Document:

Exhibit 10.25

                      THIRD AMENDMENT AND LIMITED WAIVER TO
                         RECEIVABLES TRANSFER AGREEMENT

                  This  Third   Amendment  and  Limited  Waiver  to  Receivables
Transfer Agreement (this "Amendment") is entered into as of December 31, 2000 by
and among  Bentley  Mills,  Inc., a Delaware  corporation  ("Bentley"),  Chatham
Marketing  Co., a North  Carolina  corporation  ("Chatham"),  Guilford  of Maine
Marketing Co., a Nevada corporation ("Guilford"),  Intek Marketing Co., a Nevada
corporation   ("Intek"),   Interface  Americas,   Inc.,  a  Georgia  corporation
("Interface  Americas"),  Interface  Architectural  Resources,  Inc., a Michigan
corporation  ("Interface  Architectural"),  Interface Flooring Systems,  Inc., a
Georgia corporation ("Interface Flooring"),  Pandel, Inc., a Georgia corporation
("Pandel"),  and Toltec  Fabrics,  Inc.,  a Georgia  corporation  ("Toltec"  and
together with Bentley, Chatham,  Guilford, Intek, Interface Americas,  Interface
Architectural,  Interface  Flooring  and Pandel,  the  "Original  Sellers"  and,
individually,   an  "Original   Seller"),   and  Interface,   Inc.,  a  Delaware
corporation,  as Originator.  Unless defined elsewhere herein, capitalized terms
used in this  Amendment  shall have the  meanings  assigned to such terms in the
Transfer  Agreement  (as defined  below)  (or,  if not  defined in the  Transfer
Agreement, the meaning assigned to such term in the Purchase Agreement).

                             PRELIMINARY STATEMENTS

                  Each of the  Original  Sellers and  Originator  entered into a
certain  Receivables  Transfer  Agreement,  dated as of  December  19,  2000 (as
heretofore amended by that certain First Amendment and Waiver to the Receivables
Transfer  Agreement  dated as of December 31, 2000 (the "First  Amendment")  and
that certain Second Amendment and Waiver to the Receivables  Transfer  Agreement
dated as of December 19, 2000 or otherwise  amended,  supplemented,  restated or
modified from time to time, the "Transfer Agreement").

                  Each of the parties  hereto has  requested  that the  Transfer
Agreement be modified to allow the use of various corporate names, assumed names
or trade names by Interface Americas.

                                    AGREEMENT

                  NOW,  THEREFORE,  in  consideration  of the premises,  and for
other good and valuable consideration,  the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:
<PAGE>

                  1. Amendment.  Exhibit II of the Transfer  Agreement is hereby
amended by inserting:

                         "Trade Names:  Bentley
                                           Bentley Mills
                                           Prince Street
                                           Prince Street Technologies

                         Assumed Names:  Bentley Mills, Inc.
                                         Prince Street Technologies, Ltd."

immediately  following  the Federal  Employer  Identification  Number listed for
Interface Americas.

                  2. Limited  Waiver.  Subject to the terms and  conditions  set
forth herein and upon the  effectiveness  of this Amendment,  Originator  hereby
waives any Termination Event or Potential Termination Event that may have arisen
on or before the date hereof as a result of the failure of Interface Americas to
have disclosed  Interface  Americas' use of certain corporate,  trade or assumed
names in contravention of the  representation  and warranty contained in Section
2.1(n) of the Transfer Agreement.

                  3.  Representations  and  Warranties.   Each  Original  Seller
represents and warrants, as of the date hereof, that after giving effect to this
Amendment:

                  (a) all of the representations and warranties of such Original
         Seller contained in the Transfer Agreement,  and in each other document
         or certificate delivered in connection therewith (other than those that
         expressly speak only as of a different date), are true and correct; and

                  (b) no Termination  Event or Potential  Termination  Event has
         occurred and is continuing.

                  4. Conditions to Effectiveness of Amendment. The effectiveness
of this  Amendment is subject to the  satisfaction  of the following  conditions
precedent:

                  (a) Amendment.  This  Amendment  shall have been duly executed
         and delivered by each of the parties hereto.

<PAGE>

                  (b) Officer's Certificate.  The Originator shall have received
         a  certificate,  in the form set forth in Exhibit A hereto,  of each of
         the  Original  Sellers  certifying  as to matters set forth in Sections
         3(a) and (b) of this Amendment.

                  (c) Waivers and Amendments. The Originator shall have received
         duly executed copies of (i) all consents from and authorizations by any
         Persons  and  (ii)  all  waivers  and  amendments  to  existing  credit
         facilities, that are necessary in connection with this Amendment.

                  (d)  Seller's  Consent.  The  Seller  shall  have  waived  the
         Termination  Event that would  otherwise have occurred  pursuant to the
         terms of Section 5.1(h) of the  Receivables  Sale Agreement as a result
         of the Originator's waiver as set forth in Section 2 of this Amendment.

                  (e)  Agent's   Consent.   The  Agent  shall  have  waived  the
         Amortization  Event that would otherwise have occurred  pursuant to the
         terms of Section  9.1(j) of the  Receivables  Purchase  Agreement  as a
         result of the  Originator's  waiver  as set forth in  Section 2 of this
         Amendment.

                  (f) UCC-1  Financing  Statements.  The  Originator  shall have
         received   duly   executed   proper   financing   statements   for  all
         jurisdictions  as may be necessary or, in the opinion of Originator (or
         its assigns), desirable, under the UCC of all appropriate jurisdictions
         or any comparable law in connection with this Amendment.

                  (g) First  Amendment.  The First  Amendment  shall have become
         effective.

                  5. Effect of  Amendments.  (a) The  amendments and waivers set
forth herein are effective solely for the purposes set forth herein and shall be
limited precisely as written, and shall not be deemed to (i) be a consent to any
amendment, waiver or modification of any other term or condition of the Transfer
Agreement as amended  hereby or any other  Transaction  Document or of any other
instrument or agreement referred to therein, except as set forth herein, or (ii)
prejudice  any  right or  remedy  that the  Originator,  Seller,  the  Financial
Institutions,  the  Company  or the Agent may now have or may have in the future
under or in  connection  with the Transfer  Agreement  as amended  hereby or any
other  Transaction  Document or any other  instrument  or agreement  referred to
therein.  Each reference in the Transfer Agreement to "the Agreement," "herein,"
"hereof" and words of like import and each  reference  in the other  Transaction
Documents to the "Transfer  Agreement" or the "Receivables  Transfer  Agreement"
shall mean the

<PAGE>

Transfer  Agreement  as amended  hereby.  This  Amendment  shall be construed in
connection with and as part of the Transfer  Agreement as amended hereby and all
terms,  conditions,  representations,  warranties,  covenants and agreements set
forth in the Transfer  Agreement as amended hereby and each other  instrument or
agreement referred to therein, except as herein amended, are hereby ratified and
confirmed and shall remain in full force and effect.

                  (a) Each of the Original  Sellers hereby jointly and severally
         agrees to pay all  costs,  fees and  expenses  in  connection  with the
         preparation,  execution and delivery of this  Amendment  (including the
         reasonable fees and expenses of counsel to the parties hereto).

                  (b)  This   Amendment   may  be  executed  in  any  number  of
         counterparts, each such counterpart constituting an original and all of
         which when taken together shall constitute one and the same instrument.

                  (c) Any provision  contained in this Amendment that is held to
         be inoperative,  unenforceable or invalid in any jurisdiction shall, as
         to that jurisdiction, be inoperative,  unenforceable or invalid without
         affecting the  operation,  enforceability  or validity of the remaining
         provisions of this  Amendment in that  jurisdiction  or the  operation,
         enforceability or validity of such provision in any other jurisdiction.

                  (d) THIS  AMENDMENT  SHALL BE GOVERNED  BY, AND  CONSTRUED  IN
         ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                            [SIGNATURE PAGES FOLLOW]

<PAGE>

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Amendment to be executed and delivered by their duly  authorized  officers as of
the date hereof.

                                      BENTLEY MILLS, INC.,
                                      as an Original Seller

                                      By:     /s/  Daniel T. Hendrix
                                         --------------------------------------
                                         Name:  Daniel T. Hendrix
                                         Title:    Senior Vice President,
                                                   Treasurer and
                                                   Assistant Secretary

                                         Address:   16461 E. Don Julian Road
                                                    City of Industry, CA 91746

                                      CHATHAM MARKETING CO.,
                                      as an Original Seller

                                      By:     /s/  Daniel T. Hendrix
                                         ---------------------------------------
                                         Name:  Daniel T. Hendrix
                                         Title:    Senior Vice President and
                                                   Assistant Secretary

                                         Address:   P. O. Box 530
                                                    304 E. Main Street
                                                    Elkin, NC 28621

<PAGE>

                                      GUILFORD OF MAINE MARKETING CO.,
                                      as an Original Seller

                                      By:     /s/  Daniel T. Hendrix
                                         ---------------------------------------
                                         Name:  Daniel T. Hendrix
                                         Title:    Senior Vice President and
                                                   Assistant Secretary

                                         Address:   P.O. Box 179
                                                    Oak Street
                                                    Guilford, ME  04443

                                      INTEK MARKETING CO.,
                                      as an Original Seller

                                      By:     /s/  Daniel T. Hendrix
                                        ----------------------------------------
                                        Name:  Daniel T. Hendrix
                                        Title:    Senior Vice President and
                                                  Assistant Secretary
                                      Address:   P.O. Box 1007
                                                 300 Taylor Street
                                                 Aberdeen, NC  28315

                                      INTERFACE AMERICAS, INC.,
                                      as an Original Seller

                                       By:     /s/  Daniel T. Hendrix
                                          --------------------------------
                                          Name:  Daniel T. Hendrix
                                          Title:    Senior Vice President,
                                                    Treasurer and
                                                    Assistant Secretary
                                      Address:   2859 Paces Ferry Road
                                                 Suite 2000
                                                 Atlanta, GA 30339
<PAGE>

                                      INTERFACE ARCHITECTURAL RESOURCES, INC.,
                                      as an Original Seller

                                      By:     /s/  Daniel T. Hendrix
                                         ---------------------------------------
                                         Name:  Daniel T. Hendrix
                                         Title:    Senior Vice President and
                                                   Assistant Secretary

                                      Address:   3700 32nd Street
                                                 Grand Rapids, MI 49512-1824

                                      INTERFACE FLOORING SYSTEMS, INC.,
                                      as an Original Seller

                                      By:     /s/  Daniel T. Hendrix
                                         --------------------------------------
                                         Name:  Daniel T. Hendrix
                                         Title:    Senior Vice President,
                                                   Treasurer and
                                                   Assistant Secretary

                                      Address:   P.O. Box 1503
                                                 Orchard Hill Road
                                                 LaGrange, GA  30241

                                      PANDEL, INC.,
                                      as an Original Seller

                                      By:     /s/  Daniel T. Hendrix
                                          ---------------------------------
                                          Name:  Daniel T. Hendrix
                                          Title:    Senior Vice President,
                                                    Treasurer and
                                                    Assistant Secretary

                                      Address:   21 River Drive
                                                 Cartersville, GA 30120

<PAGE>

                                      TOLTEC FABRICS, INC.,
                                      as an Original Seller

                                      By:     /s/  Daniel T. Hendrix
                                         ---------------------------------------
                                         Name:  Daniel T. Hendrix
                                         Title:    Senior Vice President and
                                                   Assistant Secretary

                                      Address:   2859 Paces Ferry Road,
                                                 Suite 2000
                                                 Atlanta, GA   30339

                                      INTERFACE, INC.

