Document:

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                                                                   EXHIBIT 10.16

                          DEBENTURE PURCHASE AGREEMENT

         THIS DEBENTURE PURCHASE AGREEMENT (this "Agreement") is made and
entered into as of August 10, 2000, by and among ALTERRA HEALTHCARE CORPORATION,
a Delaware corporation (the "Company"), and RDVEPCO, L.L.C., a Michigan limited
liability company ("RDVEPCO"), GROUP ONE INVESTORS, L.L.C., a Delaware limited
liability company and HOLIDAY RETIREMENT 2000, LLC, a Washington limited
liability company (each individually an "Original Purchaser" and, collectively,
the "Original Purchasers"), and the ELSA D. PRINCE LIVING TRUST (the "Trust")
and RDV MANOR CARE, L.L.C., a Michigan limited liability company ("RDVMC" and,
together with the Trust and the Original Purchasers, the "May Purchasers") and
THE TORONTO-DOMINION BANK, a Canadian chartered bank ("TD").

                                R E C I T A L S:

         WHEREAS, the Company and the Original Purchasers entered into that
certain Purchase Agreement dated as of April 26, 2000 ("the Original Purchase
Agreement");

         WHEREAS, pursuant to that certain First Amendment to Purchase Agreement
("First Amendment") dated as of May 31, 2000 by and among the Company and the
May Purchasers, the Original Purchase Agreement was amended (as so amended, the
"Amended Purchase Agreement");

         WHEREAS, the Company and the May Purchasers desire to further modify
and amend the Amended Purchase Agreement in certain respects, as is more
particularly described below; and

         WHEREAS, TD wishes to acquire from the Company certain Series B
Debentures issuable pursuant to ss. 2.2(a) of the Amended Purchase Agreement and
wishes to acquire from RDVEPCO, RDVMC and the Trust (each a "Seller" and
collectively, the "Sellers") certain Series B Debentures, all in the manner set
forth herein.

         NOW, THEREFORE, the parties hereto promise and agree as follows:

                                    ARTICLE I

                           Definitions and References

         Section 1.1. Terms Defined in the Amended Purchase Agreement. Unless
the context otherwise requires or unless otherwise expressly defined herein, the
terms defined in the Amended Purchase Agreement shall have the same meanings
whenever used in this Agreement.

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         Section 1.2. Other Defined Terms. Unless the context otherwise
requires, the following terms when used in this Agreement shall have the
meanings assigned to them in this Section 1.2.:

                  "Affiliate" means, with respect to any Person, either (i) any
Subsidiary of such Person, or (ii) any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such
Person. For the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlled by" and "under common control with")
shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of such Person, whether
through the ownership of voting securities or by contract or otherwise.

                  "Agreement" means this Debenture Purchase Agreement.

                  "Amendment to Registration Rights Agreement" shall mean that
         certain Amendment to Registration Rights Agreement in the form attached
         as Exhibit A hereto.

                  "AMEX" means the American Stock Exchange.

                  "Benefit Plan" is defined in Section 3.1(z) of this Agreement.

                  "Business Day" means any day except Saturday, Sunday and any
         day that is a legal holiday or on which banking institutions in the
         State of New York are authorized or required by law or other government
         action to close.

                  "Code" is defined in Section 3.1(z) of this Agreement.

                  "Common Stock" means the $.01 par value common stock of the
         Company.

                  "Company" has the meaning set forth in the first paragraph of
         this Agreement.

                  "Conversion Securities" means the Series B Stock of the
         Company into which the TD Securities are convertible in accordance with
         their respective terms or, if any of the TD Securities are exchanged
         for Series C Debentures pursuant to Section 7.8 hereof, the Common
         Stock of the Company into which such Series C Debentures are
         convertible in accordance with their respective terms.

                  "Current SEC Documents" is defined in Section 3.1(k)(i) of
         this Agreement.

                  "Debentures" means any of the debentures, including the Series
         B Debentures, issued or issuable pursuant to the Indenture.

                  "Environmental Laws" is defined in Section 3.1(w) of this
         Agreement.

