
date is earlier than the Purchase Termination Date) with respect to Purchases by
it pursuant to this clause (b), but no failure to give or delay in giving such
notice shall prevent or delay such termination.

         SECTION 1.07. Voluntary Termination of Facility or Reduction of Maximum
Purchase Limit. Seller may, upon at least 30 days' prior written notice to the
Administrative Agent and each Bank Purchaser, terminate the Facility in whole or
reduce in part the unused portion of the Purchase Limit; provided, however, that
(a) each partial reduction shall be in an amount equal to $5,000,000 or an
integral multiple thereof and (b) after giving effect to such reduction, the
remaining Purchase Limit will not be less than $150,000,000. Any reduction of
the Purchase Limit shall be applied to reduce each Purchaser's Commitment on a
pro rata basis.

                                        5
<PAGE>

         SECTION 1.08. Limitation of Ownership Interest. Nothing in this
Agreement shall be interpreted as providing the Administrative Agent or any
Purchaser with an ownership interest in any Receivables that are not Pool
Receivables.

         SECTION 1.09. Assignments on Closing Date. On the date that the
conditions precedent set forth in Sections 5.01 and 5.02 are satisfied (i) RCC
shall assign and transfer to Quincy all of its right, title and interest in the
Undivided Interest, and upon such assignment and transfer, RCC shall no longer
be a Purchaser hereunder and (ii) Quincy shall assign and transfer to the other
Conduit Purchasers, and the other Conduit Purchasers may purchase (and if any
Conduit Purchaser elects not to purchase, its Related Bank Purchaser shall
purchase) from Quincy, without recourse or warranty, a portion of Quincy's
right, title and interest in the Undivided Interest such that, after giving
effect thereto, the Funded Percentage of each Related Group equals its Group
Percentage.

                                   ARTICLE II

                    UNDIVIDED INTEREST AND PURCHASERS' SHARE

         SECTION 2.01. Undivided Interest. (a) Definition and Computation of
Undivided Interest. For purposes of this Agreement, "Undivided Interest" means,
as the context may require (i) an undivided ownership interest, in a percentage
determined from time to time as provided in clause (ii) below, in (A) all then
outstanding Pool Receivables, (B) all Related Security with respect to such Pool
Receivables, (C) all Collections with respect to, and other proceeds of, such
Pool Receivables and Related Security and (D) all books and records (including,
without limitation, computer disks) related to the foregoing (collectively, the
"Pool"), and (ii) at any time, the quotient, expressed as a percentage, obtained
by dividing the Required Allocation by the Net Pool Balance. The Undivided
Interest shall be computed as follows:

         UI   =  RA  =  PI + DF + CR + SFR
                 ---    ------------------
                 NPB           NPB

where:
-----

         UI   =  the Undivided Interest at any time;

         RA   =  the Required Allocation at such time, as determined pursuant to
                 Section 2.02; and

         NPB  =  the Net Pool Balance at such time, as determined pursuant to
                 Section 2.04.

         (b) Frequency of Computation of Purchasers' Interest. The Undivided
Interest shall initially be computed by Servicer as of the opening of business
of Servicer on the date of each

                                        6
<PAGE>

Purchase, and the Undivided Interest shall be recomputed upon receipt of each
Periodic Report. In addition, until the Undivided Interest shall be reduced to
zero, the Undivided Interest shall be deemed to be automatically recomputed as
of the close of business of Servicer on each day (other than a day on which an
actual recomputation is done), and, as so recomputed, shall constitute the
percentage ownership interest in Pool Receivables held by the Administrative
Agent, for the benefit of the Purchasers, on such day. The Undivided Interest
shall become zero at such time as each of the Purchasers shall have received its
accrued Earned Discount, shall have recovered its Purchaser's Investment and
shall have received all other amounts payable to such Purchaser pursuant to this
Agreement and Servicer shall have received the accrued Servicer's Fee. The
Undivided Interest shall remain constant from the time as of which any such
computation or recomputation is made until the time as of which the next such
recomputation, if any, shall be made.

         SECTION 2.02. Required Allocation. The "Required Allocation" at any
time means an amount determined as follows:

         RA   =  PI + DF + CR + SFR

where:
-----

         RA   =  the Required Allocation at any time;

         PI   =  the Total Purchasers' Investment at such time, as determined
                 pursuant to Section 2.03;

         DF   =  the Discount Factor at such time, as determined pursuant to
                 Part I of Appendix B;

         CR   =  the Credit Reserve at such time, as determined pursuant to
                 Part II of Appendix B;

         SFR  =  the Servicer's Fee Reserve at such time, as determined pursuant
                 to Part IV of Appendix B; and

         SECTION 2.03. Purchaser's Investment. (a) Subject to subsections (b)
and (c), "Purchaser's Investment" with respect to any Purchaser or its assignees
at any time means an amount equal to

                  (i) the aggregate of the amounts theretofore paid by such
         Purchaser to Seller for the funding of a portion of the Undivided
         Interest (A) by Purchases pursuant to Sections 1.01(a) and 1.03 and (B)
         by Reinvestments pursuant to Sections 1.01(b) and 3.01, less

                                        7
<PAGE>

                  (ii) the aggregate amount of Collections (including Deemed
         Collections) theretofore received and distributed to such Purchaser on
         account of such Purchaser's Purchaser's Investment pursuant to Sections
         3.01 and 3.02.

         (b) Solely for purposes of calculating the Earned Discount (and each
component thereof) pursuant to the proviso to the definition of "Earned
Discount" in Appendix B:

                  (i) "Purchaser's Investment" of any portion of the Undivided
         Interest owned by a Program Support Provider (or any permitted assignee
         thereof) or otherwise funded by a Funding shall be deemed to be the
         amount paid to the related Conduit Purchaser by such Program Support
         Provider as the purchase price of, or the original principal amount
         loaned with respect to, such portion, as reduced from time to time by
         Collections received and distributed to such Program Support Provider
         (or such assignee) on account of such Funding pursuant to Sections 3.01
         and 3.02 or by payments by or for the account of the related Conduit
         Purchaser to the Program Support Provider in reimbursement of any
         Funding; and

                  (ii) "Purchaser's Investment" of any other portion of the
         Undivided Interest with respect to any Conduit Purchaser shall mean
         such Conduit Purchaser's Purchaser's Investment less the sum of
         Purchaser's Investments of all portions of the Undivided Interest
         described in clause (i) above with respect to such Conduit Purchaser,
         calculated in accordance with such clause (i).

         (c) No Purchaser's Investment shall be considered reduced by any
distribution of any portion of Collections if at any time such distribution is
rescinded or must otherwise be returned for any reason.

         SECTION 2.04. Net Pool Balance. (a) The "Net Pool Balance" at any time
means an amount equal to

                  (i) the aggregate Unpaid Balance of the Eligible Receivables
         in the Receivables Pool at such time, minus

                  (ii) the aggregate (for all Obligors) of the amounts by which
         (x) the Unpaid Balance of all Pool Receivables of each Obligor exceeds
         (y) the Concentration Limit for such Obligor at such time, minus

                  (iii) so long as Receivables from Compaq generated at "Plant
         11" are subject to offset by Compaq, the aggregate Unpaid Balance of
         Receivables from Compaq generated at "Plant 11," minus

                  (iv) from and after the occurrence of a Trigger Event, the
         Accounts Payable Amount at such time, plus

                                        8
<PAGE>

                  (v) so long as Receivables from IBM fail to qualify as
         Eligible Receivables solely because they fail to satisfy the
         requirements of paragraph (s) of the definition of Eligible
         Receivables, an amount equal to (x) the aggregate Unpaid Balance of
         Receivables from IBM, minus (y) the Accounts Payable Amount owed to
         IBM.

         (b) "Concentration Limit" for any Obligor at any time means, as
applicable (x) 5% of Eligible Receivables at such time or (y) the Special
Concentration Limit for such Obligor, whichever is greater.

         (c) "Special Concentration Limit" for (A) any Obligor identified on
Schedule 2.04(c), means the applicable percentage set forth on Schedule 2.04(c)
and (B) for any other Obligor consented to by all Purchasers in writing
following a request from the Seller for such Obligor to be designated as an
Obligor for which Special Concentration Limits are to apply, means at any time,
such percentage consented to by all Purchasers in written notice delivered to
Seller of the aggregate Unpaid Balance of all Eligible Receivables at such time;
provided that any Purchaser may, at its discretion, reduce any such Special
Concentration Limit upon ten (10) Business Days' prior written notice to Seller,
the Administrative Agent and the other Purchasers.

         (d) In the case of any Obligor which, to the actual knowledge of
Seller, is an Affiliate of any other Obligor, the Concentration Limit, the
Special Concentration Limit, if any, and the aggregate Unpaid Balance of Pool
Receivables of such Obligors shall be calculated as if such Obligors were one
Obligor.

         SECTION 2.05. Purchasers' Share. "Purchasers' Share" of Collections of
Pool Receivables received (or deemed received) by Seller or Servicer on any day
means an amount equal to the product of

                  (a) the amount of all Collections of Pool Receivables received
         (or deemed received) by Seller or Servicer on such day, times:

                  (b) (i) if such day is not a Run Off Day, the Undivided
         Interest on such day, expressed as a decimal, and

                      (ii) if such day is a Run Off Day, either (A) the
         Undivided Interest on the day immediately preceding the first Run Off
         Day to have occurred during the then current Run Off Period or (B) if
         higher, upon the request of the Administrative Agent or any Purchaser,
         the most recently calculated Undivided Interest (it being understood
         that in the event that the Purchasers' Share shall exceed 100%, the
         Purchasers shall share Collections, pro rata, based on their respective
         Funded Percentages);

provided that (i) during the continuance of any Termination Event, the
Purchasers' Share shall be 100% and (ii) after such time as the Undivided
Interest shall equal zero, the Purchasers' Share of Collections shall also equal
zero.

                                        9
<PAGE>

                                   ARTICLE III

                                   SETTLEMENTS

         SECTION 3.01. Non-Run Off Settlement Procedures for Collections. (a)
Daily Procedure. On each day (other than a Run Off Day) in any Settlement
Period, Servicer shall:

                      (i) out of Purchasers' Share of Collections of Pool
         Receivables received or deemed received on such day, hold in trust for
         the benefit of the Purchasers an amount equal to the Earned Discount
         for all Purchasers and Servicer's Fee accrued through such day and not
         previously so held for the benefit of the Purchasers,

                     (ii) apply an amount equal to the remainder of Purchasers'
         Share of such Collections (the "Remaining Collections") to reduce the
         Total Purchasers' Investment (it being understood that such amount need
         not be physically paid to any Purchaser under this clause (ii)), and

                    (iii) subject to Section 3.03, after such reduction, (A)
         apply such Remaining Collections to the Reinvestment, for the benefit
         of Purchasers then funding the Undivided Interest, of additional
         undivided interests in Pool Receivables by recomputation of the
         Undivided Interest pursuant to Section 2.01 as of the end of such day,
         thereby increasing the Total Purchasers' Investment, and (B) pay to
         Seller such Remaining Collections.

The recomputed Undivided Interest shall constitute the percentage ownership
interest in Pool Receivables on such day held by the Administrative Agent, for
the benefit of the Purchasers.

         (b) Settlement Date Procedure. On each Settlement Date, for each day in
the related Settlement Period that is not a Run Off Day, Servicer shall deposit
to the Administrative Agent's Account the amounts set aside as described in
Section 3.01(a)(i) and the amounts, if any, set aside pursuant to Section
3.03(b) or (c) for payment to the Administrative Agent on such Settlement Date;
provided, however, that until Servicer receives written notice from the
Administrative Agent or the Required Purchasers to the contrary, Servicer may
retain amounts which would otherwise be deposited in respect of Servicer's Fee,
in which case no distribution shall be made in respect of Servicer's Fee under
clause (c) below.

         (c) Order of Application. Upon receipt by the Administrative Agent of
funds distributed pursuant to subsection (b), the Administrative Agent shall
promptly distribute them in the type of funds received (i) to the account
specified by the applicable Related Administrator for each Conduit Purchaser or
by the applicable Bank Purchaser funding the Undivided Interest in payment of
the accrued and unpaid Earned Discount on each such Purchaser's Purchaser's
Investment, (ii) unless retained pursuant to subsection (b), to Servicer in
payment of the accrued and unpaid Servicer's Fee payable on such Settlement Date
and (iii) in the case of any amounts set

                                       10
<PAGE>

aside pursuant to Section 3.03(b) or (c), to the account specified by the
applicable Related Administrator for each Conduit Purchaser or by the applicable
Bank Purchaser funding the Undivided Interest in reduction of its related
Purchaser's Investment, such Purchaser's Funded Percentage of such amounts. If
there shall be insufficient funds on deposit for the Administrative Agent to
distribute funds in payment in full of the aforementioned amounts, the
Administrative Agent shall distribute funds, first, in payment of such Earned
Discount, on a pro rata basis (calculated on the basis of the Earned Discount
owed to each Purchaser as a percentage of the Earned Discount owed to all
Purchasers), second, in payment of such Servicer's Fee and third, to such
reduction of the Total Purchasers' Investment on a pro rata basis (calculated on
the basis of the Purchasers' Investment of each Purchaser as a percentage of the
Total Purchaser's Investment).

         SECTION 3.02. Run Off Settlement Procedures for Collections. (a) Daily
Procedure. On each Run Off Day occurring in any Settlement Period, Servicer
shall set aside and hold in trust for the Purchasers the Purchasers' Share of
the Collections of Pool Receivables for such Run Off Day and shall, if requested
by the Administrative Agent or the Required Purchasers or if a Termination Event
has occurred and is continuing, deposit such Collections within one Business Day
of Servicer's receipt thereof into the Administrative Agent's Account or to
another bank account acceptable to the Required Purchasers in which no other
funds shall be deposited.

         (b) Settlement Date Procedure. On each Settlement Date, if one or more
Run Off Days occurred during such Settlement Period ending on such Settlement
Date, Servicer shall deposit to the Administrative Agent's Account the amounts
set aside pursuant to Section 3.02(a) during such Settlement Period, but not to
exceed the sum of (i) the accrued and unpaid Earned Discount for each Purchaser,
(ii) the Total Purchasers' Investment, (iii) the aggregate of other amounts owed
hereunder by Seller to any Purchaser or the Administrative Agent, and (iv) the
accrued Servicer's Fee. If no Termination Event or Unmatured Termination Event
shall have occurred and be continuing, any amounts set aside pursuant to clause
(a) of this Section 3.02 and not required to be deposited to the Administrative
Agent's Account pursuant to the next preceding sentence shall be paid to Seller
by Servicer.

         (c) Order of Application. Upon receipt of funds deposited to the
Administrative Agent's Account pursuant to Section 3.02(b), the Administrative
Agent shall promptly distribute them in the type of funds received (i) to the
account specified by the applicable Related Administrator for each Conduit
Purchaser, by the applicable Bank Purchaser or the Administrative Agent (as the
case may be) (A) in payment of the accrued and unpaid Earned Discount for each
Purchaser, (B) in reduction of the Total Purchasers' Investment and (C) in
payment of any other amounts owed by Seller hereunder to any Purchaser or the
Administrative Agent, in each case until reduced to zero, and (ii) to Servicer
in payment of the accrued Servicer's Fee, also until reduced to zero. If there
shall be insufficient funds on deposit for the Administrative Agent to
distribute funds in payment in full of the aforementioned amounts, the
Administrative Agent shall distribute funds on deposit, first, to the Purchasers
in payment of the Earned Discount, on a pro rata basis (calculated on the basis
of the Earned Discount owed to each Purchaser as a percentage

                                       11
<PAGE>

of the aggregate Earned Discount owed to all Purchasers), second, in payment of
the Servicer's Fee payable on such Settlement Date, if any (if Servicer is not
SCI or an Affiliate of SCI), third, to each Purchaser, its Funded Percentage of
the remaining amounts, which shall be applied in reduction of such Purchaser's
Purchaser's Investment, fourth, in payment of other amounts payable to any
Purchaser or the Administrative Agent hereunder, and fifth, in payment of the
Servicer's Fee payable on such Settlement Date (if Servicer is SCI or an
Affiliate of SCI).

         SECTION 3.03. Special Settlement Procedures; Reduction of Purchaser's
Investment, Etc. (a) Deemed Collections. If on any day

                     (i) the Unpaid Balance of any Pool Receivable is

                          (A) reduced as a result of any defective, rejected or
                  returned merchandise or services, any cash discount, any
                  credit, pricing adjustment or other adjustment by Seller or
                  any Affiliate of Seller (other than any adjustment permitted
                  by Section 8.02(c)(i)),

                          (B) reduced or cancelled as a result of a setoff in
                  respect of any claim by the Obligor thereof against Seller or
                  any other Person (whether such claim arises out of the same or
                  a related or an unrelated transaction), or as a result of any
                  dispute, or

                          (C) reduced on account of the obligation of Seller or
                  any other Person to pay to the related Obligor any rebate or
                  refund, or to rework any product or service related to such
                  Receivable; or

                     (ii) any of the representations or warranties of Seller set
         forth in Section 6.01(i) or (m) is no longer true with respect to a
         Pool Receivable; or

                     (iii) Seller receives a payment of a Deemed Collection
         pursuant to any Second Tier Sale Agreement;

then, on such day, Seller shall be deemed to have received a Collection of such
Pool Receivable;

                           (I) in the case of clause (i) above, in the amount of
                  such reduction or cancellation;

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

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

                                       12
<PAGE>

         (b) Unreinvested Collections. Collections that may not be reinvested by
means of Reinvestments in the Undivided Interest on account of the application
of the Required Allocation Limit or the Purchase Limit pursuant to Section 2.01
shall be so reinvested as soon as it is possible to do so without violating such
Required Allocation Limit or Purchase Limit, as the case may be. To the extent
and so long as such Collections may not be so reinvested, subject to Section
1.01, Servicer shall hold such Collections in trust for the benefit of
Purchasers (and, if requested by the Administrative Agent or the Required
Purchasers or if a Termination Event has occurred and is continuing, shall
deposit such Collections in a separate interest-bearing deposit account
containing only such Collections and earnings thereon and no other funds; it
being understood that any interest earned on such funds shall be for the account
of Seller and shall be paid to Seller on the Settlement Date next succeeding the
date on which such interest is credited to such account, so long as no
Termination Event has occurred and is continuing), for payment to the
Administrative Agent on the next following Settlement Date, and the Total
Purchasers' Investment shall be deemed reduced in the amount to be paid to the
Administrative Agent only when in fact finally so paid in accordance with
Section 3.05(a).

         (c) Seller's Reduction of Purchaser's Investment. If at any time Seller
shall wish to cause the reduction of the Total Purchasers' Investment (but not
to commence the liquidation, or reduction to zero, of the Undivided Interest),
Seller may do so as follows:

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

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

                    (iii) Servicer shall hold such Collections for the benefit
         of the Purchasers, for payment to the Administrative Agent on the next
         following Settlement Date, and the Total Purchasers' Investment shall
         be deemed reduced in the amount to be paid to the Administrative Agent
         only when in fact finally so paid in accordance with Section 3.05(a);

provided that,

                  (A) the amount of any such reduction shall be not less than
         $1,000,000 and shall be an integral multiple of $100,000, and the Total
         Purchasers' Investment after giving effect to such reduction shall be
         not less than $5,000,000 (unless the Total Purchasers' Investment shall
         thereby be reduced to zero) and shall be in an integral multiple of
         $100,000,

                                       13
<PAGE>

                  (B) if Seller shall commence any voluntary reduction in a
         Settlement Period containing all or a portion of any Run Off Period,
         Collections not so reinvested shall be treated as if collected on the
         next following Run Off Day,

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

                  (D) any reduction of the Total Purchasers' Investment shall be
         applied pro rata to the Purchaser's Investment of each Purchaser on the
         basis of its Funded Percentage.

         (d) Allocations of Obligor's Payments. Except as otherwise required by
law or the underlying Contract, all Collections received from an Obligor of any
Pool Receivable shall be applied to Pool Receivables then outstanding of such
Obligor in the order of the age of such Pool Receivables, starting with the
oldest such Pool Receivable; provided, however, that, if payment is designated
by such Obligor for application to specific Pool Receivables, it shall be
applied to such specified Pool Receivables.

         SECTION 3.04. Reporting. (a) On June 19, 2000 and on or prior to the
tenth (10th) day of each month (or the next Business Day if such tenth (10th)
day is not a Business Day) thereafter, Servicer shall prepare and forward to the
Administrative Agent and each Bank Purchaser

                  (i) a Periodic Report relating to the Undivided Interest as of
         the close of business of Servicer on the next preceding Month End Date,

                  (ii) if requested by the Administrative Agent or any Bank
         Purchaser, an aggregate listing of aged Pool Receivables, and

                  (iii) a listing of the Unpaid Balance of Eligible Receivables
         for each Obligor with Eligible Receivables equal to or greater than
         5.0% of the aggregate Unpaid Balance of Eligible Receivables as of the
         next preceding Month End Date.

         If requested by the Administrative Agent or any Bank Purchaser,
Servicer shall prepare and forward Periodic Reports more frequently than once a
month (but in no event more frequently than once per week unless such calendar
month contains a Run Off Day), using the most current information available to
Servicer.

         (b) On or prior to the Settlement Date of any Settlement Period
containing a Run Off Day, Servicer shall prepare and forward to the
Administrative Agent and each Bank Purchaser a Periodic Report as of the close
of business of Servicer on the next preceding Month End Date.

                                       14
<PAGE>

         (c) Seller will advise the Administrative Agent, each Bank Purchaser
and Servicer of each Run Off Day immediately upon the occurrence thereof.

         SECTION 3.05. Payments and Computations, Etc. (a) All amounts to be
paid or deposited by Seller or Servicer hereunder shall be paid or deposited in
accordance with the terms hereof no later than 2:00 p.m. (New York time) on the
day when due in lawful money of the United States of America in same day funds
to the Administrative Agent at Bankers Trust Company, New York, NY, ABA
#021001033 Account of BTCO as Depository for Bank of America, Account
#00-384-710, reference: SCI Funding Inc.; Attention: Boris Treyger (the
"Administrative Agent's Account").

         (b) Seller or Servicer, as applicable, shall, to the extent permitted
by law, pay to the Administrative Agent interest on all amounts not paid or
deposited when due hereunder at 2% per annum above the Alternate Reference Rate,
payable on demand, provided, however, that such interest rate shall not at any
time exceed the maximum rate permitted by applicable law. Such interest shall be
retained by the Administrative Agent except to the extent that such failure to
make a timely payment or deposit has continued beyond the date for distribution
by the Administrative Agent of such overdue amount to a Purchaser or any other
Person having an interest in such overdue amount, in which case such interest
accruing after such date shall be for the account of, and distributed by the
Administrative Agent, to such Persons ratably in accordance with their
respective interests in such overdue amount.

