Document:

Exhibit 10.29

                             THIRD LIMITED WAIVER TO
                           RECEIVABLES SALE AGREEMENT

                  This Third Limited Waiver to Receivables  Sale Agreement (this
"Limited  Waiver")  is entered  into as of  December  31,  2000,  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 Limited Waiver shall have the
meanings assigned to such terms in the Sale Agreement (as defined below) (or, if
not  defined  therein,  the  meaning  assigned  to  such  term  in the  Purchase
Agreement).

                             PRELIMINARY STATEMENTS
                             ----------------------

                  Each of the parties hereto entered into a certain  Receivables
Sale  Agreement,   dated  as  of  December  19,  2000  (as  amended,   restated,
supplemented or otherwise modified from time to time, the "Sale Agreement").

                  Originator desires to enter into a certain Third Amendment and
Limited Waiver to the Receivables  Transfer Agreement of even date herewith (the
"Transfer  Agreement  Amendment")  in order to permit the use of  certain  trade
names, corporate names and assumed names to be used by Interface Americas, Inc.,
a Georgia corporation, an Original Seller.

                  Under the terms of the Sale Agreement, the Seller's consent is
required in order for Originator to enter into the Transfer Agreement Amendment,
which consent the Originator has requested.

                  The Seller is willing to give such consent in accordance  with
the terms and upon the conditions set forth herein.

                                    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:

                  1.  Consent.  Subject  to the terms and  conditions  set forth
herein and upon the effectiveness of this Limited Waiver,  Buyer hereby consents
to the Originator's  execution and delivery of the Transfer Agreement  Amendment
and the performance of its obligations thereunder.

<PAGE>

                  2. Limited  Waiver.  Subject to the terms and  conditions  set
forth herein and upon the  effectiveness  of this Limited  Waiver,  Buyer hereby
waives any Termination Event or Potential Termination Event that may arise as of
the date  hereof  under  Section  5.1(h)  of the Sale  Agreement  as a result of
Originator's  waiver  as  set  forth  in  Section  2 of the  Transfer  Agreement
Amendment.

                  3. Representations and Warranties.  The Originator  represents
and  warrants,  as of the date hereof,  that after giving effect to this Limited
Waiver:

                                    (a)   all   of   the   representations   and
                  warranties of the  Originator  contained in the Sale 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  Limited  Waiver.   The
effectiveness  of this  Limited  Waiver is  subject to the  satisfaction  of the
following conditions precedent:

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

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

                                    (c) Waivers and Amendments.  The Buyer 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 Limited Waiver.

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

<PAGE>

                                    (e) Documents. The Buyer shall have received
                  each  of the  documents  set  forth  in  Section  4(f)  of the
                  Transfer Agreement Amendment.

                                    (f) UCC-3  Financing  Statements.  The Buyer
                  shall have received duly executed proper financing  statements
                  for all  jurisdictions  as may be necessary or, in the opinion
                  of Buyer  (or its  assigns),  desirable,  under the UCC of all
                  appropriate  jurisdictions or any comparable law in connection
                  with this Limited Waiver.

                  5. Effect of Limited  Waiver.  (a) The waiver set forth herein
is  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 Sale
Agreement  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 Buyer,  the Agent,  the Financial  Institutions and the
Company may now have or may have in the future under or in  connection  with the
Sale  Agreement or any other  Transaction  Document or any other  instrument  or
agreement  referred  to therein.  This  Limited  Waiver  shall be  construed  in
connection  with and as part of the Sale  Agreement  and all terms,  conditions,
representations,  warranties,  covenants  and  agreements  set forth in the Sale
Agreement 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) The Originator  hereby agrees to pay all
                  costs,  fees and expenses in connection with the  preparation,
                  execution and delivery of this Limited  Waiver  (including the
                  reasonable  fees  and  expenses  of  counsel  to  the  parties
                  hereto).

                                    (b) This  Limited  Waiver 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 Limited
                  Waiver  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 Limited Waiver in that  jurisdiction or the
                  operation, enforceability or validity of such provision in any
                  other jurisdiction.

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

                            [SIGNATURE PAGE FOLLOWS]

<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   30339Exhibit 10.30

                         RECEIVABLES PURCHASE AGREEMENT

                          dated as of December 19, 2000

                                      Among

                INTERFACE SECURITIZATION CORPORATION, as Seller,
                          INTERFACE, INC., as Servicer,

                         CERTAIN FINANCIAL INSTITUTIONS

                         FROM TIME TO TIME PARTY HERETO,

                       JUPITER SECURITIZATION CORPORATION

                                       and

                       BANK ONE, NA (MAIN OFFICE CHICAGO)
                                    as Agent

<PAGE>
<TABLE>
<CAPTION>

                                      TABLE OF CONTENTS

                                                                                     Page
<S>                                                                                  <C>
ARTICLE I

     PURCHASE ARRANGEMENTS...........................................................Page 1
                 Section 1.1      Purchase Facility..................................Page 1
                 Section 1.2      Increases..........................................Page 1
                 Section 1.3      Decreases..........................................Page 2
                 Section 1.4      Payment Requirements...............................Page 2

ARTICLE II

      PAYMENTS AND COLLECTIONS.......................................................Page 2
                 Section 2.1      Payments...........................................Page 2
                 Section 2.2      Collections Prior to Amortization..................Page 3
                 Section 2.3      Collections Following Amortization.................Page 3
                 Section 2.4      Application of Collections.........................Page 4
                 Section 2.5      Payment Rescission.................................Page 4
                 Section 2.6      Maximum Purchaser Interests........................Page 4

ARTICLE III

     COMPANY FUNDING.................................................................Page 5
                 Section 3.1      CP Costs...........................................Page 5
                 Section 3.2      CP Costs Payments..................................Page 5
                 Section 3.3      Calculation of CP Costs............................Page 5

ARTICLE IV

     FINANCIAL INSTITUTION FUNDING...................................................Page 5
                 Section 4.1      Financial Institution Funding......................Page 5
                 Section 4.2      Yield Payments.....................................Page 5
                 Section 4.3      Selection and Continuation of Tranche Periods......Page 5
                 Section 4.4      Financial Institution Discount Rates...............Page 6
                 Section 4.5      Suspension of the LIBO Rate........................Page 6

ARTICLE V

     REPRESENTATIONS AND WARRANTIES..................................................Page 6
                 Section 5.1      Representations and Warranties
                                  of the Seller Parties..............................Page 6
                 Section 5.2      Financial Institution Representations
                                  and Warranties.....................................Page 9

ARTICLE VI

     CONDITIONS OF PURCHASES.........................................................Page 10
                 Section 6.1      Conditions Precedent to Initial
                                  Incremental Purchase...............................Page 10
                 Section 6.2      Conditions Precedent to All Purchases and
                                  Reinvestments......................................Page 10

ARTICLE VII

    COVENANTS........................................................................Page 11
                 Section 7.1      Affirmative Covenants of The Seller Parties........Page 11
                 Section 7.2      Negative Covenants of the Seller Parties...........Page 18

                                             -i-

<PAGE>

ARTICLE VIII

    ADMINISTRATION AND COLLECTION....................................................Page 19
                 Section 8.1      Designation of Servicer............................Page 19
                 Section 8.2      Duties of Servicer.................................Page 19
                 Section 8.3      Collection Notices.................................Page 21
                 Section 8.4      Responsibilities of Seller.........................Page 21
                 Section 8.5      Reports............................................Page 21
                 Section 8.6      Servicing Fees.....................................Page 21

ARTICLE IX

    AMORTIZATION EVENTS..............................................................Page 21
                 Section 9.1      Amortization Events................................Page 21
                 Section 9.2      Remedies...........................................Page 23

ARTICLE X

    INDEMNIFICATION..................................................................Page 24
                 Section 10.1     Indemnities by The Seller Parties..................Page 24
                 Section 10.2     Increased Cost and Reduced Return..................Page 26
                 Section 10.3     Other Costs and Expenses...........................Page 27

ARTICLE XI

    THE AGENT........................................................................Page 27
                 Section 11.1     Authorization and Action...........................Page 27
                 Section 11.2     Delegation of Duties...............................Page 27
                 Section 11.3     Exculpatory Provisions.............................Page 27
                 Section 11.4     Reliance by Agent..................................Page 28
                 Section 11.5     Non-Reliance on Agent and Other Purchasers.........Page 28
                 Section 11.6     Reimbursement and Indemnification..................Page 28
                 Section 11.7     Agent in its Individual Capacity...................Page 28
                 Section 11.8     Successor Agent....................................Page 29

ARTICLE XII

    ASSIGNMENTS; PARTICIPATIONS......................................................Page 29
                 Section 12.1     Assignments....................................... Page 29
                 Section 12.2     Participations.................................... Page 30

ARTICLE XIII

    LIQUIDITY FACILITY...............................................................Page 30
                 Section 13.1     Transfer to Financial Institutions................ Page 30
                 Section 13.2     Transfer Price Reduction Yield.................... Page 30
                 Section 13.3     Payments to Company............................... Page 31
                 Section 13.4     Limitation on Commitment
                                  to Purchase from Company.......................... Page 31
                 Section 13.5     Defaulting Financial Institutions................. Page 31

ARTICLE XIV

    MISCELLANEOUS....................................................................Page 32
                 Section 14.1     Waivers and Amendments............................ Page 32
                 Section 14.2     Notices........................................... Page 33
                 Section 14.3     Ratable Payments.................................. Page 33

                                             -ii-

<PAGE>

                 Section 14.4     Protection of Ownership Interests
                                  of the Purchasers................................. Page 34
                 Section 14.5     Confidentiality................................... Page 34
                 Section 14.6     Bankruptcy Petition............................... Page 35
                 Section 14.7     Limitation of Liability........................... Page 35
                 Section 14.8     CHOICE OF LAW..................................... Page 35
                 Section 14.9     CONSENT TO JURISDICTION........................... Page 35
                 Section 14.10    WAIVER OF JURY TRIAL.............................. Page 35
                 Section 14.11    Integration; Binding Effect; Survival of Terms.... Page 35
                 Section 14.12    Counterparts; Severability; Section References.... Page 36
                 Section 14.13    Bank One Roles.................................... Page 36
                 Section 14.14    Characterization.................................. Page 36
</TABLE>

                                            -iii-

<PAGE>

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

Exhibit I         Definitions
Exhibit II        Form of Purchase Notice
Exhibit III       Places of Business of the Seller Parties;
                  Locations of Records; Federal Employer
                  Identification Number(s)
Exhibit IV        Names of Collection Banks; Collection Accounts
Exhibit V         Form of Compliance Certificate
Exhibit VI        Form of Collection Account Agreement
Exhibit VII       Form of Assignment Agreement
Exhibit VIII      Credit and Collection Policy
Exhibit IX        [Intentionally Omitted]
Exhibit X         Form of Monthly Report
Exhibit XI        Form of Weekly Report

Schedule A        Commitments
Schedule B        Closing Documents

                                      -iv-

<PAGE>

                                  POOL PURCHASE
                      INTERFACE SECURITIZATION CORPORATION
                         RECEIVABLES PURCHASE AGREEMENT

         This Receivables  Purchase  Agreement dated as of December 19, 2000, is
among Interface Securitization  Corporation,  a Delaware corporation ("Seller"),
Interface, Inc., a Georgia corporation  ("Interface"),  as initial Servicer (the
Servicer together with Seller,  the "Seller Parties" and each a "Seller Party"),
the entities listed on Schedule A to this Agreement  (together with any of their
respective  successors and assigns  hereunder,  the  "Financial  Institutions"),
Jupiter  Securitization  Corporation  ("Company")  and Bank One, NA (Main Office
Chicago),  as  agent  for  the  Purchasers  hereunder  and any  successor  agent
hereunder  (together with its successors  and assigns  hereunder,  the "Agent").
Unless defined elsewhere herein,  capitalized terms used in this Agreement shall
have the meanings assigned to such terms in Exhibit I.

                             PRELIMINARY STATEMENTS

         Seller  desires to  transfer  and  assign  Purchaser  Interests  to the
Purchasers from time to time.

         Company may, in its absolute and sole  discretion,  purchase  Purchaser
Interests from Seller from time to time.

         In the event that Company declines to make any purchase,  the Financial
Institutions shall, at the request of Seller,  purchase Purchaser Interests from
time to time. In addition,  the Financial  Institutions have agreed to provide a
liquidity facility to Company in accordance with the terms hereof.

         Bank One, NA (Main Office Chicago) has been requested and is willing to
act as Agent on behalf of Company and the Financial  Institutions  in accordance
with the terms hereof.

                                    ARTICLE I

                              PURCHASE ARRANGEMENTS

                  Section 1.1  Purchase Facility.

                  (a) Upon the  terms  and  subject  to the  conditions  hereof,
         Seller may, at its option,  sell and assign Purchaser  Interests to the
         Agent for the benefit of one or more of the  Purchasers.  In accordance
         with the terms and  conditions  set forth  herein,  Company may, at its
         option,  instruct  the Agent to purchase  on behalf of  Company,  or if
         Company shall decline to purchase,  the Agent shall purchase, on behalf
         of the Financial Institutions, Purchaser Interests from time to time in
         an  aggregate  amount  not to exceed at such time the lesser of (i) the
         Purchase Limit and (ii) the aggregate amount of the Commitments  during
         the  period  from the date  hereof to but not  including  the  Facility
         Termination Date.

                  (b) Seller may, upon at least 10 Business  Days' notice to the
         Agent,  terminate  in  whole  or  reduce  in part,  ratably  among  the
         Financial  Institutions,  the  unused  portion of the  Purchase  Limit;
         provided that each partial  reduction of the Purchase Limit shall be in
         an amount equal to $5,000,000 or an integral multiple thereof.

                  Section 1.2  Increases.

<PAGE>

         Seller shall  provide the Agent with at least two Business  Days' prior
notice in a form set forth as Exhibit II hereto of each Incremental  Purchase (a
"Purchase Notice").  Each Purchase Notice shall be subject to Section 6.2 hereof
and,  except as set forth  below,  shall be  irrevocable  and shall  specify the
requested  Purchase  Price  (which  shall  not be less than  $10,000,000  (or an
integral multiple thereof) in the case of the initial  Incremental  Purchase and
shall not be less than $500,000 (or an integral multiple thereof) in the case of
any subsequent  Incremental Purchase) and date of purchase (which shall occur no
more  frequently than once per calendar week) and, in the case of an Incremental
Purchase to be funded by the Financial Institutions, the requested Discount Rate
and  Tranche  Period.  Following  receipt of a Purchase  Notice,  the Agent will
determine  whether Company agrees to make the purchase.  If Company  declines to
make a proposed  purchase,  Seller may  cancel  the  Purchase  Notice or, in the
absence  of such a  cancellation,  the  Incremental  Purchase  of the  Purchaser
Interest  will  be  made  by the  Financial  Institutions.  On the  date of each
Incremental  Purchase,  upon satisfaction of the applicable conditions precedent
set forth in Article VI, Company or the Financial  Institutions,  as applicable,
shall deposit to the Facility Account, in immediately  available funds, no later
than 12:00 noon (Chicago  time),  an amount equal to (i) in the case of Company,
the  aggregate  Purchase  Price  of the  Purchaser  Interests  Company  is  then
purchasing  or  (ii) in the  case of a  Financial  Institution,  such  Financial
Institution's  Pro Rata Share of the aggregate  Purchase  Price of the Purchaser
Interests the Financial Institutions are purchasing.

         Section 1.3 Decreases. Seller shall provide the Agent with at least two
(2) Business Days' prior written  notice (a "Reduction  Notice") of any proposed
reduction of Aggregate  Capital from  Collections.  Such Reduction  Notice shall
designate  (i) the date (the  "Proposed  Reduction  Date")  upon  which any such
reduction of  Aggregate  Capital  shall occur,  and (ii) the amount of Aggregate
Capital to be  reduced,  which  reduction  shall be applied  (A)  ratably to the
Purchaser Interests of Company and the Financial Institutions in accordance with
the amount of Capital (if any) owing to Company, on the one hand, and the amount
of Capital (if any) owing to the Financial Institutions (ratably, based on their
respective  Pro Rata  Shares),  on the other hand or (B) as  requested by Seller
with the Agent's consent, which consent may be given or withheld in Agent's sole
discretion (the "Aggregate  Reduction").  Only one (1) Reduction Notice shall be
outstanding  at any time.  No Aggregate  Reduction  will be made  following  the
occurrence of the Amortization Date without the consent of the Agent.

         Section 1.4 Payment  Requirements.  All amounts to be paid or deposited
by any Seller Party pursuant to any provision of this Agreement shall be paid or
deposited in accordance with the terms hereof no later than 11:00 a.m.  (Chicago
time) on the day when due in immediately  available  funds,  and if not received
before  11:00 a.m.  (Chicago  time)  shall be deemed to be  received on the next
succeeding  Business Day. If such amounts are payable to a Purchaser  they shall
be paid to the Agent,  for the account of such  Purchaser,  at 1 Bank One Plaza,
Chicago,  Illinois 60670 until otherwise  notified by the Agent.  Upon notice to
Seller, the Agent may debit the Facility Account for all amounts due and payable
hereunder.  All  computations of Yield, per annum fees calculated as part of any
CP Costs, per annum fees hereunder and per annum fees under the Fee Letter shall
be made on the  basis  of a year of 360  days  for  the  actual  number  of days
elapsed.  If any  amount  hereunder  shall  be  payable  on a day  that is not a
Business Day, such amount shall be payable on the next succeeding Business Day.

                                   ARTICLE II
                            PAYMENTS AND COLLECTIONS

         Section  2.1  Payments.  Notwithstanding  any  limitation  on  recourse
contained in this Agreement, Seller shall immediately pay to the Agent when due,
for the account of the  relevant  Purchaser  or  Purchasers  on a full  recourse
basis, (i) such fees as set forth in the Fee Letter (which fees

                                     Page 2
<PAGE>
shall be sufficient to pay all fees owing to the Financial  Institutions),  (ii)
all CP Costs,  (iii) all amounts  payable as Yield,  (iv) all amounts payable as
Deemed  Collections  (which  shall be immedi ately due and payable by Seller and
applied to reduce  outstanding  Aggregate  Capital  hereunder in accordance with
Sections 2.2 and 2.3 hereof),  (v) all amounts required pursuant to Section 2.6,
(vi) all amounts payable pursuant to Article X, if any, (vii) all Servicer costs
and  expenses,  including  the  Servicing  Fee, in  connection  with  servicing,
administering  and collecting the  Receivables,  (viii) all Broken Funding Costs
and (ix) all Default Fees (collectively, the "Obligations"). If any Person fails
to pay any of the Obligations (other than the Default Fee) when due, such Person
agrees to pay,  on demand,  the  Default  Fee in  respect  thereof  until  paid.
Notwithstanding the foregoing,  no provision of this Agreement or the Fee Letter
shall require the payment or permit the  collection of any amounts  hereunder in
excess  of the  maximum  permitted  by  applicable  law.  If at any time  Seller
receives any Collections or is deemed to receive any  Collections,  Seller shall
immediately  pay such  Collections  or Deemed  Collections  to the  Servicer for
application in accordance with the terms and conditions hereof and, at all times
prior to such payment,  such Collections or Deemed  Collections shall be held in
trust by Seller for the exclusive benefit of the Purchasers and the Agent.