                                      By:     /s/  Daniel T. Hendrix
                                         ---------------------------------
                                         Name:  Daniel T. Hendrix
                                         Title:   Executive Vice President, CFO,
                                                  Treasurer and
                                                  Assistant Secretary

                                      Address: 2859 Paces Ferry Road,
                                               Suite 2000
                                               Atlanta, GA   30339Exhibit 10.26

                           RECEIVABLES SALE AGREEMENT

                          DATED AS OF DECEMBER 19, 2000

                                      AMONG

                                INTERFACE, INC.,
                                 as Originator,

                                       AND

                      INTERFACE SECURITIZATION CORPORATION,
                                    as Buyer

<PAGE>

                                    TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                   Page
                                                                                   ----
<S>                                                                                  <C>
ARTICLE I
AMOUNTS AND TERMS OF THE PURCHASE...................................................-2-
                Section 1.1      Purchase of Receivables............................-2-
                Section 1.2      Payment for the Purchase...........................-3-
                Section 1.3      Purchase Price Credit Adjustments..................-5-
                Section 1.4      Payments and Computations, Etc.....................-6-
                Section 1.5      Transfer of Records................................-6-
                Section 1.6      Characterization...................................-7-

ARTICLE II
REPRESENTATIONS AND WARRANTIES......................................................-7-
               Section 2.1      Representations and Warranties of Originator........-7-

ARTICLE III
CONDITIONS OF PURCHASE.............................................................-11-
               Section 3.1      Conditions Precedent to Purchase...................-11-
               Section 3.2      Conditions Precedent to Subsequent Payments........-11-

ARTICLE IV
COVENANTS..........................................................................-12-
               Section 4.1      Affirmative Covenants of Originator................-12-
               Section 4.2      Negative Covenants of Originator...................-18-

ARTICLE V
TERMINATION EVENTS.................................................................-20-
               Section 5.1      Termination Events.................................-20-
               Section 5.2      Remedies...........................................-22-

ARTICLE VI
INDEMNIFICATION.....................................................................-22-
               Section 6.1      Indemnities by Originator...........................-22-
               Section 6.2      Other Costs and Expenses............................-25-

                                          -i-
<PAGE>

ARTICLE VII
MISCELLANEOUS......................................................................-26-
               Section 7.1      Waivers and Amendments.............................-26-
               Section 7.2      Notices............................................-26-
               Section 7.3      Protection of Ownership Interests of Buyer.........-26-
               Section 7.4      Confidentiality....................................-27-
               Section 7.5      Bankruptcy Petition................................-28-
               Section 7.7      CHOICE OF LAW......................................-29-
               Section 7.8      CONSENT TO JURISDICTION............................-29-
               Section 7.9      WAIVER OF JURY TRIAL...............................-29-
               Section 7.10     Integration; Binding Effect; Survival of Terms.....-29-
               Section 7.11     Counterparts; Severability; Section References.....-30-
               Section 7.12     Subordination......................................-31-
</TABLE>

                                          -ii-
<PAGE>

                             Exhibits and Schedules
                             ----------------------

Exhibit I         -        Definitions

Exhibit II        -        Principal Place of Business; Location(s) of Records;
                           Federal Employer Identification Number

Exhibit III       -        Lock-Boxes; Collection Accounts; Collection Banks

Exhibit IV        -        Form of Compliance Certificate

Exhibit V         -        Credit and Collection Policies

Exhibit VI        -        [Intentionally Omitted.]

Exhibit VII       -        Form of Subordinated Note

Schedule A                 List of Documents to Be Delivered to Buyer Prior to
                           the Purchase

                                         -iii-
<PAGE>

                           RECEIVABLES SALE AGREEMENT

         THIS RECEIVABLES  SALE AGREEMENT,  dated as of December 19, 2000, is by
and between Interface,  Inc., a Georgia corporation ("Originator") and INTERFACE
SECURITIZATION  CORPORATION,  a Delaware corporation  ("Buyer").  Unless defined
elsewhere  herein,  capitalized  terms  used in this  Agreement  shall  have the
meanings  assigned  to such terms in  Exhibit I hereto  (or,  if not  defined in
Exhibit I hereto, the meaning assigned to such term in Exhibit I to the Purchase
Agreement).

                             PRELIMINARY STATEMENTS

                  Each  of  Bentley   Mills,   Inc.,   a  Delaware   Corporation
         ("Bentley"),  Chatham  Marketing  Co.,  a  North  Carolina  corporation
         ("Chatham"),  Guilford  of Maine  Marketing  Co., a Nevada  corporation
         ("Guilford"),  Intek  Marketing  Co., a Nevada  corporation  ("Intek"),
         Interface  Architectural   Resources,   Inc.,  a  Michigan  corporation
         ("Interface  Architectural"),   Interface  Flooring  Systems,  Inc.,  a
         Georgia corporation  ("Interface  Flooring"),  Pandel,  Inc., a Georgia
         corporation  ("Pandel"),  Prince Street  Technologies,  Ltd., a Georgia
         corporation  ("Prince  Street"),  and Toltec  Fabrics,  Inc., a Georgia
         corporation ("Toltec,") is a wholly-owned direct or indirect Subsidiary
         of Originator.

                  Each of Chatham,  Pandel and Interface  Architectural (each, a
         "New Original Seller" and,  collectively,  the "New Original  Sellers")
         now owns, and from time to time hereafter will own, Receivables.

                  Each of Bentley, Guilford and Interface Flooring is a party to
         a Transfer Agreement,  each dated August 4, 1995, between such Original
         Seller and Buyer, and each of Intek, Prince Street and Toltec (each, an
         "Existing  Original  Seller" and,  together with Bentley,  Guilford and
         Interface Flooring,  collectively,  the "Existing Original Sellers") is
         party to a Transfer  Agreement,  each dated December 27, 1996,  between
         such  Original  Seller and Buyer  (each  such  Transfer  Agreement,  as
         previously  amended or modified and as in effect on the date hereof, an
         "Existing  Agreement" and,  collectively,  the "Existing  Agreements"),
         pursuant to which the Buyer  purchases  receivables  from such Existing
         Original  Seller  in  accordance  with the terms  thereof.  Each of the
         Existing  Original  Seller wishes to terminate its respective  Existing
         Agreement in  accordance  with the terms  thereof,  and to enter into a
         Receivables  Transfer  Agreement,  dated  as of  the  date  hereof  (as
         amended,  restated  or  otherwise  modified  from  time  to  time,  the
         "Transfer  Agreement"),  pursuant to which the New Original Sellers and
         the Existing  Original  Sellers will sell to Originator  and Originator
         will  purchase  from such New Original  Sellers and  Existing  Original
         Sellers  their  respective  Receivables,   together  with  the  Related
         Security and Collections with respect  thereto,  in accordance with the
         terms and conditions thereof.

<PAGE>

                  Originator  wishes  to sell  to  Buyer  and  Buyer  wishes  to
         purchase from Originator, all of Originator's right, title and interest
         in and to the Receivables,  Related Security and Collections  purchased
         by  Originator  pursuant  to the  terms of the  Transfer  Agreement  in
         accordance with the terms hereof.

                  Each  of  Originator   and  Buyer  intends  the   transactions
         contemplated hereby to be true sales of the Receivables from Originator
         to Buyer,  providing  Buyer with the full  benefits of ownership of the
         Receivables,   and  neither   Originator   nor  Buyer   intends   these
         transactions  to be, or for any purpose to be  characterized  as, loans
         from Buyer to Originator.

                  Following  the purchase of  Receivables  from the  Originator,
         Buyer  will sell  undivided  interests  therein  and in the  associated
         Related Security and Collections  pursuant to that certain  Receivables
         Purchase  Agreement dated as of December 19, 2000 (as the same may from
         time to time hereafter be amended, supplemented,  restated or otherwise
         modified,  the "Purchase Agreement") among Buyer,  Interface,  Inc., as
         Servicer, Jupiter Securitization Corporation ("Company"), the financial
         institutions   from  time  to  time   party   thereto   as   "Financial
         Institutions"  and Bank One, NA (Main Office  Chicago) or any successor
         agent  appointed  pursuant to the terms of the Purchase  Agreement,  as
         agent for Company and such  Financial  Institutions  (in such capacity,
         the "Agent").

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

                                   ARTICLE I
                        AMOUNTS AND TERMS OF THE PURCHASE

         Section 1.1     Purchase of Receivables.
                         ------------------------

                  (a)  Effective on the date hereof,  in  consideration  for the
         Purchase  Price and upon the terms and  subject to the  conditions  set
         forth herein,  Originator does hereby sell, assign, transfer,  set-over
         and otherwise  convey to Buyer,  without recourse (except to the extent
         expressly  provided  herein),  and  Buyer  does  hereby  purchase  from
         Originator, all of Originator's right, title and interest in and to all
         Receivables  arising on or after the date hereof  through and including
         the Termination Date, together, in each case, with all Related Security
         relating  thereto and all Collections  thereof.  In accordance with the
         preceding  sentence,  on the date  hereof  Buyer  shall  acquire all of
         Originator's  right,  title  and  interest  in and  to all  Receivables
         existing as of the close of business on the  Business  Day  immediately
         prior to the date hereof and thereafter  arising  through and including
         the  Termination  Date,  together  with all Related  Security  relating
         thereto and all  Collections  thereof.  Buyer shall be obligated to pay
         the  Purchase  Price  for  the  Receivables   purchased   hereunder  in
         accordance  with Section 1.2. In connection  with  consummation  of the
         Purchase  Price  for any  Receivables  purchased  hereunder,  Buyer may
         request that Originator  deliver,  and Originator  shall deliver,  such
         approvals,  opinions,  information,  reports or  documents as Buyer may
         reasonably request.

                                      -2-
<PAGE>

                  (b) It is  the  intention  of  the  parties  hereto  that  the
         Purchase of Receivables  made hereunder shall  constitute a sale, which
         sale is  absolute  and  irrevocable  and  provides  Buyer with the full
         benefits of ownership of the Receivables. Except for the Purchase Price
         Credits owed pursuant to Section 1.3, the sale of Receivables hereunder
         is made without  recourse to Originator;  provided,  however,  that (i)
         Originator   shall  be  liable   to  Buyer  for  all   representations,
         warranties,  covenants and indemnities  made by Originator  pursuant to
         the terms of the Transaction  Documents to which Originator is a party,
         and (ii) such sale does not constitute and is not intended to result in
         an  assumption  by Buyer or any assignee  thereof of any  obligation of
         Originator  or  any  other  Person  arising  in  connection   with  the
         Receivables, the related Contracts and/or other Related Security or any
         other  obligations  of  Originator.  In  view of the  intention  of the
         parties  hereto that the Purchase of Receivables  made hereunder  shall
         constitute  a sale  of  such  Receivables  rather  than  loans  secured
         thereby, Originator agrees that it will, on or prior to the date hereof
         and in  accordance  with  Section  4.1(e)(ii),  mark  its  master  data
         processing records relating to the Receivables with a legend acceptable
         to Buyer and to the Agent (as Buyer's assignee),  evidencing that Buyer
         has purchased  such  Receivables  as provided in this  Agreement and to
         note in its financial statements that its Receivables have been sold to
         Buyer.  Upon the request of Buyer or the Agent (as  Buyer's  assignee),
         Originator  will  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
         perfect and maintain the  perfection of Buyer's  ownership  interest in
         the Receivables and the Related  Security and Collections  with respect
         thereto,  or as Buyer or the Agent (as Buyer's assignee) may reasonably
         request.

         Section 1.2     Payment for the Purchase.
                         ------------------------

                  (a) The  Purchase  Price for the  Purchase of  Receivables  in
         existence  on the close of business  on the  Business  Day  immediately
         preceding the date hereof (the "Initial  Cutoff Date") shall be payable
         in full by Buyer to the  Originator  on the date  hereof,  and shall be
         paid to Originator in the following manner:

                           (i) by delivery of immediately  available  funds,  to
                  the extent of funds made available to Buyer in connection with
                  its subsequent sale of an interest in such  Receivables to the
                  Purchasers  under  the  Purchase  Agreement;  provided  that a
                  portion of such funds shall be offset by any  amounts  owed by
                  Originator  to Buyer on account of the  issuance  of equity by
                  Buyer to Originator, and

                                      -3-
<PAGE>

                           (ii) the  balance,  by delivery of the  proceeds of a
                  subordinated  revolving  loan  from  Originator  to  Buyer  (a
                  "Subordinated  Loan") in an amount  not to exceed the least of
                  (A) the remaining  unpaid portion of such Purchase Price,  (B)
                  the maximum  Subordinated  Loan that could be borrowed without
                  rendering  Buyer's  Net Worth less than the  Required  Capital
                  Amount  and (C) the  maximum  Subordinated  Loan that could be
                  borrowed  without  rendering  the  Net  Value  less  than  the
                  aggregate  outstanding  principal  balance of the Subordinated
                  Loans (including the Subordinated  Loan proposed to be made on
                  such  date).  Originator  is  hereby  authorized  by  Buyer to
                  endorse on the schedule  attached to the Subordinated  Note an
                  appropriate  notation  evidencing  the date and amount of each
                  advance  thereunder,  as well as the date of each payment with
                  respect  thereto,  provided  that  the  failure  to make  such
                  notation shall not affect any obligation of Buyer thereunder.

The Purchase Price for each  Receivable  coming into existence after the Initial
Cutoff  Date  shall  be due and  owing in full by  Buyer  to  Originator  or its
designee on the date each such Receivable came into existence (except that Buyer
may, with respect to any such Purchase Price, offset against such Purchase Price
any amounts owed by Originator  to Buyer  hereunder and that have become due but
remain  unpaid) and shall be paid to  Originator  in the manner  provided in the
following paragraphs (b), (c) and (d).

                  (b) With  respect to any  Receivables  coming  into  existence
         after the Initial Cutoff Date, on each Settlement Date, Buyer shall pay
         the Purchase  Price  therefor in accordance  with Section 1.2(d) and in
         the following manner:

                  first,  by delivery of  immediately  available  funds,  to the
         extent  of funds  available  to Buyer  from its  subsequent  sale of an
         interest  in the  Receivables  to the  Agent  for  the  benefit  of the
         Purchasers under the Purchase Agreement or other cash on hand;

                  second,  by delivery of the proceeds of a  Subordinated  Loan,
         provided that the making of any such Subordinated Loan shall be subject
         to the provisions set forth in Section 1.2(a)(ii); and

                  third,  unless Originator has declared the Termination Date to
         have occurred  pursuant to Section 5.2, by accepting a contribution  to
         Buyer's  capital in an amount equal to the remaining  unpaid balance of
         such Purchase Price.