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

         SECTION 3.06. Treatment of Collections and Deemed Collections. Seller
shall pay to Servicer all Collections deemed received by Seller pursuant to
Section 3.03(a), and Servicer shall hold or distribute such Collections to the
same extent as if such Collections had actually been received on the date of
such delivery to Servicer. If Collections are then being paid to the
Administrative Agent, or lock boxes or accounts directly or indirectly owned or
controlled by the Administrative Agent, Servicer shall forthwith cause such
deemed Collections to be paid to the Administrative Agent or to such lock boxes
or accounts, as applicable. So long as Seller shall hold any Collections or
deemed Collections required to be paid to Servicer or the Administrative Agent,
it shall hold such Collections in trust and separate and apart from its own
funds.

                                   ARTICLE IV

                            FEES AND YIELD PROTECTION

         SECTION 4.01. Fees. Seller shall pay to the Administrative Agent and
Purchasers certain fees on such dates and in such amounts as set forth in the
letter agreement dated as of June

                                       15
<PAGE>

14, 2000 among Seller, the Administrative Agent and the Bank Purchasers (as
amended from time to time, the "Fee Letter").

         SECTION 4.02. Yield Protection. (a) If (i) Regulation D or (ii) any
Regulatory Change occurring after the date hereof

                  (A) shall subject an Affected Party to any tax, duty or other
         charge with respect to any Undivided Interest owned by or funded by it,
         or any obligations or right to make Purchases or Reinvestments or to
         provide funding therefor, or shall change the basis of taxation of
         payments to the Affected Party of any Purchaser's Investments or Earned
         Discount owned by, owed to or funded by it or any other amounts due
         under this Agreement in respect of any Undivided Interest owned by or
         funded by it or its obligations or rights, if any, to make Purchases or
         Reinvestments or to provide funding therefor (except for changes in the
         rate of tax on or based upon the overall net income of such Affected
         Party imposed by the United States of America and any state, local or
         foreign jurisdiction in which such Affected Party is subject to income
         taxation); or

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

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

                  (D) shall impose any other condition affecting any portion of
         the Undivided Interest owned or funded by any Affected Party, or its
         obligations or rights, if any, to make Purchases or Reinvestments or to
         provide funding therefor;

and the result of any of the foregoing is or would be

                  (x) to increase the cost or to impose a cost on (I) an
         Affected Party funding or making or maintaining any Purchases or
         Reinvestments, any purchases, reinvestments, or loans or other
         extensions of credit under any Program Support Agreement, or any
         Funding, or any commitment of such Affected Party with respect to any
         of the foregoing, or (II) the Administrative Agent for continuing its,
         or Seller's, relationship with any Purchaser,

                                       16
<PAGE>

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

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

then within thirty (30) days after written demand by such Affected Party (which
demand shall be accompanied by a statement setting forth in reasonable detail
the basis of such demand), Seller shall pay (and if the Seller does not pay such
amounts when due, the Guarantor shall pay) directly to such Affected Party such
additional amount or amounts as will compensate such Affected Party for such
additional or increased cost or such reduction.

         (b) Each Affected Party will promptly notify Seller and the
Administrative Agent of any event of which it has actual knowledge which will
entitle such Affected Party to compensa tion pursuant to this Section 4.02;
provided, however, no failure to give or delay in giving such notification shall
adversely affect the rights of any Affected Party to such compensation.

         (c) In determining any amount provided for or referred to in this
Section 4.02, an Affected Party will use reasonable averaging and attribution
methods. Any Affected Party when making a claim under this Section 4.02 shall
submit to Seller a certificate setting forth such increased cost or reduced
return in reasonable detail, which certificate shall, in the absence of manifest
error, be presumed correct as to the amount thereof.

         (d) Notwithstanding anything to the contrary contained in this Section
4.02, unless an Affected Party gives notice to Seller that Seller is obligated
to pay any amount under Section 4.02 within 180 days after the later of (x) the
date such Affected Party incurs the increased costs, reduction in the amounts
received or receivable hereunder or reduction in return on capital, or other
liability described in this Section 4.02, as applicable or (y) the date such
Affected Party has actual knowledge of its incurrence of any of the foregoing,
such Affected Party shall only be entitled to be compensated for any such amount
by the Seller to the extent any such amounts are incurred or suffered on or
after the date which occurs 180 days prior to such Affected Party giving notice
to Seller as set forth above; provided that if the circumstance giving rise to
such claim by its terms has a retroactive effect to an earlier date, such
180-day period shall be extended to include the period of such retroactive
effect.

                                       17
<PAGE>

                                    ARTICLE V

                    CONDITIONS TO EFFECTIVENESS OF PURCHASES

                                       18
<PAGE>

         SECTION 5.01. Conditions Precedent to Initial Purchase. The
effectiveness of this Second Amended and Restated Receivables Purchase Agreement
and the initial Purchase hereunder are subject to the condition precedent that
the Administrative Agent shall have received, on or before the date of such
Purchase, the following, each (unless otherwise indicated) dated such date and
in form and substance satisfactory to the Administrative Agent and each Bank
Purchaser:

                  (a) A copy of the resolutions of the Board of Directors of
         each SCI Party approving the Agreement Documents to be delivered by
         such SCI Party and the transactions contemplated thereby, certified on
         behalf of such SCI Party by such SCI Party's Secretary or Assistant
         Secretary;

                  (b) A good standing certificate for Seller issued by the
         Secretary of State of Delaware and a foreign qualification certificate
         issued by the Secretary of State of California; good standing or
         foreign qualification certificates for SCI issued by the Secretaries of
         State of Alabama, California, Colorado, New Hampshire, North Carolina,
         Maine and South Dakota; good standing or foreign qualification
         certificates for Guarantor issued by the Secretaries of State of
         Delaware and California; and good standing certificates for each
         Originator issued by the Secretary of State or other governmental
         authority of the states or jurisdictions of such Originator's
         incorporation and principal place of business;

                  (c) A certificate of the Secretary or Assistant Secretary of
         each SCI Party certifying on behalf of such Person the names and true
         signatures of the officers authorized on its behalf to sign the
         Agreement Documents to be delivered by it in connection herewith (on
         which certificate the Administrative Agent and each Purchaser may
         conclusively rely until such time as the Administrative Agent shall
         receive a revised certificate meeting the requirements of this
         subsection (c));

                  (d) The Articles or Certificate of Incorporation of each SCI
         Party, duly certified by the Secretary of State or similar office of
         the State under the laws of which such SCI Party was organized, as of a
         recent date, together with a copy of the By-laws of each SCI Party,
         duly certified on behalf of such Person by the Secretary or an
         Assistant Secretary of such SCI Party;

                  (e) Acknowledgment copies (or other evidence of filing
         reasonably satisfactory to the Administrative Agent) of amendments to
         the Financing Statements, filed in connection with the Original
         Receivables Agreement, and acknowledgment copies of Financing
         Statements or other filings with respect to all of the Originators, or
         other, similar instruments or documents, as may be necessary or, in the
         reasonable opinion of the Administrative Agent, desirable under the UCC
         or any comparable law of all appropriate jurisdictions to perfect
         Seller's interests in the Pool Receivables and the Administrative
         Agent's interests in the Pool assigned to it or otherwise created or
         arising hereunder;

                                       19
<PAGE>

                  (f) A search report provided in writing to the Administrative
         Agent listing all effective Financing Statements filed in the
         jurisdictions in which filings were made pursuant to subsection (e)
         above and in such other jurisdictions that Administrative Agent shall
         reasonably request, together with copies of such financing statements
         (none of which shall cover the Pool or any part thereof, except for
         those in favor of the Administrative Agent);

                  (g) Opinions of Powell, Goldstein, Frazer & Murphy LLP,
         counsel for Seller, SCI and Guarantor, a favorable opinion of Michael
         M. Sullivan, Esq., in-house counsel for Seller, SCI and Guarantor, and
         a favorable opinion of counsel for each Originator, in each case,
         satisfactory in form and substance to the Administrative Agent and each
         Bank Purchaser;

                  (h) Evidence of the payment by Seller to the Administrative
         Agent of the structuring fee set forth in the separate engagement
         letter between the Administrative Agent and the Seller; and

                  (i) Such other documents, amendments or certificates as the
         Administrative Agent or any Purchaser shall reasonably request.

                  SECTION 5.02. Conditions Precedent to All Purchases and
         Reinvestments. Each Purchase (including the initial Purchase) and each
         Reinvestment hereunder shall be subject to the further conditions
         precedent ("Conditions Precedent") that on the date of such Purchase or
         Reinvestment the following statements shall be true (and Seller by
         accepting the amount of such Purchase or by receiving the proceeds of
         such Reinvestment shall be deemed to have certified that):

                  (a) The representations and warranties contained in Article VI
         are correct on and as of such day as though made on and as of such day
         and shall be deemed to have been made on such day unless they
         specifically relate solely to an earlier period,

                  (b) No event has occurred and is continuing, or would result
         from such Purchase or Reinvestment, that constitutes a Termination
         Event or Unmatured Termination Event,

                  (c) After giving effect to each proposed Purchase or
         Reinvestment, the Total Purchasers' Investments will not exceed the
         Purchase Limit and the Required Allocation will not exceed the Required
         Allocation Limit, and

                  (d) The Purchase Termination Date shall not have occurred;

provided, however, the absence of the occurrence and continuance of an Unmatured
Termination Event shall not be a Condition Precedent to any Reinvestment on any
day which does not cause

                                       20
<PAGE>

the Total Purchasers' Investments, after giving effect to such Reinvestment to
exceed the Total Purchasers' Investments as of the opening of business on such
day.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

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

                  (a) Organization, Good Standing and Qualification. It is a
         corporation duly incorporated, validly existing and in good standing
         under the laws of the jurisdiction of its incorporation and is duly
         qualified to do business, and is in good standing, and has obtained all
         necessary licenses and approvals, in every jurisdiction where the
         ownership of property or the nature of its business requires it to be
         so qualified or have such licenses and approvals except where the
         failure to so qualify or have such licenses and approvals would not
         have a Seller Material Adverse Effect.

                  (b) Power and Authority; Due Authorization. The execution,
         delivery and performance by it of this Agreement and any other
         Agreement Documents to be delivered by it hereunder and thereunder, and
         the assignment of the Undivided Interest and the other transactions
         contemplated hereby and thereby, are within its corporate powers, have
         been duly authorized by all necessary corporate action, do not (i)
         contravene (1) its charter or by-laws, or (2) any law, rule or
         regulation or any contractual restriction to which Seller or its
         property is subject and, in the case of this clause (2), which
         contravention would have a Seller Material Adverse Effect; (ii) result
         in or require the creation of any Lien upon or with respect to any of
         its properties other than as specifically contemplated by this
         Agreement; or (iii) violate any law or any order, rule, or regulation
         applicable to Seller of any court or of any federal or state regulatory
         body, administrative agency, or other governmental instrumentality
         having jurisdiction over Seller or any of its properties, which
         violation would have a Seller Material Adverse Effect.

                  (c) Valid Sale; Binding Obligations. This Agreement
         constitutes a valid sale, transfer, and assignment of the Undivided
         Interest to the Administrative Agent, for the benefit of the
         Purchasers, enforceable against creditors of, and purchasers from,
         Seller and each Originator. This Agreement and each other Agreement
         Document to which Seller is a party constitute Seller's legal, valid
         and binding obligations enforceable against it in accordance with their
         respective terms, except as enforceability may be limited by
         bankruptcy, insolvency, reorganization, moratorium and other similar
         laws relating to or affecting creditors' rights generally or by general
         principles of equity (regardless of whether such enforceability is
         considered in a proceeding in equity or at law).

                                       21
<PAGE>

                  (d) No Proceedings. Except as listed on Schedule 6.01(d),
         there are no proceedings or investigations pending or, to the best of
         its knowledge, threatened, before any court, regulatory body,
         administrative agency, or other tribunal or governmental
         instrumentality (i) asserting the invalidity of this Agreement or any
         other Agreement Document to which Seller is a party, (ii) seeking to
         prevent the sale and assignment of any Receivable, the Undivided
         Interest or the consummation of any of the other transactions
         contemplated by this Agreement or any other Agreement Document to which
         Seller is a party, (iii) seeking any determination or ruling that could
         reasonably be expected to have a Seller Material Adverse Effect or (iv)
         seeking to adversely affect the federal income tax attributes of the
         Purchases hereunder.

                  (e) Government Approvals. No authorization or approval or
         other action by, and no notice to or filing with, any governmental
         authority or regulatory body is required for the due execution,
         delivery and performance by it of this Agreement or any other document
         or instrument to be delivered hereunder except for the filing of the
         amendments to the Financing Statements referred to in Article V, all of
         which, at the time required in Article V, shall have been duly made and
         shall be in full force and effect.

                  (f) Financial Condition. The balance sheet of Seller as at May
         21, 2000, certified on behalf of Seller by Seller's chief financial or
         accounting officer, copies of which have been furnished to the
         Administrative Agent and each Bank Purchaser, fairly present the
         financial condition of Seller as at such date, all in accordance with
         GAAP consistently applied and since the date of Seller's formation,
         there has been no material adverse change in Seller's financial
         condition, business, assets, prospects or operations.

                  (g) Litigation. No injunction, decree or other decision has
         been issued or made by any court, governmental agency or
         instrumentality thereof in a proceeding to which Seller is a party that
         prevents, and, to its knowledge, no threat by any Person has been made
         in writing to attempt to obtain any such decision that would prevent,
         Seller from conducting a material part of its business operations.

                  (h) Margin Regulations. No proceeds of any Purchase will be
         used to acquire any security in any transaction which is subject to
         Sections 13 and 14 of the Securities Exchange Act of 1934, as amended;
         and the use of all funds obtained by Seller under this Agreement will
         not conflict with or contravene any of Regulations T, U and X
         promulgated by the Board of Governors of the Federal Reserve System
         from time to time.

                  (i) Quality of Title. Each Pool Receivable, together with the
         related Contract and all purchase orders and other agreements related
         to such Pool Receivable, is owned by Seller free and clear of any
         Adverse Claim (other than any Adverse Claim arising solely as the
         result of any action taken by a Purchaser or by the Administrative
         Agent) except as provided herein; each Pool Receivable was purchased by
         Seller from an Originator pursuant to a Second Tier Sale Agreement in a
         "true sale" transaction, which sale is

                                       22
<PAGE>

         enforceable against all creditors of, and purchasers from, such
         Originator, and Seller took all steps necessary to perfect its
         ownership interest in such Pool Receivable against such Originator;
         when the Administrative Agent, on behalf of the Purchasers, makes a
         Purchase, it shall have acquired and shall continue to have maintained
         a valid and perfected undivided percentage ownership interest to the
         extent of the Undivided Interest in each Pool Receivable and in the
         Related Security and Collections with respect thereto, free and clear
         of any Adverse Claim (other than any Adverse Claim arising solely as
         the result of any action taken by a Purchaser or by the Administrative
         Agent); and no effective financing statement or other instrument
         similar in effect covering the Pool or any part thereof is on file in
         any recording office except such as may be filed (i) in favor of an
         Originator in accordance with the Contracts, or in accordance with this
         Agreement with respect to Pool Receivables purchased by SCI from any
         Originator, or (ii) in favor of a Purchaser or the Administrative Agent
         in accordance with this Agreement or in connection with any Adverse
         Claim arising solely as the result of any action taken by a Purchaser
         or by the Administrative Agent.

                  (j) Accurate Reports. Each Periodic Report (if prepared by
         Seller, or to the extent that information contained therein is supplied
         by Seller), information, exhibit, financial statement, document, book,
         record or report furnished at any time by Seller to the Administrative
         Agent, any Purchaser or any Owner in connection with this Agreement is
         accurate in all material respects as of its date or as of the date so
         furnished, and no such document contains any material misstatement of
         fact or omits to state a material fact or any fact necessary to make
         the statements contained therein not materially misleading in light of
         the circumstances when made.

                  (k) Offices. The chief place of business and chief executive
         office of Seller, SCI and each Originator are located at the address of
         Seller, SCI or the applicable Originator referred to in Section 15.02,
         and the offices where Seller keeps all its books, records and documents
         evidencing Pool Receivables, the related Contracts and all purchase
         orders and other agreements related to such Pool Receivables are
         located at the addresses specified in Schedule 6.01(k) (or, in each
         case, at such other locations, notified to the Administrative Agent and
         each Bank Purchaser in accordance with Section 7.01(f), in
         jurisdictions where all action required by Section 8.05 has been taken
         and completed).

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

                  (m) Eligible Receivables. Each Receivable included in the Net
         Pool Balance as an Eligible Receivable on the date of any Purchase or
         Reinvestment shall be an Eligible Receivable on such date.

                                       23
<PAGE>

                  (n) Compliance With Certain Statutes. Each Purchase from
         Seller hereunder, and each Reinvestment of Collections in Pool
         Receivables made hereunder, will constitute (a) a "current transaction"
         within the meaning of Section 3(a)(3) of the Securities Act of 1933, as
         amended, and (b) a purchase or other acquisition of notes, drafts,
         acceptances, open accounts receivable or other obligations representing
         part or all of the sales price of merchandise, insurance or services
         within the meaning of Section 3(c)(5) of the Investment Company Act of
         1940, as amended.

                  (o) No Defaults. Seller is not in default under or with
         respect to any contractual obligation or any law or court order in any
         respect which could reasonably be expected to have a Seller Material
         Adverse Effect.

         SECTION 6.02. Representations and Warranties - SCI. SCI represents and
warrants as follows:

                  (a) Organization, Good Standing and Qualification. It is a
         corporation duly incorporated, validly existing and in good standing
         under the laws of the jurisdiction of its incorporation and is duly
         qualified to do business, and is in good standing, and has obtained all
         necessary licenses and approvals in every jurisdiction where the nature
         of its business requires it to be so qualified or have such licenses
         and approvals except where the failure to so qualify or have such
         licenses and approvals would not have a Material Adverse Effect.

                  (b) Power and Authority; Due Authorization. The execution,
         delivery and performance by it of this Agreement and any other
         Agreement Documents to be delivered by it hereunder and thereunder, are
         within its corporate powers, have been duly authorized by all necessary
         corporate action, do not (i) contravene (1) its charter or by-laws, or
         (2) any law, rule or regulation or any contractual restriction to which
         SCI or its property is subject and, in the case of this clause (2),
         which contravention would have a Material Adverse Effect, (ii) do not
         result in or require the creation of any Lien upon or with respect to
         any of its properties other than as specifically contemplated by this
         Agreement; or (iii) violate any law or any order, rule, or regulation
         applicable to SCI of any court or of any federal or state regulatory
         body, administrative agency, or other governmental instrumentality
         having jurisdiction over SCI or any of its properties, which violation
         would have a Material Adverse Effect; and no transaction contemplated
         hereby requires compliance with any bulk sales act or similar law.

                  (c) Binding Obligations. This Agreement and each other
         Agreement Document to which SCI is a party constitute its legal, valid
         and binding obligations enforceable against it in accordance with their
         respective terms, except as enforceability may be limited by
         bankruptcy, insolvency, reorganization, moratorium and other similar
         laws relating to or affecting creditors' rights generally or by general
         principles of equity

                                       24
<PAGE>

         (regardless of whether such enforceability is considered in a
         proceeding in equity or at law).

                  (d) No Proceedings. Except as listed on Schedule 6.01(d),
         there are no proceedings or investigations pending or, to the best of
         its knowledge, threatened, before any court, regulatory body,
         administrative agency, or other tribunal or governmental
         instrumentality (i) asserting the invalidity of this Agreement or any
         other Agreement Document to which SCI is a party, (ii) seeking to
         prevent the consummation of any of the other transactions contemplated
         by this Agreement, or any other Agreement Document to which SCI is a
         party, or (iii) seeking any determination or ruling that could
         reasonably be expected to have a Material Adverse Effect.

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

                  (f) Financial Condition. The balance sheet of SCI as at June
         30, 1999, and the related statements of earnings, stockholders' equity
         and statement of cash flows of SCI for the fiscal year then ended
         certified by SCI's chief financial or accounting officer or treasurer,
         and the balance sheet of SCI as at March 31, 2000, and the related
         statements of earnings, stockholders' equity and statement of cash
         flows of SCI for the nine fiscal months then ended, certified on behalf
         of SCI by SCI's chief financial or accounting officer, copies of which
         have been furnished to the Administrative Agent and each Bank
         Purchaser, fairly present the financial condition of SCI as at such
         dates and the results of the operations of SCI for the periods ended on
         such dates, all in accordance with GAAP consistently applied and since
         June 30, 1999, there has been no material adverse change in the
         financial condition, business, assets, prospects or operations of SCI.

                  (g) Litigation. No injunction, decree or other decision has
         been issued or made by any court, governmental agency or
         instrumentality thereof in a proceeding to which SCI is a party that
         prevents, and, to its knowledge, no threat by any Person has been made
         in writing to attempt to obtain any such decision that would prevent,
         SCI from conducting a material part of its business operations.

                  (h) Accurate Reports. All information, exhibits, financial
         statements, documents, books, records or reports furnished at any time
         by SCI to the Administrative Agent, any Purchaser or any Owner in
         connection with this Agreement is accurate in all material respects as
         of its date or as of the date so furnished, and no such document
         contains any material misstatement of fact or omits to state a material
         fact or any fact necessary to make the statements contained therein not
         materially misleading in light of the circumstances when made.

                                       25
<PAGE>

                  (i) No Defaults. SCI is not in default under or with respect
         to any contractual obligation or any law or court order in any respect
         which could reasonably be expected to have a Material Adverse Effect.

         SECTION 6.03. Representations and Warranties - Guarantor. Guarantor
represents and warrants as follows:

                  (a) Organization, Good Standing and Qualification. It is a
         corporation duly incorporated, validly existing and in good standing
         under the laws of the jurisdiction of its incorporation and is duly
         qualified to do business, and is in good standing, and has obtained all
         necessary licenses and approvals in every jurisdiction where the nature
         of its business requires it to be so qualified or have such licenses
         and approvals except where the failure to so qualify or have such
         licenses and approvals would not have a Material Adverse Effect.

                  (b) Power and Authority; Due Authorization. The execution,
         delivery and performance by it of this Agreement and any other
         Agreement Documents to be delivered by it hereunder and thereunder, are
         within its corporate powers, have been duly authorized by all necessary
         corporate action, do not (i) contravene (1) its charter or by- laws, or
         (2) any law, rule or regulation or any contractual restriction to which
         Guarantor or its property is subject and, in the case of this clause
         (2), which contravention would have a Material Adverse Effect, (ii) do
         not result in or require the creation of any Lien upon or with respect
         to any of its properties other than as specifically contemplated by
         this Agreement; or (iii) violate any law or any order, rule, or
         regulation applicable to Guarantor of any court or of any federal or
         state regulatory body, administrative agency, or other governmental
         instrumentality having jurisdiction over Guarantor or any of its
         properties, which violation would have a Material Adverse Effect; and
         no transaction contemplated hereby requires compliance with any bulk
         sales act or similar law.

                  (c) Binding Obligations. This Agreement and each other
         Agreement Document to which Guarantor is a party constitute its legal,
         valid and binding obligations enforceable against it in accordance with
         their respective terms, except as enforceability may be limited by
         bankruptcy, insolvency, reorganization, moratorium and other similar
         laws relating to or affecting creditors' rights generally or by general
         principles of equity (regardless of whether such enforceability is
         considered in a proceeding in equity or at law).