                  "ERISA" is defined in Section 3.1(z) of this Agreement.

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                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended, and the rules and regulations promulgated thereunder.

                  "Hazardous Substances" is defined in Section 3.1(w) of this
         Agreement.

                  "Indenture" means that certain Indenture dated as of May 31,
         2000 between the Company and U.S. Trust Company of Texas, N.A., as
         amended or supplemented from time to time, setting forth the rights and
         privileges of the Debentures and pursuant to which the Debentures have
         been and will be issued and authenticated.

                  "Leased Property" is defined in Section 3.1(y) of this
         Agreement.

                  "Lien" means, with respect to any asset, any mortgage, lien,
         pledge, encumbrance, charge or security interest of any kind in or on
         such asset or the revenues or income thereon or therefrom.

                  "Losses" with respect to any Person means all claims, actions,
         liabilities, obligations, losses, damages, penalties, judgments, suits,
         costs, reasonable expenses or disbursements of any kind whatsoever
         (including, without limitation, reasonable attorney's fees) actually
         suffered or incurred by such Person.

                  "Managed Property" is defined in Section 3.1(y) of this
         Agreement.

                  "Material Adverse Effect" means any change or effect that,
         individually or when taken together with all other such changes or
         effects, is or would reasonably be expected to be materially adverse to
         the business, operations, prospects, properties or condition (financial
         or otherwise) of the Company and its Subsidiaries, taken as a whole, or
         the Company's ability to perform its obligations hereunder.

                  "Maximum Percentage" means a percentage equal to (a) 5% (or
         such greater percentage as TD may designate from time to time
         consistently with laws, rules and regulations applicable to TD and its
         Affiliates (with the interpretation of such laws, rules and regulations
         to be made solely by TD) reduced by (b) 0.1% (i.e., 4.9%, if TD has not
         made such a designation).

                  "Owned Property" is defined in Section 3.1(y) of this
         Agreement.

                  "Permitted Encumbrances" is defined in Section 3.1(y) of this
         Agreement.

                  "Permitted Property" is defined in Section 3.1(y) of this
         Agreement.

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

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                  "Purchase Agreement" means the Amended Purchase Agreement, as
         amended by Article IX of this Agreement.

                  "Real Property" is defined in Section 3.1(y) of this
         Agreement.

                  "Restated Bylaws" is defined in Section 3.1(a) of this
         Agreement.

                  "Restated Certificate" is defined in Section 3.1(a) of this
         Agreement.

                  "SEC" means the Securities and Exchange Commission.

                  "SEC Documents" is defined in Section 3.1(k)(i) of this
         Agreement.

                  "Section 2.2 Debentures" is defined in Section 2.2(a) of this
         Agreement.

                  "Securities Act" means the Securities Act of 1933, as amended,
         and the rules and regulations promulgated thereunder.

                  "Sellers Debentures" is defined in Section 2.2(c) of this
         Agreement.

                  "Series B Debentures" means the Company's Series B 9.75%
         Convertible Pay-In-Kind Debentures issued or issuable pursuant to the
         Indenture.

                  "Series B Stock" means the Company's Series B Non-Voting
         Participating Preferred Stock, having the rights, preferences and
         limitations set forth in the Restated Certificate.

                  "Series C Debentures" means the Company's Series C 9.75%
         Convertible Pay-In-Kind Debentures issued or issuable pursuant to the
         Indenture.

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

                  "TD Closing" is defined in Section 2.1(b) of this Agreement.

                  "TD Closing Date" is defined in Section 2.1(b) of this
         Agreement.

                  "TD Debentures" is defined in Section 2.1(a) of this
         Agreement.

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                  "TD Securities" means the TD Debentures, the Sellers
         Debentures, any Series C Debentures issued pursuant to Section 7.8
         hereof and any Debentures issued directly or indirectly in payment of
         interest thereon.

                  "Transaction Documents" is defined in Section 3.1(c) of this
         Agreement.

                  "US $", "$" and "Dollars" each mean United States dollars, the
         lawful currency of the United States.

                                   ARTICLE II

              Purchase of TD Debentures and Section 2.2 Debentures

   Section 2.1.   Purchase of TD Debentures; the TD Closing.