Subject  to  the  limitations  set  forth  in  Section  1.2(a)(ii),   Originator
irrevocably  agrees to advance each  Subordinated  Loan requested by Buyer on or
prior to the Termination Date. The Subordinated Loans shall be evidenced by, and
shall be payable in accordance with the terms and provisions of the Subordinated
Note and shall be payable solely from funds that Buyer is not required under the
Purchase  Agreement to set aside for the benefit of, or  otherwise  pay over to,
the Purchasers.

                                      -4-
<PAGE>

                  (c) From and after the Termination Date,  Originator shall not
         sell Receivables to Buyer.

                  (d)  Although the Purchase  Price for each  Receivable  coming
         into  existence  after the Initial Cutoff Date shall be due and payable
         in full by Buyer to  Originator on the date such  Receivable  came into
         existence,   settlement  of  the  Purchase   Price  between  Buyer  and
         Originator  shall be effected on each  Settlement  Date with respect to
         all Receivables  coming into existence (i) if settlement is effected on
         a  monthly  basis,  during  the same  Calculation  Period  and based on
         information  contained in the Monthly Report  delivered by the Servicer
         pursuant to Article VIII of the Purchase  Agreement for the Calculation
         Period  most  recently  ended or (ii) if  settlement  is  effected on a
         weekly  basis,  during the calendar  week reported in the Weekly Report
         most recently delivered by the Servicer pursuant to Article VIII of the
         Purchase  Agreement  and  based on the  information  contained  in such
         Weekly Report.  Although  settlement shall be effected in the foregoing
         manner,   increases   or  decreases  in  the  amount  owing  under  the
         Subordinated  Note made pursuant to Section 1.2(b) and any contribution
         of capital by Originator to Buyer made pursuant to Section 1.2(b) shall
         be  deemed  to have  occurred  and  shall be  effective  as of the last
         Business  Day  of the  Calculation  Period  to  which  such  settlement
         relates.

         Section 1.3     Purchase Price Credit Adjustments. If on any day:
                         --------------------------------

         (a) the Outstanding Balance of a Receivable is:

                           (i) reduced as a result of any  defective or rejected
                  or returned goods or services,  any discount or any adjustment
                  or otherwise by the Originator or the Original  Seller of such
                  Receivable  (other  than cash  Collections  on  account of the
                  Receivables),

                           (ii)  reduced or  canceled as a result of a setoff in
                  respect of any claim by any Person  (whether such claim arises
                  out of the  same  or a  related  transaction  or an  unrelated
                  transaction), or

                  (b) any of the  representations  and  warranties  set forth in
         Article  II are not true when made or deemed  made with  respect to any
         Receivable, or

                  (c) any Contract with respect to any Receivable  shall fail to
         create a legal,  valid and binding obligation of the related Obligor to
         pay the Outstanding  Balance of the Receivable  created  thereunder and
         any accrued interest thereon,

                                      -5-
<PAGE>

then,  in such event,  Buyer shall be  entitled to a credit  (each,  a "Purchase
Price  Credit")  against the  Purchase  Price  otherwise  payable  hereunder  to
Originator  equal to the  Outstanding  Balance  of such  Receivable  (calculated
before  giving  effect to the  applicable  reduction or  cancellation).  If such
Purchase Price Credit  exceeds the Original  Balance of the  Receivables  coming
into  existence on any day, then  Originator  shall pay the remaining  amount of
such Purchase Price Credit in cash immediately, provided that if the Termination
Date has not  occurred,  Originator  shall be allowed  to deduct  the  remaining
amount of such Purchase Price Credit from any indebtedness  owed to it under the
Subordinated Note.

         Section 1.4     Payments  and  Computations,  Etc.  All  amounts  to be
paid or deposited by Buyer  hereunder  shall be paid or deposited in  accordance
with the terms hereof on the day when due in immediately  available funds to the
account of Originator designated from time to time by Originator or as otherwise
directed  by  Originator.  In the  event  that any  payment  owed by any  Person
hereunder  becomes due on a day that is not a Business  Day,  then such  payment
shall be made on the next  succeeding  Business  Day. If any Person fails to pay
any amount hereunder when due, such Person agrees to pay, on demand, the Default
Fee in respect thereof until paid in full; provided,  however, that such Default
Fee shall not at any time exceed the maximum rate  permitted by applicable  law.
All computations of interest  payable  hereunder shall be made on the basis of a
year of 360  days  for the  actual  number  of days  (including  the  first  but
excluding the last day) elapsed.

         Section 1.5     Transfer of Records.
                         -------------------

                  (a) In connection with the Purchase of Receivables  hereunder,
         Originator  hereby sells,  transfers,  assigns and otherwise conveys to
         Buyer  all of  Originator's  right  and  title to and  interest  in the
         Records  relating to all Receivables  sold hereunder,  without the need
         for any further  documentation  in  connection  with the  Purchase.  In
         connection  with such  transfer,  Originator  hereby  grants to each of
         Buyer, the Agent and the Servicer an irrevocable, non-exclusive license
         to use,  without  royalty or payment of any kind,  all software used by
         Originator to account for the  Receivables,  to the extent necessary to
         administer  the   Receivables,   whether  such  software  is  owned  by
         Originator or is owned by others and used by  Originator  under license
         agreements  with respect  thereto,  provided that should the consent of
         any licensor of such  software be required for the grant of the license
         described herein,  to be effective,  Originator hereby agrees that upon
         the request of Buyer (or  Buyer's  assignee),  Originator  will use its
         reasonable efforts to obtain the consent of such third-party  licensor.
         The license granted hereby shall be irrevocable  until the indefeasible
         payment in full of the Aggregate  Unpaids,  and shall  terminate on the
         date this Agreement terminates in accordance with its terms.

                  (b) Originator  (i) shall take such action  requested by Buyer
         and/or the Agent (as Buyer's  assignee),  from time to time  hereafter,
         that may be  necessary  or  appropriate  to ensure  that  Buyer and its
         assigns  under the Purchase  Agreement  have an  enforceable  ownership
         interest  in  the  Records   relating  to  the  Receivables   purchased
         hereunder,  and (ii) shall use its  reasonable  efforts to ensure  that

                                      -6-
<PAGE>

         Buyer,  the  Agent  and the  Servicer  each  has an  enforceable  right
         (whether  by  license or  sublicense  or  otherwise)  to use all of the
         computer  software  used to  account  for  the  Receivables  and/or  to
         recreate such Records.

         Section 1.6     Characterization.  If, notwithstanding the intention of
the parties expressed in Section 1.1(b),  any sale or contribution by Originator
to Buyer of Receivables  hereunder shall not be  characterized as a sale or such
sale shall for any reason be ineffective or  unenforceable,  then this Agreement
shall be deemed to, and hereby does,  constitute a security  agreement under the
UCC and other  applicable  law. For this purpose and without being in derogation
of  the  parties'  intention  that  the  sale  of  Receivables  hereunder  shall
constitute a true sale  thereof,  Originator  hereby grants to Buyer a valid and
enforceable  security interest in all of Originator's  right, title and interest
in, to and  under all  Receivables  now  existing  and  hereafter  arising,  all
Collections  and Related  Security  with  respect  thereto,  each  Lock-Box  and
Collection  Account,  the  Transfer  Agreement,  all other  rights and  payments
relating to the  Receivables  and all  proceeds of the  foregoing  to secure the
prompt  and  complete  payment  of a loan  deemed to have been made in an amount
equal to the aggregate  outstanding  Purchase Price of the Receivables  together
with all other  obligations of Originator  hereunder,  which  security  interest
shall be prior to all other Adverse Claims thereto.  Buyer and its assigns shall
have,  in  addition  to the  rights and  remedies  that they may have under this
Agreement,  all other rights and remedies  provided to a secured  creditor under
the UCC and other applicable law, which rights and remedies shall be cumulative.

                                   ARTICLE II
                         REPRESENTATIONS AND WARRANTIES

         Section 2.1     Representations  and Warranties of Originator.
                         ----------------------------------------------
Originator  hereby  represents and warrants to Buyer on the date hereof,  on the
date of the Purchase and on each date that any  Receivable is purchased by Buyer
hereunder that:

                  (a) Corporate Existence and Power. Originator is a corporation
         duly organized, validly existing and in good standing under the laws of
         its state of incorporation, and is duly qualified to do business and is
         in good  standing  as a  foreign  corporation,  and has and  holds  all
         corporate power and all governmental licenses, authorizations, consents
         and approvals required to carry on its business in each jurisdiction in
         which its  business  is  conducted,  except  where the failure to do so
         could not reasonably be expected to have a Material Adverse Effect.

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

                                      -7-
<PAGE>

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

                  (d) Governmental  Authorization.  Other than the filing of the
         financing  statements required hereunder,  no authorization or approval
         or other action by, and no notice to or filing with,  any  governmental
         authority  or  regulatory  body is required for the due  execution  and
         delivery by  Originator of this  Agreement  and each other  Transaction
         Document to which it is a party and the  performance of its obligations
         hereunder and thereunder.

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

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

                  (g)  Accuracy  of  Information.   All  information  heretofore
         furnished  by  Originator  or any of its  Affiliates  to Buyer  (or its
         assigns) for purposes of or in connection with this  Agreement,  any of
         the other Transaction Documents or any transaction  contemplated hereby
         or thereby is true and accurate in every  material  respect on the date
         such  information  is  stated or  certified  and does not  contain  any
         material  misstatement  of fact or omit to state a material fact

                                      -8-
<PAGE>

         or any fact  necessary  to make the  statements  contained  therein not
         misleading as of the date such information is stated or certified.

                  (h) Use of Proceeds. No proceeds of any Purchase Price payment
         to Originator  hereunder  will be used (i) for a purpose that violates,
         or would be inconsistent  with, any law, rule or regulation  applicable
         to Originator or (ii) to acquire any security in any  transaction  that
         is subject to Section 12, 13 or 14 of the  Securities  Exchange  Act of
         1934, as amended.

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

                  (j) Perfection.  This  Agreement,  together with the filing of
         the  financing  statements  contemplated  hereby,  is effective to, and
         shall, upon each Purchase hereunder, transfer to Buyer (and Buyer shall
         acquire from  Originator)  (i) legal and  equitable  title to, with the
         right  to sell and  encumber  each  Receivable  existing  or  hereafter
         arising,  together with the Collections with respect thereto,  and (ii)
         all of Originator's  right,  title and interest in the Related Security
         associated  with each  Receivable,  in each case, free and clear of any
         Adverse Claim, except as created by the Transactions  Documents.  There
         have  been  duly  filed  all  financing  statements  or  other  similar
         instruments  or documents  necessary  under the UCC (or any  comparable
         law) of all  appropriate  jurisdictions  to perfect  Buyer's  ownership
         interest in the Receivables, the Related Security and the Collections.

                  (k) Places of Business and Locations of Records. The principal
         places of business and chief  executive  office of  Originator  and the
         offices  where  it  keeps  all  of  its  Records  are  located  at  the
         address(es) listed on Exhibit II or such other locations of which Buyer
         has been notified in accordance  with Section  4.2(a) in  jurisdictions
         where  all  action  required  by  Section  4.2(a)  has been  taken  and
         completed.  Originator's  Federal  Employer  Identification  Number  is
         correctly set forth on Exhibit II.

                  (l) Collections.  The conditions and requirements set forth in
         Section 4.1(j) have at all times been satisfied and duly performed. The
         names and addresses of all Collection Banks,  together with the account
         numbers of the  Collection  Accounts of Originator  at each  Collection
         Bank and the post  office  box number of each  Lock-Box,  are listed on
         Exhibit III.  Originator  has not granted any Person,  other than Buyer
         (and its assigns)  dominion  and control of any Lock-Box or  Collection
         Account, or the right to take dominion and control of any such Lock-Box
         or  Collection  Account at a future  time or upon the  occurrence  of a
         future event.

                                      -9-
<PAGE>

                  (m) Material Adverse Effect. Since December 31, 1999, no event
         has occurred that would have a Material Adverse Effect.

                  (n) Names. In the past five (5) years, Originator has not used
         any corporate  names,  trade names or assumed names other than the name
         in which it has  executed  this  Agreement.

                  (o)  Ownership  of  Buyer.   Originator   owns,   directly  or
         indirectly,  100% of the issued and outstanding capital stock of Buyer,
         free and clear of any  Adverse  Claim.  Such  capital  stock is validly
         issued,  fully  paid  and  nonassessable,  and  there  are no  options,
         warrants or other rights to acquire securities of Buyer.

                  (p) Not a Holding Company or an Investment Company. Originator
         is not a "holding  company"  or a  "subsidiary  holding  company"  of a
         "holding  company"  within the  meaning of the Public  Utility  Holding
         Company Act of 1935, as amended,  or any successor statute.  Originator
         is not an  "investment  company"  within the meaning of the  Investment
         Company Act of 1940, as amended, or any successor statute.