                  (d) No Proceedings. Except as listed on Schedule 6.01(d),
         there are no proceedings or investigations pending or, to the best of
         its knowledge, threatened, before any court, regulatory body,
         administrative agency, or other tribunal or governmental
         instrumentality (i) asserting the invalidity of this Agreement or any
         other Agreement Document to which Guarantor is a party, (ii) seeking to
         prevent the consummation of any of the other transactions contemplated
         by this Agreement or any other Agreement

                                       26
<PAGE>

         Document to which Guarantor is a party, or (iii) seeking any
         determination or ruling that could reasonably be expected to have a
         Material Adverse Effect.

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

                  (f) Financial Condition. The consolidated balance sheet of
         Guarantor and its consolidated Subsidiaries as at June 30, 1999, and
         the related statements of earnings, stockholders' equity and statement
         of cash flows of Guarantor and its consolidated Subsidiaries for the
         fiscal year then ended certified by Ernst & Young, independent public
         accountants, and the consolidated balance sheet of Guarantor and its
         consolidated Subsidiaries as at March 31, 2000, and the related
         statements of earnings, stockholders' equity and statement of cash
         flows of Guarantor and its consolidated Subsidiaries for the nine
         fiscal months then ended, certified on behalf of Guarantor by
         Guarantor's chief financial or accounting officer or treasurer, copies
         of which have been furnished to the Administrative Agent and each Bank
         Purchaser, fairly present the consolidated financial condition of
         Guarantor and its consolidated Subsidiaries as at such dates and the
         consolidated results of the operations of Guarantor and its
         consolidated Subsidiaries for the periods ended on such dates, all in
         accordance with GAAP consistently applied and since June 30, 1999,
         there has been no material adverse change in the financial condition,
         business, assets, prospects or operations of Guarantor and its
         consolidated Subsidiaries, taken as a whole.

                  (g) Litigation. No injunction, decree or other decision has
         been issued or made by any court, governmental agency or
         instrumentality thereof in a proceeding to which Guarantor is a party
         that prevents, and, to its knowledge, no threat by any Person has been
         made in writing to attempt to obtain any such decision that would
         prevent, Guarantor from conducting a material part of its business
         operations.

                  (h) Accurate Reports. All information, exhibits, financial
         statements, documents, books, records or reports furnished at any time
         by Guarantor to the Administrative Agent, any Purchaser or any Owner in
         connection with this Agreement is accurate in all material respects as
         of its date or as of the date so furnished, and no such document
         contains any material misstatement of fact or omits to state a material
         fact or any fact necessary to make the statements contained therein not
         materially misleading in light of the circumstances when made.

                  (i) No Defaults. Guarantor is not in default under or with
         respect to any contractual obligation or any law or court order in any
         respect which could reasonably be expected to have a Material Adverse
         Effect.

                                       27
<PAGE>

                                   ARTICLE VII

                                GENERAL COVENANTS

         SECTION 7.01. Affirmative Covenants. From the date hereof until the End
Date, unless the Required Purchasers shall otherwise consent in writing:

                  (a) Compliance with Laws, Etc. Each of SCI and Seller will,
         and Guarantor will, and will cause SCI to, comply in all respects with
         all applicable laws, rules, regulations, orders and contractual
         obligations with respect to it, its business and properties and all
         Pool Receivables and related Contracts, the noncompliance with which
         would, either singly or in the aggregate, have a Material Adverse
         Effect or a Seller Material Adverse Effect.

                  (b) Conduct of Business and Preservation of Corporate
         Existence. Each of SCI and Seller will, and Guarantor will, and will
         cause SCI to, continue to engage in business of substantially the same
         general type as now conducted by it, and preserve, renew and keep in
         full force and effect its corporate existence and take all action to
         maintain all rights, privileges and franchises material to the conduct
         of its business, and comply with all its contractual obligations and
         all Requirements of Law, except with respect to each of the foregoing
         where such failure would not, singly or in the aggregate, have a
         Material Adverse Effect or a Seller Material Adverse Effect.

                  (c) Audits. Subject to contractual, statutory, regulatory or
         other similar limitations regarding confidential or proprietary
         information, each of SCI and Seller will, and Guarantor will, and will
         cause SCI to, at any time and from time to time during regular business
         hours upon at least three (3) Business Days' prior written notice
         (unless a Termination Event has occurred and is continuing, in which
         case, no such notice shall be required), permit the Administrative
         Agent or any Bank Purchaser, or its agents or representatives, (i) to
         examine and make copies of and abstracts from all books, records and
         documents (including, without limitation, computer tapes and disks) in
         its possession or under its control relating to Pool Receivables,
         including, without limitation, the related Contracts, purchase orders
         and other agreements, and (ii) to visit the offices and properties of
         Seller, SCI and Guarantor for the purpose of examining such materials
         described in clause (i) next above, and to discuss matters relating to
         Pool Receivables or Seller's, SCI's or Guarantor's performance
         hereunder with any of the officers or employees of Seller, SCI or
         Guarantor having knowledge of such matters. Seller, SCI and Guarantor
         expressly reserve the right to restrict access to any of their
         facilities in accordance with reasonably adopted procedures relating to
         safety and security. Article XIII notwithstanding, the reasonable costs
         and expenses incurred by the Administrative Agent, any Bank Purchaser
         or its agents or representatives in connection with any such
         examinations, copies, abstracts, visits or discussions occurring or
         made (i) more than twice during any calendar year, (ii) prior to the
         occurrence of a Termination

                                       28
<PAGE>

         Event and (iii) other than in connection with a change by SCI of its
         information systems, shall be for the account of the Bank Purchasers.
         Each Owner of an interest in the Undivided Interest, by acceptance of
         the benefits of such ownership, and the Administrative Agent agree to
         use their reasonable efforts to ensure that any information concerning
         Guarantor and its Subsidiaries obtained by the Administrative Agent or
         any Bank Purchaser pursuant to this Section 7.01(c) which is not
         contained in a report or other document filed by Guarantor with the SEC
         or otherwise available to the public generally or to the Administrative
         Agent or any Bank Purchaser from a source other than Seller, SCI or
         Guarantor will, to the extent permitted by law and except as may be
         required by subpoena, by any agency or other governmental entity which
         regulates the Administrative Agent's or any such Owner's business under
         federal, state or local law (the "Regulators") or in the normal course
         of the business operations of the Administrative Agent or such Owner,
         be treated confidentially by the Administrative Agent and each such
         Owner and, so long as no Termination Event has occurred and is then
         continuing hereunder, will not be distributed or otherwise made
         available to any Person, other than the Regulators, any Program Support
         Provider or potential Program Support Provider, any rating agency then
         rating the Commercial Paper Notes and the employees, authorized agents,
         Affiliates or representatives of the Administrative Agent or such
         Owner, and except as may otherwise be required by law, unless the
         Administrative Agent or such Owner, as applicable, shall have given
         Guarantor, SCI and Seller ten (10) days' prior written notice of such
         distribution or other disclosure. In the event that the Administrative
         Agent or any such Owner is required by law to disclose any information
         concerning Guarantor and its Subsidiaries (or any of them), the
         Administrative Agent or such Owner shall provide prompt written notice
         thereof (to the extent practicable, prior to disclosure; otherwise
         promptly after such disclosure) to Guarantor, SCI and Seller so that
         Guarantor, SCI and Seller (or any of them) may seek a protective order
         or other appropriate remedy.

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

                  (e) Performance and Compliance with Receivables and Contracts.
         Each of SCI and Seller will, and Guarantor will cause SCI to, at SCI's
         expense timely and fully perform and comply with all provisions,
         covenants and other promises required to be observed by it under the
         Contracts related to the Pool Receivables, all purchase orders and
         other agreements related to such Pool Receivables subject, however, to
         the right of SCI to dispute or contest its obligations so to perform or
         comply with any such provision, covenant or other promise where it
         reasonably believes that such performance or

                                       29
<PAGE>

         compliance is not required or is not in the best interest of SCI, and
         such failure to perform or comply would not have a material adverse
         effect on the collectibility or enforceability of the related Pool
         Receivable or Receivables.

                  (f) Location of Records. Each of SCI and Seller will, and
         Guarantor will cause SCI to, keep its chief place of business and chief
         executive office, and the offices where it keeps its records concerning
         the Pool Receivables, all related Contracts and all purchase orders and
         other agreements related to such Pool Receivables (and all original
         documents relating thereto), at the address(es) of Seller referred to
         in Section 15.02 or, upon thirty (30) days' prior written notice to the
         Administrative Agent and each Bank Purchaser, at such other locations
         in jurisdictions where all action required by Section 8.05 shall have
         been taken and completed.

                  (g) Credit and Collection Policies. Each of SCI and Seller
         will, and Guarantor will cause SCI to, comply in all material respects
         with its Credit and Collection Procedure and all other policies and
         practices of SCI referred to in, or discussed in connection with, the
         due diligence report prepared by PriceWaterhouse Coopers (as successor
         to Coopers & Lybrand) on or prior to the date hereof in regard to each
         Pool Receivable and the related Contract and otherwise comply with past
         business practices in regard to Pool Receivables.

                  (h) Collections. Each of SCI and Seller will, and Guarantor
         will cause SCI to, instruct all Obligors to cause all Collections of
         Pool Receivables to be deposited directly with a Lock-Box Bank. If a
         Trigger Event has occurred and is continuing, each of SCI and Seller
         will, and Guarantor will cause SCI to, segregate all payments that do
         not constitute Collections from the lock-box accounts into which any
         Collections are deposited.

                  (i) Marking of Records. To the extent reasonably practicable,
         at its expense, each of SCI and Seller will, and Guarantor will cause
         SCI to, mark its master data processing records evidencing Pool
         Receivables and mark the related Contracts with a legend evidencing
         that an interest in such Pool Receivables and related Contracts have
         been sold to the Administrative Agent, for the benefit of the
         Purchasers, in accordance with this Agreement.

         SECTION 7.02. Reporting Requirements. From the date hereof until the
End Date, unless the Required Purchasers shall otherwise consent in writing:

                  (a) Quarterly Financial Statements. Guarantor will, furnish to
         the Administrative Agent and each Bank Purchaser as soon as available
         and in any event within sixty (60) days after the end of each of the
         first three quarters of each fiscal year of Guarantor copies of such
         consolidated and consolidating (showing each of the Originators and
         Seller) financial statements as Guarantor may prepare for its own use
         for the fiscal

                                       30
<PAGE>

         quarter then ended, which consolidated financial statements shall be
         prepared in conformity with GAAP applied on a Consistent Basis and
         certified by the chief financial officer, chief executive officer,
         treasurer or chief accounting officer of Guarantor; together with a
         certificate from such officer containing a computation of, and showing
         compliance with, the financial restrictions contained in Section 7.04.

                  (b) Annual Financial Statements. Guarantor will furnish to the
         Administrative Agent and each Bank Purchaser as soon as available and
         in any event within ninety (90) days after the end of each fiscal year
         of Guarantor, copies of both the consolidated and consolidating
         (showing each of the Originators and Seller) balance sheets as at the
         end of such fiscal year, and the related statements of income and
         retained earnings, and, with respect to the consolidated statements,
         related statements of cash flows and changes in financial position for
         the fiscal year then ended, or statements providing substantially
         similar information, in each case prepared in reasonable detail (except
         for consolidating statements) and in accordance with GAAP applied on a
         Consistent Basis and, with respect to the consolidated statements,
         certified by nationally recognized public accountants; together with a
         certificate from such accountants containing, as applicable, a
         computation of the financial restrictions contained in Section
         7.04 and a statement that to the best knowledge of such accountants the
         restrictions in Section 7.04 have not been violated.

                  (c) Reports to Holders and Exchanges. Each of SCI and Seller
         will, and Guarantor will, and will cause SCI to, furnish to the
         Administrative Agent and each Bank Purchaser, in addition to the
         reports required by subsections (a) and (b) next above, promptly upon
         the Administrative Agent's or any Bank Purchaser's request, copies of
         any reports specified in such request which it sends its public
         stockholders generally, and any reports or registration statements that
         it files with the SEC or any national securities exchange other than
         registration statements relating to employee benefit plans and to
         registrations of securities for selling security holders.

                  (d) ERISA. Each of SCI and Seller will, and Guarantor will,
         and will cause SCI to, furnish to the Administrative Agent and each
         Bank Purchaser, promptly after the filing or receiving thereof, copies
         of all reports and notices with respect to any Reportable Event defined
         in Article IV of ERISA which it or any of its Affiliates files under
         ERISA with the Internal Revenue Service, the Pension Benefit Guaranty
         Corporation or the U.S. Department of Labor or which it or any of its
         Affiliates receives from the Pension Benefit Guaranty Corporation.

                  (e) Termination Events. Each of SCI and Seller will, and
         Guarantor will, and will cause SCI to, furnish to the Administrative
         Agent and each Bank Purchaser, as soon as possible and in any event
         within three (3) Business Days after any Executive Officer of
         Guarantor, SCI or Seller has notice or actual knowledge of the
         occurrence of each Termination Event and each Unmatured Termination
         Event, a written statement of an Executive Officer of Seller, SCI or
         Guarantor, as the case may be, setting forth details of

                                       31
<PAGE>

         such event and the action that Seller, SCI or Guarantor, as the case
         may be, proposes to take with respect thereto.

                  (f) Litigation. Each of SCI and Seller will, and Guarantor
         will, and will cause SCI to, furnish to the Administrative Agent and
         each Bank Purchaser as soon as possible and in any event within five
         Business Days of Seller's SCI's or Guarantor's knowledge thereof,
         notice of (i) the commencement of or any development in any litigation,
         investigation or proceeding which may exist at any time which could
         reasonably be expected to have a Material Adverse Effect or Seller
         Material Adverse Effect and (ii) any material adverse development in
         previously disclosed litigation.

                  (g) Credit and Collection Procedure. SCI will, and Guarantor
         will cause SCI to, deliver to the Administrative Agent and each Bank
         Purchaser any proposed material changes in the Credit and Collection
         Procedure at least thirty (30) days prior to the implementation of such
         changes.

                  (h) Bank Credit Agreement. Guarantor will use its reasonable
         efforts to deliver to the Administrative Agent and each Bank Purchaser
         which is not a party to the Bank Credit Agreement copies of all drafts
         of all consents, waivers and amendments to the Bank Credit Agreement
         that are distributed to the bank group, and all final executed copies
         thereof, in each case promptly after they are available (it being
         understood that neither the Administrative Agent, in such capacity, nor
         any Bank Purchaser, in such capacity, has any right to approve such
         consents, waivers and amendments).

                  (i) Other. Each of SCI and Seller will, and Guarantor will,
         and will cause SCI to, promptly, from time to time, furnish to the
         Administrative Agent and each Bank Purchaser such other information,
         documents, records or reports respecting the Receivables or the
         condition or operations, financial or otherwise, of Seller, SCI or
         Guarantor as the Administrative Agent or any Bank Purchaser may from
         time to time reasonably request in order to protect the interests of
         the Administrative Agent or the Purchasers under or as contemplated by
         this Agreement.

         SECTION 7.03. Negative Covenants. From the date hereof until the End
Date, without the prior written consent of the Required Purchasers:

                  (a) Sales, Liens, Etc. Seller will not, except as otherwise
         provided herein, sell, assign (by operation of law or otherwise) or
         otherwise dispose of, or create or suffer to exist any Lien upon or
         with respect to, any Pool Receivable or related Contract or Related
         Security, or any interest therein, or any lock-box account to which any
         Collections of any Pool Receivable are sent, or any right to receive
         income from or in respect of any of the foregoing.

                                       32
<PAGE>

                  (b) Extension or Amendment of Receivables. Neither SCI nor
         Seller will, and Guarantor will not permit SCI to, except as otherwise
         permitted in Section 8.02(c), extend, amend or otherwise modify the
         terms of any Pool Receivable, or amend, modify or waive any material
         term or condition of any Contract related thereto, or any term or
         condition of any such Contract that relates to collectibility of the
         related Receivable.

                  (c) Change in Business or Credit and Collection Procedure. SCI
         will not, and Guarantor will not permit SCI to, cease to engage in
         business of substantially the same general type now conducted by it, or
         make any material change in the Credit and Collection Procedure.

                  (d) Change in Payment Instructions to Obligors. Neither SCI
         nor Seller will, and Guarantor will not permit SCI to, add or terminate
         any bank as a Lock-Box Bank from those listed in Schedule 6.01(l) or
         make any change in its instructions to Obligors regarding payments to
         be made to Seller or Servicer or payments to be made to any Lock-Box
         Bank, unless the Administrative Agent and each Bank Purchaser shall
         have received notice of (and the Administrative Agent, upon direction
         of the Required Purchasers, consented to) such addition, termination or
         change and duly executed copies of Lock-Box Agreements with each new
         Lock-Box Bank.

                  (e) Deposits to Special Accounts. Neither SCI nor Seller will,
         and Guarantor will not permit SCI to, deposit or otherwise credit, or
         cause or permit to be so deposited or credited, to any Lock-Box Account
         cash or cash proceeds other than Collections of Pool Receivables.

                  (f) Purchase and Sale Agreement. SCI will not, and Guarantor
         will not permit SCI to, amend, waive or terminate any Purchase and Sale
         Agreement or any material provision thereof.

                  (g) Sale Agreements. Neither SCI nor Seller shall amend,
         waive, terminate or modify any Second Tier Sale Agreement or Initial
         Purchaser Note. Seller shall not amend Article III, IV(b), VI, VII or
         VIII of its articles of incorporation.

                  (h) Incurrence of Indebtedness. Seller will not incur or
         suffer to exist any Indebtedness other than its obligations to
         Servicer, the Purchasers and the Administrative Agent hereunder and its
         obligations to SCI under the Initial Purchaser Note.

                  (i) Restricted Payments. Seller shall not (i) declare or pay
         any dividends, (ii) lend or advance any funds or (iii) repay any loans
         or advances to, for or from any Originator or any other Affiliated
         Party (including making any payment pursuant to the Initial Purchaser
         Notes) (all of the foregoing, "Restricted Payments"), provided that
         Seller may make payments on any Initial Purchaser Note in accordance
         with its terms and pay dividends and make Originator Loans, in each
         case, from Collections paid or released to

                                       33
<PAGE>

         Seller pursuant to Section 3.01 or 3.02, so long as no Termination
         Event or Unmatured Termination Event has occurred and is continuing or
         would result therefrom, and after giving effect thereto, Seller's
         Tangible Net Worth is not less than $20,000,000.

         Section 7.04. Separate Corporate Existence. Guarantor, Seller and SCI
hereby acknowledge that each Purchaser and the Administrative Agent are entering
into the transactions contemplated by this Agreement in reliance upon the
Seller's identity as a legal entity separate from the other Affiliated Parties.
Therefore, Guarantor, Seller and SCI shall take the steps described in this
Section 7.04 and any other steps that the Administrative Agent or any Purchaser
reasonably requests to continue Seller's identity as such a separate legal
entity and to make it apparent to third Persons that Seller is an entity with
assets and liabilities distinct from those of the other Affiliated Parties and
those of any other Person, and not a division of the other Affiliated Parties or
any other Person:

                  (a) Seller will be a limited purpose corporation whose primary
         activities are restricted in its articles of incorporation to
         purchasing Receivables from the Originators pursuant to the Second Tier
         Sale Agreements, entering into agreements for the servicing of such
         Receivables, selling undivided interests in the Receivables to the
         Administrative Agent for the benefit of the Purchasers, and conducting
         such other activities as it reasonably deems necessary or appropriate
         to carry out its primary activities;

                  (b) At least two members of Seller's Board of Directors shall
         be individuals who are not direct, indirect or beneficial stockholders,
         officers, directors, employees, affiliates, associates, customers or
         suppliers of any other Affiliated Party;

                  (c) No director or officer of Seller shall at any time serve
         as a trustee in bankruptcy for any other Affiliated Party;

                  (d) Any employee, consultant or agent of Seller will be paid
         by the Manager for services provided to Seller, which payment shall be
         charged to Seller's account, except as provided in this Agreement in
         respect of the Servicing Fee. Seller will engage no agents other than a
         Servicer for the Receivables, which Servicer (if an Affiliated Party)
         will be fully compensated for its services to Seller by payment of the
         Servicing Fee, and the Manager pursuant to the Management Agreement,
         which Manager's fees shall not exceed $10,000 in any calendar year;

                  (e) Seller will not incur any liabilities other than its
         liabilities hereunder and under the other Agreement Documents,
         liabilities to the independent directors not exceeding $10,000 at any
         time outstanding (although annual compensation may exceed $10,000 per
         year), plus $1,000 for each meeting in excess of three per year, plus
         out-of-pocket expenses approved by the Manager and other liabilities
         incurred in the ordinary course of business that do not exceed $3,000
         due and owing at any one time;

                                       34
<PAGE>

                  (f) Seller's operating expenses will not be paid by any other
         Affiliated Party;

                  (g) Seller will have its own separate mailing address,
         stationery and, if used, bank checks and, if it uses premises leased,
         owned or occupied by any other Affiliated Party, its portion of such
         premises will be defined and separately identified;

                  (h) Seller's books and records will be maintained separately
         from those of every other Affiliated Party;

                  (i) Any financial statements of any other Affiliated Party
         which are consolidated to include Seller will contain detailed notes
         clearly stating that (A) all of Seller's assets are owned by the
         Seller, and (B) Seller is a separate corporate entity with its own
         separate creditors which will be entitled to be satisfied out of
         Seller's assets prior to any value in the Seller becoming available to
         Seller's equity holders;

                  (j) The assets of Seller will be maintained in a manner that
         facilitates their identification and segregation from those of any
         other Affiliated Party;

                  (k) Seller will strictly observe corporate formalities in its
         dealings with each other Affiliated Party, and funds or other assets of
         Seller will not be commingled or pooled with those of any other
         Affiliated Party;

                  (l) Seller shall not maintain joint bank accounts with any
         other Affiliated Party or other depository accounts to which any other
         Affiliated Party (other than SCI or any Originator in its capacity as
         Servicer or Subservicer) has independent access;

                  (m) Seller shall not, directly or indirectly, be named and
         shall not enter into any agreement to be named as a direct or
         contingent beneficiary or loss payee on any insurance policy covering
         the property of any other Affiliated Party;

                  (n) Seller will maintain arm's length relationships with each
         other Affiliated Party. Any other Affiliated Party which renders or
         otherwise furnishes services or merchandise to Seller will be
         compensated by Seller at market rates for such services or merchandise;
         and

                  (o) Neither Seller, on the one hand, nor any other Affiliated
         Party, on the other hand, will be or will hold itself out to be
         responsible for the debts of the other or the decisions or actions
         respecting the daily business and affairs of the other.

         SECTION 7.05. Financial Covenants. From the date hereof until the End
Date, the Guarantor will:

                                       35
<PAGE>

                  (a) maintain as of and at the end of each of its fiscal
         quarters, a ratio of EBIT to Interest Expense of at least 1.25 to 1.0;
         provided that the ratio required to be maintained in this Section
         7.05(a) shall be subject to Section 7.05(c).