         (a) On the terms and subject to the conditions herein set forth, the
Company agrees to sell to TD and TD agrees to purchase from the Company on the
TD Closing Date an aggregate of US $29,904,000.00 in face amount of the Series B
Debentures for a purchase price equal to the face amount thereof, constituting
the remaining "Additional Debentures" issuable pursuant to Section 2.2(a) of the
Purchase Agreement (the "TD Debentures").

         (b) The purchase and sale of the TD Debentures shall take place at a
closing (the "TD Closing") to be held at the offices of the Company, 10000
Innovation Drive, Milwaukee, Wisconsin 53226, at 10:00 a.m. local time, on the
date of this Agreement, provided that all conditions set forth in Article IV,
Article V and Article VI have been satisfied or waived, or at such other time or
place on or before August 31, 2000 as the Company, the Sellers and TD mutually
agree (such date, the "TD Closing Date").

         (c) Delivery of the TD Debentures shall be made at the TD Closing by
delivery to TD, against payment by TD of the purchase price therefor provided in
this Section 2.1, of Series B Debentures representing the TD Debentures duly
registered in the name of TD.

         (d) Payment of the purchase price to the Company for the TD Debentures
purchased by TD shall be made by wire transfer of same day funds to an account
designated by the Company.

   Section 2.2.   Purchase of Section 2.2 Debentures.

         (a) On the terms and subject to the conditions herein set forth, each
of the Sellers agrees to sell to TD and TD agrees to purchase from each of the
Sellers on the TD Closing Date an aggregate face amount of the Series B
Debentures held by each such Seller in the amount listed on Schedule 2.2 hereof
(collectively, the "Section 2.2 Debentures") for a purchase price equal to the
face amount thereof plus the accrued and unpaid interest thereon to, but
excluding, the TD Closing Date in the amount of $189,583.33.

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         (b) The purchase and sale of the Section 2.2 Debentures shall take
place at the TD Closing provided that all conditions set forth in Article IV,
Article V and Article VI have been satisfied or waived.

         (c) Delivery of the Section 2.2 Debentures by the Sellers shall be made
at the TD Closing by delivery to the Company, against payment by TD of the
purchase price therefor provided in this Section 2.2, of Series B Debentures
representing the Section 2.2 Debentures, together with the form of "Assignment"
attached thereto (or such separate form of assignment or instruction as are in
form and substance satisfactory to the Company), completed and executed by such
Seller to transfer such Section 2.2 Debentures to TD, in form and substance
satisfactory to the Company and its counsel. Upon receipt at the TD Closing of
the Section 2.2 Debentures, the Company shall issue in the name of TD new
certificates for such Section 2.2 Debentures pursuant to Section 2.7 of the
Indenture, whereupon the Company shall direct the trustee under the Indenture to
authenticate and deliver to TD, such new Series B Debenture certificates in the
aggregate principal amount of the Section 2.2 Debentures (such new Series B
Debenture certificates, the "Sellers Debentures"), whereupon the Company shall
cancel the Section 2.2 Debenture certificates in accordance with Section 2.7 of
the Indenture.

         (d) Payment of the purchase price to the Sellers for the Section 2.2
Debentures purchased by TD shall be made by wire transfer of same day funds to
accounts designated by the Sellers therefor.

         Section 2.3 Amendment to Registration Rights Agreement. At or prior to
the TD Closing, TD, the Company and the May Purchasers each shall execute and
deliver the Amendment to Registration Rights Agreement.

                                   ARTICLE III

                         Representations and Warranties

         Section 3.1. Representations and Warranties of the Company. In order to
induce TD to enter into this Agreement and to purchase the TD Debentures and the
Section 2.2 Debentures, the Company hereby represents and warrants to, and
agrees with, TD and its successors, endorsees and assigns that, notwithstanding
any independent investigation made or not made, inquiry or knowledge of TD:

         (a) Organizational Documents. The Company has delivered to TD an
accurate and complete copy of (a) its Restated Certificate of Incorporation and
all amendments thereto (including, without limitation, all certificates of
designation, rights and preferences relating to the Company's capital stock),
certified by the Secretary of State of the State of Delaware ("Restated
Certificate"), (b) its Amended and Restated Bylaws as presently in effect (the
"Restated Bylaws") and the Amended Purchase Agreement, the Indenture and the
Registration Rights Agreement, each of which has been certified by the Company's
Secretary or Assistant Secretary.