                  (q)  Compliance  with  Law.  Originator  has  complied  in all
         respects with all applicable laws, rules,  regulations,  orders, writs,
         judgments,  injunctions,  decrees or awards to which it may be subject,
         except where the failure to so comply could not  reasonably be expected
         to have a Material Adverse Effect.  Each Receivable,  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,  except  where such  contravention  or violation
         could not reasonably be expected to have a Material Adverse Effect..

                  (r) Compliance with Credit and Collection  Policy.  Originator
         has complied in all material  respects  with the Credit and  Collection
         Policy with regard to each Receivable and the related Contract, and has
         not made any change to such Credit and Collection  Policy,  except such
         material change as to which Buyer (or its assigns) has been notified in
         accordance with Section 4.1(a)(vii).

                  (s) Payments to  Originator.  The Purchase  Price  received by
         Originator  for  each  Receivable  purchased  hereunder  or  under  any
         Existing   Agreement   constitutes   reasonably   equivalent  value  in
         consideration therefor and such transfer was not made for or on account
         of an antecedent  debt.  No transfer by  Originator  of any  Receivable
         hereunder or under any Existing  Agreement is or may be voidable  under
         any section of the Bankruptcy Reform Act of 1978 (11 U.S.C.  ss.ss. 101
         et seq.), as amended.

                  (t) Enforceability of Contracts. Each Contract with respect to
         each Receivable is effective to create, and has created, a legal, valid
         and binding  obligation of the related  Obligor to pay the  Outstanding

                                      -10-
<PAGE>

         Balance of the Receivable  created  thereunder and any accrued interest
         thereon,  enforceable against the Obligor in accordance with its terms,
         except as such  enforcement  may be limited by  applicable  bankruptcy,
         insolvency,  reorganization  or  other  similar  laws  relating  to  or
         limiting  creditors'  rights  generally  and by general  principles  of
         equity (regardless of whether  enforcement is sought in a proceeding in
         equity or at law).

                  (u) Eligible Receivables. Each Receivable included at any time
         in the Net  Receivables  Balance as an Eligible  Receivable was, (i) in
         the case of the Existing Receivables,  as of the date hereof, and, (ii)
         in the case of all other Receivables, on the later to occur of the date
         of the  Purchase  and the  date it came  into  existence,  an  Eligible
         Receivable on such date.

                  (v) Accounting.  The manner in which  Originator  accounts for
         the transactions contemplated by this Agreement does not jeopardize the
         characterization of the transactions  contemplated herein as being true
         sales.

                                   ARTICLE III
                             CONDITIONS OF PURCHASE

         Section 3.1     Conditions  Precedent to Purchase.  The Purchase under
this  Agreement  is subject to the  conditions  precedent  that Buyer shall have
received  on or  before  the date of such  purchase  those  documents  listed on
Schedule A and all of the conditions to the initial  purchase under the Purchase
Agreement  shall  have been  satisfied  or waived in  accordance  with the terms
thereof.

         Section  3.2    Conditions Precedent  to  Subsequent  Payments. Buyer's
obligation to pay for Receivables coming into existence after the Initial Cutoff
Date shall be subject to the  further  conditions  precedent  that the  Facility
Termination Date shall not have occurred;  (b) Buyer (or its assigns) shall have
received  such other  approvals,  opinions  or  documents  as it may  reasonably
request and (c) on the date such Receivable  came into existence,  the following
statements shall be true (and acceptance of the proceeds of any payment for such
Receivable shall be deemed a representation and warranty by Originator that such
statements are then true):

                           (i) the  representations  and warranties set forth in
                  Article  II are true and  correct  on and as of the date  such
                  Receivable  came into  existence  as though  made on and as of
                  such date; and

                           (ii) no event has  occurred  and is  continuing  that
                  will constitute a Termination Event or a Potential Termination
                  Event.

                                      -11-
<PAGE>

Notwithstanding the foregoing conditions precedent, upon payment of the Purchase
Price for any Receivable (whether by payment of cash, through an increase in the
amounts  outstanding  under the Subordinated  Note, by offset of amounts owed to
Buyer and/or by offset of capital  contributions),  title to such Receivable and
the Related  Security and Collections  with respect thereto shall vest in Buyer,
whether or not the  conditions  precedent to Buyer's  obligation to pay for such
Receivable were in fact  satisfied.  The failure of Originator to satisfy any of
the foregoing conditions precedent, however, shall give rise to a right of Buyer
to rescind  the related  purchase  and to direct  Originator  to pay to Buyer an
amount  equal to the  Purchase  Price  payment  that  shall  have been made with
respect to any Receivables related thereto.

                                   ARTICLE IV
                                    COVENANTS

         Section 4.1     Affirmative Covenants  of Originator. Until the date on
which this Agreement terminates in accordance with its terms,  Originator hereby
covenants as set forth below:

                  (a) Reporting.  Originator will maintain,  for itself and each
         of  its   Subsidiaries,   a  system  of  accounting   established   and
         administered  in  accordance  with GAAP,  and  furnish to Buyer (or its
         assigns):

                           (i) Annual Reporting. Within 120 days after the close
                  of each of its respective fiscal years,  audited,  unqualified
                  consolidated financial statements (which shall include balance
                  sheets,  statements  of income  and  retained  earnings  and a
                  statement  of cash  flows)  Originator  for such  fiscal  year
                  certified in a manner  reasonably  acceptable to Buyer (or its
                  assigns) by independent public accountants acceptable to Buyer
                  (or its assigns).

                           (ii)  Quarterly  Reporting.  Within 60 days after the
                  close of the first three (3) quarterly  periods of each of its
                  respective  fiscal years, (A)  consolidated  balance sheets of
                  Originator  as at the  close  of  each  such  period  and  (B)
                  consolidated  and  consolidating   statements  of  income  and
                  retained earnings and a statement of cash flows for Originator
                  for the period from the  beginning  of such fiscal year to the
                  end of such  quarter,  all  certified  by its chief  financial
                  officer.

                           (iii)  Compliance  Certificate.   Together  with  the
                  financial   statements   required   hereunder,   a  compliance
                  certificate in substantially  the form of Exhibit IV signed by
                  Originator's  Authorized  Officer  and  dated the date of such
                  annual  financial   statement  or  such  quarterly   financial
                  statement, as the case may be.

                                      -12-
<PAGE>

                           (iv)  Shareholders  Statements and Reports.  Promptly
                  upon the furnishing thereof to the shareholders of Originator,
                  copies  of  all  financial   statements,   reports  and  proxy
                  statements so furnished.

                           (v) S.E.C. Filings. Promptly upon the filing thereof,
                  copies of all registration  statements and annual,  quarterly,
                  monthly or other regular reports that Originator or any of its
                  Subsidiaries   files   with  the   Securities   and   Exchange
                  Commission.

                           (vi) Copies of Notices.  Promptly upon its receipt of
                  any  notice,   request  for  consent,   financial  statements,
                  certification,  report  or  other  communication  under  or in
                  connection with any Transaction Document from any Person other
                  than Buyer, the Agent or Company, copies of the same.

                           (vii)  Change in Credit  and  Collection  Policy.  At
                  least  thirty  (30)  days  prior to the  effectiveness  of any
                  material  change in or  material  amendment  to the Credit and
                  Collection  Policy, a copy of the Credit and Collection Policy
                  then in effect  and a notice  (A)  indicating  such  change or
                  amendment,  and (B) if such proposed change or amendment could
                  adversely  affect the  collectibility  of the  Receivables  or
                  decrease the credit quality of any newly created  Receivables,
                  requesting Buyer's consent thereto.

                           (viii)  Other  Information.  Promptly,  from  time to
                  time, such other  information,  documents,  records or reports
                  relating to the  Receivables  or the condition or  operations,
                  financial  or  otherwise,  of  Originator  as  Buyer  (or  its
                  assigns) may from time to time reasonably  request in order to
                  protect the  interests of Buyer (and its assigns)  under or as
                  contemplated by this Agreement.

                  (b) Notices. Originator will notify the Buyer (or its assigns)
         in  writing  of any of the  following  promptly  upon  learning  of the
         occurrence thereof,  describing the same and, if applicable,  the steps
         being taken with respect thereto:

                           (i)  Termination  Events  or  Potential   Termination
                  Events.  The  occurrence  of each  Termination  Event and each
                  Potential  Termination  Event, by a statement of an Authorized
                  Officer of Originator.

                           (ii) Judgment and  Proceedings.  (A) The entry of any
                  judgment  or  decree   against   Originator   or  any  of  its
                  Subsidiaries  if  entry of such  judgment  or  decree,  either
                  individually  or together with all other judgments and decrees
                  then  outstanding  against  Originator  and its  Subsidiaries,
                  could  reasonably  be  expected  to  have a  Material  Adverse
                  Effect, and (B) the institution of any litigation, arbitration
                  proceeding or governmental proceeding against Originator.

                                      -13-
<PAGE>

                           (iii) Material Adverse Effect.  The occurrence of any
                  event  or  condition  that has had,  or  could  reasonably  be
                  expected to have, a Material Adverse Effect.

                           (iv) Defaults Under Other Agreements.  The occurrence
                  of a default or an event of default  under any other  material
                  financing arrangement pursuant to which Originator is a debtor
                  or an obligor.

                           (v) Downgrade of the Originator. Any downgrade in the
                  rating of any  Indebtedness  of  Originator  by  Standard  and
                  Poor's Ratings Group or by Moody's  Investors  Service,  Inc.,
                  setting forth the Indebtedness affected and the nature of such
                  change.

                  (c)  Compliance  with  Laws  and   Preservation  of  Corporate
         Existence.  Originator  will comply in all respects with all applicable
         laws,  rules,  regulations,  orders,  writs,  judgments,   injunctions,
         decrees or awards to which it may be subject,  except where the failure
         to so comply  could  not  reasonably  be  expected  to have a  Material
         Adverse  Effect.  Originator  will  preserve and maintain its corporate
         existence, rights, franchises and privileges in the jurisdiction of its
         incorporation,  and qualify and remain  qualified in good standing as a
         foreign   corporation  in  each  jurisdiction  where  its  business  is
         conducted,  except  where the  failure to so preserve  and  maintain or
         qualify  could not  reasonably  be expected to have a Material  Adverse
         Effect.

                  (d) Audits.  Originator will furnish to Buyer (or its assigns)
         from  time  to  time  such  information  with  respect  to it  and  the
         Receivables  as  Buyer  (or  its  assigns)  may   reasonably   request.
         Originator  will,  from time to time during  regular  business hours as
         requested  by Buyer (or its assigns)  (subject to the last  sentence of
         this Section  4.1(d)),  upon reasonable  notice and at the sole cost of
         Originator, permit Buyer (or its assigns) or their respective agents or
         representatives  (and shall cause each Original  Seller to permit Buyer
         (or its assigns) or their respective agents and  representatives),  (i)
         to examine  and make  copies of and  abstracts  from all Records in the
         possession  or  under  the  control  of  such  Person

                                      -14-
<PAGE>

         relating  to the  Receivables  and  the  Related  Security,  including,
         without  limitation,  the  related  Contracts,  and (ii) to  visit  the
         offices and properties of such person for the purpose of examining such
         materials  described  in  clause  (i)  above,  and to  discuss  matters
         relating to such Person's  financial  condition or the  Receivables and
         the Related  Security  or such  Person's  performance  under any of the
         Transaction  Documents or such Person's performance under the Contracts
         and, in each case, with any of the officers or employees of such Person
         having  knowledge of such  matters.  All such  examinations  and visits
         shall be at the sole cost of Originator;  provided,  however,  that (i)
         for so long as no  Termination  Event or  Potential  Termination  Event
         shall  have  occurred  and be  continuing  and (ii) the  result  of the
         immediately  preceding  examination  and/or  visit of such Person shall
         have been  reasonably  satisfactory to Buyer (and its assigns) (A) such
         examinations  and/or visits shall be limited to four times per calendar
         year per Person and (B) such cost shall be borne by Originator not more
         than once per Person per calendar year  (although in no event shall the
         foregoing  be  construed  to limit  Buyer  (and its  assigns)  or their
         respective  agents or  representatives  to one such examination  and/or
         visit  during  such  calendar  year  period  with  respect to each such
         Person).

                  (e) Keeping and Marking of Records and Books.

                           (i)  Originator  will (and will cause  each  Original
                  Seller to) maintain and implement administrative and operating
                  procedures  (including,  without  limitation,  an  ability  to
                  recreate  records  evidencing  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  Receivables
                  (including, without limitation, records adequate to permit the
                  immediate  identification  of  each  new  Receivable  and  all
                  Collections of and  adjustments to each existing  Receivable).
                  Originator  will (and will cause each Original Seller to) give
                  Buyer (or its assigns)  notice of any  material  change in the
                  administrative  and  operating  procedures  referred to in the
                  previous sentence.