                  (b) maintain at all times a ratio of Total Debt to Total
         Capital (calculated in percentage terms as at the end of each fiscal
         quarter) of not more than seventy percent (70%).

                  (c) maintain at all times a ratio of Adjusted Working Capital
         to Senior Debt of at least 1.75 to 1.0, provided that if the ratio of
         EBIT to Interest Expense (calculated in accordance with Section 7.05(a)
         above) is less than 1.70 to 1.0, then the Guarantor will maintain a
         ratio of Adjusted Working Capital to Senior Debt of at least 2.0 to
         1.0.

         The covenants contained in this Section 7.05 shall be calculated in the
same manner as the corresponding covenants contained in the Bank Credit
Agreement are calculated. If the financial covenants set forth in the Bank
Credit Agreement which correspond to the financial covenants set forth in this
Section 7.05 are amended or deleted, the Guarantor will promptly provide notice
of such event and a copy of such amendments or deletions to the Administrative
Agent and each Bank Purchaser. If requested by all Bank Purchasers, this
Agreement shall be amended to reflect such changes, and the Guarantor and the
Seller hereby agree to promptly execute and deliver such amendments hereto as
the Purchasers shall reasonably request to effect the foregoing.

                                  ARTICLE VIII

                          ADMINISTRATION AND COLLECTION

         SECTION 8.01. Designation of Servicer. (a) SCI as Initial Servicer. The
servicing, administering and collection of the Pool Receivables shall be
conducted by the Person designated as Servicer hereunder ("Servicer") from time
to time in accordance with this Section 8.01. Until the Administrative Agent
(acting at the direction of all Bank Purchasers) gives to SCI a Successor Notice
(as defined in Section 8.01(b)), SCI is hereby designated as, and hereby agrees
to perform the duties and obligations of, Servicer pursuant to the terms hereof.

         (b) Successor Notice; Servicer Transfer Events. Upon SCI's receipt of a
notice from the Administrative Agent (given at the direction of all Bank
Purchasers) of the designation of a new Servicer, which new Servicer shall have
been approved by all Bank Purchasers (a "Successor Notice"), SCI agrees that it
will terminate its activities as Servicer hereunder in a manner that the
Administrative Agent believes will facilitate the transition of the performance
of such activities to the new Servicer, and the Administrative Agent (or its
designee) shall assume each and all of SCI's said obligations to service and
administer such Receivables, on the terms and subject to the conditions herein
set forth, and SCI shall use its reasonable efforts to assist the Administrative
Agent (or its designee) in assuming such obligations. From and after the
acceptance by a new

                                       36
<PAGE>

Servicer of its appointment as Servicer hereunder, the prior Servicer shall be
released from its obligations as Servicer under this Agreement, other than its
obligations set forth in the previous sentence. The Administrative Agent agrees
not to give SCI a Successor Notice until after the occurrence and during the
continuance of any Termination Event (any such Termination Event or other event
being herein called a "Servicer Transfer Event"), in which case such Successor
Notice may be given at any time at the direction of all Bank Purchasers. If SCI
disputes the occurrence of a Servicer Transfer Event, SCI may take appropriate
action to resolve such dispute; provided that SCI must terminate its activities
hereunder as Servicer and allow the newly designated Servicer to perform such
activities on the date provided by the Administrative Agent as described above,
notwithstanding the commencement or continuation of any proceeding to resolve
the aforementioned dispute.

         (c) Subcontracts. Servicer may, with the prior consent of the Required
Purchasers, subcontract with any other Person for servicing, administering or
collecting the Pool Receivables; provided that such Person agrees to conduct
such duties in accordance with the terms of this Agreement; and provided,
further, however, that Servicer shall remain liable for the performance of the
duties and obligations of Servicer pursuant to the terms hereof; and, provided,
further, that the Administrative Agent shall have the right to terminate or to
continue any such subcontract upon the designation of a new Servicer approved by
all Bank Purchasers.

         SECTION 8.02. Duties of Servicer. (a) Appointment; Duties in General.
Each of Seller, each Purchaser and the Administrative Agent hereby appoints as
its agent Servicer, as from time to time designated pursuant to Section 8.01, to
enforce its rights and interests in and under the Pool Receivables, the Related
Security and the Contracts. Servicer shall take or cause to be taken all such
actions as may be necessary or advisable to collect each Pool Receivable from
time to time, all in accordance with applicable laws, rules and regulations,
with reasonable care and diligence, and in accordance with the Credit and
Collection Procedure.

         (b) Allocation of Collections; Segregation. Servicer shall set aside
for the account of Seller and the Purchasers their respective allocable shares
of the Collections of Pool Receivables in accordance with Sections 3.01 and 3.02
but shall not be required (unless otherwise requested by the Administrative
Agent or the Required Purchasers) to segregate the funds constituting such
portions of such Collections, or to segregate the respective allocable shares of
any Purchaser and any Program Support Party, if applicable, prior to the
remittance thereof in accordance with such Sections. If instructed by the
Administrative Agent or the Required Purchasers at any time, Servicer shall
segregate and deposit with a bank (which may be a Bank Purchaser) designated by
the Administrative Agent such allocable shares of Collections of Pool
Receivables, set aside for any Purchaser, any Program Support Party and any
other assignee from any Purchaser, on the first Business Day following receipt
by Servicer of such Collections in immediately available funds.

         (c) Modification of Receivables. So long as no Termination Event or
Unmatured Termination Event shall have occurred and be continuing, SCI, while it
is Servicer, may, in

                                       37
<PAGE>

accordance with the Credit and Collection Procedure, (i) extend the maturity or
adjust the Unpaid Balance of any Defaulted Receivable as Servicer may reasonably
determine to be appropriate to maximize Collections thereof; provided that, no
such extension shall be for more than a total of thirty (30) days or cause any
Defaulted Receivable to be an Eligible Receivable and, after giving effect to
such extension of maturity, the Required Allocation will not exceed the Required
Allocation Limit, and (ii) adjust the Unpaid Balance of any Receivable to
reflect the reductions or cancellations described in Section 3.03(a)(i).

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

         (e) Certain Duties to Seller. Servicer shall, as soon as practicable
following receipt, turn over to Seller (i) that portion of Collections of Pool
Receivables representing its undivided interest therein, less, in the event SCI
or an Affiliate of SCI is not the Servicer, all reasonable and appropriate
out-of-pocket costs and expenses (excluding overhead and any subservicing costs)
of Servicer of servicing, collecting and administering the Pool Receivables to
the extent not covered by the Servicer's Fee received by it, and (ii) the
Collections of any Receivable that is not a Pool Receivable. Servicer, if other
than SCI or an Affiliate of the SCI, shall, as soon as practicable upon demand,
deliver to Seller all documents, instruments and records in its possession that
evidence or relate to Receivables of Seller other than Pool Receivables, and
copies of documents, instruments and records in its possession that evidence or
relate to Pool Receivables.

         (f) Termination. Servicer's authorization under this Agreement shall
terminate on the End Date.

         SECTION 8.03. Rights of the Administrative Agent. (a) Notice to
Obligors. At any time following the occurrence and during the continuance of a
Termination Event, the Administrative Agent may (and, upon direction of the
Required Purchasers, shall) notify the Obligors of Pool Receivables, or any of
them, of the ownership of the Undivided Interest by the Administrative Agent, on
behalf of the Purchasers.

         (b) Notice to Lock-Box Banks. At any time following the earliest to
occur of (i) the occurrence of a Termination Event, (ii) any of the Conditions
Precedent shall not be satisfied and the Administrative Agent or the Required
Purchasers, by written notice to Seller and Servicer, shall have requested
implementation of the settlement procedures set forth in Section 3.02, and (iii)
the warranty in Section 6.01(i) shall no longer be true with respect to a
material portion of the Pool Receivables, the Administrative Agent is hereby
authorized to give notice to the Lock- Box Banks (and shall give such notice if
directed by the Required Purchasers), as provided in the Lock-Box Agreements, of
the transfer to the Administrative Agent of dominion and control over the
lock-box accounts to which the Obligors of Pool Receivables make payments.
Seller hereby transfers to the Administrative Agent, effective when the
Administrative Agent shall give notice to

                                       38
<PAGE>

the Lock-Box Banks as provided in the Lock-Box Agreements, the exclusive
dominion and control over such lock-box accounts, and shall take any further
action that the Administrative Agent may reasonably request to effect such
transfer. SCI shall promptly (but in any event within two (2) Business Days)
identify any amounts deposited into any lock-box account that do not constitute
Collections.

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

                      (i) the Administrative Agent may (and, upon the direction
         of the Required Purchasers, shall) direct the Obligors of Pool
         Receivables, or any of them, to pay all amounts payable under any Pool
         Receivable directly to the Administrative Agent or its designee.

                     (ii) Seller shall, at the Administrative Agent's or the
         Required Purchasers' request and at Seller's expense, give notice of
         the Administrative Agent's ownership to each said Obligor and direct
         that payments be made directly to the Administrative Agent or its
         designee.

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

                  (iv) Each of Seller and each Purchaser hereby authorizes the
         Administrative Agent to take any and all steps, at any time after the
         Administrative Agent or the Required Purchasers have given notice to
         any Lock-Box Bank pursuant to Section 8.03(b), in Seller's name and on
         behalf of Seller and each Purchaser which are necessary or desirable,
         in the reasonable determination of the Administrative Agent, to collect
         all amounts due under any and all Pool Receivables, including, without
         limitation, endorsing Seller's name on checks and other instruments
         representing Collections and enforcing such Pool Receivables and the
         related Contracts.

                  (v) Actions taken by the Administrative Agent pursuant to this
         Article shall be subject to the confidentiality provisions of Section
         7.01(c).

                                       39
<PAGE>

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

                  (a) Seller shall perform all of its obligations under the
         Contracts related to the Pool Receivables and under the related
         purchase orders and other agreements to the same extent as if the
         Undivided Interest had not been sold hereunder and the exercise by the
         Administrative Agent of its rights hereunder shall not relieve Seller
         from such obligations.

                  (b) Neither the Administrative Agent nor any Purchaser shall
         have any obligation or liability with respect to any Pool Receivables,
         Contracts related thereto or any other related purchase orders or other
         agreements, nor shall any of them be obligated to perform any of the
         obligations of Seller thereunder.

                  (c) Seller hereby grants to Servicer an irrevocable power of
         attorney, with full power of substitution, coupled with an interest, to
         take in the name of Seller all steps which are necessary or advisable
         to endorse, negotiate or otherwise realize on any writing or other
         right of any kind held or transmitted by Seller or transmitted or
         received by any Purchaser (whether or not from Seller) in connection
         with any Pool Receivable.

         SECTION 8.05. Further Action Evidencing Purchases. (a) Seller agrees
that from time to time, at Seller's expense, it will promptly execute and
deliver all further instruments and documents, and take all further action that
the Administrative Agent or any Bank Purchaser may reasonably request in order
to perfect, protect or more fully evidence the Purchases hereunder and the
resulting Undivided Interest, or to enable any Purchaser or the Administrative
Agent to exercise or enforce any of their respective rights hereunder. Without
limiting the generality of the foregoing, Seller will:

                      (i) upon the request of the Administrative Agent or the
         Required Purchasers, execute and file such financing or continuation
         statements, or amendments thereto or assignments thereof, and such
         other instruments or notices, as may be necessary or appropriate, to
         evidence that the Undivided Interest has been sold in accordance with
         this Agreement;

                     (ii) upon the request of the Administrative Agent or the
         Required Purchasers, to the extent reasonably practicable, mark
         conspicuously each Contract evidencing each Pool Receivable with a
         legend, acceptable to the Administrative Agent and the Required
         Purchasers, evidencing that the Undivided Interest has been sold in
         accordance with this Agreement; and

                    (iii) on or before the date of the initial Purchase, to the
         extent reasonably practicable, mark its master data processing records
         evidencing such Pool Receivables and related Contracts with a legend,
         acceptable to the Administrative Agent and the Required

                                       40
<PAGE>

         Purchasers, evidencing that the Undivided Interest has been sold in
         accordance with this Agreement.

         (b) Seller hereby authorizes the Administrative Agent to file one or
more financing or continuation statements, and amendments thereto and
assignments thereof, relative to all or any of the Pool now existing or
hereafter arising in the name of Seller.

         (c) Without limiting the generality of subsection (a), Seller will, not
earlier than six (6) months and not later than two (2) months prior to the fifth
anniversary of the date of filing of each of the financing statement referred to
in Section 5.01(f) or any other financing statement filed pursuant to this
Agreement or in connection with any Purchase hereunder, unless the End Date
shall have occurred:

                      (i) deliver to the Administrative Agent for execution and,
         upon receipt from the Administrative Agent of such executed statements,
         file or cause to be filed appropriate continuation statements with
         respect to such financing statements; and

                     (ii) deliver or cause to be delivered to the Administrative
         Agent and each Bank Purchaser an opinion of the counsel for Seller
         referred to in Section 5.01(g) (or other counsel for Seller reasonably
         satisfactory to the Required Purchasers), in form and substance
         reasonably satisfactory to the Required Purchasers, confirming and
         updating the opinion delivered pursuant to Section 5.01 with respect to
         (and only with respect to) perfection issues, subject to customary
         qualifications, assumptions and exclusions typically included in such
         opinions.

         SECTION 8.06. Application of Collections. Any payment by an Obligor in
respect of any indebtedness owed by it to Seller shall, except as otherwise
specified by such Obligor or otherwise required by contract or law and unless
the Administrative Agent (with the consent of the Required Purchasers) instructs
otherwise, be applied as a Collection of any Pool Receivable or Receivables of
such Obligor to the extent of any amounts then due and payable thereunder before
such payment is applied to any other indebtedness of such Obligor.

                                   ARTICLE IX

                                SECURITY INTEREST

         SECTION 9.01. Grant of Security Interest. To secure all obligations of
Seller arising in connection with this Agreement and each other Agreement
Document to which it is a party, whether now or hereafter existing, due or to
become due, direct or indirect, or absolute or contingent, including, without
limitation, all Indemnified Amounts, payments on account of Collections received
or deemed to be received, fees and Earned Discount, in each case pro rata
according to the respective amounts thereof, Seller hereby assigns and grants to
the

                                       41
<PAGE>

Administrative Agent, for the benefit of the Purchasers, a security interest in
all of Seller's right, title and interest (including specifically any undivided
interest retained by Seller hereunder) now or hereafter existing in, to and
under all the Pool Receivables, the Related Security and all Collections with
regard thereto, and all proceeds of the foregoing.

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

         SECTION 9.03. Remedies. Upon the occurrence and during the continuance
of a Termination Event, the Administrative Agent, for the benefit of the
Purchasers, shall have, with respect to the collateral granted pursuant to
Section 9.01, and in addition to all other rights and remedies available to any
Purchaser or the Administrative Agent under this Agreement or other applicable
law, all the rights and remedies of a secured party upon default under the UCC.

                                    ARTICLE X

                               TERMINATION EVENTS

         SECTION 10.01. Termination Events. If any of the following events
("Termination Events") shall occur:

                  (a) (i) Servicer (if SCI or an Affiliate of SCI) shall fail to
         perform or observe any term, covenant or agreement hereunder (other
         than as referred to in clause (ii) next following) and such failure
         shall remain unremedied for two (2) Business Days after notice (which
         may be by telephone) to Servicer if such failure is the failure to
         deliver a Periodic Report when due or ten (10) Business Days after
         notice (which may be by telephone) to SCI in all other cases or (ii)
         Servicer (if SCI or an Affiliate of Seller) or Seller shall fail to
         make any payment or deposit to be made by it hereunder when due; or

                  (b) Seller, SCI or Guarantor shall fail to perform or observe
         any term, obligation, covenant or agreement contained in Section 7.03,
         7.04 or 7.05 or to furnish to the Administrative Agent and each Bank
         Purchaser, pursuant to Section 7.02(e), a certificate required as a
         result of knowledge by an Executive Officer of Seller, SCI or Guarantor
         (as applicable) of the occurrence of a Termination Event or an
         Unmatured Termination Event; or

                  (c) (i) If Seller or SCI shall fail to perform or observe any
         other term, obligation, covenant or agreement contained herein or any
         other Agreement Document on its part to be performed or observed (other
         than as set forth in Section 10.01(a) above or in Section 7.03, 7.04 or
         7.05) and any such failure remains unremedied, until the first to occur
         of the date forty-five (45) days after an Executive Officer of Seller,
         SCI or

                                       42
<PAGE>

         Guarantor first obtains knowledge, or should have, in the exercise of
         reasonable diligence, obtained knowledge, thereof or the date thirty
         (30) days after written notice thereof shall have been given to Seller
         or SCI, as applicable, by the Administrative Agent or any Bank
         Purchaser, (ii) if any representation or warranty made by Seller, SCI
         or Guarantor in this Agreement (other than in Section 6.01(b), 6.01(c),
         6.01(e), 6.01(h), 6.02(b), 6.02(c), 6.02(e), 6.03(b), 6.03(c) or
         6.03(e)), or in any other Agreement Document to which it is a party,
         shall prove to have been incorrect, incomplete or misleading when made
         or deemed made in any material respect, and any such representation or
         warranty continues to be incorrect, incomplete or misleading in any
         material respect until the first to occur of the date forty-five (45)
         days after an Executive Officer of Seller, SCI or Guarantor first
         obtains knowledge, or should have, in the exercise of reasonable
         diligence, obtained knowledge, thereof or the date thirty (30) days
         after written notice thereof shall have been given to Seller by the
         Administrative Agent or any Bank Purchaser or (iii) any representation
         or warranty made by Seller, SCI or Guarantor in Section 6.01(b),
         6.01(c), 6.01(e), 6.01(h), 6.02(b), 6.02(c), 6.02(e), 6.03(b), 6.03(c)
         or 6.03(e) shall prove to have been incorrect, incomplete or misleading
         when made or deemed made in any material respect; or

                  (d) (i) An "Event of Default" shall have occurred and be
         continuing under the Bank Credit Agreement; or (ii) with respect to any
         Indebtedness for money borrowed (other than the notes issued under the
         Bank Credit Agreement) or for the deferred purchase price of property
         created, issued, guaranteed, incurred or assumed by Seller, SCI,
         Guarantor or any Affiliate thereof which Indebtedness is in an
         aggregate principal amount equal to or greater than $10,000,000,
         Seller, SCI, Guarantor or any Affiliate thereof shall (A) default in
         the payment of principal of or interest on any such Indebtedness beyond
         the period of grace, if any, provided in the instrument or agreement
         under which such Indebtedness was created, or (B) default in the
         observance or performance of any other agreement or condition relating
         to any such Indebtedness or contained in any instrument or agreement
         evidencing, securing or relating thereto, or any other event shall
         occur or condition exist, the effect of which default or other event or
         condition described in either clause (i) or (ii) of this paragraph is a
         failure to pay such Indebtedness at maturity or is to cause, or to
         permit the holder or holders of such Indebtedness (or a trustee or
         agent on behalf of such holder or holders) to cause, such Indebtedness
         to become due prior to its stated maturity; provided, however, that in
         the event any such default or other condition described in either
         clause (i) or (ii) of this paragraph shall have been cured or waived or
         any such acceleration rescinded in accordance with the terms thereof
         prior to the time that the Administrative Agent has declared the
         Facility Termination Date to have occurred, this Termination Event
         shall automatically cease to exist; or

                  (e) A Change of Control shall occur; or

                                       43
<PAGE>

                  (f) An Event of Bankruptcy shall have occurred and remained
         continuing with respect to any SCI Party; or

                  (g) (i) Any litigation (including, without limitation,
         derivative actions), arbitration proceedings or governmental
         proceedings not disclosed in writing by Seller or SCI to the
         Administrative Agent and each Purchaser prior to the date of execution
         and delivery of this Agreement is pending against Seller, SCI or
         Guarantor, or (ii) any material development not so disclosed has
         occurred in any litigation (including, without limitation, derivative
         actions), arbitration proceedings or governmental proceedings so
         disclosed, which, in the case of clause (i) or (ii), in the reasonable
         opinion of the Required Purchasers is likely to have a Material Adverse
         Effect; or

                  (h) At any time, the Required Allocation shall exceed the
         Required Allocation Limit; or

                  (i) The Sales-Based Default Ratio exceeds 3% or the
         Delinquency Ratio exceeds 8%; or

                  (j) The Losses to Liquidations Ratio exceeds 1.5%; or

                  (k) The average of the Sales-Based Dilution Ratios for the
         preceding six consecutive months exceeds 3%; or

                  (l) There shall have occurred any event which has a Material
         Adverse Effect or a Seller Material Adverse Effect; or

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

                  (n) A Purchase and Sale Termination Event shall occur under
         any Second Tier Sale Agreement.

         SECTION 10.02. Remedies. (a) Optional Termination. Upon the occurrence
of a Termination Event (other than a Termination Event described in subsection
(f) of Section 10.01), the Administrative Agent shall, at the request, or may
with the consent, of the Required Purchasers, by written notice to Seller
declare the Facility Termination Date to have occurred, which Facility
Termination Date shall be the date of such notice.

                                       44
<PAGE>

         (b) Automatic Termination. Upon the occurrence of a Termination Event
described in subsection (f) of Section 10.01, the Facility Termination Date
shall be deemed to have occurred automatically upon the occurrence of such
event.

         (c) Additional Remedies. Upon any termination of the facility pursuant
to this Section 10.02, the Administrative Agent and each Purchaser shall have,
in addition to all other rights and remedies under this Agreement and any other
Agreement Document or otherwise, all other rights and remedies provided under
the UCC of each applicable jurisdiction and other applicable laws, which rights
shall be cumulative. Without limiting the foregoing or the general applicability
of Article XII hereof, (i) the occurrence of a Termination Event shall not deny
to any Purchaser any remedy in addition to termination of the Facility to which
such Purchaser may be otherwise appropriately entitled, whether at law or in
equity, and (ii) following the occurrence of any Termination Event each
Purchaser may elect to assign to any Person any portion of the Undivided
Interest owned by or on behalf of such Purchaser.

                                   ARTICLE XI

                            THE ADMINISTRATIVE AGENT

         SECTION 11.01. Authorization and Action. Each Purchaser hereby appoints
and authorizes the Administrative Agent to take such action as agent on its
behalf and to exercise such powers under this Agreement as are delegated to the
Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto.