         Section  2.2   Collections   Prior  to   Amortization.   Prior  to  the
Amortization  Date, any Collections  and/or Deemed  Collections  received by the
Servicer shall be set aside and held in trust by the Servicer for the payment of
any accrued and unpaid  Aggregate  Unpaids or for a Reinvestment  as provided in
this  Section 2.2. If at any time any  Collections  are received by the Servicer
prior to the Amortization Date, (i) the Servicer shall set aside the Termination
Percentage  (hereinafter  defined) of  Collections  evidenced  by the  Purchaser
Interests  of each  Terminating  Financial  Institution  and (ii) Seller  hereby
requests and the Purchasers (other than any Terminating Financial  Institutions)
hereby agree to make,  simultaneously  with such receipt, a reinvestment (each a
"Reinvestment")  with that  portion of the balance of each and every  Collection
received by the Servicer that is part of any Purchaser  Interest (other than any
Purchaser  Interests of  Terminating  Financial  Institutions),  such that after
giving  effect to such  Reinvestment,  the amount of  Capital of such  Purchaser
Interest immediately after such receipt and corresponding  Reinvestment shall be
equal to the  amount  of  Capital  immediately  prior to such  receipt.  On each
Settlement Date prior to the occurrence of the  Amortization  Date, the Servicer
shall remit to the Agent's  account the amounts set aside  during the  preceding
Settlement  Period that have not been subject to a  Reinvestment  and apply such
amounts (if not previously paid in accordance with Section 2.1) first, to reduce
unpaid CP Costs,  Yield and other  Obligations and second, to reduce the Capital
of all  Purchaser  Interests of Terminat  ing  Financial  Institutions,  applied
ratably to each Terminating  Financial  Institution  according to its respective
Termination  Percentage.  If such  Capital  and such CP  Costs,  Yield and other
Obligations shall be reduced to zero, any additional Collections received by the
Servicer (i) if  applicable,  shall be remitted to the Agent's  account no later
than 11:00 a.m.  (Chicago  time) to the extent  required  to fund any  Aggregate
Reduction  on such  Settlement  Date and (ii) any balance  remaining  thereafter
shall be remitted  from the  Servicer to Seller on such  Settlement  Date.  Each
Terminating  Financial  Institution  shall be  allocated  a ratable  portion  of
Collections  from the date of any assignment by Company pursuant to Section 13.6
(the "Termination Date") until such Terminating Financing  Institution's Capital
shall  be  paid in  full.  This  ratable  portion  shall  be  calculated  on the
Termination Date of each Terminating Financial Institution as a percentage equal
to (i) Capital of such  Terminating  Financial  Institution  outstanding  on its
Termination  Date,  divided by (ii) the Aggregate  Capital  outstanding  on such
Termination Date (the  "Termination  Percentage").  Each  Terminating  Financial
Institution's   Termination  Percentage  shall  remain  constant  prior  to  the
Amortization  Date.  On  and  after  the  Amortization  Date,  each  Termination
Percentage shall be disregarded,  and each Terminating  Financial  Institution's
Capital shall be reduced  ratably with all Financial  Institutions in accordance
with Section 2.3.

         Section 2.3 Collections  Following  Amortization.  On the  Amortization
Date and on each day thereafter, the Servicer shall set aside and hold in trust,
for the holder of each

                                     Page 3

<PAGE>

Purchaser  Interest,  all  Collections  received  on such day and an  additional
amount for the payment of any accrued and unpaid  Obligations owed by Seller and
not previously  paid by Seller in accordance  with Section 2.1. On and after the
Amortization Date, the Servicer shall, at any time upon the request from time to
time by (or pursuant to standing  instructions  from) the Agent (i) remit to the
Agent's  account the amounts set aside pursuant to the preceding  sentence,  and
(ii)  apply  such  amounts  to  reduce  the  Capital  associated  with each such
Purchaser Interest and any other Aggregate Unpaids.

         Section 2.4 Application of Collections.  If there shall be insufficient
funds on deposit for the Servicer to distribute  funds in payment in full of the
aforementioned  amounts  pursuant  to Section  2.2 or 2.3 (as  applicable),  the
Servicer shall distribute funds:

                  first,   to  the   payment   of  the   Servicer's   reasonable
         out-of-pocket   costs  and  expenses  in  connection   with  servicing,
         administering  and collecting the Receivables , including the Servicing
         Fee,  if  Seller  or one of its  Affiliates  is not then  acting as the
         Servicer,

                  second,   to  the   reimbursement  of  the  Agent's  costs  of
         collection and enforcement of this Agreement,

                  third, ratably to the payment of all accrued and unpaid fees
         under the Fee Letter, CP Costs and Yield,

                  fourth, (to the extent applicable) to the ratable reduction of
         the Aggregate Capital (without regard to any Termination Percentage),

                  fifth,   for  the   ratable   payment  of  all  other   unpaid
         Obligations, provided that to the extent such Obligations relate to the
         payment of Servicer  costs and expenses,  including the Servicing  Fee,
         when Seller or one of its  Affiliates is acting as the  Servicer,  such
         costs and expenses  will not be paid until after the payment in full of
         all other Obligations, and

                  sixth,  after the  Aggregate  Unpaids  have been  indefeasibly
          reduced to zero, to Seller.

         Collections  applied  to the  payment  of  Aggregate  Unpaids  shall be
distributed in accordance with the aforementioned provisions, and, giving effect
to each of the  priorities  set  forth in  Section  2.4  above,  shall be shared
ratably  (within each priority) among the Agent and the Purchasers in accordance
with the amount of such  Aggregate  Unpaids  owing to each of them in respect of
each such priority.

         Section  2.5  Payment  Rescission.  No payment of any of the  Aggregate
Unpaids shall be considered paid or applied hereunder to the extent that, at any
time,  all or any  portion  of such  payment  or  application  is  rescinded  by
application  of law or  judicial  authority,  or must  otherwise  be returned or
refunded for any reason.  Seller shall  remain  obligated  for the amount of any
payment or  application so rescinded,  returned or refunded,  and shall promptly
pay to the Agent (for  application  to the Person or Persons who  suffered  such
rescission, return or refund) the full amount thereof, plus the Default Fee from
the date of any such rescission, return or refunding.

         Section 2.6 Maximum Purchaser Interests.

                  (a) Seller  shall ensure that the  Purchaser  Interests of the
         Purchasers shall at no time exceed in the aggregate 100%.

                  (b)  If  the  aggregate  of  the  Purchaser  Interests  of the
         Purchasers  exceeds 100%,  Seller shall pay to the Agent within two (2)
         Business Days an amount to be applied to

                                     Page 4

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         reduce the  Aggregate  Capital (as  allocated by the Agent),  such that
         after  giving  effect to such payment the  aggregate  of the  Purchaser
         Interests equals or is less than 100%.

                                   ARTICLE III

                                 COMPANY FUNDING

         Section  3.1 CP Costs.  Seller  shall pay CP Costs with  respect to the
Capital associated with each Purchaser Interest of Company for each day that any
Capital in respect of such  Purchaser  Interest is  outstanding.  Each Purchaser
Interest funded substantially with Pooled Commer cial Paper will accrue CP Costs
each day on a pro rata  basis,  based upon the  percentage  share the Capital in
respect of such Purchaser Interest  represents in relation to all assets held by
Company and funded substantially with Pooled Commercial Paper.

         Section 3.2 CP Costs Payments.  On each Monthly Settlement Date, Seller
shall pay to the Agent (for the benefit of Company) an aggregate amount equal to
all accrued and unpaid CP Costs in respect of the  Capital  associated  with all
Purchaser  Interests of Company for the immediately  preceding Accrual Period in
accordance with Article II.

         Section  3.3  Calculation  of CP  Costs.  On  the  third  Business  Day
immediately  preceding each Monthly Settlement Date, Company shall calculate the
aggregate amount of CP Costs for the applicable  Accrual Period and shall notify
Seller of such aggregate amount.

                                   ARTICLE IV

                          FINANCIAL INSTITUTION FUNDING

         Section 4.1 Financial  Institution Funding.  Each Purchaser Interest of
the  Financial  Institutions  shall accrue Yield for each day during its Tranche
Period at either  the LIBO Rate or the Prime Rate in  accordance  with the terms
and  conditions  hereof.  Until  Seller  gives  notice to the  Agent of  another
Discount Rate in accordance with Section 4.4, the initial  Discount Rate for any
Purchaser  Interest  transferred to the Financial  Institutions  pursuant to the
terms  and  conditions  hereof  shall  be  the  Prime  Rate.  If  the  Financial
Institutions  acquire by assignment from Company any Purchaser Interest pursuant
to Article XIII,  each  Purchaser  Interest so assigned  shall each be deemed to
have a new Tranche Period commencing on the date of any such assignment.

         Section 4.2 Yield  Payments.  On the Monthly  Settlement  Date for each
Purchaser Interest of the Financial Institutions,  Seller shall pay to the Agent
(for the benefit of the Financial Institutions) an aggregate amount equal to the
accrued and unpaid Yield for the entire  Tranche  Period of each such  Purchaser
Interest in accordance with Article II.

         Section 4.3 Selection and Continuation of Tranche Periods.

                  (a) With consultation from (and approval by) the Agent, Seller
         shall  from time to time  request  Tranche  Periods  for the  Purchaser
         Interests of the Financial Institutions,  provided that, if at any time
         the  Financial  Institutions  shall have a Purchaser  Interest,  Seller
         shall  always  request  Tranche  Periods such that at least one Tranche
         Period shall end on the date  specified in clause (A) of the definition
         of Monthly Settlement Date.

                  (b) Seller or the  Agent,  upon  notice to and  consent by the
         other  received at least three (3) Business  Days prior to the end of a
         Tranche Period (the "Terminating  Tranche") for any Purchaser Interest,
         may, effective on the last day of the Terminating Tranche: (i)

                                     Page 5

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         divide any such Purchaser Interest into multiple  Purchaser  Interests,
         (ii)  combine  any  such  Purchaser  Interest  with  one or more  other
         Purchaser  Interests that have a Terminating Tranche ending on the same
         day as such  Terminating  Tranche or (iii)  combine any such  Purchaser
         Interest with a new Purchaser Interests to be purchased on the day such
         Terminating  Tranche ends,  provided,  that in no event may a Purchaser
         Interest  of Company  be  combined  with a  Purchaser  Interest  of the
         Financial Institutions.

                  Section 4.4 Financial  Institution  Discount Rates. Seller may
         select the LIBO Rate or the Prime Rate for each  Purchaser  Interest of
         the Financial Institutions.  Seller shall by 11:00 a.m. (Chicago time):
         (i) at least three (3)  Business  Days prior to the  expiration  of any
         Terminating  Tranche  with  respect  to which  the  LIBO  Rate is being
         requested as a new Discount Rate and (ii) at least one (1) Business Day
         prior to the  expiration  of any  Terminating  Tranche  with respect to
         which the Prime Rate is being  requested as a new Discount  Rate,  give
         the Agent irrevocable notice of the new Discount Rate for the Purchaser
         Interest associated with such Terminating  Tranche.  Until Seller gives
         notice to the Agent of another Discount Rate, the initial Discount Rate
         for any Purchaser  Interest  transferred to the Financial  Institutions
         pursuant to the terms and conditions hereof shall be the Prime Rate.

                  Section  4.5  Suspension  of the LIBO Rate.  If any  Financial
         Institution  notifies the Agent that it has determined that funding its
         Pro Rata Share of the Purchaser Interests of the Financial Institutions
         at a LIBO Rate would violate any applicable law, rule,  regulation,  or
         directive of any governmental or regulatory  authority,  whether or not
         having the force of law, or that (i)  deposits  of a type and  maturity
         appropriate to match fund its Purchaser Interests at such LIBO Rate are
         not  available or (ii) such LIBO Rate does not  accurately  reflect the
         cost of  acquiring  or maintain  ing a Purchaser  Interest at such LIBO
         Rate,  then the Agent shall suspend the  availability of such LIBO Rate
         and require Seller to select the Prime Rate for any Purchaser  Interest
         accruing Yield at such LIBO Rate.

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

         Section 5.1 Representations and Warranties of the Seller Parties.  Each
Seller Party hereby represents and warrants to the Agent and the Purchasers,  as
to itself, as of the date hereof and as of the date of each Incremental Purchase
and the date of each Reinvestment that:

                  (a)  Corporate  Existence  and Power.  Such Seller  Party is a
         corpora tion duly  organized,  validly  existing  and in good  standing
         under the laws of its state of incorporation. Such Seller Party 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 so qualify or so hold 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 such  Seller  Party of this
         Agreement and each other  Transaction  Document to which it is a party,
         and the performance of its obligations hereunder and thereunder and, in
         the case of Seller,  Seller's  use of the  proceeds of  purchases  made
         hereunder,  are within its corporate powers and authority and have been
         duly  authorized by all necessary  corporate  action on its part.  This
         Agreement  and each other  Transaction  Document  to which such  Seller
         Party is a party has been duly  executed  and  delivered by such Seller
         Party.

                  (c) No  Conflict.  The  execution  and delivery by such Seller
         Party 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

                                     Page 6

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         it or its property,  and do not result in the creation or imposition of
         any Adverse  Claim on assets of such Seller  Party 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;  and  no  transaction   contemplated  hereby
         requires compliance with any bulk sales act or similar law.

                  (d) Governmental  Authorization.  Other than the filing of the
         financing  statements required hereunder,  no authorization or approval
         or other action by, and no notice to or filing with,  any  governmental
         authority  or  regulatory  body is required for the due  execution  and
         delivery  by  such  Seller  Party  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 such Seller Party's knowledge,  threatened,
         against or affecting such Seller Party, 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. Such Seller Party 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 such Seller  Party is a party  constitute  the legal,
         valid and binding  obligations of such Seller Party enforceable against
         such Seller Party 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 such Seller Party or any of its Affiliates to the Agent or
         the  Purchasers for purposes of or in connection  with this  Agreement,
         any of the other Transaction Documents or any transaction  contemplated
         hereby or thereby is 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 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  hereunder
         will be used (i) for a purpose that violates,  or would be inconsistent
         with, Regulation T, U or X promulgated by the Board of Governors of the
         Federal  Reserve  System  from  time to time  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,
         Seller shall be the legal and beneficial  owner of the  Receivables and
         Related  Security with respect  thereto,  free and clear of any Adverse
         Claim, except as created by the Transaction Documents.  There have been
         duly filed all financing  statements or other  similar  instruments  or
         documents  necessary  under  the  UCC (or  any  comparable  law) of all
         appropriate  jurisdictions  to perfect Seller'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 the Agent for the
         benefit of the relevant  Purchaser or Purchasers (and the Agent for the
         benefit of such  Purchaser or  Purchasers  shall acquire from Seller) a
         valid and perfected first priority  undivided  percentage  ownership or
         security interest in each Receivable  existing or hereafter arising and
         in the Related Security and Collections with respect thereto,  free and
         clear of any Adverse Claim, except as created by the Transactions

                                     Page 7

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         Documents. There have been duly filed all financing statements or other
         similar  instruments  or  documents  necessary  under  the  UCC (or any
         comparable law) of all appropriate jurisdictions to perfect the Agent's
         (on behalf of the  Purchasers)  ownership  or security  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 such Seller Party and
         the  offices  where it keeps  all of its  Records  are  located  at the
         address(es)  listed on Exhibit III or such other locations of which the
         Agent  has  been  notified  in  accordance   with  Section   7.2(a)  in
         jurisdictions  where all action  required  by Section  14.4(a) has been
         taken and completed. Seller's Federal Employer Identification Number is
         correctly set forth on Exhibit III.

                  (l) Collections.  The conditions and requirements set forth in
         Section  7.1(j) and  Section 8.2 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 Seller
         at each  Collection  Bank  and  the  post  office  box  number  of each
         Lock-Box,  are listed on Exhibit IV. Seller has not granted any Person,
         other than the Agent as contemplated  by this  Agreement,  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.

                  (m)  Material   Adverse  Effect.   (i)  The  initial  Servicer
         represents  and warrants  that since  December  31, 1999,  no event has
         occurred  that would have a material  adverse  effect on the  financial
         condition or operations of the initial Servicer and its Subsidiaries or
         the ability of the initial  Servicer to perform its  obligations  under
         this  Agreement,  and (ii) Seller  represents  and warrants  that since
         December  31, 1999,  no event has  occurred  that would have a material
         adverse effect on (A) the financial  condition or operations of Seller,
         (B) the  ability  of  Seller  to  perform  its  obligations  under  the
         Transaction  Documents,  or (C) the  collectibility  of the Receivables
         generally or of any material portion of the Receivables.

                  (n) Names. In the past five (5) years, Seller 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  Seller.   Interface   owns,   directly  or
         indirectly, 100% of the issued and outstanding capital stock of Seller,
         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 Seller.

                  (p) Not a  Holding  Company  or an  Investment  Company.  Such
         Seller  Party  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.  Such Seller Party 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. Such Seller Party 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,  in the case of the  Servicer,  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  (in
         cluding,  without limitation,  laws, rules and regulations  relating to
         truth in lending,  fair credit billing,  fair credit  reporting,  equal
         credit opportunity, fair debt collection practices and privacy), and no
         part  of  such  Contract  is in  violation  of any  such  law,  rule or
         regulation , except  where such  contravention  or violation  could not
         reasonably be expected to have a Material Adverse Effect.

                                     Page 8

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                  (r) Compliance with Credit and Collection Policy.  Such Seller
         Party  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 the Agent has been
         notified in accordance with Section 7.1(a)(vii).

                  (s)  Payments to  Originator  and  Original  Sellers.  Each of
         Originator  and Seller  has given  reasonably  equivalent  value to the
         Original  Seller of such  Receivable or Originator,  as applicable,  in
         consideration therefor and such transfer was not made for or on account
         of an antecedent debt. No transfer by any Original Seller or Originator
         of any Receivable under any Existing Agreement,  the Transfer Agreement
         or the  Receivables  Sale  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
         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 in the Net
         Receivables   Balance  as  an  Eligible   Receivable  was  an  Eligible
         Receivable (i) in the case of the Existing Receivables,  on the date of
         the initial Incremental  Purchase hereunder and (ii) in the case of all
         other  Receivables,  on the date of its purchase under the  Receivables
         Sale Agreement.

                  (v) Net  Receivables  Balance.  Seller  has  determined  that,
         immedi ately after giving  effect to each purchase  hereunder,  the Net
         Receivables  Balance is at least equal to the sum of (i) the  Aggregate
         Capital, plus (ii) the Aggregate Reserves.

                  (w) Accounting. The manner in which such Seller Party accounts
         for the  transactions  contemplated  by this  Agreement,  the  Transfer
         Agreement and the  Receivables  Sale  Agreement does not jeopardize the
         true sale analysis.

         Section 5.2 Financial Institution  Representations and Warranties. Each
Financial  Institution  hereby  represents and warrants to the Agent and Company
that:

                  (a)  Existence  and Power.  Such  Financial  Institution  is a
         corporation or a banking  association duly organized,  validly existing
         and  in  good  standing   under  the  laws  of  its   jurisdiction   of
         incorporation or  organization,  and has all corporate power to perform
         its obligations hereunder.

                  (b) No Conflict.  The execution and delivery by such Financial
         Institution  of this Agreement and the  performance of its  obligations
         hereunder are within its corporate powers, have been duly authorized by
         all necessary  corporate  action,  do not contravene or violate (i) its
         certificate  or articles of  incorporation  or  association 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 any of its  property  is  bound,  or (iv) any  order,  writ,
         judgment, award, injunction or

                                     Page 9

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         decree binding on or affecting it or its property, and do not result in
         the creation or  imposition of any Adverse Claim on its assets , except
         where such  contravention or violation could not reasonably be expected
         to have a  Material  Adverse  Effect.  This  Agreement  has  been  duly
         authorized, executed and delivered by such Financial Institution.

                  (c) Governmental  Authorization.  No authorization or approval
         or other action by, and no notice to or filing with,  any  governmental
         authority  or  regulatory  body is required for the due  execution  and
         delivery  by  such  Financial  Institution  of this  Agreement  and the
         performance of its obligations hereunder.

                  (d) Binding  Effect.  This  Agreement  constitutes  the legal,
         valid and binding obligation of such Financial Institution  enforceable
         against such Financial Institution 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  such  enforcement  is  sought  in  a
         proceeding in equity or at law).