                           (ii)  Originator  will (and will cause each  Original
                  Seller to) (A) on or prior to the date hereof, mark its master
                  data processing  records and other books and records  relating
                  to the Receivables with a legend,  acceptable to Buyer (or its
                  assigns),   describing  Buyer's  ownership  interests  in  the
                  Receivables and further describing the Purchaser  Interests of
                  the Agent (on  behalf of the  Purchasers)  under the  Purchase
                  Agreement  and (B) upon the request of Buyer (or its  assigns)
                  after the  occurrence  of a Termination  Event,  (x) mark each
                  Contract with a legend describing Buyer's ownership  interests
                  in  the  Receivables  and  further  describing  the  Purchaser
                  Interests of the Agent (on behalf of the  Purchasers)  and (y)
                  deliver to Buyer (or its  assigns) all  Contracts  (including,
                  without  limitation,   all  multiple  originals  of  any  such
                  Contract) relating to the Receivables.

                  (f)  Compliance  with  Contracts  and  Credit  and  Collection
         Policy. Originator will (and will cause each Original Seller to) timely
         and fully (i)  perform and comply with all  provisions,  covenants  and
         other  promises  required  to be  observed  by it under  the  Contracts
         related to the  Receivables,  and (ii) comply in all respects  with the
         Credit  and  Collection  Policy in regard  to each  Receivable  and the
         related Contract.

                                      -15-
<PAGE>

                  (g)  Performance   and  Enforcement  of  Transfer   Agreement.
         Originator will, and will require each Original Seller to, perform each
         of their respective  obligations and undertakings under and pursuant to
         the Transfer Agreement,  will purchase Receivables thereunder in strict
         compliance  with the terms  thereof  and will  vigorously  enforce  the
         rights  and  remedies   accorded  to  Originator   under  the  Transfer
         Agreement.  Originator will take all actions to perfect and enforce its
         rights and interests (and the rights and interests of Buyer as assignee
         of Originator and of the Agent as assignee of Buyer) under the Transfer
         Agreement as Buyer (or its  assigns)  may from time to time  reasonably
         request, including,  without limitation,  making claims to which it may
         be entitled under any  indemnity,  reimbursement  or similar  provision
         contained in the Transfer Agreement.

                  (h) Ownership. Originator will (and will cause Original Seller
         to) take all necessary  action to (i) vest legal and equitable title to
         the  Receivables,  the Related  Security and the Collections  purchased
         under the Transfer Agreement irrevocably in Originator,  free and clear
         of any Adverse  Claims other than Adverse Claims in favor of Buyer (and
         its  assigns)  (including,   without  limitation,  the  filing  of  all
         financing   statements  or  other  similar   instruments  or  documents
         necessary  under  the UCC (or any  comparable  law) of all  appropriate
         jurisdictions  to perfect  Originator's  interest in such  Receivables,
         Related  Security  and  Collections  and such other  action to perfect,
         protect or more fully  evidence the interest of  Originator  therein as
         Buyer  (or its  assigns)  may  reasonably  request),  and (ii) take all
         necessary  action to establish and maintain,  irrevocably in Buyer, (A)
         legal and equitable  title to the  Receivables  and the Collections and
         (B) all of  Originator's  right,  title  and  interest  in the  Related
         Security associated with the Receivables,  in each case, free and clear
         of any Adverse  Claims other than Adverse Claims in favor of Buyer (and
         its  assigns)  (including,   without  limitation,  the  filing  of  all
         financing   statements  or  other  similar   instruments  or  documents
         necessary  under  the UCC (or any  comparable  law) of all  appropriate
         jurisdictions to perfect Buyer's interest in such Receivables,  Related
         Security and Collections  and such other action to perfect,  protect or
         more fully evidence the interest of Buyer as Buyer (or its assigns) may
         reasonably request).

                  (i) Purchasers'  Reliance.  Originator  acknowledges  that the
         Agent  and  the   Purchasers   are  entering   into  the   transactions
         contemplated  by  the  Purchase  Agreement  in  reliance  upon  Buyer's
         identity as a legal  entity that is separate  from  Originator  and any
         Affiliates thereof. Therefore, from and after the date of execution and
         delivery of this Agreement,  Originator will take all reasonable  steps
         including,  without limitation, all steps that Buyer or any assignee of
         Buyer may from time to time  reasonably  request  to  maintain  Buyer's
         identity  as a separate  legal  entity and to make it manifest to third
         parties  that Buyer is an entity with assets and  liabilities  distinct
         from those of  Originator  and any  Affiliates  thereof  and not just a
         division of  Originator  or any such  Affiliate.  Without  limiting the
         generality of the foregoing and in addition to the other  covenants set

                                      -16-
<PAGE>

         forth herein,  Originator (i) will not hold itself out to third parties
         as liable for the debts of Buyer nor purport to own the Receivables and
         other  assets  acquired  by Buyer,  (ii)  will  take all other  actions
         necessary  on  its  part  to  ensure  that  Buyer  is at all  times  in
         compliance  with the  covenants  set  forth in  Section  7.1(i)  of the
         Purchase Agreement and (iii) will cause all tax liabilities  arising in
         connection with the transactions contemplated herein or otherwise to be
         allocated between  Originator and Buyer on an arm's-length basis and in
         a manner  consistent  with the  procedures  set forth in U.S.  Treasury
         Regulations ss.ss.1.1502-33(d) and 1.1552-1.

                  (j)  Collections.  Originator will cause (1) all proceeds from
         all  Lock-Boxes  to be directly  deposited by a Collection  Bank into a
         Collection  Account and (2) each Lock-Box and Collection  Account to be
         subject at all times to a Collection  Account Agreement that is in full
         force and effect. In the event any payments relating to Receivables are
         remitted  directly  to  Originator  or  any  Affiliate  of  Originator,
         Originator  will remit (or will cause all such payments to be remitted)
         directly to a Collection  Bank and deposited into a Collection  Account
         (A) if no Termination Event and no Amortization Event has then occurred
         and is  continuing,  within two (2)  Business  Days  following  receipt
         thereof,  and at any time a Termination Event or an Amortization  Event
         has occurred and is continuing,  immediately upon receipt  thereof.  At
         all times prior to such remittance,  Originator will itself hold or, if
         applicable,  will  cause  such  payments  to be held in  trust  for the
         exclusive  benefit of Buyer and its assigns.  Originator  will transfer
         exclusive  ownership,   dominion  and  control  of  each  Lock-Box  and
         Collection  Account  to Buyer  and,  will not  grant  the right to take
         dominion and control of any Lock-Box or Collection  Account at a future
         time or upon the occurrence of a future event to any Person,  except to
         Buyer  (or its  assigns)  as  contemplated  by this  Agreement  and the
         Purchase Agreement.

                  (k) Taxes.  Originator  will file all tax  returns and reports
         required  by law to be  filed  by it and  promptly  pay all  taxes  and
         governmental charges at any time owing, except any such taxes which are
         not yet delinquent or are being  diligently  contested in good faith by
         appropriate  proceedings and for which adequate  reserves in accordance
         with GAAP shall have been set aside on its books.  Originator  will pay
         when due any taxes payable in connection  with the  Receivables for all
         periods  during  which  such  Receivables  were  owned  by  Originator,
         exclusive of taxes on or measured by income or gross  receipts of Buyer
         and its assigns.

                  (l) Insurance. Originator will maintain in effect, or cause to
         be maintained in effect, at Originator's own expense, such casualty and
         liability  insurance as Originator deems  appropriate in its good faith
         business  judgement.  Buyer  and  the  Agent,  for the  benefit  of the
         Purchasers,  shall be named as additional  insureds with respect to all
         such liability insurance maintained by Originator.  Originator will pay
         or cause to be paid, the premiums therefor and deliver to Buyer and the
         Agent  evidence  satisfactory  to Buyer and the Agent of such insurance
         coverage.  Copies of each policy shall be furnished to Buyer, the Agent
         and any Purchaser in  certificated  form upon  Buyer's,  the Agent's or
         such  Purchaser's  request.  The  foregoing  requirements  shall not be
         construed  to  negate,  reduce  or  modify,  and  are in  addition  to,
         Originator's obligations hereunder.

                                      -17-
<PAGE>

                  (m) Payment to Original Seller. With respect to any Receivable
         purchased by  Originator  from an Original  Seller on or after the date
         hereof,  such sale shall be effected  under,  and in strict  compliance
         with  the  terms  of,  the  Transfer   Agreement,   including   without
         limitation,  the terms relating to the amount and timing of payments to
         be made to such Original  Seller with respect to the purchase price for
         such Receivable.

                  (n)  Accuracy of  Information.  All  information  furnished by
         Originator  or any of its  Affiliates to Buyer (or its assigns) will be
         true  and  accurate  in  every  material   respect  on  the  date  such
         information  is stated or  certified  and will not contain any material
         misstatement  of  fact or omit to  state a  material  face or any  fact
         necessary to make the statements contained therein not misleading as of
         the date such information is stated or certified.

         Section 4.2     Negative  Covenants  of  Originator. Until  the date on
which this Agreement terminates in accordance with its terms,  Originator hereby
covenants that:

                  (a) Name  Change,  Offices  and  Records.  In the  event  that
         Originator  shall change its name,  Originator  shall notify Buyer (and
         its  assigns) of such change  immediately,  and in any event  within 10
         days of the occurrence of any such change. In the event that Originator
         shall change its identity or corporate structure (within the meaning of
         Section  9-402(7) of any  applicable  enactment of the UCC) or relocate
         its chief executive  office or any office where any material portion of
         Records are kept,  Originator  shall  notify Buyer (and its assigns) of
         such change as soon as reasonably practicable,  and in any event within
         30 days of the occurrence of any such change.

                  (b) Change in Payment  Instructions  to  Obligors.  Originator
         will not add or terminate  any bank as a Collection  Bank,  or make any
         change in the instructions to Obligors regarding payments to be made to
         any Lock-Box or Collection Account, unless Buyer (or its assigns) shall
         have  received,  at least ten (10) days before the  proposed  effective
         date  therefor,  (i) written  notice of such  addition,  termination or
         change and (ii) with respect to the addition of a Collection  Bank or a
         Collection  Account  or  Lock-Box,   an  executed   Collection  Account
         Agreement  acceptable  to the Agent with respect to the new  Collection
         Account  or  Lock-Box;  provided,  however,  that  Originator  may make
         changes in  instructions  to  Obligors  regarding  payments if such new
         instructions  require such Obligor to make payments to another existing
         Collection Account.

                  (c)  Modifications  to  Contracts  and Credit  and  Collection
         Policy.  Originator  will not (and will not permit any Original  Seller
         to) make any material  change or any  material  amendment to the Credit
         and  Collection  Policy that could  reasonably be expected to adversely
         affect the  collectibility  of the  Receivables  or decrease the credit

                                      -18-
<PAGE>

         quality of any newly  created  Receivables  without  the prior  written
         consent of Buyer (and its  assigns).  Except as otherwise  permitted in
         its  capacity as  Servicer  pursuant  to Article  VIII of the  Purchase
         Agreement, Originator will not (and will not permit any Original Seller
         to) extend,  amend or otherwise  modify the terms of any  Receivable or
         any Contract  related  thereto other than in accordance with its Credit
         and Collection Policy.

                  (d)  Sales,  Liens.  Originator  will  not  sell,  assign  (by
         operation of law or  otherwise)  or otherwise  dispose of, or grant any
         option with respect to, or create or suffer to exist any Adverse  Claim
         upon  (including,  without  limitation,  the  filing  of any  financing
         statement) or with respect to, any  Receivable or any Related  Security
         or  Collections  with respect  thereto,  or upon or with respect to any
         Contract  under  which  any  Receivable  arises,  or  any  Lock-Box  or
         Collection  Account, or assign any right to receive income with respect
         thereto  (other  than,  in each case,  the  creation  of the  interests
         therein in favor of Buyer  provided for herein),  and  Originator  will
         defend the right,  title and  interest of Buyer in, to and under any of
         the foregoing  property,  against all claims of third parties  claiming
         through or under  Originator.  Originator shall not create or suffer to
         exist any  mortgage,  pledge,  security  interest,  encumbrance,  lien,
         charge or other similar arrangement on any of its inventory.

                  (e) Accounting for Purchase. Originator will not, and will not
         permit any  Affiliate  to,  account for or treat  (whether in financial
         statements or otherwise) the  transactions  contemplated  hereby in any
         manner other than the sale of the Receivables and the Related  Security
         by Originator to Buyer or in any other respect account for or treat the
         transactions  contemplated hereby in any manner other than as a sale of
         the Receivables and the Related  Security by Originator to Buyer except
         to the extent that such  transactions  are not recognized on account of
         consolidated  financial reporting in accordance with generally accepted
         accounting principles.