         SECTION 11.02. Administrative Agent's Reliance, Etc. Neither the
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken by it or the
Administrative Agent under or in connection with this Agreement (including,
without limitation, the servicing, administering or collecting Pool Receivables
as Servicer pursuant to Section 8.01), except for its or their own gross
negligence or willful misconduct. Without limiting the generality of the
foregoing, the Administrative Agent: (a) may consult with legal counsel
(including counsel for Seller), independent certified public accountants and
other experts selected by it and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (b) makes no warranty or representation to any
Purchaser or any other holder of any interest in Pool Receivables and shall not
be responsible to any Purchaser or any such other holder for any statements,
warranties or representations made in or in connection with this Agreement or
any other Agreement Document; (c) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement on the part of any SCI Party or to inspect the
property (including the books and records) of any SCI Party; (d) shall not be
responsible to any Purchaser or any other holder of any interest in Pool
Receivables for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other Agreement
Document; and (e) shall incur no liability under

                                       45
<PAGE>

or in respect of this Agreement or any other Agreement Document by acting upon
any notice (including notice by telephone), consent, certificate or other
instrument or writing (which may be by facsimile or telex) believed by it to be
genuine and signed or sent by the proper party or parties.

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

         SECTION 11.04. Seller's Failure to Perform. If Seller or SCI fails to
perform any of its agreements or obligations under this Agreement within any
applicable time or grace period, the Administrative Agent may (but shall not be
required to) itself perform, or cause performance of, such agreement or
obligation, and the expenses of the Administrative Agent incurred in connection
therewith shall be payable by Seller or SCI, as the case may be, as provided in
Section 13.01, provided, however, that the Administrative Agent shall not
perform Seller's obligations under any Contract, other than those necessary to
service and collect the related Pool Receivables.

                                   ARTICLE XII

                       ASSIGNMENT OF PURCHASER'S INTEREST

         SECTION 12.01. Restrictions on Assignments. (a) None of SCI, Seller or
Guarantor may assign its rights hereunder or any interest herein without the
prior written consent of each Bank Purchaser, and no Purchaser may assign its
rights or obligations hereunder or its Purchaser's Interest (or portion thereof)
to any Person without the prior written consent of Seller, which consent shall
not be unreasonably withheld; provided, however, that without any such consent

                      (i) Any Purchaser may assign, or grant a security interest
         in, its Purchaser's Interest (or portion thereof) to any of its Related
         Bank Purchasers (or any successor of any thereof by merger,
         consolidation or otherwise), any other commercial paper conduit
         administered by its Related Administrator or any Affiliate thereof, or
         any of its Program Support Providers (which may then assign the
         Purchaser's Interest (or portion thereof) so assigned or any interest
         therein to such party or parties as it may choose); and

                     (ii) Any Conduit Purchaser may assign and grant a security
         interest in any interest in, to and under its Purchaser's Interest,
         this Agreement and the other Agreement Documents to any collateral
         trustee for its commercial paper program, and any successor

                                       46
<PAGE>

         in such capacity, to secure Purchaser's obligations under or in
         connection with its Commercial Paper Notes, any of its Program Support
         Agreement, and certain other obligations of such Purchaser incurred in
         connection with the funding of the Purchases and Reinvestments by it
         hereunder, which assignment and grant of a security interest shall not
         be considered an "assignment" for purposes of Section 12.01(b), Section
         12.03 or 12.04 or, prior to the enforcement of such security interest,
         for purposes of any other provision of this Agreement.

         (b) Seller agrees to advise the requesting Purchaser within five (5)
Business Days after receipt by Seller of written notice of any proposed
assignment by such Purchaser of its Purchaser's Interest (or portion thereof),
not otherwise permitted under subsection (a), of Seller's consent or non-consent
to such assignment. If Seller does not consent to such assignment, such
Purchaser may immediately assign its Purchaser's Interest (or portion thereof)
to any of its Related Bank Purchasers or Program Support Providers or any
Affiliate thereof. All of the aforementioned assignments shall be upon such
terms and conditions as the related Purchaser and the assignee may mutually
agree.

         SECTION 12.02. Rights of Assignee. Upon an assignment by a Purchaser in
accordance with this Article XII, (a) the assignee receiving such assignment
shall have all of the rights, and shall be deemed to have assumed all of the
obligations, of such Purchaser hereunder with respect to the portion of such
Purchaser's rights and obligations so assigned and (b) all references to such
Purchaser in Section 4.02 shall be deemed to apply to such assignee to the
extent of its interest in the related Purchaser's Investment and the related
Collections.

         SECTION 12.03. Notice of Assignment. Each Purchaser shall provide
written notice to Seller and the Administrative Agent of any assignment of any
interest in the Undivided Interest (or portion thereof) by such Purchaser to any
assignee, other than an assignment to a Program Support Provider pursuant to an
applicable Program Support Agreement or to a collateral trustee for such
Purchaser's commercial paper program.

         SECTION 12.04. Evidence of Assignment. Any assignment of any interest
in the Undivided Interest (or portion thereof) to any Person may be evidenced by
an instrument of assignment in the form of Exhibit 12.04 or by such other
instrument(s) or document(s) as may be satisfactory to the assigning Purchaser,
the Administrative Agent and the assignee.

                                  ARTICLE XIII

                                 INDEMNIFICATION

         SECTION 13.01. Indemnities. (a) General Indemnity of Seller. Without
limiting any other rights which any such Person may have hereunder or under
applicable law, Seller hereby agrees to indemnify each of the Administrative
Agent, each Purchaser, each Program Support

                                       47
<PAGE>

Provider, BofA, each of BofA's Affiliates, their respective successors,
transferees, participants and assigns and all officers, directors, shareholders,
controlling persons, employees and agents of any of the foregoing (each an
"Indemnified Party"), forthwith on demand, from and against any and all damages,
losses, claims, liabilities and related costs and expenses, including reasonable
attorneys' fees and disbursements (all of the foregoing being collectively
referred to as "Indemnified Amounts") awarded against or incurred by any of them
arising out of or relating to this Agreement, any other Agreement Document or
the ownership or funding of the Undivided Interest or in respect of any
Receivable or any Contract, excluding, however, (a) Indemnified Amounts with
respect to an Indemnified Party to the extent determined by a court of competent
jurisdiction to have resulted from gross negligence or willful misconduct on the
part of such Indemnified Party and (b) recourse (except as otherwise
specifically provided in Article II of this Agreement in connection with the
calculation of the Undivided Interest) for Defaulted Receivables. Without
limiting the foregoing, Seller hereby agrees to indemnify each Indemnified Party
for Indemnified Amounts arising out of or relating to:

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

                     (ii) the breach of any representation or warranty made by
         Seller (or any of its officers) under or in connection with this
         Agreement, any other Agreement Document, any Periodic Report or any
         other information or report delivered by, or on behalf of, Seller
         pursuant hereto, which shall have been false or incorrect in any
         material respect when made or deemed made;

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

                     (iv) the failure to vest and maintain vested in the
         Administrative Agent, for the benefit of the Purchasers, an undivided
         percentage ownership interest, to the extent of the Undivided Interest,
         in the Receivables in, or purporting to be in, the Receivables Pool,
         free and clear of any Adverse Claim, other than an Adverse Claim
         arising solely as a result of an act of a Purchaser, any assignee from
         a Purchaser or the Administrative Agent, whether existing at the time
         of any Purchase or Reinvestment or at any time thereafter;

                      (v) the failure to file, or any delay in filing, Financing
         Statements or other similar instruments or documents under the UCC of
         any applicable jurisdiction or other applicable laws with respect to
         any receivables in, or purporting to be in, the Receivables Pool,
         whether at the time of any Purchase or Reinvestment or at any time
         thereafter;

                                       48
<PAGE>

                     (vi) any dispute, claim, offset or defense (other than
         discharge in bankruptcy) of the Obligor to the payment of any
         Receivable in, or purporting to be in, the Receivables Pool (including,
         without limitation, a defense based on such Receivable's or the related
         Contract's not being a legal, valid and binding obligation of such
         Obligor enforceable against it in accordance with its terms), or any
         other claim resulting from the sale of the merchandise or services
         related to such Receivable or the furnishing or failure to furnish such
         merchandise or services;

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

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

                     (ix) any tax or governmental fee or charge (but not
         including taxes upon or measured by net income), all interest and
         penalties thereon or with respect thereto, and all out-of-pocket costs
         and expenses, including the reasonable fees and expenses of counsel in
         defending against the same, which may arise by reason of the purchase
         or ownership of the Undivided Interest, or any other interest in the
         Pool Receivables or in any goods which secure any such Pool
         Receivables.

         (b) Indemnities by Servicer. Without limiting any other rights which
any such Person may have hereunder or under applicable law, Servicer hereby
agrees to indemnify each of the Indemnified Parties, forthwith on demand, from
and against any and all Indemnified Amounts awarded against or incurred by any
of them arising out or related to:

                  (i) the fact that any representation or warranty made by such
         Servicer (or any of its officers) under or in connection with this
         Agreement, any Periodic Report or any other information or report
         delivered by such Servicer pursuant hereto shall have been false or
         incorrect in any material respect when made or deemed made;

                  (ii) the failure by such Servicer to comply with any
         applicable law, rule or regulation with respect to the servicing or
         collection of any Pool Receivable or the related Contract;

                  (iii) the failure of such Servicer or any subservicer to
         perform its duties or obligations in accordance with the provisions of
         this Agreement; or

                  (iv) any dispute, claim, offset or defense of the Obligor to
         the payment of any Pool Receivable by reason of the action or inaction
         of such Servicer or any subservicer of such Servicer.

                                       49
<PAGE>

         (c) Contest of Tax Claim; After-Tax Basis. If any Indemnified Party
shall have notice of any attempt to impose or collect any tax or governmental
fee or charge for which indemnification will be sought from Seller under Section
13.01(a)(ix), such Indemnified Party shall give prompt notice of such attempt to
Seller and Seller shall have the right, at its expense, to participate in any
proceedings resisting or objecting to the imposition or collection of any such
tax, governmental fee or charge. Indemnification hereunder shall be in an amount
necessary to make the Indemnified Party whole after taking into account any tax
consequences to the Indemnified Party of the payment of any of the aforesaid
taxes and the receipt of the indemnity provided hereunder or of any refund of
any such tax previously indemnified hereunder, including the effect of such tax
or refund on the amount of tax measured by net income or profits which is or was
payable by the Indemnified Party.

         (d) Contribution. If for any reason the indemnification provided above
in this Section 13.01 is unavailable to an Indemnified Party or is insufficient
to hold an Indemnified Party harmless, then Seller or SCI, as the case may be,
agrees to contribute to the amount paid or payable by such Indemnified Party as
a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect not only the relative benefits received by such
Indemnified Party on the one hand and Seller or SCI, as the case may be, on the
other hand but also the relative fault of such Indemnified Party as well as any
other relevant equitable considerations.

                                   ARTICLE XIV

                                    GUARANTEE

         SECTION 14.01. Guarantee. (a) Guarantor hereby unconditionally and
irrevocably covenants and agrees that it will cause SCI and each Originator duly
and punctually to perform and observe all of the terms, conditions, covenants,
agreements (including, without limitation, agreements to turn over Collections
or deemed Collections) and indemnities of SCI and each Originator, respectively,
under this Agreement and the other Agreement Documents to which they are
respectively a party strictly in accordance with the terms hereof and thereof
and that if for any reason whatsoever SCI or any Originator shall fail to so
perform and observe such terms, conditions, covenants, agreements and
indemnities, Guarantor will duly and punctually perform and observe the same.

         (b) The liabilities and obligations of Guarantor under this Section
14.01 shall be absolute and unconditional under all circumstances and shall be
performed by Guarantor regardless of (i) whether any Purchaser or the
Administrative Agent shall have taken any steps to collect from SCI or any
Originator any of the amounts payable by SCI or such Originator (as the case may
be) to any Purchaser or the Administrative Agent under this Agreement or the
other Agreement Documents or shall otherwise have exercised any of their rights
or remedies under this Agreement or the other Agreement Documents against SCI or
any Originator or against any Obligor under any of the Pool Receivables, (ii)
the validity, legality or enforceability of this

                                       50
<PAGE>

Agreement or of any other Agreement Documents against SCI or any Originator, or
the disaffirmance of any thereof in any Event of Bankruptcy relating to SCI or
any Originator, (iii) any law, regulation or decree now or hereafter in effect
which might in any manner affect any of the terms or provisions of this
Agreement or any other Agreement Document or any of the rights of any Purchaser
or the Administrative Agent as against SCI or any Originator or as against any
Obligor under any of such Pool Receivables or which might cause or permit to be
invoked any alteration in time, amount, manner of payment or performance of any
amount payable by SCI or any Originator to any Purchaser or the Administrative
Agent under this Agreement or the other Agreement Documents, (iv) the merger or
consolidation of SCI or any Originator into or with any corporation or any sale
or transfer by SCI or any Originator or all or any part of its property, (v) the
existence or assertion of any Adverse Claim with respect to any Pool Receivable,
or (vi) any other circumstance whatsoever (with or without notice to or
knowledge of Guarantor) which may or might in any manner or to any extent vary
the risk of Guarantor, or might otherwise constitute a legal or equitable
discharge of a surety or guarantor, it being the purpose and intent of Guarantor
that the liabilities and obligations of Guarantor under this Section 14.01 shall
be absolute and unconditional under any and all circumstances, and shall not be
discharged except by payment and performance as in this Agreement provided. The
guaranty set forth in this Section 14.01 is a guaranty of payment and
performance and not just of collection.

         (c) Without in any way affecting or impairing the liabilities and
obligations of Guarantor under this Section 14.01, any Purchaser or the
Administrative Agent may at any time and from time to time in its discretion,
without the consent of, or notice to, Guarantor, and without releasing or
affecting Guarantor's liability hereunder (i) extend or change the time, manner,
place or terms of this Agreement or any other Agreement Document, (ii) settle or
compromise any of the amounts payable by SCI or any Originator to any Purchaser
under this Agreement or the other Agreement Documents or subordinate the same to
the claims of others, (iii) retain or obtain a lien upon or security interest in
any property to secure any of the obligations hereunder, (iv) retain or obtain
the primary or secondary obligation of any obligor or obligors, in addition to
Guarantor, with respect to any of the obligations due hereunder, or (v) release
or fail to perfect any lien upon or security interest in, or impair, surrender,
release or permit any substitution in exchange for, all or any part of any
property securing any of the obligations under this Agreement, it being
understood that nothing contained in this Section 14.01(c) shall give any
Purchaser or the Administrative Agent the right to take any of the foregoing
actions if not permitted by the other provisions of this Agreement, by law, by
written consent or otherwise.

         (d) The provisions of this Section 14.01 shall continue to be effective
or be reinstated, as the case may be, if any time payment of any of the amounts
payable by SCI or any Originator to any Purchaser or the Administrative Agent
under this Agreement or the other Agreement Documents is rescinded or must
otherwise be restored or returned by any Purchaser or the Administrative Agent,
as the case may be, upon any Event of Bankruptcy involving SCI or any
Originator, or otherwise, all as though such payment had not been made.
Guarantor hereby waives (i) notices of the occurrence of any default hereunder
(other than notices expressly required under this Agreement), (ii) any
requirement of diligence or promptness on the part of any

                                       51
<PAGE>

Purchaser or the Administrative Agent in making demand, commencing suit or
exercising any other right or remedy under this Agreement or the other Agreement
Documents, or otherwise, and (iii) any right to require any Purchaser or the
Administrative Agent to exercise any right or remedy against SCI or any
Originator or the Pool Receivables prior to enforcing any of their rights
against Guarantor under this Section 14.01. Guarantor agrees that, in the event
of an Event of Bankruptcy with respect to SCI, any Originator or Guarantor, or
any combination thereof, and if such event shall occur at a time when all of the
Indemnified Amounts and other amounts due under this Agreement may not then be
due and payable, Guarantor will pay to the Administrative Agent, for the benefit
of the Purchasers, forthwith the full amount which would be payable hereunder by
Guarantor if all such Indemnified Amounts and other obligations were then due
and payable.

         SECTION 14.02. Maintenance of Ownership. Guarantor covenants and agrees
that until the End Date, Guarantor, or one of its Wholly Owned Subsidiaries,
will (a) maintain, directly or indirectly, ownership of 100% of all of the
issued and outstanding shares of each class of voting capital stock of each of
SCI, each Originator and Seller, free and clear of all liens and encumbrances
and (b) maintain control of the election of the Board of Directors of each of
SCI, each Originator and Seller.

         SECTION 14.03. Representation and Warranty. Guarantor represents and
warrants that it now has, and will continue to have, independent means of
obtaining information concerning each of SCI's and each Originator's affairs,
financial condition and business. Neither any Purchaser nor the Administrative
Agent shall have any duty or responsibility to provide Guarantor with any credit
or other information concerning SCI's or any Originator's affairs, financial
condition or business which may come into such Purchaser's or the Administrative
Agent's possession.

         SECTION 14.04. Subrogation. Guarantor hereby agrees that no payment
made by it or for its account pursuant to this Agreement shall entitle Guarantor
by subrogation, indemnification, contribution, reimbursement or otherwise to any
payment by SCI or from or out of any property of SCI or any Originator, until
after the End Date and Guarantor shall not exercise any rights or remedies it
has or may in the future have with respect to any of the foregoing until after
the End Date.

                                   ARTICLE XV

                                  MISCELLANEOUS

         SECTION 15.01. Amendments, Etc. No amendment or waiver of any provision
of this Agreement nor consent to any departure by Seller, SCI or Guarantor
therefrom shall in any event be effective unless the same shall be in writing
and signed by (a) Seller, SCI, Guarantor, the Administrative Agent and the
Required Purchasers (with respect to an amendment) or (b) the

                                       52
<PAGE>

Administrative Agent and the Required Purchasers (with respect to a waiver or
consent by any of them) or Seller, SCI or Guarantor (with respect to a waiver or
consent by Seller, SCI or Guarantor), as the case may be, and then such waiver
or consent shall be effective only in the specific instance and for the specific
purpose for which given, provided, however that no amendment shall (i) reduce
the amount of Earned Discount, Purchaser's Investment or other amount payable to
any Purchaser hereunder, or extend the time for the payment thereof, (ii)
increase the amount of any Purchaser's Commitment, (iii) extend the Purchase
Termination Date or the Scheduled Facility Termination Date with respect to any
Purchaser, (iv) change the calculation of Required Allocation or any of its
components or (v) change the definition of "Concentration Limit" or "Required
Purchaser", in each case without the prior written consent of all Purchasers
affected thereby.

         SECTION 15.02. Notices, Etc. All notices and other communications
provided for hereunder shall, unless otherwise expressly stated herein, be in
writing (including facsimile communication) and shall be personally delivered or
sent by certified mail, postage prepaid, or by facsimile, to the intended party
at the address or facsimile number of such party set forth under its name on
Schedule 15.02 or at such other address or facsimile number as shall be
designated by such party in a written notice to the other parties hereto. All
such notices and communications shall be effective, (a) if personally delivered,
when received, (b) if sent by certified mail, three Business Days after having
been deposited in the mail, postage prepaid, (c) if sent by overnight courier,
one Business Day after having been given to such courier, and (d) if transmitted
by facsimile, when sent, receipt confirmed by telephone or electronic means,
except that notices and communications pursuant to Article I, Section 2.04(c),
Section 8.01(b) and the definition of "Designated Obligor" shall not be
effective until received.

         SECTION 15.03. No Waiver; Remedies. No failure on the part of the
Administrative Agent, any Affected Party, any Indemnified Party, any Purchaser
or any other holder of any interest in the Undivided Interest to exercise, and
no delay in exercising, any right hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right hereunder preclude any
other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

         SECTION 15.04. Binding Effect; Survival. This Agreement shall be
binding upon and inure to the benefit of Seller, SCI and Guarantor, the
Administrative Agent, the Purchasers and their respective successors and
assigns, and the provisions of Section 4.02 and Article XIII shall inure to the
benefit of the Affected Parties and the Indemnified Parties, respectively, and
their respective successors and assigns; provided, however, nothing in the
foregoing shall be deemed to authorize any assignment not permitted by Section
12.01. This Agreement shall create and constitute the continuing obligations of
the parties hereto in accordance with its terms, and shall remain in full force
and effect until the End Date. The rights and remedies with respect to any
breach of any representation and warranty made by Seller, SCI and Guarantor
pursuant to Article VI, the indemnification and payment provisions of Article
XIII and Sections 4.02, 14.05, 14.06 and 14.07, and the provisions of Sections
15.06 and 15.18 shall

                                       53
<PAGE>

be continuing and shall survive any termination of this Agreement. After the End
Date, the Administrative Agent shall, at the request and expense of the Seller,
execute and deliver to the Seller such documents as the Seller shall reasonably
request to evidence the termination of the Undivided Interest, including,
without limitation, UCC termination statements.

         SECTION 15.05. Costs, Expenses and Taxes. In addition to its
obligations under Article XIII, Seller, SCI and Guarantor, jointly and
severally, agree to pay on demand:

                  (a) all reasonable costs and expenses incurred by the
         Administrative Agent, each Purchaser, BofA, each Program Support
         Provider and their respective Affiliates in connection with the
         negotiation, preparation, execution and delivery, the administration
         (including periodic auditing) or the enforcement of, or any actual or
         claimed breach of, this Agreement and the other Agreement Documents,
         including, without limitation (i) the reasonable fees and out-of-pocket
         expenses of counsel to any of such Persons incurred in connection with
         any of the foregoing or in advising such Persons as to their respective
         rights and remedies under any of the Agreement Documents, provided,
         that Seller, SCI and Guarantor shall only be responsible for the fees
         and expenses of one counsel for each Related Group, unless a conflict
         of interest or potential conflict of interest exists among such
         Persons, and (ii) all reasonable out-of-pocket expenses (including
         reasonable fees and expenses of independent accountants) incurred in
         connection with any review of Seller's, SCI's or Guarantor's books and
         records either prior to the execution and delivery hereof or pursuant
         to the terms hereof; and

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

         SECTION 15.06. No Proceedings. Seller, SCI, Guarantor, each Bank
Purchaser, each other Conduit Purchaser and BofA, individually and as
Administrative Agent, each hereby agrees that it will not institute against any
Conduit Purchaser, or join any other Person in instituting against any Conduit
Purchaser, any insolvency proceeding (namely, any proceeding of the type
referred to in the definition of Event of Bankruptcy) so long as any Commercial
Paper Notes issued by such Conduit Purchaser shall be outstanding or there shall
not have elapsed one year plus one day since the last day on which any such
Commercial Paper Notes shall have been outstanding. The foregoing shall not
limit Seller's right to file any claim in or otherwise take any action with
respect to any insolvency proceeding that was instituted by any Person other
than Seller, SCI or Guarantor.