                                   ARTICLE VI
                             CONDITIONS OF PURCHASES

         Section 6.1 Conditions Precedent to Initial Incremental  Purchase.  The
initial  Incremental  Purchase of a Purchaser  Interest  under this Agreement is
subject to the conditions precedent that (a) the Agent shall have received on or
before the date of such purchase  those  documents  listed on Schedule B and (b)
the Agent shall have received all fees and expenses  required to be paid on such
date pursuant to the terms of this Agreement and the Fee Letter.

         Section 6.2  Conditions  Precedent to All Purchases and  Reinvestments.
Each purchase of a Purchaser  Interest (other than pursuant to Section 13.1) and
each Reinvestment shall be subject to the further conditions  precedent that (a)
in the case of each such  purchase  or  Reinvestment,  the  Servicer  shall have
delivered  to the  Agent on or prior to the date of such  purchase,  in form and
substance  satisfactory to the Agent, all Weekly Reports and all Monthly Reports
as and when due under Section 8.5; (b) the Facility  Termination  Date shall not
have occurred; (c) the Agent shall have received such other approvals,  opinions
or  documents  as it may  reasonably  request  and (d) on the date of each  such
Incremental  Purchase or  Reinvestment,  the following  statements shall be true
(and  acceptance of the proceeds of such  Incremental  Purchase or  Reinvestment
shall be deemed a representation and warranty by Seller that such statements are
then true):

                           (i) the  representations  and warranties set forth in
                  Section 5.1 are true and correct on and as of the date of such
                  Incremental  Purchase or Reinvestment as though made on and as
                  of such date;

                           (ii) no event  has  occurred  and is  continuing,  or
                  would result from such  Incremental  Purchase or Reinvestment,
                  that will constitute an Amortization  Event,  and no event has
                  occurred  and  is  continuing,   or  would  result  from  such
                  Incremental Purchase or Reinvestment,  that would constitute a
                  Potential Amortization Event; and

                           (iii)  the  Aggregate  Capital  does not  exceed  the
                  Purchase  Limit and the aggregate  Purchaser  Interests do not
                  exceed 100%.

It is  expressly  understood  that each  Reinvestment  shall,  unless  otherwise
directed by the Agent or any Purchaser, occur automatically on each day that the
Servicer shall receive any Collections  without the requirement that any further
action be taken on the part of any Person  and  notwithstanding  the  failure of
Seller to satisfy any of the foregoing  conditions  precedent in respect of such
Reinvestment.  The failure of Seller to satisfy any of the foregoing  conditions
precedent  in  respect  of any  Reinvestment  shall  give rise to a right of the
Agent,  which  right may be  exercised  at any time on demand of the  Agent,  to
rescind  the  related  purchase  and  direct  Seller to pay to the Agent for the
benefit  of the  Purchasers  an  amount  equal to the  Collections  prior to the

                                     Page 10

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Amortization Date that shall have been applied to the affected Reinvestment.

                                   ARTICLE VII
                                    COVENANTS

         Section 7.1 Affirmative Covenants of The Seller Parties. Until the date
on which the  Aggregate  Unpaids  have been  indefeasibly  paid in full and this
Agreement  terminates  in  accordance  with its terms,  each Seller Party hereby
covenants, as to itself, as set forth below:

                  (a) Reporting.  Such Seller Party will maintain for itself and
         each of its  Subsidiaries,  a  system  of  accounting  established  and
         administered  in  accordance  with  GAAP,  and  furnish  or cause to be
         furnished to the Agent:

                           (i) Annual Reporting. Within 120 days after the close
                  of each of its  respective  fiscal years,  (A) audited (in the
                  case of  Interface)  and  unqualified,  certified  in a manner
                  reasonably  acceptable  to the  Agent  by  independent  public
                  accountants acceptable to the Agent, and (B) unaudited (in the
                  case of the  Seller)  and  unqualified  financial  statements,
                  certified by the Seller's chief  financial  officer,  for such
                  fiscal year (which in each case shall include  balance sheets,
                  statements of income and retained  earnings and a statement of
                  cash flows).

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

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

                           (iv)  Shareholders  Statements and Reports.  Promptly
                  upon the furnishing  thereof to the  shareholders of Interface
                  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 Interface or any of the
                  Original  Sellers  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 the Agent or Company, copies of the same.

                                     Page 11

<PAGE>

                           (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
                  amend ment, and (B) if such proposed change or amendment could
                  reasonably be expected to adversely affect the  collectibility
                  of the Receivables or decrease the credit quality of any newly
                  created Receivables, requesting the Agent'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 such Seller Party as the Agent may
                  from time to time  reasonably  request in order to protect the
                  interests  of  the  Agent  and  the  Purchasers  under  or  as
                  contemplated by this Agree ment.

                  (b)  Notices.  Such  Seller  Party  will  notify  the Agent 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)  Amortization  Events or  Potential  Amortization
                  Events.  The  occurrence of each  Amortization  Event and each
                  Potential  Amortization Event, by a statement of an Authorized
                  Officer of such Seller Party.

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

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

                           (iv)   Termination   Date.   The  occurrence  of  the
                  "Termination  Date"  under and as defined  in the  Receivables
                  Sale Agreement or the Transfer Agreement.

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

                           (vi)  Downgrade of  Interface.  Any down grade in the
                  rating of any  Indebtedness  of Interface by Standard & Poor's
                  Ratings Group or by Moody's Investors  Service,  Inc., setting
                  forth the Indebtedness affected and the nature of such change.

                                     Page 12

<PAGE>

                  (c)  Compliance  with  Laws  and   Preservation  of  Corporate
         Existence.  Such  Seller  Party 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.  Such Seller Party 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.  Such Seller  Party will furnish to the Agent from
         time to time such information with respect to it and the Receivables as
         the Agent may reasonably request.  Such Seller Party will, from time to
         time  during  regular  business  hours as  requested  by the Agent upon
         reasonable  notice and at the sole cost of the Seller  (subject  to the
         last sentence of this sub- Section  7.1(d)),  permit the Agent,  or its
         agents or representatives (and shall cause Originator and each Original
         Seller to permit  the Agent or its agents or  representatives),  (i) to
         examine  and make  copies  of and  abstracts  from all  Records  in the
         possession  or  under  the  control  of  such  Person  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 any
         Person's  performance  under any of the  Transaction  Documents  or any
         Person's performance under the Contracts and, in each case, with any of
         the officers or employees of Seller or the Servicer having knowledge of
         such  matters.  All such examina  tions and visits shall be at the sole
         cost  of the  Seller;  provided,  however,  that  (i) for so long as no
         Amortization Event or Potential  Amortization 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 the Agent, (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 the Seller not more than once per  calendar  year per
         Person  (although in no event shall the foregoing be construed to limit
         the Agent or its  agents  or  representatives  to one such  examination
         and/or visit during such calendar year period with respect to each such
         Person); provided,  further, that the Agent will use reasonable efforts
         to  coordinate  and  conduct  such  examinations  and/or  visits to the
         Seller,  Originator and Original Sellers such that examinations  and/or
         visits of more than one such Person are conducted contemporaneously (to
         the extent that it is reasonably possible to do so).

                  (e) Keeping and Marking of Records and Books.

                           (i) The Servicer will (and will cause  Originator and
                  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).  The Servicer will (and will cause
                  Originator and each Original  Seller to) give the Agent notice
                  of any material  change in the  administrative  and  operating
                  procedures referred to in the previous sentence.

                           (ii)  Such   Seller   Party   will  (and  will  cause
                  Originator and 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 Pur chaser Interests with a
                  legend,  acceptable  to the Agent,  describing  the  Purchaser
                  Interests  and (B) upon the request of the Agent (x) mark each
                  Contract with a legend describing the Purchaser  Interests and
                  (y)  deliver to the Agent all  Contracts  (including,  without
                  limitation,  all  multiple  originals  of any  such  Contract)
                  relating to the Receivables.

                                     Page 13

<PAGE>

                  (f)  Compliance  with  Contracts  and  Credit  and  Collection
         Policy.  Such  Seller  Party will (and will cause  Originator  and 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.

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

                  (h)  Ownership.  Seller will (or will cause  Origina-  tor and
         each 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 and the Receivables
         Sale  Agreement  irrevocably  in Seller,  free and clear of any Adverse
         Claims  other  than  Adverse  Claims  in  favor  of the  Agent  and the
         Purchasers (including,  without limitation, the filing of all financing
         statements or other similar  instruments or documents  necessary  under
         the UCC (or any comparable  law) of all  appropriate  jurisdictions  to
         perfect Originator's and Seller's interest in such Receivables, Related
         Security and Collections  and such other action to perfect,  protect or
         more fully  evidence  the  interest of Seller  therein as the Agent may
         reasonably request),  and (ii) establish and maintain,  in favor of the
         Agent,  for the benefit of the Purchasers,  a valid and perfected first
         priority  undivided  percentage  ownership interest (and/or a valid and
         perfected first priority security interest) in all Receivables, Related
         Security and Collections to the full extent  contemplated  herein, free
         and clear of any Adverse  Claims other than Adverse  Claims in favor of
         the  Agent  for  the  benefit  of the  Purchasers  (including,  without
         limitation,  the filing of all  financing  statements  or other similar
         instruments  or documents  necessary  under the UCC (or any  comparable
         law) of all appropriate  jurisdictions  to perfect the Agent's (for the
         benefit  of the  Purchasers)  interest  in  such  Receivables,  Related
         Security and Collections  and such other action to perfect,  protect or
         more fully  evidence  the  interest of the Agent for the benefit of the
         Purchasers as the Agent may reasonably request).

                  (i)  Purchasers'   Reliance.   Seller  acknowledges  that  the
         Purchasers  are entering  into the  transactions  contemplated  by this
         Agreement in reliance upon Seller'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,  Seller
         shall take all reasonable steps,  including,  without  limitation,  all
         steps that the Agent or any Purchaser may from time to time  reasonably
         request,  to maintain  Seller's identity as a separate legal entity and
         to make it  manifest  to third  parties  that  Seller is an entity with
         assets and liabilities  distinct from those of Originator and any other
         Affiliate  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 forth herein, Seller will:

                                    Page 14

<PAGE>

                                    (A) conduct its own business in its own name
                  and require that all  full-time  employees of Seller,  if any,
                  identify  themselves  s  as  such  and  not  as  employees  of
                  Originator or any other Affiliate thereof (including,  without
                  limitation,  by means of providing  appropriate employees with
                  business or identification cards identifying such employees as
                  Seller's employees);

                                    (B) compensate  all  employees,  consultants
                  and agents  directly,  from  Seller's own funds,  for services
                  provided to Seller by such  employees,  consultants and agents
                  and, to the extent any employee, consultant or agent of Seller
                  is also an employee,  consultant or agent of Originator or any
                  other  Affiliate  thereof,  allocate the  compensation of such
                  employee, consultant or agent between Seller and Originator or
                  such  Affiliate,  as applicable,  on a basis that reflects the
                  services  rendered to Seller and Originator or such Affiliate,
                  as applica ble;

                                    (C) clearly identify its offices (by signage
                  or otherwise) as its offices and, if such office is located in
                  the offices of Originator, Seller shall lease such office at a
                  fair market rent (which rent may be charged as a component  of
                  an administrative fee rather than separately billed);

                                    (D)  have  a  separate   telephone  listing,
                  separate stationery, invoices and checks in its own name;

                                    (E) conduct all  transactions  with  Origina
                  tor  or  any  other  Affiliate  thereof  (including,   without
                  limitation,  any  delegation by Originator of its  obligations
                  hereunder  as  Servicer)  strictly on an  arm's-length  basis,
                  allocate all overhead expenses (including, without limitation,
                  telephone and other utility  charges) for items shared between
                  Seller and  Originator or any other  Affiliate  thereof on the
                  basis of actual  use to the  extent  practicable  and,  to the
                  extent  such  allocation  is  not  practicable,   on  a  basis
                  reasonably related to actual use;

                                    (F) at all times  have a Board of  Directors
                  consisting of at least three  members,  at least one member of
                  which is an Independ ent Director;

                                    (G) observe all corporate  formalities  as a
                  distinct  entity,   and  ensure  that  all  corporate  actions
                  relating to (A) the  selection,  maintenance or replacement of
                  the Independent  Director (to the extent selected,  maintained
                  or replaced by the Board of Directors), (B) the dissolution or
                  liquidation of Seller or (C) the initiation of,  participation
                  in, acquiescence in or consent to any bankruptcy,  insolvency,
                  reorganization or similar  proceeding  involving  Seller,  are
                  duly  authorized  by unanimous  vote of its Board of Directors
                  (including the Inde pendent Director);

                                    (H)  maintain  Seller's  books  and  records
                  separate  from  those of  Originator  and any other  Affiliate
                  thereof and otherwise  readily  identifiable as its own assets
                  rather  than  assets of  Originator  and any  other  Affiliate
                  thereof;

                                    (I)   prepare   its   financial   statements
                  separately  from  those  of  Originator  and  insure  that any
                  consolidated  financial  statements of Originator or any other
                  Affiliate  thereof that include Seller and that are filed with
                  the   Securities   and  Exchange   Commission   or  any  other
                  governmental  agency have notes clearly stating that Seller is
                  a  separate  corporate  entity  and  that its  assets  will be
                  available  first and  foremost  to  satisfy  the claims of the
                  creditors of Seller;

                                     Page 15

<PAGE>
                                    (J) except as herein specifically  otherwise
                  provided,  maintain  the  funds  or  other  assets  of  Seller
                  separate from, and not commingled with, those of Originator or
                  any other Affiliate thereof and only maintain bank accounts or
                  other depository accounts to which Seller alone is the account
                  party,  into which Seller or the Servicer  makes  deposits and
                  from which Seller or the Servicer (or the Agent hereunder) has
                  the power to make withdrawals;

                                    (K) pay all of Seller's  operating  expenses
                  from  Seller's  own assets  (except  for  certain  payments by
                  Originator   or   other   Persons   pursuant   to   allocation
                  arrangements that comply with the requirements of this Section
                  7.1(i));

                                    (L) operate its business and activities such
                  that:  it does not engage in any  business  or activity of any
                  kind, or enter into any  transaction  or indenture,  mortgage,
                  instrument,  agreement,  contract, lease or other undertaking,
                  other than the  transactions  contemplated  and  authorized by
                  this Agreement and the Receivables  Sale  Agreement;  and does
                  not create,  incur,  guarantee,  assume or suffer to exist any
                  indebtedness   or  other   liabilities,   whether   direct  or
                  contingent,  other than (1) as a result of the  endorsement of
                  negotiable  instruments  for deposit or  collection or similar
                  transactions  in the  ordinary  course  of  business,  (2) the
                  incurrence  of  obligations  under  this  Agreement,  (3)  the
                  incurrence of  obligations,  as expressly  contemplated in the
                  Receivables Sale Agreement,  to make payment to Originator for
                  the  purchase  of  Receivables   from  Originator   under  the
                  Receivables   Sale  Agreement,   and  (4)  the  incurrence  of
                  operating  expenses in the ordinary  course of business of the
                  type otherwise contemplated by this Agreement;

                                    (M)  maintain  its   corporate   charter  in
                  conformity with this  Agreement,  such that it does not amend,
                  restate,  supplement or otherwise  modify its  Certificate  of
                  Incorporation  or By-Laws in any respect that would impair its
                  ability to comply with the terms or  provisions  of any of the
                  Transaction Documents,  including, without limitation, Section
                  7.1(i) of this Agreement;

                                    (N)  maintain  the   effectiveness  of,  and
                  continue to perform under the Receivables Sale Agreement, such
                  that it does not amend, restate, supplement, cancel, terminate
                  or otherwise  modify the Receivables  Sale Agreement,  or give
                  any consent, waiver, directive or approval thereunder or waive
                  any default,  action, omission or breach under the Receivables
                  Sale Agree ment or otherwise grant any indulgence  thereunder,
                  without (in each case) the prior written consent of the Agent;

                                    (O) maintain its corporate separateness such
                  that it does not merge or consolidate with or into, or convey,
                  transfer,  lease  or  otherwise  dispose  of  (whether  in one
                  transaction  or in a series  of  transactions,  and  except as
                  otherwise contemplated herein) all or substantially all of its
                  assets  (whether  now  owned or  hereafter  acquired)  to,  or
                  acquire all or substantially all of the assets of, any Person,
                  nor at any time create,  have,  acquire,  maintain or hold any
                  interest in any Subsidiary.

                                     Page 16

<PAGE>

                                    (P)  maintain  at  all  times  the  Required
                  Capital Amount (as defined in the Receivables  Sale Agreement)
                  and refrain from making any dividend, distribution, redemption
                  of capital stock or payment of any  subordinated  indebtedness
                  that would cause the Required Capital Amount to cease to be so
                  maintained; and

                                    (Q) take  such  other  actions  as are neces
                  sary on its part to ensure that the facts and  assumptions set
                  forth in the opinion  issued by Kilpatrick  Stockton,  LLP, as
                  counsel for Seller,  in connection with the closing or initial
                  Incremental  Purchase  under this  Agreement  and  relating to
                  substantive  consolidation  issues,  and in  the  certificates
                  accompanying  such  opinion,  remain  true and  correct in all
                  material respects at all times.

                  (j) Collections. Such Seller Party 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 Seller or any  Affiliate  of Seller,  Seller 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
         Amortization Event has then occurred and is continuing,  within two (2)
         Business  Days  following   receipt   thereof,   and  at  any  time  an
         Amortization  Event has occurred and is  continuing,  immediately  upon
         receipt  thereof.  At all times prior to such  remittance,  Seller will
         itself hold or, if  applicable,  will cause such payments to be held in
         trust for the exclusive benefit of the Agent and the Purchasers. Seller
         will maintain exclusive ownership, dominion and control (subject to the
         terms of this  Agreement) of each Lock- Box and Collection  Account and
         shall 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 the Agent as contemplated by this
         Agreement.

                  (k) Taxes.  Such  Seller  Party will file all tax  returns and
         reports  required  by law to be filed by it and will  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.  Seller
         will pay when due any taxes payable in connection with the Receivables,
         exclusive  of taxes on or  measured  by  income  or gross  receipts  of
         Company, the Agent or any Financial Institution.

                  (l) Payments to Originator and Original Sellers.  With respect
         to each  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.  With respect to each Receiv able
         purchased by Seller from  Originator on or after the date hereof,  such
         sale shall be effected under, and in strict  compliance with, the terms
         of the Receivables Sale Agreement,  including,  without limitation, the
         terms  relating  to the  amount and  timing of  payments  to be made to
         Originator with respect to the purchase price of such Receivable.

                  (m) Accuracy of Information. All information furnished by such
         Seller Party or any of its  Affiliates to Agent or  Purchasers  will be
         true  and  accurate  in  every  material   respect  on  the  date  such
         information  is stated or  certified  and will not contain any material
         misstate  ment 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.

                                     Page 17

<PAGE>

         Section 7.2 Negative Covenants of the Seller Parties. Until the date on
which  the  Aggregate  Unpaids  have  been  indefeasibly  paid in full  and this
Agreement  terminates  in  accordance  with its terms,  each Seller Party hereby
covenants, as to itself, that:

                  (a) Name Change,  Offices and Records.  Seller will not change
         its name,  identity  or  corporate  structure  (within  the  meaning of
         Section  9-402(7) of any  applicable  enactment of the UCC) or relocate
         its chief executive  office or any office where Records are kept unless
         it shall have: (i) given the Agent at least forty-five (45) days' prior
         written notice thereof with respect to the Seller and (ii) delivered to
         the Agent all financing  statements,  instruments  and other  documents
         requested by the Agent in connection with such change or relocation. In
         the event that Servicer  shall change its name,  Servicer  shall notify
         Agent of such change  immediately,  and in any event  within 10 days of
         the  occurrence of any such change.  In the event that  Servicer  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, Servicer shall notify Agent 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.  Except as may
         be required by the Agent pursuant to Section 8.2(b),  such Seller Party
         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  the Agent  shall  have
         received,  at least ten (10) days before the  proposed  effective  date
         therefor,  (i) written notice of such  addition,  termination or change
         and  (ii)  with  respect  to the  addition  of a  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 the  Servicer 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.  Such Seller Party will not, and will not permit  Originator or
         any Original Seller to, make any material change or 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 quality of any newly created Receivables without the Agent's
         prior  written  consent.  Except as  provided  in Section  8.2(d),  the
         Servicer  will not,  and will not  permit  Originator  or any  Original
         Seller  to,  extend,  amend  or  otherwise  modify  the  terms  of  any
         Receivable  or any Contract  related  thereto other than in accor dance
         with the Credit and Collection Policy.