                                    ARTICLE V
                               TERMINATION EVENTS

         Section 5.1     Termination  Events.  The occurrence of any one or more
of the following events shall constitute a Termination Event:

                  (a)  Originator  shall fail (i) to make any payment or deposit
         consisting of principal required hereunder when due and, in the case of
         any failure to make a timely payment or deposit solely by reason of any
         mechanical delay in or malfunction of the Fedwire system,  such failure
         shall continue for one (1) Business Day and so long as Originator  pays
         immediately upon demand any and all losses, costs and expenses incurred
         by the Buyer,  any  Purchaser or the Agent in  connection  with or as a
         result of such  failure to make a timely  payment or  deposit,  (ii) to
         make any payment or deposit (other than as referred to in clause (i) of
         this  paragraph  (a)) of any other  amounts when due hereunder and such
         failure shall continue for three (3) consecutive  Business Days,  (iii)
         to comply with the  provisions of Section  4.1(b)(i),  (ii) or (iii) or
         4.2 and such failure shall continue for three (3) consecutive  Business
         Days,  (iv) to comply with the provisions of Section 4.1 (c), (f), (g),
         (h),  (j),  (m) or (n) and such  failure  shall  continue  for five (5)
         consecutive  Business  Days or (v) to  perform  or  observe  any  term,
         covenant or agreement  hereunder  (other than as referred to in clauses
         (i), (ii),  (iii) or (iv) of this paragraph (a)) and such failure shall
         continue for ten (10) consecutive Business Days.

                                      -19-
<PAGE>

                  (b) Any representation,  warranty,  certification or statement
         made by Originator in this Agreement, any other Transaction Document to
         which it is a party or in any other document  delivered pursuant hereto
         or thereto shall prove to have been incorrect when made or deemed made.

                  (c) Failure of Originator to pay any Indebtedness  when due in
         an amount in excess of $10,000,000; or the default by Originator in the
         performance  of any  term,  provision  or  condition  contained  in any
         agreement under which any such Indebtedness was created or is governed,
         the effect of which is to cause,  or to permit the holder or holders of
         such  Indebtedness to cause,  such  Indebtedness to become due prior to
         its stated  maturity;  or any such  Indebtedness of Originator shall be
         declared to be due and payable or required to be prepaid (other than by
         a regularly scheduled payment) prior to the date of maturity thereof.

                  (d) (i) Originator  shall  generally not pay its debts as such
         debts  become due or shall  admit in writing its  inability  to pay its
         debts  generally or shall make a general  assignment for the benefit of
         creditors;  or (ii) any  proceeding  shall be  instituted by Originator
         seeking to adjudicate it bankrupt or insolvent, or seeking liquidation,
         winding up, reorganization, arrangement, adjustment, protection, relief
         or composition of it or its debts under any law relating to bankruptcy,
         insolvency or reorganization or relief of debtors, or seeking the entry
         of an order for relief or the  appointment  of a  receiver,  trustee or
         other similar  official for it or any substantial part of its property;
         or (iii) any proceeding shall be instituted  against Originator seeking
         to adjudicate it bankrupt or insolvent, or seeking liquidation, winding
         up,  reorganization,  arrangement,  adjustment,  protection,  relief or
         composition  of it or its debts under any law  relating to  bankruptcy,
         insolvency or reorganization or relief of debtors, or seeking the entry
         of an order for relief or the  appointment  of a  receiver,  trustee or
         other similar  official for it or any substantial  part of its property
         which  proceeding  is not dismissed  within 30 days of the  institution
         thereof or (iv) Originator shall take any corporate action to authorize
         any of the actions set forth in this subsection (d).

                  (e) An "Event of Default" (as defined  therein) by  Originator
         of  its  obligations   under  Section  7.09  of  the  Interface  Credit
         Facilities.

                  (f) (i) A Change of Control shall occur or exist,  or (ii) any
         event or condition shall occur or exist that,  pursuant to the terms of
         any Change in Control

                                      -20-
<PAGE>

         Provision,  requires or permits the holder(s) of Interface Control Debt
         to require that such Interface  Control Debt be redeemed,  repurchased,
         defeased,  prepaid or repaid,  in whole or in part,  or the maturity of
         such Interface Control Debt to be accelerated in any respect; provided,
         however,  that no Termination  Event hereunder shall be deemed to exist
         upon  the  occurrence  of  any  event  or  condition  described  in the
         foregoing  clauses  (i) or (ii) until  thirty (30) days after the first
         occurrence or existence of such event or condition.

                  (g) One or more final judgments for the payment of money in an
         amount in  excess of  $10,000,000,  individually  or in the  aggregate,
         shall be entered against  Originator on claims not covered by insurance
         or as to which the insurance carrier has denied its responsibility, and
         such judgment shall continue  unsatisfied and in effect for thirty (30)
         consecutive days without a stay of execution.

                  (h)  The  "Termination  Date"  under  and  as  defined  in the
         Transfer  Agreement  shall occur under the  Transfer  Agreement  or the
         Originator  or any  Original  Seller  shall fail to observe any term or
         condition of the Transfer Agreement (taking into account any applicable
         grace period set forth therein) or Originator  shall waive its right to
         enforce  the terms and  conditions  of the  Transfer  Agreement  or any
         Original  Seller shall for any reason  cease to  transfer,  or cease to
         have the legal  capacity to  transfer,  or  otherwise  be  incapable of
         transferring Receivables to Originator under the Transfer Agreement.

                  (i) This Agreement shall terminate in whole or in part (except
         in accordance with its terms),  or shall cease to be effective or to be
         the legally valid, binding and enforceable obligation of Originator, or
         any Obligor  shall  directly or  indirectly  contest in any manner such
         effectiveness, validity, binding nature or enforceability, or the Buyer
         shall cease to have a valid ownership interest in the Receivables,  the
         Related  Security  and the  Collections  with  respect  thereto and the
         Collection Accounts, free and clear of any Adverse Claims.

                  (j)  Originator  shall  fail to own,  free  and  clear  of any
         Adverse Claims, 100% of the voting stock of Buyer.

         Section 5.2     Remedies.  Upon the occurrence and during the continua-
tion of a Termination Event,  Buyer may take any of the following  actions:  (i)
declare the Termination  Date to have occurred,  whereupon the Termination  Date
shall forthwith  occur,  without demand,  protest or further notice of any kind,
all of which are hereby expressly waived by Originator;  provided, however, that
upon the occurrence of a Termination Event described in Section 5.1(d), or of an
actual or deemed entry of an order for relief with respect to  Originator  under
the Federal  Bankruptcy  Code, the Termination Date shall  automatically  occur,
without  demand,  protest  or any  notice of any kind,  all of which are  hereby
expressly  waived by  Originator  and (ii) to the fullest  extent  permitted  by
applicable  law,  declare  that the Default Fee shall accrue with respect to any
amounts then due and owing by Originator to Buyer. The aforementioned rights and
remedies  shall be  without  limitation  and shall be in  addition  to all other
rights and remedies of Buyer and its assigns otherwise available under any other
provision of this Agreement, by operation of law, at equity or otherwise, all of
which are hereby expressly preserved,  including, without

                                      -21-
<PAGE>

limitation,  all rights and remedies provided under the UCC, all of which rights
shall be cumulative.

                                   ARTICLE VI
                                 INDEMNIFICATION

         Section 6.1  Indemnities  by  Originator.  Without  limiting  any other
rights that Buyer may have hereunder or under applicable law,  Originator hereby
agrees to indemnify  (and pay upon demand to) Buyer and its  assigns,  officers,
directors,  agents and employees (each an "Indemnified  Party") from and against
any and all damages, losses, claims, taxes, liabilities, costs, expenses and for
all other amounts payable, including reasonable attorneys' fees (which attorneys
may be  employees  of Buyer or any such  assign) 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 as a  result  of this
Agreement or the  acquisition,  either  directly or  indirectly,  by Buyer of an
interest in the Receivables, excluding, however:

                  (i)  Indemnified  Amounts to the extent a final  judgment of a
         court of competent  jurisdiction  holds that such  Indemnified  Amounts
         resulted from gross negligence or willful misconduct on the part of the
         Indemnified Party seeking indemnification;

                  (ii)  Indemnified  Amounts  to the  extent  the same  includes
         losses in respect of Receivables  that are  uncollectible on account of
         the insolvency,  bankruptcy or lack of  creditworthiness of the related
         Obligor; or

                  (iii)  taxes  imposed  by  the   jurisdiction  in  which  such
         Indemnified  Party's  principal  executive  office is located,  and any
         jurisdiction in which such Indemnified  Party is doing business (except
         to the extent that any such tax is imposed by such  jurisdiction  based
         upon this Agreement or any other Transaction Document),  on or measured
         by the overall net income of such Indemnified  Party to the extent that
         the computation of such taxes is consistent  with the  characterization
         for  income  tax  purposes  of the  acquisition  by the  Purchasers  of
         Purchaser  Interests under the Purchase Agreement as a loan or loans by
         the   Purchasers  to  Buyer   secured  by,  among  other  things,   the
         Receivables, the Related Security and the Collections;

                                      -22-
<PAGE>

provided,  however,  that  nothing  contained in this  sentence  shall limit the
liability of Originator or limit the recourse of Buyer to Originator for amounts
otherwise specifically provided to be paid by Originator under the terms of this
Agreement.  Without  limiting the  generality of the foregoing  indemnification,
Originator  shall indemnify Buyer for Indemnified  Amounts  (including,  without
limitation,  losses in  respect  of  uncollectible  receivables,  regardless  of
whether reimbursement therefor would constitute recourse to Originator) relating
to or resulting from:

                           (i) any representation or warranty made by Originator
                  (or any officer of Originator) or any Original  Seller (or any
                  officer of any Original  Seller) under or in  connection  with
                  this Agreement,  any other  Transaction  Document or any other
                  information or report  delivered by Originator or any Original
                  Seller  pursuant  hereto or thereto that shall have been false
                  or incorrect when made or deemed made;

                           (ii)  the  failure  by  Originator  or  any  Original
                  Seller,  to comply with any applicable law, rule or regulation
                  with respect to any Receivable or Contract related thereto, or
                  the  nonconformity  of any  Receivable  or  Contract  included
                  therein with any such  applicable  law,  rule or regulation or
                  any failure of  Originator  or any Original  Seller to keep or
                  perform  any of its  obligations,  express  or  implied,  with
                  respect to any Contract;

                           (iii)  any  failure  of  Originator  or any  Original
                  Seller to perform its duties,  covenants or other  obligations
                  in accordance  with the  provisions  of this  Agreement or any
                  other Transaction Document;

                           (iv)  any  products  liability,  personal  injury  or
                  damage,  suit or  other  similar  claim  arising  out of or in
                  connection  with  merchandise,  insurance or services that are
                  the subject of any Contract or any Receivable;

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

                           (vi) the commingling of Collections of Receivables at
                  any time with other funds;

                                      -23-
<PAGE>

                           (vii) any  investigation,  litigation  or  proceeding
                  related  to or  arising  from  this  Agreement  or  any  other
                  Transaction  Document,  the transactions  contemplated hereby,
                  the use of the proceeds of any  Purchase  Price  Payment,  the
                  ownership  of  the  Receivables  or any  other  investigation,
                  litigation  or  proceeding   relating  to  Originator  or  any
                  Original  Seller  in  which  any  Indemnified   Party  becomes
                  involved as a result of any of the  transactions  contemplated
                  hereby;

                           (viii) any  inability to litigate  any claim  against
                  any Obligor in respect of any  Receivable  as a result of such
                  Obligor being immune from civil and commercial law and suit on
                  the grounds of sovereignty or otherwise from any legal action,
                  suit or proceeding;

                           (ix)  any  Termination  Event  described  in  Section
                  5.1(d);

                           (x) any failure of Originator to acquire and maintain
                  legal and equitable  title to, and ownership of any Receivable
                  and the Related  Security and Collections with respect thereto
                  from  the  Original  Seller  thereof,  free  and  clear of any
                  Adverse  Claim  (other  than  as  created  hereunder);  or any
                  failure of Originator to give reasonably  equivalent  value to
                  the Original  Seller  thereof under the Transfer  Agreement in
                  consideration  of the transfer by such Original  Seller of any
                  such  Receivable,  or any  attempt  by any Person to void such
                  transfer under statutory provisions or common law or equitable
                  action;

                           (xi) any  failure  to vest  and  maintain  vested  in
                  Buyer, or to transfer to Buyer,  legal and equitable title to,
                  and ownership of, the Receivables and the Collections, and all
                  of  Originator's  right,  title and  interest  in the  Related
                  Security  associated with the Receivables,  in each case, free
                  and clear of any Adverse Claim;

                           (xii)  the  failure  to have  filed,  or any delay in
                  filing,  financing  statements or other similar instruments or
                  documents  under  the UCC of any  applicable  jurisdiction  or
                  other  applicable  laws with  respect to any  Receivable,  the
                  Related Security and Collections with respect thereto, and the
                  proceeds of any  thereof,  whether at the time of the Purchase
                  or at any subsequent time;

                           (xiii) any action or  omission by  Originator  or any
                  Original  Seller  that  reduces or impairs the rights of Buyer
                  with  respect  to any  Receivable  or the  value  of any  such
                  Receivable;

                                      -24-
<PAGE>

                           (xiv) any attempt by any Person to void the  Purchase
                  hereunder  under   statutory   provisions  or  common  law  or
                  equitable action; and

                           (xv) the  failure of any  Receivable  included in the
                  calculation  of the Net  Receivables  Balance  as an  Eligible
                  Receivable  to  be an  Eligible  Receivable  at  the  time  so
                  included.