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         (b) Existence and Qualification. The Company and each Subsidiary is a
corporation, general partnership, limited partnership or limited liability
company duly organized, validly existing and in good standing under the laws of
the state of its organization and is duly qualified to do business and in good
standing in each other jurisdiction in which its ownership of property or
conduct of business requires it to qualify or, if not so qualified, is not
subject to material liability by reason of its failure to be so qualified.
Schedule 3.1(b) hereto lists all of the Subsidiaries.

         (c) Power and Authority. The Company and each Subsidiary have all
applicable statutory power and authority necessary to own, operate or lease
their respective properties and assets and to conduct their respective
businesses as now conducted by them. The Company has all corporate power and
authority necessary to issue the TD Debentures pursuant to the Indenture, and to
execute, deliver, and perform its obligations under this Agreement, the
Indenture, the Registration Rights Agreement and the Amendment to Registration
Rights Agreement (collectively, the "Transaction Documents").

         (d) Corporate Action. The Company has taken all corporate action
required to authorize the issuance, in accordance with the terms and conditions
hereof, of the TD Debentures pursuant to the Indenture and the execution,
delivery and performance of the Transaction Documents.

         (e) Execution and Delivery. The Company has duly executed and
delivered, or, as applicable, will duly execute and deliver at the TD Closing,
each of the Transaction Documents. The TD Debentures and the Sellers Debentures,
when delivered and authenticated by the trustee under the Indenture, will have
been duly and properly authorized, executed and delivered pursuant to the
Indenture.

         (f) Consents; Governmental Approvals. Except as set forth in Schedule
3.1(f), no consent or approval of any Person, firm or corporation, and no
consent, license, approval or authorization of, or registration, filing or
declaration with, any governmental authority is required to be obtained or made
by or on behalf of the Company in connection with the offer, issuance and sale
of the TD Debentures or the Section 2.2 Debentures, the issuance of the
Conversion Securities upon conversion of the TD Securities or, if the Company
elects to issue Common Stock in connection therewith, the issuance of Common
Stock in connection with the redemption of Series B Stock or pursuant to Section
7.6 hereof, the execution, delivery or performance of any of the Transaction
Documents or the completion of the transactions contemplated thereby, except for
filings with the SEC, the American Stock Exchange ("AMEX") and applicable
authorities pursuant to applicable state securities laws that may be required;
each of which shall have been obtained (subject to notice of issuance) or made
with respect to the sale of the TD Debentures and Section 2.2 Debentures prior
to or simultaneously with the closing of the sale of the TD Debentures and the
Section 2.2 Debentures (excluding the filing of a Form D and of such other
required filings reporting the sale of the TD Debentures and the Section 2.2
Debentures pursuant to applicable securities laws, which will be made on a
timely basis following the TD Closing).

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         (g) Binding Effect. Each of the Transaction Documents is a legal, valid
and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors' rights generally or limitations on the availability of
equitable remedies.

         (h) Absence of Conflicts. Except as set forth in Schedule 3.1(f), the
issuance of the TD Debentures and the purchase by TD of the Section 2.2
Debentures and the execution, delivery and performance of the Transaction
Documents by the Company do not and will not (i) conflict with or violate any
provision of the Restated Certificate or the Restated Bylaws, or (ii) conflict
with or result in a violation, breach or default by the Company or any of the
Subsidiaries under any provision of any existing statute, law, rule or
regulation binding on it or any order, judgment, award, decree, license or
authorization of any court or governmental instrumentality, authority, bureau or
agency binding on it or any of the Subsidiaries, or (iii) result in the creation
or imposition of any lien, encumbrance or other charge on any of its or any of
the Subsidiaries' properties or assets. Except as set forth in Schedule 3.1(f),
the issuance of the TD Debentures and the purchase by TD of the Section 2.2
Debentures and the execution, delivery and performance of the Transaction
Documents by the Company do not and will not conflict with or result in a
violation, breach or default by the Company or any of the Subsidiaries under any
provision of any mortgage, indenture, lease or other contract, agreement,
instrument or undertaking to which it or any of the Subsidiaries is a party or
will be a party immediately after the TD Closing, or by which or to which it or
any of the Subsidiaries or any of its or any of the Subsidiaries' property or
assets is now or immediately after the TD Closing will be bound or subject,
except for such conflicts, violations, breaches or defaults which would not
have, or reasonably be expected to have, a Material Adverse Effect.