                  (d) Sales,  Liens.  Seller 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, Related Security or Collections, 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 the Agent and the Purchasers provided
         for  herein),  and Seller will defend the right,  title and interest of
         the Agent  and the  Purchasers  in,  to and under any of the  foregoing
         property, against all claims of third parties claiming through or under
         Seller,  Originator or any Original  Seller.  Seller will not create or
         suffer to exist any mortgage,  pledge, security interest,  encumbrance,
         lien, charge or other similar arrangement on any of its inventory.

                  (e)  Net  Receivables   Balance.  At  no  time  prior  to  the
         Amortization Date shall Seller permit the Net Receivables Balance to be
         less than an amount equal to the sum of (i) the Aggregate  Capital plus
         (ii)  the  Aggregate  Reserves  for any  period  in  excess  of two (2)
         Business Days.

                                     Page 18

<PAGE>

                  (f) Termination Date Determination.  Seller will not designate
         the Termination Date (as defined in the Receivables Sale Agreement), or
         send any written notice to Originator with respect  thereto,  or permit
         Originator  to  designate  the  Termination  Date  (as  defined  in the
         Transfer Agreement),  or send any written notice to any Original Seller
         with respect  thereto,  without the prior written consent of the Agent,
         except with respect to the occurrence of such  Termination Date arising
         pursuant to Section 5.1(d) of the Transfer Agreement or the Receivables
         Sale Agreement.

                  (g) Restricted Junior Payments.  From and after the occurrence
         of any Amortization  Event,  Seller will not make any Restricted Junior
         Payment if, after giving effect thereto,  Seller would fail to meet its
         obligations set forth in Section 7.2(e).

                                  ARTICLE VIII
                          ADMINISTRATION AND COLLECTION

         Section 8.1 Designation of Servicer. (a) The servicing,  administration
and  collection  of the  Receivables  shall be  conducted  by such  Person  (the
"Servicer") so designated from time to time in accordance with this Section 8.1.
Interface is hereby  designated  as, and hereby agrees to perform the duties and
obligations of, the Servicer pursuant to the terms of this Agreement.  The Agent
may at any time following the occurrence of an  Amortization  Event designate as
Servicer any Person to succeed Interface or any successor Servicer.

                  (b) Interface may delegate,  and Interface  hereby advises the
         Purchasers  and the  Agent  that  it has  delegated,  to each  Original
         Seller,  as  sub-servicer  of the  Servicer,  certain of its duties and
         responsibilities  as Servicer hereunder with respect to the Receivables
         originated by such Original  Seller.  Without the prior written consent
         of the Agent and the Required Financial Institutions, neither Interface
         nor any  Original  Seller  shall be  permitted  to delegate  any of its
         duties or  responsibilities  as Servicer or  sub-servicer to any Person
         other  than (i) Seller  and (ii) with  respect  to certain  Charged-Off
         Receivables,   outside  collection  agencies  in  accordance  with  its
         customary practices.  Seller shall not be permitted to further delegate
         to any  other  Person  any of the  duties  or  responsibilities  of the
         Servicer  delegated to it by Interface.  If at any time the Agent shall
         designate as Servicer any Person other than  Interface,  all duties and
         responsibilities  theretofore  delegated by Interface to Seller may, at
         the discretion of the Agent, be terminated forthwith on notice given by
         the Agent to Interface and to Seller.

                  (c)   Notwithstanding   the  foregoing   subsection  (b),  (i)
         Interface  shall be and  remain  primarily  liable to the Agent and the
         Purchasers  for the full  and  prompt  performance  of all  duties  and
         responsibilities  of the Servicer  hereunder and (ii) the Agent and the
         Purchasers  shall be entitled to deal  exclusively  with  Interface  in
         matters  relating to the  discharge  by the  Servicer of its duties and
         responsibilities  hereunder.  The Agent and the Purchasers shall not be
         required to give notice,  demand or other  communication  to any Person
         other than  Interface in order for  communica  tion to the Servicer and
         its   sub-servicer  or  other  delegate  with  respect  thereto  to  be
         accomplished. Interface, at all times that it is the Servicer, shall be
         responsible  for providing any  sub-servicer  or other  delegate of the
         Servicer with any notice given to the Servicer under this Agreement.

         Section 8.2 Duties of Servicer. (a) The Servicer shall take or cause to
be taken all such  actions as may be  necessary  or  advisable  to collect  each
Receivable from time to time, all in accordance with applicable  laws, rules and
regulations,  with  reasonable  care and diligence,  and in accordance  with the
Credit and Collection Policy.

                                     Page 19

<PAGE>

                  (b) The Servicer has  instructed and will continue to instruct
         all  Obligors  to  pay  all  Collections  directly  to  a  Lock-Box  or
         Collection  Account.  The Servicer  shall  effect a Collection  Account
         Agreement  substantially in the form of Exhibit VI with each bank party
         to a  Collection  Account at any time.  In the case of any  remittances
         received in any  Lock-Box or  Collection  Account  that shall have been
         identified,  to the  satisfaction  of the Servicer,  to not  constitute
         Collections  or  other  proceeds  of the  Receivables  or  the  Related
         Security,  the Servicer  shall  promptly remit such items to the Person
         identified to it as being the owner of such remittances. From and after
         the date the Agent delivers to any Collection Bank a Collection  Notice
         pursuant to Section 8.3, the Agent may request that the  Servicer,  and
         the Servicer  thereupon  promptly  shall  instruct  all  Obligors  with
         respect  to the  Receivables,  to remit all  payments  thereon to a new
         depositary account specified by the Agent and, at all times thereafter,
         Seller and the  Servicer  shall not deposit or  otherwise  credit,  and
         shall not permit any other  Person to  deposit or  otherwise  credit to
         such  new  depositary  account  any cash or  payment  item  other  than
         Collections.

                  (c)  The  Servicer  shall   administer   the   Collections  in
         accordance with the procedures  described herein and in Article II. The
         Servicer  shall set aside and hold in trust for the  account  of Seller
         and the  Purchasers  their  respective  shares  of the  Collections  in
         accordance with Article II. The Servicer shall, upon the request of the
         Agent, segregate, in a manner acceptable to the Agent, all cash, checks
         and other  instruments  received  by it from time to time  constituting
         Collections  from the general  funds of the Servicer or Seller prior to
         the remittance  thereof in accordance  with Article II. If the Servicer
         shall be required to segregate  Collections  pursuant to the  preceding
         sentence,  the  Servicer  shall  segregate  and  deposit  with  a  bank
         designated  by  the  Agent  such  allocable  share  of  Collections  of
         Receivables  set aside for the  Purchasers  on the first  Business  Day
         following receipt by the Servicer of such Collections, duly endorsed or
         with duly executed instruments of transfer.

                  (d) The  Servicer  may,  in  accordance  with the  Credit  and
         Collection Policy,  extend the maturity of any Receivable or adjust the
         Outstanding  Balance of any Receivable as the Servicer determines to be
         appropriate to maximize Collections thereof;  provided,  however,  that
         such  extension  or  adjustment  shall  not  alter  the  status of such
         Receivable  as a Delinquent  Receivable  or  Charged-Off  Receivable or
         limit the rights of the Agent or the Purchasers  under this  Agreement.
         Notwithstanding  anything to the contrary  contained herein,  the Agent
         shall have the absolute and  unlimited  right to direct the Servicer to
         commence or settle any legal action with respect to any  Receivable  or
         to foreclose upon or repossess any Related Security.

                  (e) The  Servicer  shall  hold in  trust  for  Seller  and the
         Purchasers all Records that (i) evidence or relate to the  Receivables,
         the  related  Contracts  and  Related  Security  or (ii) are  otherwise
         necessary or desirable to collect the Receivables and shall, as soon as
         practicable upon demand of the Agent,  deliver or make available to the
         Agent all such Records,  at a place selected by the Agent. The Servicer
         shall,  as soon as practicable  following  receipt thereof turn over to
         Seller  any cash  collections  or other  cash  proceeds  received  with
         respect to  Indebtedness  not  constituting  Receivables.  The Servicer
         shall,  from time to time at the request of any  Purchaser,  furnish to
         the Purchasers  (promptly  after any such request) a calculation of the
         amounts set aside for the Purchasers pursuant to Article II.

                  (f) Any  payment by an Obligor in respect of any  indebtedness
         owed by it to any Original Seller,  Originator or Seller shall,  except
         as  otherwise  specified  by such  Obligor  or  otherwise  required  by
         contract  or law and  unless  otherwise  instructed  by the  Agent,  be
         applied as a Collection  of any  Receivable  of such Obligor  (starting
         with the oldest such  Receivable) to the extent of any amounts then due
         and payable  thereunder before being applied to any other receivable or
         other obligation of such Obligor.

                                     Page 20

<PAGE>

         Section 8.3 Collection Notices.  The Agent is authorized at any time to
date and to deliver  to the  Collection  Banks the  Collection  Notices.  Seller
hereby transfers to the Agent for the benefit of the Purchasers,  effective when
the Agent  delivers  such notice,  the  exclusive  ownership and control of each
Lock-Box and the Collection Accounts. In case any authorized signatory of Seller
whose signature  appears on a Collection  Account  Agreement shall cease to have
such authority before the delivery of such notice,  such Collection Notice shall
nevertheless be valid as if such authority had remained in force.  Seller hereby
authorizes the Agent, and agrees that the Agent shall be entitled to (i) endorse
Seller's name on checks and other  instruments  representing  Collections,  (ii)
enforce the  Receivables,  the related  Contracts  and the Related  Security and
(iii) take such action as shall be  necessary  or  desirable  to cause all cash,
checks and other  instruments  constituting  Collections  of Receivables to come
into the possession of the Agent rather than Seller.

         Section 8.4 Responsibilities of Seller. Anything herein to the contrary
notwithstanding,  the exercise by the Agent and the  Purchasers  of their rights
hereunder  shall not release the Servicer,  any Original  Seller,  Originator or
Seller from any of their duties or obligations  with respect to any  Receivables
or under the related  Contracts.  The  Purchasers  shall have no  obligation  or
liability with respect to any Receivables or related Contracts, nor shall any of
them be obligated to perform the obligations of Seller.

         Section 8.5  Reports.  The  Servicer  shall  prepare and forward to the
Agent (i) on  Wednesday  of each  calendar  week (or if, in any  calendar  week,
Wednesday is not a Business Day, on the next Business day of such calendar week)
and at such times as the Agent shall request, a Weekly Report prepared as of the
last Business Day of the immediately  preceding  calendar week, (ii) on the 15th
calendar day of each fiscal month and at such times as the Agent shall  request,
a Monthly  Report  prepared as of the last  calendar day of the previous  fiscal
month, and (iii) at such times as the Agent shall request,  a listing by Obligor
of all Receivables together with an aging of such Receiv ables.

         Section 8.6 Servicing Fees. In consideration  of Interface's  agreement
to act as Servicer  hereunder,  the  Purchasers  hereby  agree that,  so long as
Interface shall continue to perform as Servicer hereunder, Seller shall pay over
to  Interface  a fee (the  "Servicing  Fee") on the first  calendar  day of each
month, in arrears for the immediately  preceding month, equal to 1% per annum of
the lesser of the Aggregate Capital  outstanding  during such period and the Net
Receivables  Balance  during such  period,  as  compensation  for its  servicing
activities.

                                   ARTICLE IX
                               AMORTIZATION EVENTS

         Section 9.1 Amortization  Events.  The occurrence of any one or more of
the following events shall constitute an Amortization Event:

                  (a) Any Seller  Party  shall  fail (i) to make any  payment or
         deposit of Capital  required  hereunder  when due  (including,  without
         limitation,  any payment or deposit required pursuant to Section 2.6(b)
         hereof)  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 such Seller Party pays  immediately  upon demand any
         and all losses,  costs and  expenses  incurred by 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  7.1(b)(i),  (ii),  (iii) or (iv) or 7.2 and such failure shall
         continue for three (3)  consecutive  Business Days, (iv) to comply with
         the provisions of Section 7.1 (c), (f), (g), (h), (j), (l) or (m)

                                     Page 21

<PAGE>

         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.

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

                  (c) Failure of Seller to pay any  Indebtedness  when due in an
         amount in excess of $10,500,  or the failure of any other  Seller Party
         to pay Indebtedness when due in an amount in excess of $10,000,000;  or
         the  default  by any  Seller  Party  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 any Seller Party 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)  Any  Seller  Party  or  any  Original  Seller  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 any Seller Party or any Original  Seller 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;
         (iii) any  proceeding  shall be instituted  against any Seller Party or
         any Original Seller 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) any Seller Party or
         any Original Seller shall take any corporate action to authorize any of
         the actions set forth in this subsection (d).

                  (e) As at the end of any  fiscal  month,  the  average  of the
         Delinquency  Ratios for the three  fiscal  months most  recently  ended
         shall exceed  7.00% or the average of the Default  Ratios for the three
         fiscal months most recently  ended shall exceed 3.50% or the average of
         the Dilution  Ratios for the three fiscal  months most  recently  ended
         shall exceed 6.50%.

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

                  (g) (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  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 Amortization 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.

                  (h) (i) One or more final  judgments  for the payment of money
         in an amount in excess of $10,500,  individually  or in the  aggregate,
         shall be entered against Seller or (ii) 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 the Servicer
         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.

                                     Page 22

<PAGE>

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

                  (j)  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.

                  (k) 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 Seller, or any
         Obligor  shall  directly  or  indirectly  contest  in any  manner  such
         effectiveness, validity, binding nature or enforceability, or the Agent
         for the  benefit  of the  Purchasers  shall  cease to have a valid  and
         perfected  first priority  security  interest in the  Receivables,  the
         Related  Security  and the  Collections  with  respect  thereto and the
         Collection Accounts.

                  (l) Interface shall fail to own, free and clear of any Adverse
         Claims, 100% of the voting stock of Seller.

                  Section  9.2  Remedies.  Upon the  occurrence  and  during the
         continuation  of an  Amortization  Event,  the Agent  may,  or upon the
         direction of the Required Financial Institutions shall, take any of the
         following actions: (i) replace the Person then acting as Servicer, (ii)
         declare  the  Amortization   Date  to  have  occurred,   whereupon  the
         Amortization  Date shall forthwith  occur,  without demand,  protest or
         further notice of any kind, all of which are hereby expressly waived by
         each Seller Party;  provided,  however,  that upon the occurrence of an
         Amortization  Event  described  in Section  9.1(d),  or of an actual or
         deemed  entry of an order for relief with  respect to any Seller  Party
         under  the  Federal   Bankruptcy  Code,  the  Amortization  Date  shall
         automatically occur, without demand, protest or any notice of any kind,
         all of which are hereby expressly waived by each Seller Party, (iii) to
         the fullest  extent  permitted  by  applicable  law,  declare  that the
         Default Fee shall accrue with respect to any of the  Aggregate  Unpaids
         outstanding at such time,  (iv) deliver the  Collection  Notices to the
         Collection  Banks, and (v) notify Obligors of the Purchasers'  interest
         in the  Receivables.  The  aforementioned  rights and remedies shall be
         without  limitation,  and shall be in addition to all other  rights and
         remedies of the Agent and the Purchasers  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 limitation, all rights and remedies provided under the UCC, all
         of which rights shall be cumulative.

                                     Page 23

<PAGE>

                                    ARTICLE X
                                 INDEMNIFICATION

         Section 10.1  Indemnities by The Seller Parties.  Without  limiting any
other  rights  that the  Agent or any  Purchaser  may  have  hereunder  or under
applicable  law, (A) Seller hereby agrees to indemnify  (and pay upon demand to)
the Agent and each Purchaser and their respective assigns, officers,  directors,
agents and employees (each an "Indemnified  Party") from and against any and all
damages, losses, claims, taxes,  liabilities,  costs, expenses and for all other
amounts payable,  including  reasonable  attorneys' fees (which attorneys may be
employees  of the  Agent  or  such  Purchaser)  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 a Purchaser of
an interest in the Receivables,  and (B) the Servicer hereby agrees to indemnify
(and pay upon demand to) each Indemnified Party for Indemnified  Amounts awarded
against or incurred by any of them arising out of the  Servicer's  activities as
Servicer hereunder  excluding,  however, in all of the foregoing instances under
the preceding clauses (A) and (B):

                           (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 as a loan or loans by
                  the  Purchasers  to Seller  secured  by the  Receivables,  the
                  Related Security, the Collection Accounts and the Collections;

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

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

                                     Page 24

<PAGE>

                           (ii) the failure by Seller, the Servicer,  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 noncon  formity 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 Seller, the Servicer, Originator
                  or any  Original  Seller to perform its duties,  covenants  or
                  other obliga tions 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 merchan dise,  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;

                           (vii) any  investigation,  litigation  or pro ceeding
                  related  to or  arising  from  this  Agreement  or  any  other
                  Transaction Docu ment, the transactions  contemplated  hereby,
                  the use of the  proceeds  of an  Incremen  tal  Purchase  or a
                  Reinvestment,  the ownership of the Purchaser Interests or any
                  other  investigation,  litigation  or  proceeding  relating to
                  Seller,  the Servicer,  Origina tor 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  Amortization  Event  described  in  Section
                  9.1(d);

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

                                     Page 25

<PAGE>
                           (xi) any failure to vest and  maintain  vested in the
                  Agent for the benefit of the Purchasers, or to transfer to the
                  Agent for the benefit of the  Purchasers,  legal and equitable
                  title  to,  and  ownership  of,  a  first  priority  perfected
                  undivided  percentage ownership interest (to the extent of the
                  Purchaser  Interests   contemplated   hereunder)  or  security
                  interest  in the  Receivables,  the Related  Security  and the
                  Collections,  free and clear of any Adverse  Claim  (except as
                  created by the Transaction Documents);

                           (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  any
                  Incremental  Purchase  or  Reinvestment  or at any  subsequent
                  time;

                           (xiii) any  action or  omission  by any Seller  Party
                  that  reduces  or  impairs  the  rights  of the  Agent  or the
                  Purchasers  with respect to any Receivable or the value of any
                  such Receivable;

                           (xiv)  any   attempt   by  any  Person  to  void  any
                  Incremental Purchase or Reinvestment 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 10.2 Increased Cost and Reduced Return.

         If after the date hereof,  any Funding Source shall be charged any fee,
expense or increased cost on account of the adoption of any applicable law, rule
or regulation  (including  any  applicable  law,  rule or  regulation  regarding
capital adequacy) or any change therein,  or any change in the interpretation or
administration  thereof by any governmental  authority,  central bank or compara
ble  agency  charged  with the  interpretation  or  administration  thereof,  or
compliance  with any  request or  directive  (whether or not having the force of
law) of any such  authority,  central bank or compara ble agency (a  "Regulatory
Change"):  (i) that subjects any Funding Source to any charge or withhold ing on
or with respect to any Funding Agreement or a Funding Source's obligations under
a Funding  Agreement,  or on or with respect to the Receivables,  or changes the
basis of taxation of payments to any Funding Source of any amounts payable under
any Funding  Agreement (except for changes in the rate of tax on the overall net
income  of a Funding  Source or taxes  excluded  by  Section  10.1) or (ii) that
imposes, modifies or deems applicable any reserve, assessment, insurance charge,
special deposit or similar  requirement  against assets of, deposits with or for
the account of a Funding Source, or credit extended by a Funding Source pursuant
to a Funding  Agreement or (iii) that imposes any other  condition the result of
which is to increase the cost to a Funding Source of performing its  obligations
under a Funding Agreement, or to reduce the rate of return on a Funding Source's
capital as a consequence of its  obligations  under a Funding  Agreement,  or to
reduce the amount of any sum received or receivable by a Funding  Source under a
Funding  Agreement  or to require any payment  calculated  by  reference  to the
amount of interests or loans held or interest  received by it, then, upon demand
by the Agent,  Seller  shall pay to the Agent,  for the benefit of the  relevant
Funding  Source,  such amounts charged to such Funding Source or such amounts to
otherwise  compensate  such  Funding  Source  for  such  increased  cost or such
reduction.