         Section 6.2     Other Costs and Expenses. The Originator  shall pay  to
Buyer on demand  all costs  and  out-of-pocket  expenses  actually  incurred  in
connection with the preparation,  execution, delivery and administration of this
Agreement,  the transactions  contemplated  hereby and the other documents to be
delivered  hereunder.  Originator shall pay to Buyer on demand any and all costs
and expenses of Buyer actually incurred,  if any,  including  reasonable counsel
fees and  expenses  (which such counsel may be employees of Buyer or its assigns
to the extent not duplicative of services provided by outside counsel,  in which
case such fees may consist of  internally  allocated  costs with respect to such
internal  counsel;  provided,  that such  internally-allocated  costs  shall not
include typically separately  expressed items such as telephone,  telecopier and
photocopy  charges,  each of which shall be separately  stated in any invoice to
Originator;  provided, further, that such fees shall be as may be reasonable and
customary for internal counsel of financial institutions) in connection with the
enforcement of this Agreement,  the Receivables Purchase Agreement and the other
documents   delivered   hereunder  and   thereunder   in  connection   with  any
restructuring   or  workout  of  this  Agreement  or  such  documents,   or  the
administration of this Agreement following a Termination Event.

                                   ARTICLE VII
                                 MISCELLANEOUS

         Section 7.1 Waivers and Amendments.

                  (a) No failure or delay on the part of Buyer (or its  assigns)
         in exercising  any power,  right or remedy under this  Agreement  shall
         operate as a waiver thereof,  nor shall any single or partial  exercise
         of any such power,  right or remedy preclude any other further exercise
         thereof or the exercise of any other power, right or remedy. The rights
         and remedies  herein  provided shall be cumulative and  nonexclusive of
         any rights or remedies  provided by law.  Any waiver of this  Agreement
         shall be effective  only in the specific  instance and for the specific
         purpose for which given.

                  (b)  No   provision   of  this   Agreement   may  be  amended,
         supplemented, modified or waived except in writing signed by Originator
         and Buyer and, to the extent required under the Purchase Agreement, the
         Agent  and  the  Financial   Institutions  or  the  Required  Financial
         Institutions.

                                      -25-
<PAGE>

         Section  7.2     Notices.  All  communications  and notices  provided
for hereunder shall be in writing  (including bank wire,  telecopy or electronic
facsimile  transmission  or  similar  writing)  and  shall be given to the other
parties hereto at their  respective  addresses or telecopy  numbers set forth on
the signature  pages hereof or at such other address or telecopy  number as such
Person  may  hereafter  specify  for the  purpose of notice to each of the other
parties hereto.  Each such notice or other  communication shall be effective (i)
if given by telecopy, upon the receipt thereof, (ii) if given by mail, three (3)
Business  Days after the time such  communication  is deposited in the mail with
first class postage prepaid or (iii) if given by any other means,  when received
at the address specified in this Section 7.2.

         Section 7.3     Protection of Ownership Interests of Buyer.

                  (a) Originator  agrees that from time to time, at its expense,
         it will promptly execute and deliver all instruments and documents, and
         take all actions, that may be necessary or desirable, or that Buyer (or
         its assigns) may request,  to perfect,  protect or more fully  evidence
         the interest of Buyer  hereunder  and the  Purchaser  Interests,  or to
         enable Buyer (or its assigns) to exercise and enforce  their rights and
         remedies  hereunder.  At any  time,  Buyer  (or its  assigns)  may,  at
         Originator's  sole cost and expense,  direct  Originator  to notify the
         Obligors of Receivables of the ownership  interests of Buyer under this
         Agreement  and may also direct that payments of all amounts due or that
         become due under any or all  Receivables  be made  directly to Buyer or
         its designee.

                  (b) If  Originator  fails to  perform  any of its  obligations
         hereunder,  Buyer (or its  assigns)  may (but shall not be required to)
         perform,  or cause  performance of, such  obligations,  and Buyer's (or
         such  assigns')  costs and expenses  incurred in  connection  therewith
         shall  be  payable  by the  Originator  as  provided  in  Section  6.2.
         Originator  irrevocably  authorizes Buyer (and its assigns) at any time
         and from time to time in the sole discretion of Buyer (or its assigns),
         and appoints Buyer (and its assigns) as its  attorney(ies)-in-fact,  to
         act on behalf of  Originator  (i) to execute on behalf of Originator as
         debtor and to file  financing  statements  necessary  or  desirable  in
         Buyer's (or its  assigns')  sole  discretion to perfect and to maintain
         the perfection and priority of the interest of Buyer in the Receivables
         and (ii) to file a carbon,  photographic or other  reproduction of this
         Agreement or any financing statement with respect to the Receivables as
         a  financing  statement  in such  offices as Buyer (or its  assigns) in
         their sole  discretion  deem  necessary  or desirable to perfect and to
         maintain  the  perfection  and  priority  of Buyer's  interests  in the
         Receivables.  This  appointment  is  coupled  with an  interest  and is
         irrevocable.

                  Section 7.4     Confidentiality.

                  (a)  Originator  shall  maintain  and shall  cause each of its
         employees  and  officers  to  maintain  the   confidentiality  of  this
         Agreement and the other  confidential or proprietary  information  with

                                      -26-
<PAGE>

         respect  to the  Agent and  Company  and  their  respective  businesses
         obtained by it or them in connection with the structuring,  negotiating
         and  execution of the  transactions  contemplated  herein,  except that
         Originator and its officers and employees may disclose such information
         to Originator's  external  accountants and attorneys and as required by
         any  applicable  law  or  order  of  any  judicial  or   administrative
         proceeding.

                  (b)   Anything   herein  to  the   contrary   notwithstanding,
         Originator   hereby   consents  to  the  disclosure  of  any  nonpublic
         information  with respect to it (i) to Buyer,  the Agent, the Financial
         Institutions or Company by each other,  (ii) by Buyer, the Agent or the
         Purchasers to any  prospective or actual assignee or participant of any
         of them and (iii) by the Agent to any rating agency,  Commercial  Paper
         dealer or  provider  of a  surety,  guaranty  or  credit  or  liquidity
         enhancement  to  Company  or any entity  organized  for the  purpose of
         purchasing, or making loans secured by, financial assets for which Bank
         One acts as the  administrative  agent and to any officers,  directors,
         employees,  outside  accountants and attorneys of any of the foregoing;
         provided,  that each such Person is informed of the confidential nature
         of such  information.  In addition,  the  Purchasers  and the Agent may
         disclose  any such  nonpublic  information  pursuant to any law,  rule,
         regulation, direction, request or order of any judicial, administrative
         or regulatory authority or proceedings (whether or not having the force
         or effect of law).

                  (c) Buyer shall maintain and shall cause each of its employees
         and officers to maintain the  confidentiality of this Agreement and the
         other   confidential  or  proprietary   information   with  respect  to
         Originator, the Obligors and their respective businesses obtained by it
         in  connection  with  the  due  diligence   evaluations,   structuring,
         negotiating  and  execution  of  the  Transaction  Documents,  and  the
         consummation  of the  transactions  contemplated  herein  and any other
         activities  of  Buyer  arising  from  or  related  to the  transactions
         contemplated  herein  provided,  however,  that  each of Buyer  and its
         employees and officers shall be permitted to disclose such confidential
         or proprietary information:  (i) to the Agent and the other Purchasers,
         (ii) to any  prospective or actual assignee or participant of the Agent
         or the other Purchasers who execute a confidentiality agreement for the
         benefit  of the  Originator  and  Buyer  on terms  comparable  to those
         required of Buyer hereunder with respect to such disclosed information,
         (iii) to any rating agency, provider of a surety, guaranty or credit or
         liquidity  enhancement  to Company,  (iv) to any  officers,  directors,
         employees,  outside  accountants and attorneys of any of the foregoing,
         and (v) to the extent  required  pursuant to any applicable  law, rule,
         regulation, direction, request or order of any judicial, administrative
         or regulatory  authority or  proceedings  with  competent  jurisdiction
         (whether  or not  having  the  force or  effect of law) so long as such
         required  disclosure  is made  under seal to the  extent  permitted  by
         applicable law or by rule of court or other applicable body.

         Section 7.5      Bankruptcy  Petition.  (a) Originator  and  Buyer each
hereby covenants and agrees that, prior to the date that is one year and one day
after the payment in full of all outstanding  senior  indebtedness of Company or

                                      -27-
<PAGE>

any Financial Institution that is a special purpose bankruptcy remote entity, it
will not institute  against,  or join any other Person in  instituting  against,
Company  or  any  such  entity  any  bankruptcy,  reorganization,   arrangement,
insolvency or liquidation proceedings or other similar proceeding under the laws
of the United States or any state of the United States.

                  (b)  Originator  covenants and agrees that,  prior to the date
         that  is one  year  and  one  day  after  the  payment  in  full of all
         outstanding  obligations of Buyer under the Purchase Agreement, it will
         not institute against, or join any other Person in instituting against,
         Buyer  any  bankruptcy,  reorganization,   arrangement,  insolvency  or
         liquidation  proceedings or other similar  proceeding under the laws of
         the United States or any state of the United States.

         Section 7.6     Limitation of  Liability.  Except  with  respect to any
claim arising out of the willful misconduct or gross negligence of Company,  the
Agent or any  Financial  Institution,  no claim may be made by Originator or any
other Person against  Company,  the Agent or any Financial  Institution or their
respective Affiliates,  directors,  officers, employees, attorneys or agents for
any special, indirect, consequential or punitive damages in respect of any claim
for  breach of  contract  or any other  theory of  liability  arising  out of or
related to the transactions contemplated by this Agreement, or any act, omission
or event  occurring in  connection  therewith;  and  Originator  hereby  waives,
releases, and agrees not to sue upon any claim for any such damages,  whether or
not accrued and whether or not known or suspected to exist in its favor.

         Section  7.7     CHOICE  OF LAW.  THIS AGREEMENT SHALL BE GOVERNED  AND
CONSTRUED IN  ACCORDANCE  WITH THE  INTERNAL  LAWS (AND NOT THE LAW OF CONFLICTS
OTHER THAN SECTION 5-1401 OF THE NEW YORK  OBLIGATIONS  LAW) OF THE STATE OF NEW
YORK.

         Section  7.8     CONSENT TO JURISDICTION. ORIGINATOR HEREBY IRREVOCABLY
SUBMITS TO THE  NON-EXCLUSIVE  JURISDICTION  OF ANY UNITED STATES FEDERAL OR NEW
YORK  STATE  COURT  SITTING IN NEW YORK,  NEW YORK IN ANY  ACTION OR  PROCEEDING
ARISING  OUT OF OR  RELATING  TO THIS  AGREEMENT  OR ANY  DOCUMENT  EXECUTED  BY
ORIGINATOR  PURSUANT TO THIS AGREEMENT AND ORIGINATOR HEREBY  IRREVOCABLY AGREES
THAT ALL  CLAIMS  IN  RESPECT  OF SUCH  ACTION  OR  PROCEEDING  MAY BE HEARD AND
DETERMINED IN ANY SUCH COURT AND IRREVOCABLY  WAIVES ANY OBJECTION IT MAY NOW OR
HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN
SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT  FORUM.  NOTHING HEREIN SHALL
LIMIT  THE  RIGHT  OF  BUYER  (OR ITS  ASSIGNS)  TO  BRING  PROCEEDINGS  AGAINST
ORIGINATOR IN THE COURTS OF ANY OTHER  JURISDICTION.  ANY JUDICIAL PROCEEDING BY
ORIGINATOR  AGAINST BUYER (OR ITS ASSIGNS) OR ANY AFFILIATE  THEREOF  INVOLVING,
DIRECTLY OR  INDIRECTLY,  ANY MATTER IN ANY WAY  ARISING OUT OF,  RELATED TO, OR
CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY ORIGINATOR PURSUANT TO
THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK.

                                      -28-
<PAGE>

         Section  7.9.  WAIVER  OF  JURY  TRIAL.  TO  THE  EXTENT  PERMITTED  BY
APPLICABLE  LAW,  EACH PARTY HERETO  HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING  INVOLVING,  DIRECTLY OR INDIRECTLY,  ANY MATTER (WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED
WITH THIS  AGREEMENT,  ANY  DOCUMENT  EXECUTED  BY  ORIGINATOR  PURSUANT TO THIS
AGREEMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

         Section 7.10 Integration; Binding Effect; Survival of Terms.

                  (a) This Agreement and each other Transaction Document contain
         the final and  complete  integration  of all prior  expressions  by the
         parties  hereto  with  respect to the subject  matter  hereof and shall
         constitute the entire  agreement  among the parties hereto with respect
         to the  subject  matter  hereof  superseding  all prior oral or written
         understandings.