         (i) No Defaults. Except as set forth in Schedule 3.1(i), none of the
Company or the Subsidiaries is, or immediately after the TD Closing will be, in
default under or in violation of its certificate of incorporation or bylaws or
comparable organizational documents. Except as set forth in Schedule 3.1(i) and
except for such defaults or violations which would not have, or reasonably be
expected to have, a Material Adverse Effect, none of the Company or the
Subsidiaries is, or immediately after the TD Closing will be, in default under
or in violation of (i) any agreement or instrument to which it is a party
relating to its indebtedness for borrowed money, (ii) any other agreement or
instrument to which it is a party, or (iii) any certification or approval
requirement of any customer, supplier, or other Person (excepting governmental
authorities).

         (j) Capitalization and Stockholders. Except as set forth in Schedule
3.1(j), the entire authorized, issued and outstanding capital stock of the
Company is as set forth in the Current SEC Documents. Immediately after the TD
Closing, all outstanding shares of capital stock of the Company will be duly and
validly issued. Except as set forth in Schedule 3.1(j) and except for the TD
Securities, after the TD Closing, there will be no options, warrants or other
rights outstanding or proposed involving the issuance of any additional shares
of capital stock of the Company or any securities outstanding or proposed which
are or will be convertible into or exchangeable for shares of capital stock of
the Company.

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<PAGE>   9

         (k)  SEC Documents.

                  (i) The Common Stock of the Company is registered pursuant to
         Section 12(b) of the Exchange Act and the Company has filed all
         reports, schedules, forms, statements and other documents required to
         be filed by it with the SEC pursuant to the reporting requirements of
         the Exchange Act, including material filed pursuant to Section 13(a) or
         15(d) thereof, in addition to one or more registration statements and
         amendments thereto heretofore filed by the Company with the SEC. The
         Company has delivered or made available to TD true and complete copies
         of (i) its annual reports on Form 10-K and quarterly reports on Form
         10-Q for its 1998 and 1999 fiscal years, (ii) proxy statements,
         information and solicitation materials filed by the Company with the
         SEC since January 1, 1998, and (iii) each other report, registration
         statement, proxy statement and other document filed with the SEC since
         the filing of its most recent Form 10-K (all of the foregoing,
         collectively, the "SEC Documents"; the most recent Form 10-K and the
         items referred to in clause (iii) above, collectively, the "Current SEC
         Documents"). The Company has not provided to TD any information which,
         according to applicable law, rule or regulation, should have been
         disclosed publicly by the Company but which has not been so disclosed,
         other than with respect to the transactions contemplated by this
         Agreement.

                  (ii) As of their respective dates, the SEC Documents complied
         in all material respects with the requirements of the Exchange Act and
         other federal, state and local laws, rules and regulations applicable
         to such SEC Documents, and none of the SEC Documents contained any
         untrue statement of a material fact or omitted to state a material fact
         required to be stated therein or necessary in order to make the
         statements therein, in light of the circumstances under which they were
         made, not misleading.

         (l) Financial Statements. The financial statements of the Company
included in the Current SEC Documents comply as to form in all material respects
with applicable accounting requirements and the published rules and regulations
of the SEC or other applicable rules and regulations with respect thereto. Such
financial statements have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis during the periods involved
(except (i) as may be otherwise indicated in such financial statements or the
notes thereto or (ii) in the case of unaudited interim statements, to the extent
they may not include footnotes or may be condensed or summary statements) and
fairly present in all material respects the financial position of the Company as
of the dates thereof and the results of operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments).