                                     Page 26

<PAGE>

         Section  10.3 Other Costs and  Expenses.  Seller shall pay to the Agent
and Company 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,  including  without  limitation,  the  cost  of  Company's
auditors auditing the books,  records and procedures of Seller,  reasonable fees
and  out-of-pocket  expenses of legal counsel for Company and the Agent actually
incurred  (which such  counsel may be  employees  of Company or the Agent 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
Seller;  provided,  further,  that such fees shall be as may be  reasonable  and
customary for internal counsel of financial  institutions)  with respect thereto
and with respect to advising Company and the Agent as to their respective rights
and remedies under this  Agreement.  Seller shall pay to the Agent on demand any
and all costs and expenses of the Agent and the Purchasers actually incurred, if
any,  including  reasonable  counsel fees and expenses  actually incurred (which
such  counsel may be employees of Company or the Agent to the extent not duplica
tive of  services  provided  by  outside  counsel,  in which  case such fees may
consist  of  internally  allocated  costs  with  respect  to  such  counsel)  in
connection  with the  enforcement  of this  Agreement  and the  other  documents
delivered  hereunder and in connection with any restructuring or workout of this
Agreement or such documents,  or the administration of this Agreement  following
an Amortiza tion Event.

                                   ARTICLE XI
                                    THE AGENT

         Section 11.1 Authorization and Action. Each Purchaser hereby designates
and  appoints  Bank One to act as its  agent  hereunder  and  under  each  other
Transaction Document,  and authorizes the Agent to take such actions as agent on
its behalf and to  exercise  such  powers as are  delegated  to the Agent by the
terms of this Agreement and the other Transaction  Documents  together with such
powers as are reasonably incidental thereto. The Agent shall not have any duties
or  responsibilities,  except those  expressly  set forth herein or in any other
Transaction Document, or any fiduciary  relationship with any Purchaser,  and no
implied  covenants,   functions,   responsibilities,   duties,   obligations  or
liabilities  on the part of the Agent shall be read into this  Agreement  or any
other  Transaction  Document or otherwise exist for the Agent. In performing its
functions and duties hereunder and under the other  Transaction  Documents,  the
Agent shall act solely as agent for the Purchasers and does not assume nor shall
be deemed to have assumed any obligation or relationship of trust or agency with
or for any Seller Party or any of such Seller Party's successors or assigns. The
Agent  shall  not be  required  to take any  action  that  exposes  the Agent to
personal liability or that is contrary to this Agreement,  any other Transaction
Document or applicable law. The appointment and authority of the Agent hereunder
shall terminate upon the indefeasible  payment in full of all Aggregate Unpaids.
Each  Purchaser  hereby  authorizes  the Agent to  execute  each of the  Uniform
Commercial  Code financing  statements on behalf of such Purchaser (the terms of
which shall be binding on such Purchaser).

         Section  11.2  Delegation  of Duties.  The Agent may execute any of its
duties under this  Agreement and each other  Transaction  Document by or through
agents  or  attorneys-in-fact  and  shall  be  entitled  to  advice  of  counsel
concerning  all  matters  pertaining  to such  duties.  The  Agent  shall not be
responsible for the negligence or misconduct of any agents or  attorneys-in-fact
selected by it with reasonable care.

                                     Page 27

<PAGE>

         Section 11.3 Exculpatory  Provisions.  Neither the Agent nor any of its
directors,  officers,  agents or  employees  shall be (i)  liable for any action
lawfully taken or omitted to be taken by it or them under or in connection  with
this Agreement or any other Transaction Docu ment (except for its, their or such
Person's own gross negligence or willful misconduct), or (ii) responsible in any
manner to any of the Purchasers for any recitals, statements, representations or
warranties  made by any Seller  Party  contained  in this  Agreement,  any other
Transaction  Document or any  certificate,  report,  statement or other document
referred to or provided for in, or received  under or in connection  with,  this
Agreement,  or any  other  Transaction  Document  or for  the  value,  validity,
effectiveness,  genuineness, enforceability or sufficiency of this Agreement, or
any other  Transaction  Document or any other  document  furnished in connection
herewith or  therewith,  or for any  failure of any Seller  Party to perform its
obligations  hereunder or thereunder,  or for the  satisfaction of any condition
specified in Article VI, or for the perfection,  priority,  condition,  value or
sufficiency of any collateral  pledged in connection  herewith.  The Agent shall
not be under any  obligation  to any  Purchaser to ascertain or to inquire as to
the observance or  performance  of any of the agreements or covenants  contained
in, or conditions of, this Agreement or any other  Transaction  Document,  or to
inspect the properties,  books or records of the Seller Parties. The Agent shall
not  be  deemed  to  have  knowledge  of any  Amortization  Event  or  Potential
Amortization  Event  unless  the  Agent has  received  notice  from  Seller or a
Purchaser.

         Section  11.4  Reliance  by  Agent.  The  Agent  shall in all  cases be
entitled to rely, and shall be fully protected in relying,  upon any document or
conversation  believed by it to be genuine and correct and to have been  signed,
sent or made by the proper  Person or Persons and upon advice and  statements of
legal counsel (including,  without limitation,  counsel to Seller),  independent
accountants  and other  experts  selected  by the Agent.  The Agent shall in all
cases be fully  justified  in failing or refusing to take any action  under this
Agreement or any other  Transaction  Document unless it shall first receive such
advice or concurrence of Company or the Required  Financial  Institutions or all
of the Purchasers,  as applicable, as it deems appropriate and it shall first be
indemnified  to its  satisfaction  by the  Purchasers,  provided that unless and
until the Agent shall have received  such advice,  the Agent may take or refrain
from  taking  any  action,  as the Agent  shall deem  advisable  and in the best
interests of the Purchasers.  The Agent shall in all cases be fully protected in
acting, or in refraining from acting, in accordance with a request of Company or
the Required Financial Institutions or all of the Purchasers, as applicable, and
such request and any action taken or failure to act  pursuant  thereto  shall be
binding upon all the Purchasers.

         Section 11.5 Non-Reliance on Agent and Other Purchasers. Each Purchaser
expressly  acknowledges  that  neither  the  Agent,  nor  any of  its  officers,
directors,  employees,  agents,  attorneys-in-fact  or  affiliates  has made any
representations  or  warranties  to it and  that no act by the  Agent  hereafter
taken,  including,  without limitation,  any review of the affairs of any Seller
Party,  shall be deemed to  constitute  any  representation  or  warranty by the
Agent. Each Purchaser represents and warrants to the Agent that it has and will,
independently  and without  reliance  upon the Agent or any other  Purchaser and
based on such documents and information as it has deemed  appropriate,  made its
own  appraisal of and  investigation  into the business,  operations,  property,
prospects,  financial and other  conditions and  creditworthiness  of Seller and
made its own  decision  to enter  into this  Agreement,  the  other  Transaction
Documents and all other documents related hereto or thereto.

         Section  11.6   Reimbursement   and   Indemnification.   The  Financial
Institutions  agree to  reimburse  and  indemnify  the Agent  and its  officers,
directors, employees,  representatives and agents ratably according to their Pro
Rata Shares,  to the extent not paid or reimbursed by the Seller Parties (i) for
any amounts for which the Agent, acting in its capacity as Agent, is entitled to
reimbursement  by the Seller  Parties  hereunder and (ii) for any other expenses
incurred  by the  Agent,  in its  capacity  as Agent and acting on behalf of the
Purchasers,  in  connection  with the  administration  and  enforcement  of this
Agreement and the other Transaction Documents.

                                     Page 28

<PAGE>
         Section  11.7  Agent in its  Individual  Capacity.  The  Agent  and its
Affiliates may make loans to, accept  deposits from and generally  engage in any
kind of business with Seller or any Affiliate of Seller as though the Agent were
not the Agent hereunder.  With respect to the acquisition of Purchaser Interests
pursuant  to this  Agreement,  the Agent  shall have the same  rights and powers
under  this  Agreement  in its  individual  capacity  as any  Purchaser  and may
exercise  the same as though  it were not the  Agent,  and the terms  "Financial
Institution,"  "Purchaser,"  "Financial  Institutions"  and  "Purchasers"  shall
include the Agent in its individual capacity.

         Section 11.8 Successor  Agent. The Agent may, upon five days' notice to
Seller and the Purchasers,  and the Agent will, upon the direction of all of the
Purchasers  (other than the Agent, in its individual  capacity) resign as Agent.
If the Agent shall resign, then the Required Financial  Institutions during such
five-day  period shall appoint from among the Purchasers a successor  agent.  If
for any  reason  no  successor  Agent is  appointed  by the  Required  Financial
Institutions during such five-day period, then effective upon the termination of
such five day  period,  the  Purchasers  shall  perform all of the duties of the
Agent  hereunder  and under the other  Transaction  Documents and Seller and the
Servicer (as  applicable)  shall make all  payments in respect of the  Aggregate
Unpaids  directly to the  applicable  Purchasers and for all purposes shall deal
directly with the Purchasers.  After the  effectiveness  of any retiring Agent's
resignation  hereunder as Agent, the retiring Agent shall be discharged from its
duties and obligations  hereunder and under the other Transaction  Documents and
the provisions of this Article XI and Article X shall continue in effect for its
benefit with respect to any actions  taken or omitted to be taken by it while it
was Agent under this Agreement and under the other Transaction Documents.

                                   ARTICLE XII
                           ASSIGNMENTS; PARTICIPATIONS

         Section 12.1  Assignments.  (a) Seller and each  Financial  Institution
hereby agree and consent to the complete or partial assignment by Company of all
or any portion of its rights under,  interest in, title to and obligations under
this Agreement to the Financial  Institutions pursuant to Section 13.1, and upon
such  assignment,  Company shall be released from its  obligations  so assigned.
Further, Seller and each Financial Institution hereby agree that any assignee of
Company of this  Agreement or all or any of the  Purchaser  Interests of Company
shall have all of the rights and  benefits  under this  Agreement as if the term
"Company" explicitly referred to such party, and no such assignment shall in any
way impair the rights and benefits of Company hereunder.  Neither Seller nor the
Servicer  shall have the right to assign its  rights or  obligations  under this
Agreement;  provided,  that the  foregoing  shall not prevent the  delegation by
Interface  of  its   obligations   as  Servicer  to  the  Original   Sellers  as
sub-servicers in accordance with Section 8.2 hereof.

                  (b) Any Financial Institution may at any time and from time to
         time   assign   to  one  or   more   Persons   ("Purchasing   Financial
         Institutions") all or any part of its rights and obligations under this
         Agreement  pursuant to an assignment  agreement,  substantially  in the
         form set forth in  Exhibit  VII  hereto  (the  "Assignment  Agreement")
         executed by such  Purchasing  Financial  Institution  and such  selling
         Financial  Institution.  The consent of Company  and the Seller  (which
         consent  shall  not be  unreasonably  withheld  or  delayed)  shall  be
         required prior to the  effectiveness of any assignment by any Financial
         Institution of all or any part of its rights and obligations under this
         Section 12.1(b). Each assignee of a Financial Institution must (i) have
         a short-term  debt rating of A-1 or better by Standard & Poor's Ratings
         Group and P-1 by  Moody's  Investor  Service,  Inc.  and (ii)  agree to
         deliver to the Agent,  promptly  following any request  therefor by the
         Agent or  Company,  an  enforceability  opinion  in form and  substance
         satisfactory  to the Agent and Company.  Upon  delivery of the executed
         Assignment  Agreement to the Agent, such selling Financial  Institution
         shall be released from its obligations  hereunder to the extent of such
         assignment.  Thereafter the Purchasing Financial  Institution shall for
         all purposes be a Financial  Institution  party to this  Agreement  and
         shall have all the rights and  obligations  of a Financial  Institution
         under this Agreement to the same extent as if it were an original party
         hereto and no further  consent or action by Seller,  the  Purchasers or
         the Agent shall be required.

                                     Page 29

<PAGE>
                  (c)  Each of the  Financial  Institutions  agrees  that in the
         event that it shall  cease to have a  short-term  debt rating of A-1 or
         better by Standard & Poor's  Ratings Group and P-1 by Moody's  Investor
         Service,  Inc. (an  "Affected  Financial  Institution"),  such Affected
         Financial  Institution  shall be obliged,  at the request of Company or
         the Agent, to assign all of its rights and obligations hereunder to (x)
         another  Financial  Institution or (y) another funding entity nominated
         by the Agent and  acceptable to Company,  and willing to participate in
         this Agreement  through the Liquidity  Termination Date in the place of
         such  Affected  Financial  Institution;   provided  that  the  Affected
         Financial   Institution  receives  payment  in  full,  pursuant  to  an
         Assignment   Agreement,   of  an   amount   equal  to  such   Financial
         Institution's  Pro Rata Share of the Aggregate  Capital and Yield owing
         to the Financial Institutions and all accrued but unpaid fees and other
         costs and  expenses  payable  in  respect  of its Pro Rata Share of the
         Purchaser Interests of the Financial Institutions.

         Section 12.2  Participations.  Any  Financial  Institution  may, in the
ordinary  course of its business at any time sell to one or more Persons (each a
"Participant")  participating  interests in its Pro Rata Share of the  Purchaser
Interests  of the  Financial  Institutions,  its  obligation  to pay Company its
Acquisition  Amounts  or  any  other  interest  of  such  Financial  Institution
hereunder.  Notwithstanding  any  such  sale  by a  Financial  Institution  of a
participating interest to a Participant, such Financial Institution's rights and
obligations  under  this  Agreement  shall  remain  unchanged,   such  Financial
Institution  shall  remain  solely   responsible  for  the  performance  of  its
obligations hereunder,  and Seller, Company and the Agent shall continue to deal
solely and directly with such  Financial  Institution  in  connection  with such
Financial  Institution's  rights  and  obligations  under this  Agreement.  Each
Financial   Institution   agrees  that  any  agreement  between  such  Financial
Institution and any such Participant in respect of such  participating  interest
shall not restrict such Financial Institution's right to agree to any amendment,
supplement,  waiver or modification to this Agreement, except for any amendment,
supplement, waiver or modification described in Section 14.1(b)(i).

                                  ARTICLE XIII
                               LIQUIDITY FACILITY

         Section  13.1  Transfer  to  Financial  Institutions.   Each  Financial
Institution  hereby  agrees,  subject to Section  13.4,  that  immediately  upon
written notice from Company  delivered on or prior to the Liquidity  Termination
Date, it shall acquire by assignment from Company, without recourse or warranty,
its Pro Rata  Share of one or more of the  Purchaser  Interests  of  Company  as
specified by Company.  Each such  assignment  by Company  shall be made pro rata
among all of the Financial Institutions,  except for pro rata assignments to one
or more Terminating  Financial  Institutions pursuant to Section 13.6. Each such
Financial  Institution shall, no later than 1:00 p.m. (Chicago time) on the date
of such assignment,  pay in immediately  available funds (unless another form of
payment is otherwise  agreed between  Company and any Financial  Institution) to
the Agent at an account designated by the Agent, for the benefit of Company, its
Acquisition Amount.  Unless a Financial  Institution has notified the Agent that
it does not intend to pay its Acquisition Amount, the Agent may assume that such
payment has been made and may, but shall not be obligated to, make the amount of
such payment  available  to Company in reliance  upon such  assumption.  Company
hereby sells and assigns to the Agent for the ratable  benefit of the  Financial
Institutions, and the Agent hereby purchases and assumes from Company, effective
upon the  receipt  by Company  of the  Company  Transfer  Price,  the  Purchaser
Interests  of Company  that are the  subject of any  transfer  pursuant  to this
Article XIII.

                                    Page 30

<PAGE>
         Section 13.2 Transfer Price  Reduction  Yield.  If the Adjusted  Funded
Amount is included in the  calculation  of the  Company  Transfer  Price for any
Purchaser Interest,  each Financial  Institution agrees that the Agent shall pay
to Company  the  Reduction  Percentage  of any Yield  received by the Agent with
respect to such Purchaser Interest.

         Section 13.3 Payments to Company. In consideration for the reduction of
the Company Transfer Prices by the Company Transfer Price Reductions,  effective
only at such  time as the  aggregate  amount  of the  Capital  of the  Purchaser
Interests  of the  Financial  Institutions  equals the  Company  Residual,  each
Financial  Institution  hereby agrees that the Agent shall not distribute to the
Financial  Institutions  and  shall  immediately  remit to  Company  any  Yield,
Collections or other payments received by it to be applied pursuant to the terms
hereof or  otherwise  to reduce the Capital of the  Purchaser  Interests  of the
Financial Institutions.

         Section  13.4  Limitation  on  Commitment  to  Purchase  from  Company.
Notwithstanding  anything  to the  contrary  in  this  Agreement,  no  Financial
Institution  shall have any  obligation to purchase any Purchaser  Interest from
Company, pursuant to Section 13.1 or otherwise, if:

                           (i)  Company  shall have  voluntarily  commenced  any
                  proceeding  or  filed  any  petition  under  any   bankruptcy,
                  insolvency or similar law seeking the dissolution, liquidation
                  or reorganization of Company or taken any corporate action for
                  the purpose of effectuating any of the foregoing; or

                           (ii)  involuntary  proceedings  or  an  involun  tary
                  petition shall have been commenced or filed against Company by
                  any Person  under any  bankruptcy,  insolvency  or similar law
                  seeking the  dissolution,  liquidation  or  reorganization  of
                  Company and such  proceeding  or petition  shall have not been
                  dismissed.

         Section  13.5  Defaulting  Financial  Institutions.   If  one  or  more
Financial  Institutions defaults in its obligation to pay its Acquisition Amount
pursuant  to Section  13.1 (each such  Financial  Institution  shall be called a
"Defaulting  Financial  Institution"  and the aggregate amount of such defaulted
obligations being herein called the "Company Transfer Price Deficit"), then upon
notice from the Agent,  each  Financial  Institution  other than the  Defaulting
Financial Institutions (a "Non-Defaulting Financial Institution") shall promptly
pay to the Agent, in immediately  available funds, an amount equal to the lesser
of (x) such Non-Defaulting  Financial  Institution's  proportionate share (based
upon the relative Commitments of the Non-Defaulting  Financial  Institutions) of
the  Company  Transfer  Price  Deficit  and  (y)  the  unused  portion  of  such
Non-Defaulting  Financial  Institution's   Commitment.  A  Defaulting  Financial
Institution  shall forthwith upon demand pay to the Agent for the account of the
Non-Defaulting  Financial  Institutions all amounts paid by each Non- Defaulting
Financial  Institution  on  behalf  of such  Defaulting  Financial  Institution,
together with interest thereon, for each day from the date a payment was made by
a  Non-Defaulting  Financial  Institution  until  the date  such  Non-Defaulting
Financial  Institution  has been paid such amounts in full,  at a rate per annum
equal to the Federal  Funds  Effective  Rate plus two percent (2%). In addition,
without  prejudice to any other  rights that  Company may have under  applicable
law, each Defaulting  Financial  Institution shall pay to Company forthwith upon
demand, the difference between such Defaulting  Financial  Institution's  unpaid
Acquisition   Amount  and  the  amount   paid  with   respect   thereto  by  the
Non-Defaulting Financial Institutions,  together with interest thereon, for each
day  from  the  date  of the  Agent's  request  for  such  Defaulting  Financial
Institution's  Acquisition  Amount  pursuant to Section  13.1 until the date the
requisite  amount is paid to Company in full,  at a rate per annum  equal to the
Federal Funds Effective Rate plus two percent (2%).