         SECTION 15.07. Confidentiality of Information. (a) Each SCI Party
acknowledges that each Purchaser regards the structure of the transactions
contemplated by this Agreement, the other Agreement Documents, and by any
Program Support Agreement and the

                                       54
<PAGE>

other Program Documents referred to therein, to be proprietary, and each such
SCI Party severally agrees that:

                  (i) unless such Purchaser shall otherwise agree in writing,
         and except as provided in subsection (b), such party will not disclose
         to any other person or entity:

                           (A) any information furnished to such party by any
                  Information Provider regarding the asset securitization
                  transaction contemplated hereby,

                           (B)  copies of this Agreement,

                           (C) any information furnished to such party by any
                  Information Provider regarding, or copies of, any Program
                  Support Agreement, any of the other Program Documents referred
                  to therein, or any transaction contemplated thereby,

                           (D) any information furnished to such party by any
                  Information Provider regarding the organization or business of
                  such Purchaser generally, or

                           (E) any information which is furnished to such party
                  by any Information Provider and is designated by such
                  Information Provider to such party in writing or otherwise as
                  confidential or not otherwise available to the general public

(the information referred to in clauses (A), (B), (C), (D) and (E) above,
whether furnished by a Purchaser, BofA (including any branch or agency thereof),
any Program Support Provider, any assignee of or participant in any rights or
obligations of any Purchaser or any Program Support Provider identified to
Seller and Guarantor by written notice from the assignor or seller of such
participation interest, as the case may be, or any attorney for any of the
foregoing (each an "Information Provider"), is collectively referred to as the
"Information"; provided, however, "Information" shall not include any
information which is or becomes generally available to the general public or to
such party on a nonconfidential basis from a source other than any other
Information Provider, or which was known to such party on a nonconfidential
basis prior to its disclosure by any Information Provider);

              (ii) such party will make the Information available to only such
         of its officers, directors, employees and agents, and to officers,
         directors, employees and agents of any of its Affiliates, who (A) in
         the good faith belief of such party, have a need to know such
         Information, and (B) are informed by such party of the confidential
         nature of the Information and the terms of this Section 15.07; and

              (iii) such party will not use the Information as the basis of a
         similar financing with any other party.

                                       55
<PAGE>

         (b) Notwithstanding clause (i) of subsection (a), each SCI Party may
disclose any Information:

              (i) to its independent attorneys, consultants and auditors who (A)
         in the good faith belief of such party, have a need to know such
         Information and (B) are informed by such party of the confidential
         nature of the Information and the terms of this Section 15.07;

              (ii)  to any other party to this Agreement;

              (iii) as may be required in such party's reasonable judgment, by
         any municipal, state, federal or other regulatory body, whether
         domestic or foreign, (including, without limitation, the SEC) having or
         claiming to have jurisdiction over such party, in order to comply with
         any law, order, regulation, regulatory request or ruling applicable to
         such party (it being understood that in no event will the Fee Letter be
         publicly filed (except as required pursuant to subsection (c)(iv)
         below) without each Bank Purchaser's prior written consent); or

              (iv) subject to subsection (c), in the event such party is legally
         compelled (by interrogatories, requests for information or copies,
         subpoena, civil investigative demand or similar process) to disclose
         such Information.

         (c) In the event that any SCI Party or anyone to whom such party or its
representatives transmits the Information is requested or becomes legally
compelled (by interrogatories, requests for information or documents, subpoena,
civil investigative demand or similar process) to disclose any of the
Information other than pursuant to subsections (b)(i) or (ii), such party will
(or will cause its representatives to)

              (i) provide with prompt written notice so that (A) an Information
         Provider, at its sole cost and expense, may seek a protective order or
         other appropriate remedy, or (B) such Purchaser may, if it so chooses,
         agree that such party (or its representatives) may disclose such
         Information pursuant to such request or legal compulsion;

              (ii) unless the related Purchaser agrees that such Information may
         be disclosed, make (at its sole cost and expense) a timely objection to
         the request or compulsion to provide such Information on the basis that
         such Information is confidential and subject to the agreements
         contained in this Section 15.07;

              (iii) take any action (at the related Purchaser's sole cost and
         expense) as any related Information Provider may reasonably request to
         seek a protective order or other appropriate remedy, provided that, in
         connection therewith, such party shall have first received such
         assurances as it may reasonably request that such Information Provider
         shall reimburse such party's or its representatives' reasonable costs
         and expenses or provide such other assistance as such party or its
         representatives may reasonably require; and

                                       56
<PAGE>

              (iv) in the event that such protective order or other remedy is
         not obtained, or the related Purchaser agrees that such Information may
         be disclosed, use its best efforts to furnish only that portion of the
         Information which such party reasonably believes is legally required to
         be furnished, and, provided such party (or its representative) is
         reimbursed or assisted as referred to in clause (iii) above, exercise
         best efforts to obtain reliable assurance that confidential treatment
         will be accorded the Information.

         (d) This Section 15.07 shall survive termination of this Agreement.

         SECTION 15.08. Captions and Cross References. The various captions
(including, without limitation, the table of contents) in this Agreement are
provided solely for convenience of reference and shall not affect the meaning or
interpretation of any provision of this Agreement. Unless otherwise indicated,
references in this Agreement to any Section, Appendix, Schedule or Exhibit are
to such Section of or Appendix, Schedule or Exhibit to this Agreement, as the
case may be, and references in any Section, subsection, or clause to any
subsection, clause or subclause are to such subsection, clause or subclause of
such Section, subsection or clause.

         SECTION 15.09. Integration. This Agreement and the other Agreement
Documents contain a final and complete integration of all prior expressions by
the parties hereto with respect to the subject matter hereof and shall
constitute the entire agreement among the parties hereto with respect to the
subject matter hereof, superseding all prior oral or written understandings.

         SECTION 15.10. Governing Law. THIS AGREEMENT, INCLUDING THE RIGHTS AND
DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE
PERFECTION OF THE INTERESTS OF THE ADMINISTRATIVE AGENT OR ANY PURCHASER IN THE
RECEIVABLES IS GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF
NEW YORK.

         SECTION 15.11. Waiver Of Jury Trial. SELLER, SCI AND GUARANTOR HEREBY
EXPRESSLY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO
ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER AGREEMENT DOCUMENT
OR UNDER ANY AMENDMENT, INSTRUMENT OR DOCUMENT DELIVERED OR WHICH MAY BE IN THE
FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING OR OTHER
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, OR ANY OTHER AGREEMENT
DOCUMENT AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A
COURT AND NOT A JURY TRIAL.

                                       57
<PAGE>

         SECTION 15.12. Consent To Jurisdiction; Waiver Of Immunities. EACH OF
SELLER, EACH PURCHASER, SCI AND GUARANTOR HEREBY ACKNOWLEDGES AND AGREES THAT:

                  (a) IT IRREVOCABLY (i) SUBMITS TO THE NON-EXCLUSIVE
         JURISDICTION, FIRST, OF ANY UNITED STATES FEDERAL COURT, AND SECOND, IF
         FEDERAL JURISDICTION IS NOT AVAILABLE, OF ANY STATE COURT, IN EITHER
         CASE SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING
         OUT OF OR RELATING TO THIS AGREEMENT, AND (ii) WAIVES, TO THE FULLEST
         EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM
         TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING.

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

         SECTION 15.13. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by the different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which when taken together shall constitute one and the same
Agreement.

         SECTION 15.14. Originators. Until such time, if ever, that a Second
Tier Sale Agreement or a Purchase and Sale Agreement with an Originator is
executed, delivered and approved by the Administrative Agent and all Bank
Purchasers, all references to such Originator other than SCI, or a purchase from
such Originator other than SCI, shall be inoperative.

         SECTION 15.15. Confidentiality of SCI Information. Pursuant to the
negotiation, preparation and implementation of this Agreement and the Agreement
Documents, the Guarantor and its Affiliates may from time to time furnish to the
Administrative Agent or a Purchaser written information which is identified to
such Person in writing when delivered as confidential (the "SCI Confidential
Information"). Each such Person shall use reasonable efforts to apply to any SCI
Confidential Information such procedures regarding confidentiality as it applies
generally to information of that nature; provided, however, that any such Person
may disclose any SCI Confidential Information or other documents delivered to
such Person, and disclose any other information disclosed to such Person, by or
on behalf of the Guarantor or its Affiliates in connection with or pursuant to
this Agreement to (i) such Person's directors, officers, employees, agents and
professional consultants, (ii) the Administrative Agent, (iii) the Purchasers,
(iv) any

                                       58
<PAGE>

Person to which such Person offers to sell, assign or grant a security interest
in all or any portion of its Purchaser's Interests or other rights or interests
under this Agreement pursuant to Article XII hereof, which prospective
purchaser, assignee or grantee agrees in writing prior to the receipt of SCI
Confidential Information to comply with this Section 15.15, (v) any federal or
state regulatory authority having jurisdiction over such Person, (vi) any other
Person to which such delivery or disclosure may be necessary or appropriate (a)
in compliance with any law, rule, regulation or order applicable to such Person,
(b) in response to any subpoena or other legal process, (c) in connection with
any litigation to which such Person is a party or (d) in order to protect such
Person's rights under this Agreement, (vii) any rating agency rating, or
placement agent placing, a Conduit Purchaser's Commercial Paper Notes and (viii)
any Program Support Provider. In connection with disclosures by any Person
pursuant to clause (vi)(b) or (c) above, such Person shall use its reasonable
efforts to notify the Guarantor prior to any such disclosure unless such
notification to the Guarantor is prohibited by court order. Notwithstanding the
foregoing, any Person that discloses SCI Confidential Information pursuant to
this Section 15.15 shall not be liable to the Guarantor for failure to notify
the Guarantor of such disclosure.

         SECTION 15.16. Funding. Any Bank Purchaser may fund or maintain its
Purchaser's Interest hereunder through any branch or agency of such Bank
Purchaser.

         SECTION 15.17. Sharing of Payments, Etc. If any Purchaser (for purposes
of this Section, a "Recipient") shall obtain any payment (whether voluntary,
involuntary, through the exercise of any right of setoff, or otherwise) on
account of the portion of the Undivided Interest owned by it (other than as a
result of the different methods for calculating Earned Discount) in excess of
its ratable share of payments on account of the Undivided Interest obtained by
the Purchasers entitled thereto, such Recipient shall forthwith purchase from
the Purchasers entitled to a share of such amount participations in the portions
of the Undivided Interest owned by such Persons as shall be necessary to cause
such Recipient to share the excess payment ratably with each such other Person
entitled thereto; provided, however, that if all or any portion of such excess
payment is thereafter recovered from such Recipient, such purchase from each
such other Person shall be rescinded and each such other Person shall repay to
the Recipient the purchase price paid by such Recipient for such participation
to the extent of such recovery, together with an amount equal to such other
Person's ratable share (according to the proportion of (a) the amount of such
other Person's required payment to (b) the total amount so recovered from the
Recipient) of any interest or other amount paid or payable by the Recipient in
respect of the total amount so recovered.

         SECTION 15.18. Excess Funds. No Conduit Purchaser shall be required to
make payment of any amounts required to be paid by it pursuant hereto unless
such Conduit Purchaser has Excess Funds (as defined below); provided that no
Conduit Purchaser shall be required at any time to make Purchases or permit
Reinvestments hereunder, each of which are and shall remain in its sole and
absolute discretion. If a Conduit Purchaser does not have Excess Funds, the
excess of the amount due hereunder over the amount paid shall not constitute a
"claim" (as defined in Section 101(5) of the Federal Bankruptcy Code) against
such Conduit Purchaser until such time

                                       59
<PAGE>

as such Conduit Purchaser has Excess Funds. If a Conduit Purchaser does not have
sufficient Excess Funds to make any payment due hereunder, then such Conduit
Purchaser may pay a lesser amount and make additional payments that in the
aggregate equal the amount of deficiency as soon as possible thereafter. The
term "Excess Funds" means the excess of (a) the aggregate projected value of a
Conduit Purchaser's assets and other property (including cash and cash
equivalents), over (b) the sum of (i) the sum of all scheduled payments of
principal, interest and other amounts payable on publicly or privately placed
indebtedness of such Conduit Purchaser for borrowed money, plus (ii) the sum of
all other liabilities, indebtedness and other obligations of such Conduit
Purchaser for borrowed money or owed to any credit or liquidity provider,
together with all unpaid interest then accrued thereon, plus (iii) all taxes
payable by such Conduit Purchaser to the Internal Revenue Service, plus (iv) all
other indebtedness, liabilities and obligations of such Conduit Purchaser then
due and payable, but the amount of any liability, indebtedness or obligation of
such Conduit Purchaser shall not exceed the projected value of the assets to
which recourse for such liability, indebtedness or obligation is limited. Excess
Funds with respect to Amsterdam shall be calculated once each Business Day.

                               [SIGNATURES FOLLOW]

                                       60
<PAGE>

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

                                        QUINCY CAPITAL CORPORATION,
                                        as a Conduit Purchaser

                                        By______________________________________
                                          Title_________________________________

                                        FOUR WINDS FUNDING CORPORATION,
                                        as a Conduit Purchaser

                                        By: Commerzbank Aktiengesellschaft,
                                               New York Branch, Attorney-in-Fact

                                        By______________________________________
                                          Title_________________________________

                                        By______________________________________
                                          Title_________________________________

                                        AMSTERDAM FUNDING CORPORATION,
                                        as a Conduit Purchaser

                                        By______________________________________
                                          Title_________________________________

                                        RECEIVABLES CAPITAL CORPORATION,
                                        as an Exiting Purchaser

                                        By______________________________________
                                          Title_________________________________

                                                     SECOND AMENDED AND RESTATED
                                       S-1        RECEIVABLES PURCHASE AGREEMENT
<PAGE>

                                        BANK OF AMERICA, NATIONAL ASSOCIATION,
                                        as the Administrative Agent

                                        By______________________________________
                                          Title_________________________________

                                        BANK OF AMERICA, NATIONAL ASSOCIATION,
                                        as a Bank Purchaser

                                        By______________________________________
                                          Title_________________________________

                                        COMMERZBANK AKTIENGESELLSCHAFT,
                                        NEW YORK BRANCH,
                                        as a Bank Purchaser

                                        By______________________________________
                                          Title_________________________________

                                        By______________________________________
                                          Title_________________________________

                                        ABN AMRO BANK N.V.,
                                        as a Bank Purchaser

                                        By______________________________________
                                          Title_________________________________

                                        By______________________________________
                                          Title_________________________________

                                                     SECOND AMENDED AND RESTATED
                                       S-2        RECEIVABLES PURCHASE AGREEMENT
<PAGE>

                                        SCI FUNDING, INC.,
                                        as Seller

                                        By______________________________________
                                          Title_________________________________

                                        SCI TECHNOLOGY, INC.,
                                        as initial Servicer

                                        By______________________________________
                                          Title_________________________________

                                        SCI SYSTEMS, INC.

                                        By______________________________________
                                          Title_________________________________

                                                     SECOND AMENDED AND RESTATED
                                       S-3        RECEIVABLES PURCHASE AGREEMENT
<PAGE>

                                   APPENDIX A

                                   DEFINITIONS

         This is Appendix A to the Second Amended and Restated Receivables
Purchase Agreement, dated as of June 14, 2000, among SCI Funding, Inc., as
Seller, SCI Technology, Inc., as initial Servicer, SCI Systems, Inc., as
Guarantor, Receivables Capital Corporation, as an Exiting Purchaser, Quincy
Capital Corporation, Four Winds Funding Corporation and Amsterdam Funding
Corporation as Conduit Purchasers, Bank of America, National Association,
Commerzbank Aktiengesellschaft and ABN AMRO Bank N.V., as Bank Purchasers, and
Bank of America, National Association, as Administrative Agent (as further
amended, supplemented or otherwise modified from time to time, and including the
Original Receivables Agreement for as long as it was in effect, this
"Agreement"). Each reference in this Appendix A to any Section, Appendix or
Exhibit refers to such Section of or Appendix or Exhibit to this Agreement.

                                      INDEX

                                                                        Page No.
                                                                        --------

A.  Defined Terms .......................................................  A-1
B.  Other Terms ......................................................... A-24
C.  Computations of Time Periods......................................... A-24

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

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

         "Accounts Payable Amount" means at any time the aggregate amount,
vouchered and unvouchered, owed by Seller or any Originator to any Account
Payable Obligor at such time for materials used in the manufacture or production
of goods by an Originator, excluding amounts owing for purchases under
non-binding purchase orders.

         "Account Payable Obligor" means Hewlett-Packard Company, IBM, and any
other Obligor which has been approved by all Purchasers pursuant to Section
2.04(c) as having a Special Concentration Limit.

                                       A-1
<PAGE>

         "Accounts Receivable" means all rights of any Person to payment for
goods sold or leased or for services rendered, whether or not such rights to
payment have been earned by performance, including, without limitation, all
accounts, contract rights, chattel paper, instruments and documents of any
Person arising from the sale of goods or services by such Person, whether
secured or unsecured, and whether now existing or hereafter created or arising
and including, further, without limitation, federal and state tax refunds due
and owing to such Person relating to taxes previously paid by such Person less
all doubtful accounts receivable owing to such Person, as determined in
accordance with GAAP.

         "Adjusted Average Maturity" has the meaning set forth in Appendix B.

         "Adjusted Working Capital" means at any date of determination, ninety
percent (90%) of the Accounts Receivable of Guarantor and its consolidated
Subsidiaries plus eighty-five percent (85%) of the Inventory of Guarantor and
its consolidated Subsidiaries.

         "Administrative Agent" has the meaning set forth in the preamble.

         "Administrative Agent's Account" has the meaning set forth in Section
3.05(a).

         "Adverse Claim" means a Lien or other right or claim of any Person
other than (a) a potential claim or right (that has not yet been asserted) of a
trustee appointed for an Obligor in connection with any Event of Bankruptcy or
(b) an unfiled lien for taxes accrued but not yet payable.

         "Affected Party" means each of each Purchaser, each Program Support
Provider, any permitted assignee of a Purchaser, or a Program Support Provider,
any assignee of any of a Purchaser's obligations to a Program Support Provider
in respect of any Funding, or any holder of a participation interest in the
rights and obligations of any Program Support Provider under any Program Support
Agreement and in respect of any Funding, the Administrative Agent and any
holding company of BofA or any Bank Purchaser.

         "Affiliate" when used with respect to a Person means any other Person
controlling, controlled by, or under common control with, such Person.

         "Affiliated Party" means each of Guarantor, SCI and their Affiliates.

         "Aggregate Purchasers' Investment" means the sum of the Purchaser's
Investments for all Purchasers.

         "Agreement Documents" means this Agreement, the Lock-Box Agreements,
the Fee Letters, each Second Tier Sale Agreement, each Purchase and Sale
Agreement and the other documents to be executed and delivered in connection
herewith.

                                       A-2
<PAGE>

         "Alternate Reference Rate" has the meaning set forth in Appendix B.

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

         "Average Maturity" has the meaning set forth in Appendix B .

         "Bank Credit Agreement" means that certain Amended and Restated Credit
Agreement dated as of August 4, 1995, by and among Guarantor, as borrower
thereunder, Citibank, N.A., as agent, ABN AMRO Bank N.V., as co-agent, and the
other lenders signatory thereto, as the same has been and may be amended,
supplemented, extended, renewed, restated, refinanced or replaced from time to
time.

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

         "Bank Rate" has the meaning set forth in Appendix B.

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

         "Business Day" means a day on which commercial banks in Chicago,
Illinois, Charlotte, North Carolina, New York City and Huntsville, Alabama are
not authorized or required to be closed for business.

         "Change of Control" means (i) that Seller ceases to be a Wholly Owned
Subsidiary of SCI, (ii) that SCI or any other Originator ceases to be a Wholly
Owned Subsidiary of Guarantor or (iii) in relation to Guarantor, the acquisition
by any Person or group of Persons (within the meaning of Section 13 or 14 of the
Exchange Act), of beneficial ownership (within the meaning of Rule 13d-3
promulgated by the SEC under the Exchange Act) of issued and outstanding shares
of the capital stock of Guarantor entitled (without regard to the occurrence of
any contingency) to vote for the election of members of the board of directors
of Guarantor and having a then present right to exercise 50% or more of the
voting power for the election of members of the board of directors of Guarantor
attached to all such outstanding shares of capital stock of Guarantor.

         "Collections" means, with respect to any Receivable, all funds which
either (a) are received by Seller, any Originator or Servicer from or on behalf
of the related Obligors in payment of any amounts owed (including, without
limitation, purchase prices, finance charges, interest and all other charges) in
respect of such Receivable, or applied to such amounts owed by such Obligors
(including, without limitation, insurance payments that Seller, any Originator
or Servicer applies in the ordinary course of its business to amounts owed in
respect of such Receivable and net proceeds of sale or other disposition of
repossessed goods or other collateral or property of the Obligor or any other
party directly or indirectly liable for payment of such Receivable and available
to be applied thereon), or (b) are deemed to have been received, by Seller or
any other Person as a Collection pursuant to Section 3.03.

                                       A-3
<PAGE>

         "Commercial Paper Notes" means short-term promissory notes issued or to
be issued by a Conduit Purchaser to fund its investments in accounts receivable
or other financial assets.

         "Commercial Paper Rate" has the meaning set forth in Appendix B.

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

         "Commitment" with respect to any Purchaser means the amount listed as
such Purchaser's Commitment on Schedule I. Notwithstanding the use of the term
"Commitment" in this Agreement with respect to any Conduit Purchaser, no Conduit
Purchaser shall have any obligation hereunder to fund any Purchase or
Reinvestment, all of such fundings being at such Conduit Purchaser's sole
discretion.

         "Concentration Limit" has the meaning set forth in Section 2.04(b).

         "Conditions Precedent" has the meaning set forth in Section 5.02.

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

         "Conduit Related Percentage" means with respect to any Bank Purchaser
and any Related Group the ratio, expressed as a percentage, of (i) such Bank
Purchaser's Commitment divided by (ii) the aggregate of the Commitments of each
of the Bank Purchasers in such Related Group.

         "Consistent Basis" means, in reference to the application of GAAP, that
the accounting principles observed in the period referred to are comparable in
all material respects to those applied in the preceding period, except to the
extent required to reflect a change in GAAP or any other changes consented to by
the Required Purchasers.

         "Contingent Obligation" as to any Person means any obligation of such
Person guaranteeing or in effect guaranteeing any indebtedness, leases,
dividends or other contractual obligations ("primary obligations") of any other
Person (the "primary obligor") in any manner, whether directly or indirectly,
including, without limitation, any obligation of such Person, whether or not
contingent, (a) to purchase any such primary obligation or any property
constituting direct or indirect security therefor, (b) to advance or supply
funds (i) for the purchase or payment of any such primary obligation or (ii) to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, (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 to make
payment of such primary obligation or (d) otherwise to assure or hold harmless
the owner of such primary obligation against loss in respect thereof; provided,
however, that the term Contingent Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business. 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

                                       A-4
<PAGE>

made or, if not state or determinable, the maximum reasonably anticipated
liability in respect thereof as determined by such Person in good faith.

         "Contract" means a contract between an Originator and any Person, or an
invoice from an Originator to any Person or a purchase order from any Person to
an Originator, in each case pursuant to or under which such Person shall be
obligated to make payments to an Originator.

         "Credit and Collection Procedure" means those credit and collection
policies and practices relating to Contracts and Receivables described in the
PriceWaterhouseCoopers report attached as Schedule 6.01(m)-2, as modified
without violating Section 7.03(c).