         (m) No Material Adverse Effect. Since December 31, 1999, the date
through which the most recent annual report of the Company has been prepared and
filed with the SEC, a copy of which is included in the Current SEC Documents,
there has been no Material Adverse Effect, except as otherwise disclosed or
reflected in Current SEC Documents or other public announcements of the Company,
or otherwise disclosed on Schedule 3.1(m).

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<PAGE>   10

         (n) No Undisclosed Events or Circumstances. No event or circumstance
has occurred or exists with respect to the Company or any of the Subsidiaries,
or their respective businesses, properties, operations or financial condition,
which, under applicable law, rule or regulation, requires public disclosure or
announcement by the Company and which has not been so publicly disclosed or
announced, or otherwise disclosed on Schedule 3.1(n).

         (o) No General Solicitation. Neither the Company, nor any of its
Affiliates, or, to its knowledge, any Person acting on its or their behalf has
engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D under the Securities Act) in connection with the offer
or sale of the TD Debentures or the Section 2.2 Debentures.

         (p) No Integrated Offering. Neither the Company, nor any of its
Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would require registration of the TD
Debentures or the Section 2.2 Debentures under the Securities Act.

         (q) Brokers. The Company represents and warrants that it has employed
no brokers, agents or finders in carrying on the negotiations relating to this
Agreement or to the transactions herein contemplated, except as disclosed on
Schedule 3.1(q).

         (r) Untrue or Misleading Statements. Neither this Agreement nor any
other Transaction Document or other agreement, certificate, instrument or
written statement furnished by or on behalf of the Company to TD in connection
with the transactions contemplated by this Agreement (including the Current SEC
Documents but excluding any financial forecasts or projections furnished to or
reviewed by TD), when taken together, contains any untrue statement of a
material fact or omits a material fact necessary to make the statements
contained therein not misleading in light of the circumstances in which such
statement were made. With respect to financial forecasts, estimates, budgets and
projections the Company has furnished to TD, such materials have been reasonably
prepared on a basis reflecting reasonable estimates and judgments of the
management of the Company as to the future performance of the Company and the
Subsidiaries.

         (s) Reservation of Series B Stock and Common Stock . As of the TD
Closing, the Company shall have reserved for issuance, and will at all times
keep available, a sufficient number of shares of Series B Stock and Common Stock
to permit the conversion of all TD Securities into Series B Stock or Common
Stock, as applicable. Such Series B Stock and Common Stock, and any Common Stock
issued by the Company upon any conversion of Conversion Securities or in lieu of
paying cash in redemption thereof, when issued upon such conversion will be duly
authorized, fully paid and nonassessable.

         (t) Status of TD Debentures and Sellers Debentures. The TD Debentures,
upon issuance by the Company following receipt of the consideration provided for
herein and satisfaction of the other conditions set forth herein, and the
Sellers Debentures issued to TD pursuant to Section 2.2 hereof, will be duly
authorized, fully paid and nonassessable.

                                       10
<PAGE>   11

         (u) Government Regulations. The Company is not (i) an "investment
company" as defined in or subject to regulation under the Investment Company Act
of 1940, as amended, or controlled by an "investment company", or (ii) subject
to regulation under the Public Utility Holding Company Act of 1935.

         (v) Year 2000 Compliance. All computer applications (including to the
knowledge of the Company after due inquiry, those of its suppliers and vendors)
that are material to the conduct of the business of the Company and any of the
Subsidiaries are able to perform properly date sensitive functions for all dates
before and after January 1, 2000 (i.e., "Year 2000 Compliant"), except as
described in the Current SEC Documents.