                                     Page 31

<PAGE>

         Section 13.6 Terminating Financial Institutions.

                  (a)  Each  Financial  Institution  hereby  agrees  to  deliver
         written notice to the Agent not more than 30 Business Days and not less
         than 5 Business Days prior to the Liquidity Termination Date indicating
         whether  such  Financial  Institution  intends to renew its  Commitment
         hereunder. If any Financial Institution fails to deliver such notice on
         or prior to the date that is 5  Business  Days  prior to the  Liquidity
         Termination  Date,  such Financial  Institution  will be deemed to have
         declined to renew its Commitment  (each Financial  Institution that has
         declined  or has been deemed to have  declined to renew its  Commitment
         hereunder,  a "Non-Renewing  Financial Institu tion").  The Agent shall
         promptly notify Company of each Non-Renewing  Financial Institution and
         Company,  in its sole  discretion,  may (A) to the extent of Commitment
         Availability,  declare that such Non-Renewing  Financial  Institution's
         Commitment  shall,  to such extent,  automatically  terminate on a date
         specified by Company on or before the Liquidity Termination Date or (B)
         upon one (1)  Business  Days'  notice  to such  Non-Renewing  Financial
         Institution assign to such Non-Renewing Financial Institution on a date
         specified  by  Company  its Pro Rata Share of the  aggregate  Purchaser
         Interests  then held by Company,  subject to, and in  accordance  with,
         Section 13.1. In addition,  Company may, in its sole discretion, at any
         time (x) to the extent of  Commitment  Availability,  declare  that any
         Affected  Financial   Institution's   Commitment  shall   automatically
         terminate on a date  specified by Company or (y) assign to any Affected
         Financial Institution on a date specified by Company its Pro Rata Share
         of the aggregate Purchaser Interests then held by Company,  subject to,
         and  in  accordance  with,   Section  13.1  (each  Affected   Financial
         Institution or each Non-Renewing  Financial  Institution is hereinafter
         referred  to as a  "Terminating  Financial  Institution").  The parties
         hereto expressly acknowledge that any declaration of the termination of
         any  Commitment,  any assignment  pursuant to this Section 13.6 and the
         order  of  priority  of  any  such   termination  or  assignment  among
         Terminating Financial Institutions shall be made by Company in its sole
         and absolute discretion.

                  (b) Upon any assignment to a Terminating Financial Institution
         as provided in this Section  13.6,  any  remaining  Commitment  of such
         Terminating Financial Institution shall automatically  terminate.  Upon
         reduction to zero of the Capital of all of the Purchaser Interests of a
         Terminating  Financial  Institution  (after  application of Collections
         thereto pursuant to Sections 2.2 and 2.3) all rights and obligations of
         such Terminating  Financial  Institution  hereunder shall be terminated
         and  such  Terminating  Financial  Institution  shall  no  longer  be a
         "Financial   Institution"  hereunder;   provided,   however,  that  the
         provisions  of Article X shall  continue in effect for its benefit with
         respect  to  Purchaser  Interests  held by such  Terminating  Financial
         Institution prior to its termination as a Financial Institution.

                                   ARTICLE XIV
                                  MISCELLANEOUS

         Section  14.1  Waivers and  Amendments.  (a) No failure or delay on the
part of the Agent or any  Purchaser  in  exercising  any power,  right or remedy
under this Agreement shall operate as a waiver thereof,  nor shall any single or
partial  exercise of any such power,  right or remedy preclude any other further
exercise thereof or the exercise of any other power, right or remedy. The rights
and remedies herein provided shall be cumulative and  nonexclusive of any rights
or remedies  provided by law.  Any waiver of this  Agreement  shall be effective
only in the specific instance and for the specific purpose for which given.

                  (b)  No   provision   of  this   Agreement   may  be  amended,
         supplemented,  modified or waived except in writing in accordance  with
         the provisions of this Section 14.1(b).  Company, Seller and the Agent,
         at the direction of the Required Financial Institutions, may enter into
         written  modifications  or waivers of any provisions of this Agreement,
         provided, however, that no such modification or waiver shall:

                                     Page 32

<PAGE>

                           (i) without the consent of each  affected  Purchaser,
                  (A) extend the Liquidity  Termination  Date or the date of any
                  payment or deposit of  Collections  by Seller or the Servicer,
                  (B)  reduce the rate or extend the time of payment of Yield or
                  any CP Costs  (or any  component  of Yield or CP  Costs),  (C)
                  reduce  any fee  payable  to the Agent for the  benefit of the
                  Purchasers,  (D) except pursuant to Article XII hereof, change
                  the amount of the  Capital  of any  Purchaser,  any  Financial
                  Institution's Pro Rata Share (except pursuant to Sections 13.1
                  or 13.5) or any Financial Institution's Commitment, (E) amend,
                  modify or waive any  provision of the  definition  of Required
                  Financial Institutions or this Section 14.1(b), (F) consent to
                  or permit the  assignment or transfer by Seller or Servicer of
                  any of its rights and obligations  under this  Agreement,  (G)
                  change  the   definition  of  "Eligible   Receivable,"   "Loss
                  Percentage," "Dilution Reserve Percent age," "Servicer Reserve
                  Percentage,"  "Yield Reserve Percentage" or "Aggregate Reserve
                  Percentage,"  or (H) amend or modify any defined  term (or any
                  defined term used directly or indirectly in such defined term)
                  used in clauses  (A)  through (G) above in a manner that would
                  circumvent the intention of the restrictions set forth in such
                  clauses; or

                           (ii)  without the written  consent of the then Agent,
                  amend,  modify or waive any provision of this Agreement if the
                  effect  thereof  is to  affect  the  rights  or duties of such
                  Agent.

Notwithstanding  the  foregoing,  (i)  without  the  consent  of  the  Financial
Institutions, but with the consent of Seller, the Agent may amend this Agreement
solely to add additional  Persons as Financial  Institutions  hereunder and (ii)
the Agent,  the  Required  Financial  Institutions  and  Company  may enter into
amendments to modify any of the terms or  provisions of Article XI,  Article XII
(exclusive  of the first and last  sentences  of  Section  12.1(a),  the  second
sentence of Section  12.1(b) and the second and third sentences of Section 12.2)
or Section 14.13 or any other provision of this Agreement without the consent of
Seller,  provided that such  amendment has no negative  impact upon Seller.  Any
modifica tion or waiver made in accordance with this Section 14.1 shall apply to
each of the Purchasers  equally and shall be binding upon Seller, the Purchasers
and the Agent.

         Section  14.2  Notices.  Except as provided in this Section  14.2,  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 14.2. Seller hereby authorizes the Agent to effect purchases and Tranche
Period and Discount  Rate  selections  based on  telephonic  notices made by any
Person  whom the Agent in good faith  believes to be acting on behalf of Seller.
Seller agrees to deliver  promptly to the Agent a written  confirmation  of each
telephonic notice signed by an authorized officer of Seller; provided,  however,
the absence of such  confirmation  shall not affect the validity of such notice.
If the written  confirmation  differs  from the action  taken by the Agent,  the
records of the Agent shall govern absent manifest error.

                                     Page 33

<PAGE>
         Section 14.3 Ratable Payments.  If any Purchaser,  whether by setoff or
otherwise,  has payment made to it with respect to any portion of the  Aggregate
Unpaids  owing to such  Purchaser  (other  than  payments  received  pursuant to
Section 10.2 or 10.3) in a greater  propor tion than that  received by any other
Purchaser  entitled to receive a ratable share of such Aggregate  Unpaids,  such
Purchaser agrees, promptly upon demand, to purchase for cash without recourse or
warranty a portion of such  Aggregate  Unpaids held by the other  Purchasers  so
that after such purchase each Purchaser will hold its ratable proportion of such
Aggregate Unpaids;  provided that if all or any portion of such excess amount is
thereafter  recovered from such Purchaser,  such purchase shall be rescinded and
the  purchase  price  restored  to the  extent  of such  recovery,  but  without
interest.

         Section 14.4 Protection of Ownership  Interests of the Purchasers.  (a)
Seller agrees that from time to time, at its expense,  it will promptly  execute
and deliver all  instruments  and documents,  and take all actions,  that may be
necessary or desirable,  or that the Agent may reasonably  request,  to perfect,
protect or more fully evidence the Purchaser  Interests,  or to enable the Agent
or the  Purchasers to exercise and enforce their rights and remedies  hereunder.
Upon the occurrence and during the  continuance of an  Amortization  Event,  the
Agent  may,  or the Agent may  direct  Seller or the  Servicer  to,  notify  the
Obligors of  Receivables,  at Seller's  expense,  of the  ownership  or security
interests  of the  Purchasers  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 the  Agent  or its  designee.  Seller  or  the  Servicer  (as
applicable)  shall,  at any Purchaser's  request,  withhold the identity of such
Purchaser in any such notification.

         (b) If  any  Seller  Party  fails  to  perform  any of its  obligations
hereunder,  the  Agent or any  Purchaser  may (but  shall  not be  required  to)
perform,  or cause  perfor mance of, such  obligations,  and the Agent's or such
Purchaser's costs and expenses incurred in connection therewith shall be payable
by Seller as provided in Section 10.3. Each Seller Party irrevocably  authorizes
the Agent at any time and from time to time in the sole discretion of the Agent,
and appoints the Agent as its attorney-in-fact,  to act on behalf of such Seller
Party (i) to  execute  on behalf  of  Seller  as  debtor  and to file  financing
statements  necessary or desirable in the Agent's sole discretion to perfect and
to maintain the perfection and priority of the interest of the Purchasers 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 the Agent in its sole  discretion  deems
necessary or desirable to perfect and to maintain the perfection and priority of
the interests of the Purchasers in the Receivables.  This appointment is coupled
with an interest and is irrevocable.

         Section 14.5 Confidentiality.  (a) Each Seller Party and each Purchaser
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  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
such Seller Party and such Purchaser and its officers and employees may disclose
such  information  to  such  Seller  Party's  and  such   Purchaser'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,  each Seller Party
hereby consents to the disclosure of any nonpublic  information  with respect to
it (i) to the Agent, the Financial  Institutions or Company by each other,  (ii)
by 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).

         Section 14.6 Bankruptcy Petition.  Seller, the Servicer,  the Agent and
each Financial  Institution  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 any  Unconditional  Liquidity  Provider,  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.

         Section 14.7 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 any Seller Party 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 each Seller Party 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.

                                     Page 34

<PAGE>
         Section  14.8  CHOICE  OF LAW.  THIS  AGREEMENT  SHALL BE GOV ERNED AND
CONSTRUED IN  ACCORDANCE  WITH THE  INTERNAL  LAWS (AND NOT THE LAW OF CONFLICTS
OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL  OBLIGATIONS LAW) OF THE STATE
OF NEW YORK.

         Section  14.9  CONSENT  TO  JURISDICTION.   EACH  SELLER  PARTY  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  SUCH  PERSON  PURSUANT  TO THIS  AGREEMENT  AND  EACH  SELLER  PARTY  HEREBY
IRREVOCABLY  AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING  MAY
BE HEARD AND DETER MINED 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 INCONVE NIENT FORUM.
NOTHING  HEREIN  SHALL  LIMIT THE RIGHT OF THE AGENT OR ANY  PURCHASER  TO BRING
PROCEEDINGS  AGAINST ANY SELLER  PARTY IN THE COURTS OF ANY OTHER  JURISDICTION.
ANY JUDICIAL  PROCEEDING  BY ANY SELLER PARTY AGAINST THE AGENT OR ANY PURCHASER
OR  ANY  AFFILIATE  OF  THE  AGENT  OR  ANY  PURCHASER  INVOLVING,  DIRECTLY  OR
INDIRECTLY,  ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH
THIS  AGREEMENT OR ANY DOCUMENT  EXECUTED BY SUCH SELLER PARTY  PURSUANT TO THIS
AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK.

         Section  14.10  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 ANY SELLER PARTY PURSUANT TO THIS
AGREEMENT OR THE RELA TIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

                                     Page 35

<PAGE>

         Section 14.11 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 the  parties  hereto  and their  respective  successors  and
         permitted  assigns  (including  any  trustee  in  bank  ruptcy).   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 repre  sentation  and  warranty  made by any Seller Party
         pursuant to Article V, (ii) the  indemnification and payment provisions
         of Article X, and Sections 14.5 and 14.6 shall be continuing  and shall
         survive any termination of this Agreement.

         Section 14.12  Counterparts;  Severability;  Section  References.  This
Agreement may be executed in any number of counterparts and by different parties
hereto in separate counter parts, 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.

         Section  14.13  Bank  One  Roles.  Each of the  Financial  Institutions
acknowledges that Bank One acts, or may in the future act, (i) as administrative
agent for Company or any Financial Institution, (ii) as issuing and paying agent
for the Commercial Paper,  (iii) to provide credit or liquidity  enhancement for
the timely payment for the  Commercial  Paper and (iv) to provide other services
from time to time for Company or any Financial  Institution  (collectively,  the
"Bank One Roles").  Without limiting the generality of this Section 14.13,  each
Financial  Institution hereby  acknowledges and consents to any and all Bank One
Roles and agrees that in connection  with any Bank One Role,  Bank One may take,
or  refrain  from  taking,  any  action  that  it,  in  its  discretion,   deems
appropriate,  including, without limitation, in its role as administrative agent
for  Company,  and the  giving of notice  to the Agent of a  mandatory  purchase
pursuant to Section 13.1.

         Section 14.14 Characterization.  (a) It is the intention of the parties
hereto  that each  purchase  hereunder  shall  constitute  and be  treated as an
absolute and  irrevocable  sale,  which  purchase  shall provide the  applicable
Purchaser  with the full  benefits  of  ownership  of the  applicable  Purchaser
Interest.  Except as  specifically  provided in this  Agreement,  each sale of a
Purchaser  Interest  hereunder  is made  without  recourse to Seller;  provided,
however, that (i) Seller shall be liable to each Purchaser and the Agent for all
representations,  warranties,  covenants and indemnities made by Seller pursuant
to the terms of this  Agreement,  and (ii) such sale does not  constitute and is
not  intended to result in an  assumption  by any  Purchaser or the Agent or any
assignee thereof of any obligation of Seller,  Originator or any Original Seller
or any other person  arising in  connection  with the  Receivables,  the Related
Security,  or  the  related  Contracts,  or any  other  obligations  of  Seller,
Originator or any Original Seller.

                                     Page 36

<PAGE>

                  (b) In addition to any  ownership  interest that the Agent may
         from time to time acquire pursuant hereto,  Seller hereby grants to the
         Agent for the ratable  benefit of the  Purchasers a valid and perfected
         security  interest in all of Seller's right,  title and interest in, to
         and under all  Receivables  now  existing  or  hereafter  arising,  the
         Collections,  each  Lock-Box,  each  Collection  Account,  all  Related
         Security,  all other rights and payments  relating to such Receivables,
         and all  proceeds  of any  thereof  prior  to all  other  liens  on and
         security interests therein to secure the prompt and complete payment of
         the  Aggregate  Unpaids.  The Agent and the  Purchasers  shall have, in
         addition  to the  rights  and  remedies  that they may have  under this
         Agreement, all other rights and remedies provided to a secured creditor
         under the UCC and other applicable law, which rights and remedies shall
         be cumulative.

                            [SIGNATURE PAGES FOLLOW]

                                     Page 37

<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 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

                                            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

                                            JUPITER SECURITIZATION CORPORATION

                                            By:  /s/ Julie C. Benda
                                                 -------------------------------
                                            Name:  Julie C. Benda
                                            Title:  Authorized Signatory

                                            Address:  c/o Bank One, NA (Main
                                                      Office Chicago), as Agent
                                                      Asset Backed Finance
                                                      Suite IL1-0079, 1-19
                                                      1 Bank One Plaza
                                                      Chicago, Illinois
                                                        60670-0079
                                            Fax:     (312) 732-1844

                                     Page 38

<PAGE>

                                        BANK ONE, NA (MAIN OFFICE CHICAGO), as a
                                        Financial Institution and as Agent

                                        By: /s/   Julie C. Benda
                                            --------------------------------
                                        Name:  Julie C. Benda
                                        Title:  Vice President

                                        Address:   Bank One, NA (Main Office
                                                     Chicago)
                                                   Asset Backed Finance
                                                   Suite IL1-0596, 1-21
                                                   1 Bank One Plaza
                                                   Chicago, Illinois  60670-0596

                                        Fax:  (312) 732-4487

                                     Page 39

<PAGE>

                                    EXHIBIT I

                                   DEFINITIONS

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

         "Accrual  Period" means each calendar month,  provided that the initial
Accrual Period  hereunder  means the period from (and including) the date of the
initial purchase hereunder to (and including) the last day of the calendar month
thereafter.

         "Acquisition Amount" means, on the date of any purchase from Company of
one or more  Purchaser  Interests  pursuant to Section 13.1, (a) with respect to
each Financial  Institution (other than any Unconditional  Liquidity  Provider),
the lesser of (i) such Financial  Institution's Pro Rata Share of the sum of (A)
the lesser of (1) the Adjusted  Liquidity Price of each such Purchaser  Interest
and (2) the  Capital of each such  Purchaser  Interest  and (B) all  accrued and
unpaid  CP Costs  for each  such  Purchaser  Interest  and (ii)  such  Financial
Institution's  unused  Commitment  and (b) with  respect  to each  Unconditional
Liquidity Provider,  the lesser of (x) such Unconditional  Liquidity  Provider's
Pro Rata Share of the sum of (1) the Capital of each such Purchaser Interest and
(2) all accrued  and unpaid CP Costs for each such  Purchaser  Interest  and (y)
such Unconditional Liquidity Provider's unused Commitment.

         "Adjusted  Funded Amount" means,  in determining  the Company  Transfer
Price for any Purchaser Interest, an amount equal to the sum of (a) the Adjusted
Liquidity Price of each such Purchaser  Interest and (b) an amount equal to each
Unconditional  Liquidity Provider's Pro Rata Share of the difference between (i)
the  Adjusted  Liquidity  Price of each  such  Purchaser  Interest  and (ii) the
Capital of each such Purchaser Interest.

         "Adjusted Liquidity Price" means an amount equal to:

                            |        NDR    |
                         RI |  DC + -----   |
                            |        1.05   |

         where:

                  RI    =  the undivided percentage interest evidenced by such
                           Purchaser Interest.

                  DC    =  the Deemed Collections.

                  NDR   =  the Outstanding Balance of all Receivables
                           as to which any pay ment,  or part  thereof,
                           has not  remained  unpaid  for more than 120
                           days  from  the  original  due date for such
                           payment.

Each of the foregoing  shall be determined  from the most recent  Monthly Report
received from the Servicer.

         "Adverse Claim" means a lien, security interest, charge or encumbrance,
or other right or claim in, of or on any Person's  assets or properties in favor
of any other Person,  excluding,  however, that certain delinquent tax liability
to the Georgia  Department of Revenue,  execution  number REV 99049793A,  in the
amount of $144,197,16,  of Interface Flooring Systems, Inc, which delinquency is
being contested in good faith by appropriate proceedings.

                                              Exh. I-1

<PAGE>

         "Affected  Financial  Institution" has the meaning specified in Section
12.1(c).