         "Credit Reserve" at any time means an amount equal to the greater of
(1) $5,000,000 and (2) the product of (i) the Total Purchasers' Investment at
such time, times (ii) the greatest of (A) 20%, (B) the sum of (I) the Dilution
Reserve, plus (II) the product of (1) two times (2) the highest Sales-Based
Default Ratio to have occurred for the most recent twelve Month End Dates times
the quotient of (x) the cumulative billings over the most recent month and the
preceding four months divided by (y) the aggregate Unpaid Balance of Eligible
Receivables as of the most recent Month End Date and (C) the sum of (I) the
Dilution Reserve, plus (II) the product of (1) 2.5 times (2) the highest
Delinquency Ratio to have occurred for the most recent twelve Month End Dates.

         "Deemed Collection" has the meaning assigned thereto in the applicable
Second Tier Sale Agreement.

         "Defaulted Receivable" means a Receivable:

                  (a) as to which any payment, or part thereof, remains unpaid
         for 120 days (or 150 days if the Obligor thereof is a Governmental
         Authority) from the invoice date, other than amounts deemed
         uncollectible, in Servicer's reasonable judgment, due to contract
         cancellations and adjustments, which, in each case, are not related to
         and do not result from credit problems,

                  (b) is due from an Obligor with respect to which an Event of
         Bankruptcy has occurred and remains continuing,

                  (c) as to which payments have been extended, or the terms of
         payment thereof rewritten, without the Required Purchasers' consent,
         other than as permitted in Section 8.02(c), or

                  (d) which has been or, consistent with the Credit and
         Collection Procedure, should be, written off Seller's books as
         uncollectible.

                                       A-5
<PAGE>

         "Delinquency Ratio" means the ratio (expressed as a percentage)
computed as of each Month End Date by dividing (x) the aggregate Unpaid Balance
of all Pool Receivables that were Delinquent Receivables on each of such Month
End Date and the five (5) immediately preceding Month End Dates by (y) the
aggregate Unpaid Balance of all Pool Receivables on such Month End Dates.

         "Delinquent Receivable" means a Receivable as to which any payment, or
part thereof, remains unpaid for 90 days from the invoice date, other than
amounts deemed uncollectible, in Servicer's reasonable judgment, due to billing
disputes, contract cancellations for other than credit reasons and adjustments.

         "Designated Obligor" means, at any time, all Obligors except Excluded
Obligors and any such Obligor as to which any Bank Purchaser has, at least three
(3) Business Days prior to the date of determination, given written notice to
Seller and the Administrative Agent that such Obligor shall not be considered a
Designated Obligor.

         "Dilution Factors" means any event or condition described in clause (i)
of Section 3.03(a) that would cause any Pool Receivable or portion thereof to be
deemed a Collection.

         "Dilution Horizon Ratio" means as of any Month End Date (i) the
aggregate billings for the three months preceding such Month End Date, divided
by (ii) the aggregate Unpaid Balance of all Eligible Receivables at such Month
End Date.

         "Dilution Reserve" at any time means an amount equal to (i) (a) two
times the Expected Dilution Ratio, plus (b) the Spike Factor, times (ii) the
Dilution Horizon Ratio.

         "Dilution Spike" means the highest Sales-Based Dilution Ratio to have
occurred during the twelve month period preceding such Month End Date.

         "Discount Factor" has the meaning set forth in Appendix B.

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

         "Earned Discount" has the meaning set forth in Appendix B.

         "EBIT" means for any fiscal year of the Guarantor, an amount equal to
the sum for such fiscal year of (i) Net Income plus (ii) provisions for income
taxes plus (iii) Interest Expense, all determined by Guarantor and its
Subsidiaries on a consolidated basis in accordance with GAAP; provided, however,
that all cash items of gain or loss for such fiscal period which are not
ordinary by GAAP definition shall be included in the computation of EBIT and
provided, further, that all non-cash items of gain or loss for such fiscal
period which are not ordinary by GAAP definition shall be excluded from the
computation of EBIT.

                                       A-6
<PAGE>

         "Eligible Contract" means a Contract similar to one of the forms set
forth in Schedule 6.01(m)-1 or in another form approved by SCI in the exercise
of its reasonable business judgment.

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

         (a) the Obligor of which (i) is not an Affiliate of Seller, and (ii) is
a Designated Obligor at the time of the creation of an interest in such
Receivable hereunder;

         (b) the Obligor of which is located in the United States (or is fully
guaranteed by an Affiliate of the Obligor that is located in the United States
pursuant to a guaranty in substantially the form attached hereto as Exhibit I-1
or such other form satisfactory in form to the Required Purchasers) or Canada,
provided that the Administrative Agent and the Required Purchasers have
determined, to their reasonable satisfaction, that such Receivables are not
subject to any offset or withholding of any kind and has received an opinion of
counsel, in form and substance satisfactory to the Required Purchasers, as to
the true sale of such Receivables to Seller, the perfection of the
Administrator's interest therein and such other matters as the Administrative
Agent or any Bank Purchaser shall reasonably request;

         (c) which is not a Defaulted Receivable;

         (d) (i) which arose in the ordinary course of an Originator's business
from the sale of such Originator's merchandise, insurance or services; provided
that, if such Receivable was not originated by SCI, the Unpaid Balance of such
Receivable, when added to the aggregate Unpaid Balance of all other Pool
Receivables not originated by SCI, does not exceed 5% of the aggregate Unpaid
Balance of all Eligible Receivables and (ii) which, according to the Contract
related thereto, is required to be paid in full within thirty (30) days of the
original billing date or statement date therefor;

         (e) which is an account receivable representing all or part of the
sales price of merchandise, insurance or services within the meaning of Section
3(c)(5) of the Investment Company Act of 1940, as amended;

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

         (g) which arises under an Eligible Contract which has been duly
authorized and which, together with such Receivable, is in full force and effect
and constitutes the legal, valid and binding obligation of the Obligor of such
Receivable enforceable against such Obligor, as to all material terms thereof,
in accordance with its terms;

         (h) the Obligor of which is not the Obligor of Defaulted Receivables
that represent more than 10% of the aggregate Unpaid Balance of all Receivables
of such Obligor;

                                       A-7
<PAGE>

         (i) which is not subject to any existing dispute, offset, counter-claim
or defense whatsoever, except for Accounts Payable Amounts;

         (j) which, together with the Contract related thereto, does not
contravene any laws, rules or regulations applicable thereto (including, without
limitation, laws, rules and regulations relating to truth in lending, fair
credit billing, fair credit reporting, equal credit opportunity, fair debt
collection practices and privacy) in any material respect and with respect to
which no party to the Contract related thereto is in violation of any such law,
rule or regulation in any material respect;

         (k) as to which, at or prior to the time of the initial creation of an
interest in such Receivable through a Purchase, the Administrative Agent has not
notified the Seller that any Bank Purchaser (exercising its reasonable credit
judgment) has determined that such Receivable (or the class of Receivables into
which such Receivable falls) is not acceptable for purchase hereunder;

         (l) no portion of which includes any amounts payable in respect of
sales taxes;

         (m) which is not a progress billing;

         (n) which constitutes an account as defined in the UCC (or applicable
Canadian law) as in effect in the jurisdiction governing the perfection of the
Administrative Agent's ownership interest;

         (o) with regard to which the warranty of Seller in Section 6.01(i) is
true and correct;

         (p) which arises out of a current transaction, or the proceeds of which
have been or are to be used for current transactions, within the meaning of
Section 3(a)(3) of the Securities Act of 1933, as amended;

         (q) which (i) satisfies all applicable requirements of the related
Credit and Collection Procedure and (ii) complies with such other criteria and
requirements as any Bank Purchaser (exercising its reasonable credit judgment)
may from time to time specify to the Seller and the Administrative Agent;

         (r) if such Receivable was originated by an Originator other than SCI,
which was sold in a true sale to SCI pursuant to a Purchase and Sale Agreement
that has been approved by the Required Purchasers and with respect to which all
conditions precedent have been met to the satisfaction of the Required
Purchasers (including, without limitation, the delivery of opinions of counsel),
and, in each case, was sold to Seller pursuant to a Second Tier Sale Agreement;
and

         (s) if the Obligor of such Receivable is an Account Payable Obligor,
the Contract related to such Receivable between such Obligor and the related
Originator that is the master

                                       A-8
<PAGE>

contract for such Obligor has a "take or pay" clause and has been approved by
the Required Purchasers.

         "End Date" means the date after the Facility Termination Date on which
the Undivided Interest has been reduced to zero and all other amounts payable to
any Purchaser or the Administrative Agent hereunder have been paid in full.

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

         "Eurodollar Rate (Reserve Adjusted)" has the meaning set forth in
Appendix B.

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

                  (a) a case or other proceeding shall be commenced, without the
         application or consent of such Person, in any court, seeking the
         liquidation, reorganization, debt arrangement, dissolution, winding up,
         or composition or readjustment of debts of such Person, the appointment
         of a trustee, receiver, custodian, liquidator, assignee, sequestrator
         or the like for such Person or all or substantially all of its assets,
         or any similar action with respect to such Person under any law
         relating to bankruptcy, insolvency, reorganization, winding up or
         composition or adjustment of debts, and such case or proceeding shall
         continue undismissed, or unstayed and in effect, for a period of 60
         consecutive days; or an order for relief in respect of such Person
         shall be entered in an involuntary case under the federal bankruptcy
         laws or other similar laws now or hereafter in effect; or

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

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

         "Excluded Data" means any information or data pertaining to an Obligor,
the disclosure of which information and data by Seller, Guarantor or any
Affiliate of either of them (collectively, the "Disclosing Parties") to the
Administrative Agent or a Purchaser could violate, in the good faith belief of
counsel, any applicable "fair credit" law, privacy law or any similar statute,
rule or regulation, or any contractual provision binding on any such Disclosing
Party.

                                       A-9
<PAGE>

         "Excluded Obligors" means (i) each Governmental Authority and (ii) any
other Obligor approved as an "Excluded Obligor" by all Bank Purchasers in a
written consent accompanied by a certificate from the Seller and the Servicer
that such designation will not cause a Termination Event or Unmatured
Termination Event to occur (provided, that each Bank Purchaser hereby consents
to the future designation of NEC as an "Excluded Obligor" upon delivery of the
certificate described above).

         "Executive Officer" means any of those officers of Guarantor, SCI or
Seller, as the case may be, who are deemed to be "Executive Officers" thereof
pursuant to Rule 405 of Regulation C of the Exchange Act or any officer of
Guarantor or Seller, as the case may be, who is a senior vice president thereof,
or any individual performing a similar role as any individual who is a senior
vice president of Guarantor or Seller on the date of this Agreement.

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

         "Expected Dilution Ratio" for any Month End Date means the average of
the Sales-Based Dilution Ratios for the twelve months preceding such Month End
Date.

         "Facility" means the purchase and reinvestment facility provided by the
Purchasers pursuant to this Agreement.

         "Facility Termination Date" has the meaning set forth in Section 1.05.

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

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

         "Financing Lease(s)" shall mean (a) any lease of property, real or
personal, the then present value of the minimum rental commitment of which
should, in accordance with GAAP, be capitalized on a balance sheet of the
lessee, and (b) any other such lease the obligations under which are capitalized
on a consolidated balance sheet of SCI or Guarantor and its Subsidiaries.

         "Financing Statement" means any financing statement that lists the
Seller (under any current name, any previous name or any trade name) as debtor
and that is filed in any jurisdiction in which filings would be appropriate
under the UCC or any comparable law to perfect a security interest in any
Receivable, any Collections with respect thereto, any Related Security or any
Contract.

         "Four Winds" has the meaning set forth in the preamble.

                                      A-10
<PAGE>

         "Funded Percentage" with respect to any Purchaser at any time means the
ratio, expressed as a percentage, of (i) such Purchaser's Purchaser's Investment
divided by (ii) the Total Purchasers' Investment, in each case, at such time.

         "Funding" means a drawing under a letter of credit, surety bond or
other instrument issued pursuant to a Program Support Agreement, a drawing on a
cash collateral account funded pursuant to a Program Support Agreement, a
purchase, loan or other extension of credit made by a Program Support Provider
to a Conduit Purchaser under a Program Support Agreement, or any other advance
or disbursement of funds from or to a Conduit Purchaser or for such Conduit
Purchaser's account or for which such Conduit Purchaser is obligated to
reimburse a Program Support Provider pursuant to a Program Support Agreement.

         "GAAP" means United States generally accepted accounting principles.

         "Governmental Authority" means any nation or government (including,
without limitation, the United States government), any state or other political
subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative function of or pertaining to government.

         "Group Percentage" means, with respect to any Related Group, the ratio,
expressed as a percentage, of (i) the aggregate of the Commitments of each of
the Bank Purchasers in such Related Group divided by (ii) the aggregate of the
Commitments of all Bank Purchasers.

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

         "Indebtedness" of a Person, at a particular date, means any of the
following at such date, without duplication, (a) indebtedness of such Person for
borrowed money or evidenced by notes, bonds, debentures or like instruments, (b)
indebtedness of such Person for the deferred purchase price of property or
services, except current accounts payable and accrued expenses arising in the
ordinary course of business, (c) obligations of such Person under any Financing
Lease, (d) indebtedness of such Person arising under acceptance facilities, (e)
unreimbursed draws on letters of credit and (f) Contingent Obligations.

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

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

         "Information" has the meaning set forth in Section 15.07.

         "Information Provider" has the meaning set forth in Section 15.07.

         "Initial Purchaser Note" has the meaning set forth in the applicable
Second Tier Sale Agreement.

                                      A-11

<PAGE>

         "Interest Expense" means for any fiscal year of Guarantor, total
interest expense (including, without limitation, interest expense attributable
to capitalized leases in accordance with GAAP) of Guarantor and its Subsidiaries
determined on a consolidated basis in accordance with GAAP.

         "Inventory" means, with respect to any Person, all goods, merchandise
and other personal property held for sale, and all raw materials, components,
work or goods in process, finished goods, goods in transit and packing and
shipping materials, accretions and accessions thereto, trust receipts and
similar documents covering the same products, all whether now owned or hereafter
acquired by such Person, all as determined in accordance with GAAP.

         "Lien" means a lien, security interest, charge or encumbrance.

         "Liquidations" means all funds described in clause (a) of the
definition of Collections.

         "Liquidity Agreement" means, with respect to each Conduit Purchaser,
any liquidity agreement entered into from time to time by such Conduit Purchaser
related to this Agreement.

         "Liquidity Banks" means the purchasers or lenders from time to time
parties to a Liquidity Agreement.

         "Lock-Box Account" means any bank account in which Collections (other
than Collections of Receivables with respect to which the Obligors are Excluded
Obligors) are received or deposited.

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

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

         "Losses to Liquidations Ratio" means the percentage that (x) the
write-offs (net of recoveries) recognized during the six month period ending on
the most recent Month End Date on all Receivables owned by Seller was of (y)
Collections of such Receivables during such period.

         "Manager" means SCI Systems (Alabama), Inc., an Alabama corporation and
the immediate parent company of SCI.

         "Management Agreement" means the Management Agreement, dated as of
September 27, 1996, between Manager and Seller, as amended, supplemented or
otherwise modified from time to time.

         "Material Adverse Effect" means a material adverse effect on:

                                      A-12

<PAGE>

                  (i) the financial condition, business, assets, prospects or
         operations of Guarantor and its Subsidiaries, taken as a whole;

                  (ii) the ability of Servicer or Guarantor to perform its
         obligations under this Agreement or the other Agreement Documents to
         which it is a party;

                  (iii) the validity, enforceability, status, perfection or
         priority of any Purchaser's or the Administrative Agent's interest in
         the Pool; or

                  (iv) the collectibility or enforceability of a significant
         portion of the Pool Receivables.

         "Month End Date" means the last day of each fiscal month.

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

         "Negative Spread Fee" has the meaning set forth in Appendix B.

         "Net Income" means, as applied to any Person for any fiscal period, the
aggregate amount of net income (or net loss) of such Person, after taxes, for
such period as determined in accordance with GAAP.

         "Net Pool Balance" has the meaning set forth in Section 2.04(a).

         "Obligor" means a Person obligated to make payments with respect to a
Receivable.

         "Original Receivables Agreement" has the meaning set forth in the
Background.

         "Originator Loan" is defined in the applicable Second Tier Sale
Agreement.

         "Originator Note" is defined in the applicable Second Tier Sale
Agreement.

         "Originators" means SCI, SCI Systems (Canada), Inc., a Canadian
corporation formed under the laws of the Province of Quebec, SCI Brockville
Corp., a Nova Scotia Company and their respective successors and permitted
assigns.

         "Owner" means, for each Purchase, the Purchasers funding such Purchase;
provided, however, that, upon any assignment of any interest in the Undivided
Interest (or portion thereof) made in accordance with Article XII, the assignee
thereof shall be the Owner of such interest in the Undivided Interest (or
portion thereof).

         "Percentage" with respect to any Purchaser means the percentage set
forth opposite such Purchaser's name on Schedule I hereto.

                                      A-13
<PAGE>

         "Periodic Report" means a report in substantially the form of Exhibit
3.04(a).

         "Permitted Subordinated Debentures" means debentures contemplated to be
issued from time to time by Guarantor after the date of the Original Agreement
that (i) are subordinated in writing to all obligations of Guarantor, SCI and
Seller hereunder, such subordination provisions to be on terms and conditions
reasonably satisfactory in all respects to the Required Purchasers (approval
under the Bank Credit Agreement constitutes approval hereunder) and (ii) do not
exceed $800,000,000 in the aggregate at any time.

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

         "Pool" has the meaning set forth in Section 2.01.

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

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

         "Program Support Agreement" with respect to any Conduit Purchaser means
and includes the Liquidity Agreement to which such Conduit Purchaser is a party
and any other agreement entered into by any Program Support Provider providing
for the issuance of one or more letters of credit for the account of such
Conduit Purchaser, the issuance of one or more surety bonds for which such
Conduit Purchaser is obligated to reimburse the applicable Program Support
Provider for any drawings thereunder, the sale by such Conduit Purchaser to any
Program Support Provider of interests in the Undivided Interest (or portions
thereof) and/or the making of loans and/or other extensions of credit to such
Conduit Purchaser in connection with such Conduit Purchaser's securitization
program, together with any letter of credit, surety bond or other instrument
issued thereunder.

         "Program Support Provider" with respect to any Conduit Purchaser means
and includes the Liquidity Banks party to the Liquidity Agreement with such
Conduit Purchaser and any other or additional Person (other than any customer of
such Conduit Purchaser) now or hereafter extending credit or having a commitment
to extend credit to or for the account of such Conduit Purchaser or issuing a
letter of credit, surety bond or other instrument to support any obligations
arising under or in connection with such Conduit Purchaser's securitization
program.

         "Purchase" has the meaning set forth in Section 1.01(a).

         "Purchase and Sale Agreement" means a Purchase and Sale Agreement
between SCI and an Originator, as it may be amended, supplemented or otherwise
modified from time to time.

                                      A-14
<PAGE>

         "Purchase and Sale Termination Date" means the earlier of the End Date
and the termination of the Commitments under Section 10.02.

         "Purchase Limit" has the meaning set forth in Section 1.02(a).

         "Purchase Termination Date" has the meaning set forth in Section 1.06.

         "Purchaser" means any of the Conduit Purchasers or the Bank Purchasers,
and "Purchasers" means all of the Conduit Purchasers and the Bank Purchasers.

         "Purchaser Rate" has the meaning set forth in Appendix B.

         "Purchaser's Interest" means, with respect to any Purchaser, all of
such Purchaser's right, title and interest in the Pool and the Agreement
Documents.

         "Purchaser's Investment" has the meaning set forth in Section 2.03.

         "Purchasers' Share" has the meaning set forth in Section 2.05.

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

         "Rate Variance Factor" has the meaning set forth in Appendix B.

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

         "Receivable" means any right to payment from a Person, whether
constituting an account, chattel paper, instrument or general intangible,
arising from the sale by any Originator of merchandise or services rendered by
such Originator, as the case may be, and includes the right to payment of any
interest or finance charges and other obligations of such Person with respect
thereto.

         "Receivables Pool" means at any time all then outstanding Receivables
as to which the Obligors thereunder are Designated Obligors. If a Receivable is
a Pool Receivable on the day immediately preceding the Facility Termination
Date, such Receivable shall continue to be considered a Pool Receivable at all
times thereafter.

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

         "Regulatory Change" means, relative to any Affected Party

                                      A-15
<PAGE>

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

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

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

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

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

         "Reinvestment" has the meaning set forth in Section 1.01(b).

         "Related Administrator" with respect to (i) Quincy means BofA, (ii)
Four Winds means Commerzbank and (iii) Amsterdam means ABN.

         "Related Bank Purchaser" with respect to any Conduit Purchaser means
each Bank Purchaser designated as a "Related Bank Purchaser" for such Conduit
Purchaser on Schedule I hereto.

         "Related Group" means each of (i) Quincy and its Related Bank
Purchasers and Related Administrator, (ii) Four Winds and its Related Bank
Purchasers and Related Administrator and (iii) Amsterdam and its Related Bank
Purchasers and Related Administrator.

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

                                      A-16
<PAGE>

supporting or securing payment of such Pool Receivable whether pursuant to the
Contract related to such Pool Receivable or otherwise; and (f) all of Seller's
rights and claims under the Purchase and Sale Agreement and the Second Tier Sale
Agreements.

         "Remaining Collections" has the meaning set forth in Section
3.01(a)(ii).

         "Required Allocation" at any time means the sum of the Total
Purchasers' Investment, Discount Factor, Servicer's Fee Reserve and Credit
Reserve at such time as calculated pursuant to Section 2.02.

         "Required Allocation Limit" has the meaning set forth in Section
1.02(b).

         "Required Purchasers" means the Bank Purchasers having aggregate
Percentages of 60% or more (but not less than two Bank Purchasers).

         "Requirement of Law" for any Person shall mean the Certificate of
Incorporation and By-Laws or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation, or determination of an
arbitrator or a court or other governmental authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

         "Run Off Day" means any of (a) each day which occurs on or after the
date designated by the Administrative Agent or the Required Purchasers to Seller
to be the "Run Off Commencement Date" during a time when any of the conditions
precedent set forth in Section 5.02 are not satisfied, (b) each day which occurs
on or after the Termination Date or (c) each day which occurs on or after the
Seller shall have given written notice to the Administrative Agent and each Bank
Purchaser that it no longer wishes to sell the Undivided Interest in the
Receivables Pool pursuant to this Agreement.

         "Run Off Discount" has the meaning set forth in Appendix B.

         "Run Off Period" means one or more successive Run Off Days.

         "Run Off Servicer's Fee" has the meaning set forth in Appendix B.

         "Sales-Based Default Ratio" means, as of any Month End Date, the ratio,
expressed as a percentage, of (i) the aggregate Unpaid Balance of all Pool
Receivables that were more than 91, but less than 120, days past due for the
three successive months occurring immediately prior to the month ending on such
Month End Date, plus the aggregate write-offs for the month ending on such Month
End Date and for the immediately preceding two months, divided by (ii) the
aggregate billings for the fifth, sixth and seventh preceding months. For
example, as of April 30, the numerator of the Sales-Based Default Ratio would be
the aggregate Unpaid Balance of all Pool Receivables that were more than 91, but
less than 120, days past due as of January 31,

                                      A-17
<PAGE>

February 28 and March 31, plus the aggregate write-offs for the months of
February, March and April; the denominator of the Sales-Based Default Ratio
would be the aggregate billings for the months of October, November and
December. For purposes of calculating the Sales-Based Default Ratio (i) for the
months of October, November and December of 1999, Receivables owed by Monorail
shall be excluded and (ii) for the month of January of 2000, Receivables owed by
Compaq shall be excluded.