                  (b) This  Agreement  shall be  binding  upon and  inure to the
         benefit of Originator and Buyer,  and their  respective  successors and
         permitted assigns (including any trustee in bankruptcy). Originator may
         not assign any of its rights and obligations  hereunder or any interest
         herein without the prior written consent of Buyer.  Buyer may assign at
         any time its rights and obligations  hereunder and interests  herein to
         any other Person  without the consent of Originator.  Without  limiting
         the  foregoing,  Originator  acknowledges  that Buyer,  pursuant to the
         Purchase  Agreement,  may assign to the Agent,  for the  benefit of the
         Purchasers,  its rights, remedies,  powers and privileges hereunder and
         that the Agent may further  assign such  rights,  remedies,  powers and
         privileges  to  the  extent   permitted  in  the  Purchase   Agreement.
         Originator  agrees that the Agent,  as the  assignee  of Buyer,  shall,
         subject  to the  terms of the  Purchase  Agreement,  have the  right to
         enforce this  Agreement and to exercise  directly all of Buyer's rights
         and remedies under this Agreement (including,  without limitation,  the
         right to give or  withhold  any  consents or  approvals  of Buyer to be
         given or withheld  hereunder) and Originator  agrees to cooperate fully
         with the  Agent in the  exercise  of such  rights  and  remedies.  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  terminated  in  accordance  with its  terms;
         provided, however, that the rights and remedies with respect to (i) any
         breach of any representation  and warranty made by Originator  pursuant
         to Article  II; (ii) the  indemnification  and  payment  provisions  of
         Article VI; and (iii) Section 7.5 shall be continuing and shall survive
         any termination of this Agreement.

         Section  7.11  Counterparts;  Severability;  Section  References.  This
Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts,  each of which when so executed shall be deemed
to be an original and all of which when taken together shall  constitute one and
the same Agreement.  Delivery of an executed  counterpart of a signature page to
this  Agreement  by  facsimile  shall be as  effective as delivery of a manually
executed  counterpart to this  Agreement.  Any provisions of this Agreement that
are  prohibited  or  unenforceable  in  any  jurisdiction   shall,  as  to  such
jurisdiction,   be   ineffective   to  the   extent  of  such   prohibition   or
unenforceability  without  invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.  Unless otherwise
expressly indicated,  all references herein to "Article,"  "Section," "Schedule"
or "Exhibit" shall mean articles and sections of, and schedules and exhibits to,
this Agreement.

                                      -29-
<PAGE>

         Section 7.12 Subordination. Originator shall have the right to receive,
and  Buyer  shall  make,  any and all  payments  relating  to any  indebtedness,
obligation  or claim,  Originator  may from time to time hold or otherwise  have
against Buyer or any assets or properties of Buyer, whether arising hereunder or
otherwise existing,  provided that, after giving effect to any such payment, the
aggregate Outstanding Balance of Receivables owned by Buyer at such time exceeds
the sum of (a) the Aggregate Unpaids under the Purchase Agreement,  plus (b) the
aggregate  outstanding  principal balance of the Subordinated Loans.  Originator
hereby  agrees  that at any time  during  which the  condition  set forth in the
proviso of the immediately preceding sentence shall not be satisfied, Originator
shall  be  subordinate  in  right  of  payment  to  the  prior  payment  of  any
indebtedness  or obligation  of Buyer owing to the Agent or any Purchaser  under
the Purchase Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                      -30-
<PAGE>

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Agreement to be executed and delivered by their duly  authorized  officers as of
the date hereof.

                                      INTERFACE, INC.

                                      By:    /s/ Daniel T. Hendrix
                                         --------------------------------------
                                         Name:    Daniel T. Hendrix
                                         Title:   Executive Vice President, CFO,
                                                  Treasurer and Assistant
                                                  Secretary

                                      Address:  2859 Paces Ferry Road,
                                                Suite 2000
                                                Atlanta, GA   30339

                                      INTERFACE SECURITIZATION CORPORATION

                                      By:    /s/ Daniel T. Hendrix
                                         ------------------------------
                                         Name:    Daniel T. Hendrix
                                         Title:    President, Treasurer and
                                                  Assistant Secretary

                                      Address:  c/o Interface, Inc.
                                                2859 Paces Ferry Road,
                                                Suite 2000
                                                Atlanta, GA   30339

<PAGE>
                                    EXHIBIT I

                                   Definitions

         This is Exhibit I to the Agreement (as hereinafter defined). As used in
the Agreement and the Exhibits, Schedules and Annexes thereto, capitalized terms
have the  meanings  set forth in this  Exhibit I (such  meanings  to be  equally
applicable to the singular and plural forms thereof).  If a capitalized  term is
used in the  Agreement,  or any  Exhibit,  Schedule  or Annex  thereto,  and not
otherwise defined therein or in this Exhibit I, such term shall have the meaning
assigned thereto in Exhibit I to the Purchase Agreement.

         "Agent" has the meaning set forth in the Preliminary  Statements to the
Agreement.

         "Agreement" means the Receivables Sale Agreement,  dated as of December
19, 2000, between Originator and Buyer, as the same may be amended,  restated or
otherwise modified.

         "Buyer" has the meaning set forth in the preamble to the Agreement.

         "Calculation  Period" means each calendar month or portion thereof that
elapses during the term of the  Agreement.  The first  Calculation  Period shall
commence on the date of the  Purchase  of  Receivables  hereunder  and the final
Calculation Period shall terminate on the Termination Date.

         "Company"  has the meaning set forth in the  Preliminary  Statements to
the Agreement.

         "Credit and Collection  Policy" means each Original Seller's credit and
collection  policies and practices relating to Contracts and Receivables of such
Original  Seller  existing  on the date hereof and  summarized  in Exhibit V, as
modified from time to time in accordance with the Agreement.

         "Default  Fee" means a per annum rate of  interest  equal to the sum of
(i) the Prime Rate, plus (ii) 2% per annum.

         "Dilutions"  means, at any time, the aggregate  amount of reductions or
cancellations described in Section 1.3(a) of the Agreement.

         "Discount Factor" means a percentage calculated to provide Buyer with a
reasonable  return on its investment in the Receivables  after taking account of
(i) the time value of money based upon the  anticipated  dates of  collection of
the  Receivables  and the cost to  Buyer  of  financing  its  investment  in the
Receivables  during such period and (ii) the risk of nonpayment by the Obligors.
Originator  and Buyer may agree from time to time to change the Discount  Factor
based on changes in one or more of the items affecting the calculation  thereof,
provided  that any change to the  Discount  Factor  shall take  effect as of the
commencement of a Calculation  Period,  shall apply only prospectively and shall
not affect the  Purchase  Price  payment  made prior to the  Calculation  Period
during which Originator and Buyer agree to make such change.

<PAGE>

         "Initial Cutoff Date" has the meaning set forth in Section 1.2(a).

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

         "Net Value" means, as of any date of determination,  an amount equal to
the sum of (i) the  aggregate  Outstanding  Balance of the  Receivables  at such
time, minus (ii) the sum of (A) the Aggregate Capital  outstanding at such time,
plus (B) the Aggregate Reserves.

         "Net  Worth"  means as of the  last  Business  Day of each  Calculation
Period  preceding  any date of  determination,  the  excess,  if any, of (a) the
aggregate  Outstanding Balance of the Receivables at such time, over (b) the sum
of (i) the Aggregate  Capital  outstanding at such time, plus (ii) the aggregate
outstanding   principal  balance  of  the  Subordinated   Loans  (including  any
Subordinated Loan proposed to be made on the date of determination).

         "Original  Balance" means,  with respect to any Receivable  coming into
existence  after the  Initial  Cutoff  Date,  the  Outstanding  Balance  of such
Receivable on the date it was created.

         "Originator"  has  the  meaning  set  forth  in  the  preamble  to  the
Agreement.

         "Potential  Termination Event" means an event that, with the passage of
time or the giving of notice, or both, would constitute a Termination Event.

         "Purchase"  means  the  purchase  pursuant  to  Section  1.1(a)  of the
Agreement by Buyer from Originator of the  Receivables and the Related  Security
and Collections related thereto,  together with all related rights in connection
therewith.

                                    Exh. I-2
<PAGE>

         "Purchase  Agreement"  has the  meaning  set  forth in the  Preliminary
Statements to the Agreement.

         "Purchase  Price" means,  with respect to the  Purchase,  the aggregate
price to be paid by Buyer to Originator  for such  Purchase in  accordance  with
Section  1.2 of the  Agreement  for the  Receivables,  Collections  and  Related
Security  being  sold to  Buyer,  which  price  shall  equal on any date (i) the
product  of (x) the  Outstanding  Balance  of  such  Receivables  on such  date,
multiplied  by (y) one minus the Discount  Factor in effect on such date,  minus
(ii) any  Purchase  Price  Credits to be  credited  against the  Purchase  Price
otherwise payable in accordance with Section 1.3 of the Agreement.

         "Purchase Price Credit" has the meaning set forth in Section 1.3 of the
Agreement.

         "Receivable"  means all indebtedness  and other  obligations owed to an
Original Seller (at the time it arises, and before giving effect to any transfer
or conveyance under the Transfer Agreement),  Originator (after giving effect to
the  transfers  under the Transfer  Agreement  and before  giving  effect to any
transfer or conveyance under the Agreement) or Buyer (after giving effect to the
transfers  under the  Agreement) or in which an Original  Seller,  Originator or
Buyer has a security interest or other interest,  including, without limitation,
any indebtedness, obligation or interest constituting an account, chattel paper,
instrument or general  intangible,  arising in connection with the sale of goods
or the  rendering  of  services  by an Original  Seller,  and further  includes,
without  limitation,  the  obligation  to pay any Finance  Charges  with respect
thereto.  Indebtedness  and other  rights and  obligations  arising from any one
transaction,  including,  without limitation,  indebtedness and other rights and
obligations  represented by an individual invoice, shall constitute a Receivable
separate from a Receivable  consisting of the  indebtedness and other rights and
obligations  arising from any other  transaction;  provided,  further,  that any
indebtedness,  rights or obligations  referred to in the  immediately  preceding
sentence  shall be a Receivable  regardless of whether the account  debtor,  the
Original  Seller  thereof or  Originator  treats  such  indebtedness,  rights or
obligations as a separate payment obligation.

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

                           (i) all of the interest of Originator or the Original
                  Seller thereof in the inventory and goods (including  returned
                  or  repossessed  inventory  or  goods),  if any,  the  sale or
                  financing of which by the Original Seller thereof gave rise to
                  such  Receivable,  and all  insurance  contracts  with respect
                  thereto,

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

                                    Exh. I-3
<PAGE>

                           (iii) all  guaranties,  letters of credit,  insurance
                  and other  agreements or  arrangements  of whatever  character
                  from  time to time  supporting  or  securing  payment  of such
                  Receivable  whether  pursuant to the Contract  related to such
                  Receivable or otherwise,

                           (iv all service  contracts  and other  contracts  and
                  agreements associated with such Receivable,

                           (v) all Records related to such Receivable,

                           (vi) all of Originator's right, title and interest in
                  each Lock-Box and each Collection Account,

                           (vii) all of  Originator's  interest in, to and under
                  the Transfer Agreement, and

                           (viii) all proceeds of any of the foregoing.

         "Required  Capital Amount" means, as of any date of  determination,  an
amount  equal  to the  sum of (i)  the  twenty-four  month  rolling  average  of
Dilutions,  plus (ii) the result  obtained in the  foregoing  clause (i) of this
definition, multiplied by 10%.

         "Settlement Date" means, with respect to each Calculation  Period,  the
date that is the sixth  calendar  day of the month  following  such  Calculation
Period.

         "Subordinated  Loan" has the meaning set forth in Section 1.2(a) of the
Agreement.

         "Subordinated  Note" means a promissory note in substantially  the form
of Exhibit VII hereto as more fully  described in Section 1.2 of the  Agreement,
as the same may be amended,  restated,  supplemented or otherwise  modified from
time to time.

         "Termination  Date"  means the  earliest  to occur of (i) the  Facility
Termination Date, (ii) the Business Day immediately prior to the occurrence of a
Termination Event set forth in Section 5.1(d),  (iii) the Business Day specified
in a written notice from Buyer to the Originator following the occurrence of any
other  Termination  Event,  and (iv) the date  that is 30  Business  Days  after
Buyer's  receipt of written notice from  Originator  that it wishes to terminate
the facility evidenced by this Agreement.

                                    Exh. I-4
<PAGE>

         "Termination  Event" has the  meaning  set forth in Section  5.1 of the
Agreement.

         "Transaction  Documents"  means,  collectively,   this  Agreement,  the
Transfer Agreement each Collection Account Agreement,  the Subordinated Note and
all other  instruments,  documents  and  agreements  executed  and  delivered in
connection herewith.

         "Transfer  Agreement"  has the meaning set forth in the preamble to the
Agreement.

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

                                     Exh I-5

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