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

         "Aged  Receivables  Ratio" means,  as of any date of  determination,  a
percentage  equal to (i) the aggregate  Outstanding  Balance of all  Receivables
that were  either  (a) past due for more than 90 but less than 121 days from the
original due date as of the end of the fiscal month then most recently ended (or
ending on such date of determination),  or (b) that were Charged-Off Receivables
(exclud ing, however,  Receivables that were Charged-Off Receivables solely as a
result of sub-Section (v) of the definition of "Charged-Off  Receivables") as of
such date,  divided by (ii) the  aggregate  amount of net sales of the  Original
Sellers during the third full fiscal month prior to such fiscal month.

         "Agent" has the meaning set forth in the preamble to this Agreement.

         "Aggregate Capital" means, on any date of determination,  the aggregate
amount of Capital of all Purchaser Interests outstanding on such date.

         "Aggregate Reduction" has the meaning specified in Section 1.3.

         "Aggregate  Reserve  Percentage" means a percentage equal to the result
of the following calculation:

         |      DRP + LP      |
         |   --------------   |     + SRP + YRP
         |   1- |DRP + LP|    |
where:

                  DRP      =        Dilution Reserve Percentage

                  LP       =        Loss Percentage

                  SRP      =        Servicer Reserve Percentage

                  YRP      =        Yield Reserve Percentage

         "Aggregate  Reserves"  means, on any date of  determination,  an amount
equal to (i) the Aggregate Reserve  Percentage  multiplied by (ii) the aggregate
Capital as of the close of business of the Servicer on such date.

         "Aggregate  Unpaids"  means, at any time, an amount equal to the sum of
all Aggregate Capital and all other unpaid Obligations  (whether due or accrued)
at such time.

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

                                    Exh. I-2

<PAGE>

         "Amortization Date" means the earliest to occur of (i) the day on which
any of the  conditions  precedent  set forth in Section  6.2 are not  satisfied,
provided that Agent has not waived in writing the failure of any such  condition
to be so satisfied, (ii) the Business Day immediately prior to the occurrence of
an Amortization Event set forth in Section 9.1(d)(i) or (ii), (iii) the Business
Day specified in a written notice from the Agent following the occurrence of any
other  Amortization  Event and (iv) the date that is 30 days  after the  Agent's
receipt of written  notice from Seller that it wishes to terminate  the facility
evidenced by this Agreement.

         "Amortization Event" has the meaning specified in Article IX.

         "Assignment Agreement" has the meaning set forth in Section 12.1(b).

         "Authorized  Officer" means, with respect to any Person, its president,
corporate controller, treasurer or chief financial officer.

         "Bank One" means Bank One, NA (Main Office  Chicago) in its  individual
capacity and its successors.

         "Broken Funding Costs" means for any Purchaser Interest that:

                  (i) has its Capital reduced without  compliance by Seller with
         the notice requirements hereunder or

                  (ii)  does  not  become  subject  to  an  Aggregate  Reduction
         following the delivery of any Reduction Notice or

                  (iii) is assigned  under Article XIII or  terminated  prior to
         the date on which it was originally scheduled to end,

         an amount equal to the excess, if any, of (A) the CP Costs or Yield (as
         applicable) that would have accrued during the remainder of the Tranche
         Periods or the tranche periods for Commercial  Paper  determined by the
         Agent to relate to such Purchaser  Interest (as applica ble) subsequent
         to the date of such reduction, assignment or termination (or in respect
         of clause (ii) above, the date such Aggregate  Reduction was designated
         to occur  pursuant  to the  Reduction  Notice)  of the  Capital of such
         Purchaser Interest if such reduction, assignment or termination had not
         occurred or such Reduction Notice had not been delivered,  over (B) the
         sum of (x) to the extent all or a portion of such  Capital is allocated
         to another Purchaser Interest, the amount of CP Costs or Yield actually
         accrued during the remainder of such period on such Capital for the new
         Purchaser Interest, and (y) to the extent such Capital is not allocated
         to another  Purchaser  Interest,  the income, if any, actually received
         during the  remainder  of such  period by the holder of such  Purchaser
         Interest  from  investing the portion of such Capital not so allocated.
         In the event that the amount  referred  to in clause  (B)  exceeds  the
         amount referred to in clause (A), the relevant  Purchaser or Purchasers
         agree to pay to Seller the amount of such  excess.  All Broken  Funding
         Costs shall be due and payable hereunder upon demand.

         "Business  Day"  means  any day on which  banks are not  authorized  or
required to close in New York, New York, Chicago,  Illinois or Atlanta, Georgia,
and The Depository  Trust Company of New York is open for business,  and, if the
applicable  Business Day relates to any  computation  or payment to be made with
respect to the LIBO  Rate,  any day on which  dealings  in dollar  deposits  are
carried on in the London interbank market.

                                    Exh. I-3

<PAGE>

         "Capital"  of any  Purchaser  Interest  means,  at any  time,  (A)  the
Purchase  Price of such Purchaser  Interest,  minus (B) the sum of the aggregate
amount of Collections and other payments received by the Agent that in each case
are applied to reduce such Capital in accordance  with the terms and  conditions
of this  Agreement;  provided that such Capital shall be restored (in accordance
with Section 2.5) in the amount of any Collections or other payments so received
and applied if at any time the  distribution of such Collections or payments are
rescinded, returned or refunded for any reason.

         "Change in Control Provision," including each of the defined terms used
within the definition thereof, has the meaning set forth in the Interface Credit
Facilities.

         "Change of Control,"  including  each of the defined  terms used within
the  definition  thereof,  has the  meaning  set forth in the  Interface  Credit
Facilities.

         "Charged-Off  Receivable"  means  a  Receivable:  (i) as to  which  the
Obligor  thereof has taken any action,  or suffered  any event to occur,  of the
type described in Section 9.1(d) (as if references to Seller Party therein refer
to such Obligor);  (ii) as to which the Obligor thereof, if a natural person, is
deceased, (iii) that, consistent with the Credit and Collection Policy, would be
written off Seller's books as  uncollectible,  (iv) that has been  identified by
Seller as uncollectible or (v) as to which any payment, or part thereof, remains
unpaid for 120 days or more from the original due date for such payment.

         "Collection  Account"  means  each  concentration  account,  depositary
account,  lock-box  account or  similar  account  in which any  Collections  are
collected or deposited and that is listed on Exhibit IV.

         "Collection Account Agreement" means an agreement  substantially in the
form of Exhibit VI among an Original Seller, Originator, Seller, the Agent and a
Collection Bank.

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

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

         "Collections"   means,  with  respect  to  any  Receivable,   all  cash
collections  and other cash proceeds in respect of such  Receivable,  including,
without limitation, all yield, Finance Charges or other related amounts accruing
in respect  thereof and all cash  proceeds of Related  Security  with respect to
such Receivable.

         "Commercial  Paper" means promissory notes of Company issued by Company
in the commercial paper market.

         "Commitment" means, for each Financial  Institution,  the commitment of
such Financial  Institution to purchase Purchaser  Interests from (i) Seller and
(ii) Company,  in an amount not to exceed (i) in the  aggregate,  the amount set
forth  opposite  such  Financial  Institution's  name  on  Schedule  A  to  this
Agreement,  as such amount may be modified in  accordance  with the terms hereof
(including,  without  limitation,  any  termination of  Commitments  pursuant to
Section 13.6 hereof) and (ii) with respect to any individual purchase hereunder,
its Pro Rata Share of the Purchase Price therefor.

                                    Exh. I-4

<PAGE>

         "Commitment Availability" means at any time the positive difference (if
any)  between (a) an amount  equal to the  aggregate  amount of the  Commitments
minus an amount equal to 2% of such aggregate Commitments at such time minus (b)
the Aggregate Capital at such time.

         "Company" has the meaning set forth in the preamble to this Agreement.

         "Company  Residual"  means  the  sum  of  the  Company  Transfer  Price
Reductions.

         "Company  Transfer  Price"  means,  with respect to the  assignment  by
Company of one or more  Purchaser  Interests to the Agent for the benefit of one
or more of the Financial  Institutions  pursuant to Section 13.1, the sum of (i)
the  lesser of (a) the  Capital  of each  such  Purchaser  Interest  and (b) the
Adjusted Funded Amount of each such Purchaser  Interest and (ii) all accrued and
unpaid CP Costs for each such Purchaser Interest.

         "Company  Transfer  Price Deficit" has the meaning set forth in Section
13.5.

         "Company  Transfer  Price  Reduction"  means  in  connection  with  the
assignment  of a  Purchaser  Interest by Company to the Agent for the benefit of
the Financial  Institutions,  the positive  difference  (if any) between (i) the
Capital of such Purchaser  Interest and (ii) the Adjusted Funded Amount for such
Purchaser Interest.

         "Concentration  Limit" means, at any time, for any Obligor,  1/3 of the
Minimum Loss Reserve Percentage of the Purchaser Interests, or such other amount
(a "Special  Concentration  Limit") for such  Obligor  designated  by the Agent;
provided,  (a) that in the case of an Obligor and any Affiliate of such Obligor,
the  Concentration  Limit  shall  be  calculated  as if such  Obligor  and  such
Affiliate  were one Obligor,  (b) in the case of all Obligors  that are the U.S.
federal  government  (including any  departments,  agencies or other  divisions,
sections or sub-sections  thereof),  the Concentration Limit shall be calculated
as if such Obligors  were one Obligor,  (c) in the case of all Obligors that are
state  or  local  governments  (including  any  departments,  agencies  or other
divisions,  sections or sub-sections  thereof), the Concentration Limit shall be
calculated  as if such  Obligors  were  one  Obligor  and (d) in the case of all
Obligors  that are  citizens or  residents  of an OECD  Country  (other than the
United States),  the Concentration Limit shall be calculated as if such Obligors
were one Obligor; and provided,  further, that Company or the Required Financial
Institutions  may, upon not less than five (5) Business  Days' notice to Seller,
cancel any Special Concentration Limit.

         "Contingent Obligation" of a Person means any agreement, undertaking or
arrangement by which such Person  assumes,  guarantees,  endorses,  contingently
agrees to purchase or provide funds for the payment of, or otherwise  becomes or
is contingently liable upon, the obligation or liability of any other Person, or
agrees to maintain the net worth or working capital or other financial condition
of any other  Person,  or  otherwise  assures any  creditor of such other Person
against loss,  including,  without  limitation,  any comfort  letter,  operating
agreement, take-or-pay contract or application for a letter of credit.

         "Contract"  means,  with  respect  to  any  Receivable,   any  and  all
instruments,  agreements, invoices, purchase orders or other writings (which may
be electronic)  pursuant to which such Receivable  arises or that evidences such
Receivable.

         "CP Costs"  means,  for each day, (i) the discount or yield  accrued on
Pooled  Commercial Paper on such day, plus (ii) any and all accrued  commissions
in respect of placement  agents and Commercial  Paper  dealers,  and issuing and
paying agent fees incurred,  in respect of such Pooled Commercial Paper for such
day, plus (iii) other costs  associated  with funding  small or odd-lot  amounts
with respect to all  receivable  purchase  facilities  that are funded by Pooled
Commercial  Paper for such day, minus (iv) any accrual of income net of expenses
received  on  such  day  from  investment

                                    Exh. I-5

<PAGE>

of  collections   received  under  all  receivable  purchase  facilities  funded
substantially  with Pooled Commercial  Paper,  minus (v) any payment received on
such day net of  expenses  in respect  of Broken  Funding  Costs  related to the
prepayment  of any  Purchaser  Interest of Company  pursuant to the terms of any
receivable  purchase  facilities  funded  substantially  with Pooled  Commercial
Paper.  In  addition  to the  foregoing  costs,  if  Seller  shall  request  any
Incremental  Purchase (other than the initial  Incremental  Purchase) during any
period of time determined by the Agent in its sole but reasonable  discretion as
a result  of the  amount or timing  of such  Incremental  Purchase  to result in
incrementally  higher CP Costs  applicable  to such  Incremental  Purchase,  the
Capital associated with any such Incremental Purchase shall, during such period,
be deemed to be funded by Company in a special  pool (which may include  capital
associated  with  other   receivable   purchase   facilities)  for  purposes  of
determining  such  additional CP Costs  applicable only to such special pool and
charged each day during such period against such Capital.

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

         "Deemed  Collections"  means the aggregate of all amounts  Seller shall
have been deemed to have received as a Collection of a Receivable.  Seller shall
be deemed to have  received a Collection  in full of a Receivable if at any time
(i) the  Outstanding  Balance of any such  Receivable is either (x) reduced as a
result of any  defective  or rejected  goods or  services,  any  discount or any
adjustment or otherwise by Seller (other than cash Collections on account of the
Receivables)  or (y)  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 (ii) any of the  representations or
warranties  in Article V are no longer true with  respect to any  Receivable  or
(iii) the failure of any Contract  with respect to such  Receivable  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.

         "Default  Fee"  means with  respect  to any  amount due and  payable by
Seller in respect of any Aggregate  Unpaids that is not paid when due,  interest
at a rate per annum equal to 2% above the Prime Rate on any such unpaid amount.

         "Default  Ratio"  means,  at any time,  a  percentage  equal to (i) the
aggregate Outstanding Balance of all Receivables that were Defaulted Receivables
at  such  time  divided  by  (ii)  the  aggregate  Outstanding  Balance  of  all
Receivables at such time.

         "Defaulted  Receivable" means a Receivable as to which any payment,  or
part thereof,  remains  unpaid for more than 120 days from the original due date
for such payment.

         "Defaulting Financial Institution" has the meaning set forth in Section
13.5.

         "Delinquency  Ratio" means, at any time, a percentage  equal to (i) the
aggregate   Outstanding   Balance  of  all  Receivables   that  were  Delinquent
Receivables  at such time divided by (ii) the aggregate  Outstanding  Balance of
all Receivables at such time.

         "Delinquent  Receivable" means a Receivable as to which any payment, or
part  thereof,  remains  unpaid  for more than 60 but less than 121 days or more
from the original due date for such payment.

         "Designated  Obligor" means an Obligor indicated by the Agent to Seller
in writing.

                                    Exh. I-6

<PAGE>

         "Dilution Ratio" means, as at the end of any fiscal month, a percentage
equal to (i) the aggregate  amount of all Dilutions  arising  during such fiscal
month divided by (ii) the aggregate  amount of net sales by the Original Sellers
for the fiscal month ending one fiscal month prior to such fiscal month.

         "Dilution  Reserve  Percentage"  means the greater of (a) 6.00% and (b)
the following:

                  (2 X ED + ((DS-ED) X (DS/ED))) X DHR

                  where:

                  ED = the  average of the  Dilution  Ratios for the twelve most
                  recently-ended fiscal months

                  DS = the  highest  of the  average  Dilution  Ratios  for  any
                  three-fiscal-month  period  occurring  during the twelve  most
                  recently-ended fiscal months

                  DHR = the result of dividing the  aggregate  amount of all net
                  sales by the  Original  Sellers  during  the prior one  fiscal
                  months by the Outstanding Balance of all Eligible Receivables.

         "Dilutions"  means, at any time, the aggregate  amount of reductions or
cancellations described in clause (i) of the definition of "Deemed Collections".

         "Discount Rate" means,  the LIBO Rate or the Prime Rate, as applicable,
with respect to each Purchaser Interest of the Financial Institutions.

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

                  (i)  the  Obligor  of  which  (a) if a  natural  person,  is a
         resident  of the  United  States  or,  (b) if a  corporation  or  other
         non-governmental business organization, (1) is organized under the laws
         of the United States or any political  subdivision  thereof and has its
         chief  executive  office in the United States or (2) is organized under
         the laws of an OECD Country and has its chief executive  office in such
         OECD Country or (c) if a government or a  governmental  subdivision  or
         agency, is a U.S. federal,  state,  municipal or county government or a
         subdivi sion or agency  thereof,  including any military  branch of the
         U.S. federal government;

                  (ii) is not an Affiliate  of any of the parties  hereto and is
         not a Designated Obligor;

                  (iii) the  Obligor of which is not the  Obligor  of  Defaulted
         Receivables the aggregate Outstanding Balance of which constitutes more
         than 10% of the aggregate  Outstanding  Balance of all  Receivables  of
         such Obligor,

                  (iv)  that is not a  Charged-Off  Receivable  or a  Delinquent
         Receivable,

                  (v) that by its terms is due and payable  either (A) within 30
         days of the original billing date therefor or (B) within 60 days of the
         original billing date therefor so long the Outstanding  Balance of such
         Receivable,  when aggregated with the Outstanding Balances of all other
         Receivables that are due and payable within 60 days of the original due
         date therefor,  does not exceed 10% of the  Outstanding  Balance of all
         Receivables, and in each case has not had its payment terms extended,

                                    Exh. I-7

<PAGE>

                  (vi)  that is an  "account"  or  "chattel  paper"  within  the
         meaning of Section 9-105 and Section 9-106, respectively, of the UCC of
         all applicable jurisdictions,

                  (vii) that is  denominated  and payable only in United  States
         dollars in the United States,*

                  (viii) that arises under a Contract  that,  together with such
         Receivable,  is in full  force and effect  and  constitutes  the legal,
         valid and binding obligation of the related Obligor enforceable against
         such Obligor in accordance with its terms subject to no offset, counter
         claim or other defense,

                  (ix) that  arises  under a Contract  that (A) does not require
         the Obligor  under such  Contract to consent to the  transfer,  sale or
         assignment of the rights and duties of the Original  Seller  thereof or
         any of its  assignees  under such  Contract  and (B) does not contain a
         confidentiality  provision that purports to restrict the ability of any
         Purchaser  to  exercise  its rights  under this  Agreement,  including,
         without limitation, its right to review the Contract,

                  (x) that arises under a Contract  that  contains an obligation
         to pay a specified sum of money, contingent only upon the sale of goods
         or the provision of services by the Original Seller thereof,

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

                  (xii) that satisfies all applicable requirements of the Credit
         and Collection Policy,

                  (xiii) that was  generated in the ordinary  course of business
         of the Original Seller thereof,

                  (xiv)  that  arises  solely  from  the  sale of  goods  or the
         provision  of services to the related  Obligor by the  Original  Seller
         thereof, and not by any other Person (in whole or in part),

                  (xv) as to which the  Agent has given  Seller at least two (2)
         Business Days' prior written notice that the Agent has determined  that
         such  Receivable  or  class  of  Receivables  is not  acceptable  as an
         Eligible  Receivable,   including,  without  limitation,  because  such
         Receivable arises under a Contract that is not acceptable to the Agent;
         provided,  however,  that no Receivable shall be considered to be other
         than  an  Eligible   Receivable  pursuant  to  the  foregoing  if  such
         Receivable  was an Eligible  Receivable on the later of the date hereof
         or the date on which such  Receivable was purchased by Seller under the
         Receivables Sale Agree ment,

                  (xvi) that is not subject to any right of rescission, set-off,
         counterclaim,  any other  defense  (including  defenses  arising out of
         violations  of  usury  laws)  of the  applicable  Obligor  against  the
         Original  Seller  thereof or any other Adverse  Claim,  and the Obligor
         thereon  holds no right as against such  Original  Seller to cause such
         Original  Seller to  repurchase  the goods or  merchandise  the sale of
         which shall have given rise to such Receivable  (except with respect to

                                    Exh. I-8

<PAGE>

         sale discounts  effected  pursuant to the Contract,  or defective goods
         returned in accordance with the terms of the Contract),

                  (xvii) as to which the Original  Seller  thereof has satisfied
         and fully  performed all  obligations  on its part with respect to such
         Receivable  required to be  fulfilled  by it, and no further  action is
         required to be performed by any Person with respect  thereto other than
         payment thereon by the applicable Obligor,

                  (xviii) all right, title and interest to and in which has been
         validly   transferred  by  the  Original  Seller  thereof  directly  to
         Originator under and in accordance with the Transfer Agreement,  and by
         Originator  directly to Seller under and in accordance  with the Receiv
         ables Sale Agreement,  and Seller has good and marketable title thereto
         free and clear of any Adverse Claim, and

                  (xix)  that  represents  all or part  of the  sales  price  of
         merchandise,  insurance  and  services  within  the  meaning of Section
         3(c)(5) of the Investment Company Act of 1940, as amended.