         "Sales-Based Dilution Ratio" as of any Month End Date means (a) the
aggregate reduction in the Unpaid Balance of Pool Receivables attributable to
Dilution Factors which Dilution Factors were granted during the month ending on
such Month End Date, divided by (b) billings for the third month preceding such
Month End Date.

         "Second Tier Sale Agreements" means, collectively, each Second Tier
Sale Agreement between an Originator and Seller, as it may be amended,
supplemented or otherwise modified from time to time.

         "Second Tier Sale Termination Event" has the meaning set forth in the
applicable Second Tier Sale Agreement.

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

         "Scheduled Facility Termination Date" has the meaning set forth in
Section 1.05(a).

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

         "SCI Party" means each of SCI, Seller, Guarantor and each Originator.

         "SEC" means the Securities and Exchange Commission.

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

         "Seller Material Adverse Effect" means a material adverse effect on:

                  (i) the financial condition, business, assets, prospects or
         operations of Seller;

                  (ii) the ability of Seller to perform its obligations under
         this Agreement or the other Agreement Documents to which it is a party;

                  (iii) the validity, enforceability, status, perfection or
         priority of any Purchaser's or the Administrative Agent's interest in
         the Pool; or

                                      A-18
<PAGE>

                  (iv) the collectibility or enforceability of a significant
         portion of the Pool Receivables.

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

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

         "Servicer's Fee" has the meaning set forth in Appendix B.

         "Servicer's Fee Reserve" has the meaning set forth in Appendix B.

         "Settlement Date" means the 15th day of each month or if such day is
not a Business Day, the next succeeding Business Day, commencing July 17, 2000;
provided, that the initial Settlement Date with respect to amounts accrued prior
to the date hereof shall be June 20, 2000.

         "Settlement Period" means each period from and including a Settlement
Date to but excluding the next succeeding Settlement Date; provided, however
that with respect to the first Settlement Period occurring after the date
hereof, the period from the date hereof through July 17, 2000.

         "Special Concentration Limit" has the meaning set forth in Section
2.04(c).

         "Spike Factor" means (i) the Dilution Spike minus the Expected Dilution
Ratio at such time, times (ii) the Dilution Spike divided by the Expected
Dilution at such time.

         "Subordinated Debt" means (i) the Permitted Subordinated Debentures and
(ii) any other Indebtedness of Guarantor or any Subsidiary of Guarantor which is
subordinated in writing to all obligations of Guarantor or such Subsidiary on
terms and conditions satisfactory in all respects to the Required Purchasers and
approved in writing by the Required Purchasers (which approval shall not be
unreasonably withheld or delayed) including, without limitation, with respect to
interest rates, payment terms, maturities, amortization schedules, covenants,
defaults, remedies and subordination provisions.

         "Subsidiary" of any Person shall mean a corporation or other entity of
which shares of stock or other ownership interests having ordinary voting power
(other than stock or other ownership interests having such power only by reason
of the happening of a contingency) to elect a majority of the directors of such
corporation, or other Persons performing similar functions for such entity, are
owned, directly or indirectly, including through other Subsidiaries, by such
Person.

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

                                      A-19
<PAGE>

         "Support Termination Date" for any Bank Purchaser means the date set
forth opposite such Bank Purchaser's name on Schedule I, as such date may be
extended from time to time with the written consent of such Bank Purchaser.

         "Termination Date" means the Facility Termination Date.

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

         "Total Capital" means, as to any Person at a particular date, the sum
of (i) all items which would, in accordance with GAAP, be properly classified on
the balance sheet of such Person as (A) total shareholders' equity plus (B)
long-term deferred income taxes, plus (ii) Total Debt.

         "Total Debt" means, as to any Person at a particular date, the sum of
all items which would, in accordance with GAAP, be properly classified on such
Person's balance sheet as (i) short-term debt for money borrowed, plus (ii)
current maturities of long-term debt, plus (iii) long-term debt, including,
without limitation, with respect to Guarantor, the Subordinated Debt and to the
extent issued, the Permitted Subordinated Debentures.

         "Total Purchasers' Investment" at any time means the sum of the
Purchaser's Investment for all Purchasers hereunder.

         "Trigger Event" means that the rating of SCI's convertible subordinated
debt by S&P has been reduced to B+ or below or has been withdrawn.

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

         "Undivided Interest" has the meaning set forth in Section 2.01.

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

         "Unpaid Balance" of any Receivable means at any time the sum of (x) the
unpaid principal amount thereof, minus (y) any amounts representing any sales or
other similar tax.

         "Wholly Owned Subsidiary" means a Subsidiary all of whose issued and
outstanding capital stock (other than directors' qualifying shares) is owned by
Guarantor or another Wholly Owned Subsidiary.

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

                                      A-20
<PAGE>

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

                                      A-21
<PAGE>

                                   APPENDIX B

                       CALCULATION OF DISCOUNT AND RESERVE

         This is Appendix B to the Second Amended and Restated Receivables
Purchase Agreement dated as of June 14, 2000 among SCI Funding, Inc., as Seller,
SCI Technology, Inc., as initial Servicer, SCI Systems, Inc., as Guarantor,
Receivables Capital Corporation, as Exiting Purchaser, Quincy Capital
Corporation, Four Winds Funding Corporation and Amsterdam Funding Corporation,
as Conduit Purchasers, Bank of America, National Association, Commerzbank
Aktiengesellschaft and ABN AMRO Bank N.V., as Bank Purchasers, and Bank of
America, National Association, as Administrative Agent (as amended, supplemented
or otherwise modified from time to time, and including the Original Agreement
for as long as it was in effect, the "Agreement"). Capitalized terms used in
this Appendix B without definition have the meanings assigned to such terms in
Appendix A to the Agreement. Each reference in this Appendix B to any Section
refers to such Section of the Agreement. Each reference in this Appendix B to
any Part refers to the part of this Appendix B so designated.

                                      INDEX

                                     PART I
                                 DISCOUNT FACTOR

Sub-
Part    Term                                                            Page No.
----    ----                                                            --------

  A.    Discount Factor......................................................B-2
  B.    Earned Discount......................................................B-3
  C.    Negative Spread Fee..................................................B-3
  D.    Run Off Discount.....................................................B-4
  E.    Rate Definitions ....................................................B-4
          Alternate Reference Rate...........................................B-4
          Bank Rate..........................................................B-5
          Bank Rate Spread...................................................B-5
          Commercial Paper Rate..............................................B-5
          Eurodollar Rate (Reserve Adjusted).................................B-7
          Pricing Grid Margin................................................B-8
          Purchaser Rate.....................................................B-8
  F.    Rate Variance Factor.................................................B-9

                                       B-1
<PAGE>

                                     PART II

                                 CREDIT RESERVE

Sub-
Part    Term                                                            Page No.
----    ----                                                            --------

  A.    Credit Reserve.......................................................B-9

                                    PART III

                                DILUTION RESERVE

  A.    Dilution Reserve.....................................................B-9

                                     PART IV

                             SERVICER'S FEE RESERVE

  A.    Servicer's Fee Reserve...............................................B-9
  B.    Servicer's Fee......................................................B-10
  C.    Run Off Servicer's Fee..............................................B-10

                                     PART V

                            ADJUSTED AVERAGE MATURITY

  A.    Adjusted Average Maturity...........................................B-10
  B.    Average Maturity....................................................B-11

                                   ----------

                                     PART I
                                 DISCOUNT FACTOR

         A. Discount Factor. The "Discount Factor" at any time in a Settlement
Period means an amount determined as follows:

           DF  =  ED + ROD

                                       B-2
<PAGE>

           where:

           DF  = the Discount Factor at such time;

           ED  = Earned Discount for all Purchasers accrued and unpaid at such
                 time, as determined pursuant to Part I.B;

           ROD = Run Off Discount at such time, as determined pursuant to Part
                 I.D.

         B. Earned Discount. The "Earned Discount" with respect to any Purchaser
for each day in a related Settlement Period means an amount determined as
follows:

           ED  = PI x PR x 1/360 + NSF (if any);

provided, however, that if, pursuant to the definition of "Purchaser Rate" in
Part I.E., different Purchaser Rates would apply to different portions of such
Purchaser's Purchaser's Investment, then Earned Discount shall be calculated
separately with respect to each such portion, and the Earned Discount for such
Purchaser shall be the sum of the Earned Discount so calculated for such
portions;

           where:

           ED  = Earned Discount accrued on such day;

           PI  = the Purchaser's Investment of such Purchaser on such day, as
                 determined pursuant to Section 2.03; and

           PR  = the Purchaser Rate of such Purchaser on such day, as defined
                 in Part I.E.

           NSF = the Negative Spread Fee on such day, as defined in Part C.

No provision of the Agreement shall require the payment or permit the collection
of Earned Discount in excess of the maximum permitted by applicable law. Earned
Discount shall not be considered paid by any distribution if at any time such
distribution is rescinded or must otherwise be returned for any reason.

         C. Negative Spread Fee. The "Negative Spread Fee" means with respect to
any Purchaser for each day in any Settlement Period during which any Run Off Day
or Termination Date occurs, the amount, if any, by which;

                  (i) the additional Earned Discount (calculated without taking
         into account any Negative Spread Fee) which would have accrued on the
         reductions of the related

                                       B-3
<PAGE>

         Purchaser's Investment during such Settlement Period (as so computed)
         if such reductions had remained as Purchaser's Investment, exceeds

                  (ii) the income, if any, received by such Purchaser from such
         Purchaser's investing the proceeds of such reductions of its
         Purchaser's Investment.

         D. Run Off Discount. The "Run Off Discount" at any time means an amount
determined as follows:

                  ROD =    PI x (PR + RVF) x AAM
                           ---------------------
                                    360

                  where:

                  ROD = the Run Off Discount at such time;

                  PI  = the Total Purchasers' Investment at such time;

                  PR  = the Alternate Reference Rate at such time;

                  AAM = the Adjusted Average Maturity of the Receivables Pool,
                        as determined pursuant to Part V; and

                  RVF = the Rate Variance Factor deemed to be in effect
                        at such time, as determined pursuant to Part I.F.

         E. Rate Definitions. The "Alternate Reference Rate" means, on any date,
a fluctuating rate of interest per annum equal to the higher of

                  (a) the rate of interest most recently announced by BofA at
         its principal office in Charlotte, North Carolina as its reference
         rate; and

                  (b) the Federal Funds Rate (as defined below) most recently
         determined by BofA plus 1.0% per annum.

For purposes of this definition, "Federal Funds Rate" means, for any day, the
average of (i) the rates per annum as determined by the applicable Bank
Purchaser at which overnight Federal funds are offered to such Bank Purchaser
for such day by major banks in the interbank market, and (ii) if the applicable
Bank Purchaser is borrowing overnight funds from a Federal Reserve Bank that
day, the rates per annum at which such overnight borrowings are made on that
day. Each determination of the Federal Funds Rate by the applicable Bank
Purchaser shall be conclusive and binding on the Seller except in the case of
manifest error.

                                       B-4
<PAGE>

The Alternate Reference Rate is not necessarily intended to be the lowest rate
of interest determined by the Administrative Agent or the Bank Purchasers in
connection with extensions of credit.

         "Bank Rate" for any Settlement Period means an interest rate per annum
equal to the sum of (a) the Bank Rate Spread, plus (b) the Eurodollar Rate
(Reserve Adjusted) for such Settlement Period; provided, however, that if (i) it
shall become unlawful for the Administrative Agent or any Bank Purchaser or
Program Support Provider to obtain funds in the offshore dollar interbank market
in order to fund any Purchase or to maintain any interest in the Undivided
Interest, or if such funds shall not be reasonably available to the
Administrative Agent or any Bank Purchaser or Program Support Provider, or (ii)
there shall not be time prior to the commencement of an applicable Settlement
Period to determine a Eurodollar Rate in accordance with its terms, then the
"Bank Rate" for any Settlement Period shall be equal to the Alternate Reference
Rate in effect from time to time during such Settlement Period.

         "Bank Rate Spread" means 0.25% plus the all-in drawn margin over the
Eurodollar Rate (or comparable rate) then applicable in the Bank Credit
Agreement (or if the Bank Credit Agreement has been terminated or is no longer
in effect, in the replacement revolving credit agreement or, if there is no such
replacement, such margin as would have been in effect if the Bank Credit
Agreement were effective at such time).

         "Commercial Paper Rate" means, for any Conduit Purchaser for any
Settlement Period for any portion of its Purchaser's Investment funded by
issuing Commercial Paper Notes, a rate per annum equal to the sum of (i) the
rate or, if more than one rate, the weighted average of the rates per annum at
which such Conduit Purchaser's Commercial Paper Notes having a term selected by
its Related Administrator and issued (or allocated by its Related Administrator
from time to time during such period, but which may also be allocated to the
funding of other assets of such Conduit Purchaser) to fund such portion of the
Purchaser's Investment was or may be sold by any placement agent or commercial
paper dealer selected by its Related Administrator, as agreed between each such
agent or dealer and its Related Administrator, plus (ii) 0.05% per annum,
representing the commissions and other charges charged by such placement agent
or commercial paper dealer with respect to such Commercial Paper Notes expressed
as a percentage of the face amount of such Commercial Paper Notes and converted
to an interest-bearing equivalent rate per annum, plus (iii) certain
documentation and transaction costs directly associated with the issuance of
such Commercial Paper Notes, as are customarily charged by such Conduit
Purchaser to its customers in similar transactions (including incremental
carrying costs incurred with respect to Commercial Paper Notes maturing on dates
other than those on which corresponding funds are received by the Conduit
Purchaser), plus (iv) costs of other related borrowings by such Conduit
Purchaser, including borrowings to fund small or odd dollar amounts that are not
easily accommodated in the commercial paper market, expressed as a percentage of
the face amount of such Commercial Paper Notes and converted to an interest-
bearing equivalent rate per annum; provided, however that if any component of
such rate is a discount rate, in calculating the

                                       B-5
<PAGE>

"Commercial Paper Rate", such Conduit Purchaser shall for such component use the
rate resulting from converting such discount rate to an interest-bearing
equivalent rate per annum.

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

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

where:

         "Eurodollar Rate" means, with respect to any Settlement Period, the
         rate per annum at which Dollar deposits in immediately available funds
         are offered to the Eurodollar Office of the related Bank Purchaser two
         Eurodollar Business Days prior to the beginning of such period by prime
         banks in the offshore dollar interbank market at or about the relevant
         local time of such Eurodollar Office, for delivery on the first day of
         such Settlement Period, for the number of days comprised therein and in
         an amount equal or comparable to the amount of the related Purchaser's
         Investment.

         "Relevant local time" as to any Eurodollar Office shall mean 11:00
         a.m., London time when such Eurodollar Office is located in Europe or
         the Middle East, or 11:00 a.m., New York time, when such Eurodollar
         Office is located in North America or the Caribbean.

         "Eurodollar Business Day" means a day of the year on which dealings are
         carried on in the offshore dollar interbank market of the related Bank
         Purchaser's Eurodollar Office and banks are open for business in the
         location of the related Bank Purchaser's Eurodollar Office and are not
         required or authorized to close in New York City.

         "Eurodollar Office" shall mean the office of the related Bank Purchaser
         located in the Cayman Islands, Grand Cayman B.W.I. or such other office
         or offices through which such Bank Purchaser determines the Eurodollar
         Rate. A Eurodollar Office of the related Bank Purchaser may be, at the
         option of such Bank Purchaser, either a domestic or foreign office.

         "Eurodollar Reserve Percentage" means, with respect to any Yield
         Period, the reserve percentage (expressed as a decimal and rounded
         upward to the nearest 1/100th of 1%) equal to the maximum aggregate
         reserve requirements (including all basic, emergency, supplemental,
         marginal and other reserves and taking into account any transitional
         adjustments or other scheduled changes in reserve requirements)
         specified under regulations issued from time to time by the Federal
         Reserve Board and then applicable to assets or liabilities consisting
         of and including "Eurocurrency Liabilities", as currently

                                       B-6
<PAGE>

         defined in Regulation D of the Federal Reserve Board, of the related
         Bank Purchaser having a term approximately equal or comparable to such
         Settlement Period.

         "Purchaser Rate" for any Purchaser for any Settlement Period means:

                  (a) in all cases other than one referred to in clause (b) or
         (c) of this definition, the sum of (i) the Commercial Paper Rate of
         such Purchaser for such Settlement Period plus (ii) the Program Fee
         Rate;

                  (b) in the case of the portion of such Purchaser's Purchaser's
         Investment (i) owned by any Program Support Provider or any other
         assignee (other than a Conduit Purchaser), or funded pursuant to a
         Program Support Agreement, (ii) funded by a Funding, or (iii) funded by
         a Bank Purchaser and at a time when clause (c) of this definition is
         not applicable, the Bank Rate for such Undivided Interest (or such
         portion) for such Settlement Period; and

                  (c) when a Termination Event has occurred and is continuing, a
         rate per annum equal for each day during such Settlement Period to the
         Alternate Reference Rate in effect on such day plus 2% per annum.

         F. Rate Variance Factor. The "Rate Variance Factor" means such
percentage per annum not exceeding 2% as the Administrative Agent (upon
direction of the Required Purchasers) may designate from time to time.

                                     PART II

                                 CREDIT RESERVE

         A. Credit Reserve. The "Credit Reserve" on any day means an amount
determined in accordance with the definition of Credit Reserve in Appendix A.

                                    PART III

                                DILUTION RESERVE

         A. Dilution Reserve. The "Dilution Reserve" on any day means an amount
determined in accordance with the definition of Dilution Reserve in Appendix A.

                                     PART IV

                                       B-7
<PAGE>

                             SERVICER'S FEE RESERVE

         A. Servicer's Fee Reserve. The "Servicer's Fee Reserve" at any time
means an amount determined as follows:

                  SFR  = SF + ROSF

         where:

                  SFR  = the Servicer's Fee Reserve at any time;

                  SF   = the unpaid Servicer's Fee accrued to such time and
                         unpaid as determined pursuant to Part IV.B; and

                  ROSF = the Run Off Servicer's Fee at such time, as determined
                         pursuant to Part IV.C.

         B. Servicer's Fee. The "Servicer's Fee" relating to any Undivided
Interest accrued for any day means

                  (i) an amount equal to (x) 0.50% per annum, times (y) the
         amount of the Total Purchasers' Investment at the close of business on
         such day, times (z) 1/360; or

                  (ii) on and after Servicer's reasonable request made at any
         time when Seller or any of its Affiliates shall no longer be Servicer,
         an alternative amount specified by Servicer not exceeding (x) 110% of
         Servicer's cost and expenses of performing its obligations under the
         Agreement during the Settlement Period when such day occurs, divided by
         (y) the number of days in such Settlement Period.

         C. Run Off Servicer's Fee. The "Run Off Servicer's Fee" at any time
means an amount equal to

                  (x) Total Purchasers' Investment at such time, times

                  (y) (A) the percentage per annum set forth in clause (i)(x) of
         the definition of "Servicer's Fee", or (B) if Servicer's Fee is
         calculated pursuant to clause (ii) of such definition, the percentage
         per annum determined for each day by dividing the amount of the
         Servicer's Fee accrued for such day by the Total Purchasers' Investment
         at the close of business on such day, multiplying the quotient by 360
         and expressing the product as a percentage, times

                  (z) a fraction, the numerator of which is the number of days
         equal to the then Adjusted Average Maturity, and the denominator of
         which is 360 days.

                                       B-8
<PAGE>

                                     PART V

                            ADJUSTED AVERAGE MATURITY

         "Adjusted Average Maturity" means, on any day, the product of (i) three
(3) times (ii) the Average Maturity for such day.

         "Average Maturity" means, on any day, that time period (expressed in
days) equal to the weighted average maturity of the Pool Receivables as shall be
calculated by Servicer, as set forth in the most recent Periodic Report in
accordance with the provisions thereof. If the Administrative Agent shall
disagree with any such calculation, the Administrative Agent may recalculate the
Average Maturity for such day, which calculation shall, absent manifest error,
be binding upon Servicer, Seller and the Purchasers.

                                       B-9
<PAGE>

                                   SCHEDULE I
                            PURCHASERS - COMMITMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                            Related                                                   Conduit             Support
   Name of Bank             Conduit                                                   Related           Termination
     Purchaser             Purchaser            Commitment         Percentage        Percentage             Date
----------------------------------------------------------------------------------------------------------------------
<S>                       <C>                  <C>                  <C>                <C>               <C>
Bank of America,          Quincy
National                  Capital
Association               Corporation          $120,000,000         40.0000%           100.0000%         June 13, 2001
----------------------------------------------------------------------------------------------------------------------
                          Amsterdam
ABN AMRO                  Funding
Bank, N.V.                Corporation           $90,000,000         30.0000%           100.0000%         June 13, 2001
----------------------------------------------------------------------------------------------------------------------
Commerzbank               Four Winds
Aktiengesellschaft,       Funding
New York Branch           Corporation           $90,000,000         30.0000%           100.0000%         June 13, 2001
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      B-10EXHIBIT 10 (j)(1)

                      FORM OF AGREEMENT WITH MR. OLIN KING

Mr. King relinquished his position as Chairman of the Board of Directors as of
June 30, 2000, the end of the Company's fiscal year. On June 30, 2000, Mr. King
resigned from the Executive Committee and became a member of the Investment
Committee. On June 30, 2000, Mr. King was given the title Chairman Emeritus to
reflect his contribution to the Company over the years, but he will have no
executive or administrative responsibilities attached to that position.

Mr. King received his salary through June 30, 2000 and a bonus of .67% of the
Company's annual net income accrued through December 31, 1999, paid on February
15, 2000. He received a performance bonus for his services to the Company of
$400,000, paid on June 30, 2000. All unvested options held by him fully vested
on June 30, 2000. The original terms of the options (other than the vesting
provision), remain in full force and effect. A grant of 1999 options for 25,000
shares was made at the annual meeting of the Board in October 1999. The Company
will provide, directly or indirectly, at its expense, health insurance for Mr.
and Mrs. King substantially in scope as provided during Mr. King's employment,
subject to integration with Medicare and Medicaid. This insurance would be
provided so long as Mr. King is a Director of the Company. In the event that he
elects to extend this health insurance past his tenure as a Director, the
Company will pay the premium in effect at that time and he would be responsible
for any excess. Any extension of coverage, as well as the initial coverage, will
cease on his death.

Mr. King can sell his stock in the Company at any time subject to applicable
Securities Act rules, including no more than two registrations on Form S-3. The
Company will provide Mr. King with an office and a secretary at a suitable
location to be determined from time to time by the CEO The Key Man term life
insurance policy and a term life insurance policy as part of an employee benefit
plan supplement will be canceled.

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