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

         "Existing Agreements" has the meaning set forth in the Receivables Sale
Agreement.

         "Existing  Receivables"  has the meaning  set forth in the  Receivables
Sale Agreement.

         "Facility Account" means Seller's Account No. 10-72750 at Bank One.

         "Facility  Termination  Date" means the  earliest of (i) the  Liquidity
Termination Date and (ii) the Amortization Date.

         "Federal  Bankruptcy  Code"  means  Title 11 of the United  States Code
entitled "Bankruptcy," as amended and any successor statute thereto.

         "Federal Funds  Effective  Rate" means,  for any period,  a fluctuating
interest  rate per  annum  for  each day  during  such  period  equal to (a) the
weighted  average of the rates on  overnight  federal  funds  transactions  with
members of the Federal  Reserve  System  arranged by federal funds  brokers,  as
published for such day (or, if such day is not a Business Day, for the preceding
Business Day) by the Federal  Reserve Bank of New York in the Composite  Closing
Quotations  for  U.S.  Government  Securities;  or (b) if  such  rate  is not so
published for any day that is a Business  Day, the average of the  quotations at
approximately  10:30  a.m.  (Chicago  time)  for such  day on such  transactions
received by the Agent from three federal  funds  brokers of recognized  standing
selected by it.

         "Fee Letter" means that certain letter  agreement  dated as of the date
hereof  between  Seller and the Agent,  as it may be amended or modified  and in
effect from time to time.

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

         "Financial  Institutions"  has the meaning set forth in the preamble in
this Agreement.

         "Funding   Agreement"   means  this  Agreement  and  any  agreement  or
instrument executed by any Funding Source with or for the benefit of Company.

                                    Exh. I-9

<PAGE>

         "Funding  Source"  means  (i) any  Financial  Institution  or (ii)  any
insurance  company,  bank or other funding entity  providing  liquidity,  credit
enhancement or back-up purchase support or facilities to Company.

         "GAAP" means generally accepted accounting  principles in effect in the
United States of America as of the date of this Agreement.

         "Incremental  Purchase"  means  a  purchase  of one or  more  Purchaser
Interests that increases the total outstanding Aggregate Capital hereunder.

         "Indebtedness"  of a Person  means such  Person's (i)  obligations  for
borrowed money,  (ii) obligations  representing  the deferred  purchase price of
property or services (other than accounts payable arising in the ordinary course
of such  Person's  business  payable on terms  customary  in the  trade),  (iii)
obligations,  whether or not  assumed,  secured  by liens or payable  out of the
proceeds or production  from property now or hereafter owned or acquired by such
Person,  (iv)  obligations  that are evidenced by notes,  acceptances,  or other
instruments,  (v) capitalized  lease  obligations,  (vi) net  liabilities  under
interest rate swap, exchange or cap agreements, (vii) Contingent Obligations and
(viii) liabilities in respect of unfunded vested benefits under plans covered by
Title IV of ERISA.

         "Independent Director" shall mean a member of the Board of Directors of
Seller  who is not at such  time,  and  has not  been  at any  time  during  the
preceding  five (5) years,  (A) a director,  officer,  employee or  affiliate of
Originator or any Original Seller,  or any of their  respective  Subsidiaries or
Affiliates (other than Seller), or (B) the beneficial owner (at the time of such
individual's  appointment as an Independent  Director or at any time  thereafter
while  serving as an  Independent  Director)  of any of the  outstanding  common
shares of Seller,  Originator or any Original Seller, or any of their respective
Subsidiaries or Affiliates (other than Seller), having general voting rights.

         "Interface  Control  Debt,"  including  each of the defined  terms used
within the definition thereof, has the meaning set forth in the Interface Credit
Facilities.

         "Interface  Credit  Facilities"  means that certain  Third  Amended and
Restated  Credit  Agreement  dated as of June 30, 1998, by and among  Interface,
Interface  Europe  B.V.,  Interface  Europe  Limited,  and each  other  "Foreign
Subsidiary"  (as defined  therein) that becomes a  "Multicurrency  Borrower" (as
defined therein),  as in effect on the date hereof (and without giving effect to
any subsequent amendments, restatements or other modifications thereof).

         "LIBO  Rate"  means the rate per annum  equal to the sum of (i) (a) the
applicable British Bankers' Association Interest Settlement Rate for deposits in
U.S. dollars appearing on Reuters Screen FRBD as of 11:00 a.m. (London time) two
Business Days prior to the first day of the relevant Tranche Period,  and having
a maturity  equal to such Tranche  Period,  provided that, (i) if Reuters Screen
FRBD is not available to the Agent for any reason,  the applicable LIBO Rate for
the relevant  Tranche  Period shall instead be the applicable  British  Bankers'
Association Interest Settlement Rate for deposits in U.S. dollars as reported by
any other generally  recognized  financial  information service as of 11:00 a.m.
(London time) two Business  Days prior to the first day of such Tranche  Period,
and having a maturity equal to such Tranche Period,  and (ii) if no such British
Bankers'  Association  Interest  Settlement Rate is available to the Agent,  the
applicable  LIBO Rate for the relevant  Tranche Period shall instead be the rate
determined  by the  Agent  to be the  rate at which  Bank  One  offers  to place
deposits in U.S. dollars with  first-class  banks in the London interbank market
at  approximately  11:00 a.m. (London time) two Business Days prior to the first
day of such Tranche Period,  in the approximate  amount to be funded at the LIBO
Rate and  having a maturity  equal to such  Tranche  Period,  divided by (b) one
minus  the  maximum   aggregate  reserve   requirement   (including  all  basic,
supplemental,  marginal or other  reserves) that is imposed against the Agent in
respect of Eurocurrency liabilities,  as defined in Regulation D of the Board of
Governors  of the  Federal  Reserve  System  as in  effect  from  time  to  time
(expressed as a decimal),  applicable to such Tranche Period plus (ii) 1.00% per
annum. The LIBO Rate shall be rounded, if necessary,  to the next higher 1/16 of
1%.

                                    Exh. I-10

<PAGE>

         "Liquidity Termination Date" means December 18, 2001.
          --------------------------

         "Lock-Box"  means each locked  postal box with  respect to which a bank
who has  executed a Collection  Account  Agreement  has been  granted  exclusive
access  for the  purpose  of  retrieving  and  processing  payments  made on the
Receivables and that is listed on Exhibit IV.

         "Loss Percentage" means, at any time, a percentage equal to the greater
of (a) the Minimum Loss Reserve Percentage and (b) the following:

                  2.0 X ARR X S

         where:

         ARR      =        the highest of the average  Aged  Receivables  Ratios
                           for any  three-fiscal-month  period  occurring during
                           the twelve most recently-ended fiscal months

         S        =        the result of  dividing the  aggregate  amount of all
                           net sales by the  Original  Sellers  during the prior
                           three fiscal months by the Outstanding Balance of all
                           Eligible  Receivables   originated  by  the  Original
                           Sellers  and  outstanding  as of the  last day of the
                           fiscal month then most  recently  ended (or ending on
                           such date of determination)

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

         "Minimum Loss Reserve Percentage" means 10.0%.

         "Monthly Report" means a report, in substantially the form of Exhibit X
hereto  (appropri  ately  completed),  furnished  by the  Servicer  to the Agent
pursuant to Section 8.5.

         "Monthly  Settlement  Date"  means (A) the sixth  Business  Day of each
month,  and (B) the last day of the relevant  Tranche  Period in respect of each
Purchaser Interest of the Financial Institutions.

         "Most Recent  Report"  means,  on any date,  the Weekly Report that was
most  recently  due on or before such date  pursuant to Section  8.5;  provided,
however,  that if, during any calendar  week, a Monthly  Report is due on a date
that is later  than the date on which  such  Weekly  Report  was due,  the "Most
Recent Report" shall be such Monthly Report.

         "Net Receivables Balance" means, at any time, the aggregate Outstanding
Balance of all Eligible Receivables at such time reduced by the aggregate amount
by which the Outstanding Balance of all Eligible Receivables of each Obligor and
its Affiliates exceeds the Concentration Limit for such Obligor.

         "Non-Defaulting  Financial  Institution"  has the  meaning set forth in
Section 13.5.

                                    Exh. I-11

<PAGE>

         "Non-Renewing  Financial  Institution"  has the  meaning  set  forth in
Section 13.6(a).

         "Obligations" shall have the meaning set forth in Section 2.1.

         "Obligor"  means a Person  obligated  to make  payments  pursuant  to a
Contract.

         "OECD Country" means a country that is a member of the Organisation for
Economic Co-operation and Development.

         "Original  Sellers" means each of (a) Bentley Mills,  Inc., (b) Chatham
Marketing Co., (c) Guilford of Maine Marketing Co., (d) Intek Marketing Co., (e)
Interface Architectural  Resources,  Inc., (f) Interface Flooring Systems, Inc.,
(g) Pandel, Inc., (h) Prince Street  Technologies,  Ltd. and (i) Toltec Fabrics,
Inc., in its respective capacity as seller under the Transfer Agreement.

         "Originator" means Interface, Inc., in its capacity as seller under the
Receivables Sale Agreement.

         "Outstanding  Balance"  of any  Receivable  at any time  means the then
outstanding principal balance thereof.

         "Participant" has the meaning set forth in Section 12.2.

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

         "Pooled  Commercial  Paper"  means  Commercial  Paper  notes of Company
subject  to  any  particular  pooling  arrangement  by  Company,  but  excluding
Commercial  Paper  issued by Company  for a tenor and in an amount  specifically
requested by any Person in connection with any agreement effected by Company.

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

         "Prime Rate" means a rate per annum equal to the prime rate of interest
announced from time to time by Bank One or its parent (which is not  necessarily
the lowest rate charged to any  customer),  changing when and as said prime rate
changes.

         "Proposed Reduction Date" has the meaning set forth in Section 1.3.

         "Pro Rata Share" means,  for each Financial  Institution,  a percentage
equal to (i) the Commitment of such Financial  Institution,  divided by (ii) the
aggregate  amount of all  Commitments of all Financial  Institutions  hereunder,
adjusted as necessary to give effect to the application of the terms of Sections
13.5 or 13.6.

         "Purchase Limit" means $65,000,000.

         "Purchase Notice" has the meaning set forth in Section 1.2.

         "Purchase Price" means,  with respect to any Incremental  Purchase of a
Purchaser  Interest,  the amount paid to Seller for such Purchaser Interest that
shall  not  exceed  the  least of (i) the  amount  requested  by  Seller  in the
applicable Purchase Notice, (ii) the unused portion of the Purchase Limit on the
applicable  purchase date and (iii) the excess,  if any, of the Net  Receivables
Balance (less the Aggregate  Reserves) on the applicable  purchase date over the
aggregate  outstanding  amount of Aggregate Capital determined as of the date of
the Most Recent Report, taking into account such proposed Incremental Purchase.

                                    Exh. I-12

<PAGE>

         "Purchasers" means Company and each Financial Institution.

         "Purchaser  Interest"  means,  at any  time,  an  undivided  percentage
ownership  interest  (computed as set forth below)  associated with a designated
amount of Capital,  selected  pursuant to the terms and conditions hereof in (i)
each  Receivable  arising  prior to the time of the most recent  computation  or
recomputation of such undivided interest, (ii) all Related Security with respect
to each such  Receivable,  and (iii) all Collections  with respect to, and other
proceeds of, each such Receivable. Each such undivided percentage interest shall
equal:

                                    C + AR
                                    ------
                                     NRB

         where:

         C        =        the Capital of such Purchaser Interest.

         AR       =        the Aggregate Reserves.

         NRB      =        the Net Receivables Balance.

Such undivided  percentage ownership interest shall be initially computed on its
date of  purchase.  Thereafter,  until the  Amortization  Date,  each  Purchaser
Interest shall be automatically  recomputed (or deemed to be recomputed) on each
day prior to the Amortization Date. The variable  percentage  represented by any
Purchaser  Interest as computed  (or deemed  recomputed)  as of the close of the
business day immediately  preceding the Amortization  Date shall remain constant
at all times thereafter.

         "Purchasing Financial Institution" has the meaning set forth in Section
12.1(b).

         "Receivable"  means  all  indebtedness  and other  obligations  owed to
Seller,  Originator  or an  Original  Seller (at the time it arises,  and before
giving effect to any transfer or conveyance  under the Transfer  Agreement,  the
Receivables  Sale  Agreement or hereunder) or in which Seller,  Originator or an
Original Seller has a security  interest or other interest,  including,  without
limitation,  any indebted ness,  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 the Original Seller  thereof,  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 or Seller treats such  indebtedness,  rights or obligations as a separate
payment obligation.

                                    Exh. I-13

<PAGE>

         "Receivables  Sale  Agreement"  means  that  certain  Receivables  Sale
Agreement,  dated as of December 19, 2000, between Originator and Seller, as the
same may be amended, restated or otherwise modified from time to time.

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

         "Reduction Notice" has the meaning set forth in Section 1.3.

         "Reduction  Percentage"  means, for any Purchaser  Interest acquired by
the  Financial  Institutions  from  Company  for less than the  Capital  of such
Purchaser  Interest,  a percentage equal to a fraction the numerator of which is
the  Company  Transfer  Price  Reduction  for such  Purchaser  Interest  and the
denominator of which is the Capital of such Purchaser Interest.

         "Regulatory Change" has the meaning set forth in Section 10.2(a).

         "Reinvestment" has the meaning set forth in Section 2.2.

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

                  (i)  all of  Seller's  interest  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,

                  (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  Seller's  right,  title and  interest  in, to and
         under the  Receivables  Sale  Agreement  and the Transfer  Agreement in
         respect of such Receivable, and

                  (viii) all proceeds of any of the foregoing.

         "Required  Financial   Institutions"  means,  at  any  time,  Financial
Institutions with Commit ments in excess of 66-2/3% of the Purchase Limit.

         "Restricted   Junior   Payment"   means  (i)  any   dividend  or  other
distribution,  direct or  indirect,  on  account  of any  shares of any class of
capital stock of Seller now or hereafter outstanding,  except a dividend payable
solely  in  shares  of that  class of stock or in any  junior  class of stock of
Seller,  (ii) any  redemption,  retirement,  sinking  fund or  similar  payment,
purchase or other  acquisition for value,  direct or indirect,  of any shares of
any class of capital  stock of Seller now or  hereafter  outstanding,

                                    Exh. I-14

<PAGE>

(iii) any payment or prepayment of principal of,  premium,  if any, or interest,
fees or other  charges  on or with  respect  to, and any  redemption,  purchase,
retirement,  defeasance,  sinking  fund or  similar  payment  and any  claim for
rescission with respect to the Subordinated  Loan (as defined in the Receivables
Sale  Agreement),  (iv) any  payment  made to redeem,  purchase,  repurchase  or
retire,  or to obtain the surrender  of, any  outstanding  warrants,  options or
other  rights to acquire  shares of any class of capital  stock of Seller now or
hereafter outstanding,  and (v) any payment of management fees by Seller (except
for reasonable  management fees to Originator or its Affiliates in reimbursement
of actual management services performed).

         "Seller" has the meaning set forth in the preamble to this Agreement.

         "Seller  Parties"  has the  meaning  set forth in the  preamble to this
Agreement.

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

         "Servicer Reserve Percentage" means 1%.

         "Servicing Fee" has the meaning set forth in Section 8.6.

         "Settlement Date" means the Monthly Settlement Date; provided, however,
that in the event that at any time the Net Receivables  Balance,  as reported on
any  Weekly  Report,  shall be less than an  amount  equal to the sum of (i) the
Aggregate  Capital plus (ii) the Aggregate  Reserves,  the Settlement Date means
the second  Business Day after the Business Day on which such Weekly  Report was
due.

         "Settlement  Period" means (A) in respect of each Purchaser Interest of
Company,  the immediately  preceding Accrual Period,  and (B) in respect of each
Purchaser Interest of the Financial  Institutions,  the entire Tranche Period of
such Purchaser Interest.

         "Subsidiary" of a Person means (i) any corporation more than 50% of the
outstanding  securities  having ordinary voting power of which shall at the time
be owned or controlled, directly or indirectly, by such Person or by one or more
of its  Subsidiaries or by such Person and one or more of its  Subsidiaries,  or
(ii) any partnership,  association,  limited liability company, joint venture or
similar business  organization  more than 50% of the ownership  interests having
ordinary  voting  power  of which  shall at the time be so owned or  controlled.
Unless otherwise  expressly  provided,  all refer ences herein to a "Subsidiary"
shall mean a Subsidiary of Seller.

         "Termination Date" has the meaning set forth in Section 2.2.

         "Termination Percentage" has the meaning set forth in Section 2.2.

         "Terminating  Financial  Institution"  has the  meaning  set  forth  in
Section 13.6(a).

         "Terminating Tranche" has the meaning set forth in Section 4.3(b).

         "Tranche Period" means, with respect to any Purchaser  Interest held by
a Financial Institution:

                  (a) if Yield for such Purchaser  Interest is calculated on the
         basis of the LIBO Rate, a period of one, two,  three or six months,  or
         such other period as may be mutually agreeable to the Agent and Seller,
         commencing  on a Business Day selected by Seller or the Agent  pursuant
         to this  Agreement.  Such  Tranche  Period  shall end on the day in the
         applicable  succeeding  calendar month that corresponds  numerically to
         the beginning day of such Tranche Period,  provided,  however,  that if
         there  is no such  numerically  corresponding  day in  such  succeeding
         month,  such Tranche  Period shall end on the last Business Day of such
         succeeding month; or

                                    Exh. I-15

<PAGE>

                  (b) if Yield for such Purchaser  Interest is calculated on the
         basis of the Prime Rate, a period commencing on a Business Day selected
         by Seller and agreed to by the Agent,  provided  no such  period  shall
         exceed one month.

If any  Tranche  Period  would  end on a day that is not a  Business  Day,  such
Tranche Period shall end on the next succeeding Business Day, provided, however,
that in the case of Tranche Periods corresponding to the LIBO Rate, if such next
succeeding  Business Day falls in a new month,  such Tranche Period shall end on
the  immediately  preceding  Business Day. In the case of any Tranche Period for
any Purchaser  Interest that commences  before the  Amortization  Date and would
otherwise end on a date  occurring  after the  Amortization  Date,  such Tranche
Period shall end on the Amortiza tion Date.  The duration of each Tranche Period
that commences after the Amortization Date shall be of such duration as selected
by the Agent.

         "Transaction  Documents"  means,  collectively,  this  Agreement,  each
Purchase Notice,  the Transfer  Agreement the Receivables  Sale Agreement,  each
Collection  Account  Agreement,  the Fee Letter and the  Subordinated  Notes (as
defined in the Receivables Sale Agreement), and all other instruments, documents
and agreements executed and delivered in connection herewith.

         "Transfer  Agreement" has the meaning set forth in the Receivables Sale
Agreement.

         "UCC" means the Uniform  Commercial Code as from time to time in effect
in the specified jurisdiction.

         "Unconditional  Liquidity Provider" means a Financial  Institution that
is  identified  by the Agent or by Bank One as an entity that will not under any
circumstance receive any Company Transfer Price Reduction hereunder.

         "Weekly Report" means a report, in substantially the form of Exhibit XI
hereto  (appropri  ately  completed),  furnished  by the  Servicer  to the Agent
pursuant to Section 8.5.

         "Yield" means for each respective  Tranche Period relating to Purchaser
Interests of the Financial  Institutions,  an amount equal to the product of the
applicable  Discount Rate for each Purchaser Interest  multiplied by the Capital
of such  Purchaser  Interest for each day elapsed  during such  Tranche  Period,
annualized on a 360 day basis.

         "Yield Reserve Percentage" means 2-1/2 % (two and one-half percent).

         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-16

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