         (w) Environmental Laws. Each of the Company and the Subsidiaries is in
compliance, in all material respects, with and not subject to any material
liability under applicable Environmental Laws (as defined below). Each of the
Company and the Subsidiaries has made all filings and provided all notices
required under any applicable Environmental Laws, and has, and is in compliance,
in all material respects, with, all Permits required under any applicable
Environmental Laws and each of them is in full force and effect. There is no
civil, criminal or administrative action, suit, demand, claim, hearing, notice
of violation, investigation, proceeding, notice or demand letter or request for
information pending or, to the knowledge of the Company or the Subsidiaries,
threatened against the Company or any of the Subsidiaries under any
Environmental Law. No lien, charge, encumbrance or restriction has been recorded
under any Environmental Law with respect to any assets, facility or property
owned, operated, leased or controlled by the Company or the Subsidiaries. None
of the Company or the Subsidiaries has received notice that it has been
identified as a potentially responsible party under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended
("CERLA"), or any comparable state law. No property or facility of the Company
or any of the Subsidiaries is listed or proposed for listing on the National
Priorities List under CERCLA, or is listed in the Comprehensive Environmental
Response, Compensation, Liability Information System List promulgated pursuant
to CERCLA, or on any comparable list maintained by any state or local
governmental authority.

         For purposes of this Agreement, "Environmental Laws" means the (a)
Toxic Substances Control Act, 15 USC 2601 et seq.; (b) National Historic
Preservation Act, 16 USC 470 et seq.; (c) Coastal Zone Management Act of 1972,
16 USC 1451 et seq.; (d) Rivers and Harbors Appropriation Act of 1899, 33 USC
401 et seq.; (e) Clean Water Act, 33 USC 1251 et seq.; (f) Flood Disaster
Protection Act of 1973, 42 USC 4001 et seq.; (g) National Environmental Policy
Act of 1969, 42 USC 4321 et seq.; (h) Resource Conservation and Recovery Act of
1976 (RCRA), 42 USC 6901 et seq.; (i) Clean Air Act, 42 USC 7401 et seq.; (j)
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA),
42 USC 9601 et seq.; (k) Hazardous Materials Transportation Act, 49 USC 1801 et
seq.; (l) Safe Drinking Water Act, 42 USC 300f et seq.; (m) Emergency Planning
and Community Right-to-Know Act of 1986, 42 USC 11001 et seq.; (n) Federal
Insecticide, Fungicide, and Rodenticide Act, 7 USC 136 et seq.; (o) Occupational
Safety and Health Act, 29 USC 651 et seq.; and (p) all other federal, state,
county, municipal and local, foreign, and other statutes, laws, regulations, and
ordinances that relate to or deal with pollution or protection of public or
employee health and safety or the environment, including, without limitation,
laws relating to (i) emissions, discharges, releases or

                                       11
<PAGE>   12

threatened releases of Hazardous Substances into the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or
subsurface strata), (ii) the manufacture, processing, distribution, use,
generation, treatment, storage, disposal, transport or handling of hazardous
materials, and (iii) underground and aboveground storage tanks and related
piping, and emissions, discharges, releases or threatened released therefrom,
all as may be amended from time to time.

         For purposes of this Agreement, "Hazardous Substance" means (A) any
flammable or combustible substance, explosive, radioactive material, hazardous
waste, toxic substance, pollutant, contaminant, or any related materials or
substances identified in or regulated by any of the Environmental Laws; and (B)
asbestos, polychlorinated biphenyls (PCBs), urea formaldehyde, chemicals and
chemical wastes, explosives, known carcinogens, petroleum products and
by-products (including fractions thereof), and radon.

         (x) Insurance. The Company and each of the Subsidiaries maintain, and
continuously since January 1, 1996 have maintained, insurance covering their
properties, operations, personnel and businesses. Such insurance insures against
such losses and risks as are adequate in accordance with customary industry
practice to protect the Company and the Subsidiaries and their respective
businesses. All such insurance is outstanding and in force.

         (y) Certain Representations as to Real Estate Matters. The most recent
consolidated balance sheet and any notes thereto included in the financial
statements filed with the SEC by the Company reflect, in accordance with
generally accepted accounting principles, the real property owned (the "Owned
Property"), leased (the "Leased Property") or managed with an option to purchase
(the "Managed Property" and, collectively, with the Real Property and the Leased
Property, the "Real Property") by the Company and the Subsidiaries as of the
date thereof. The Company or a Subsidiary has good and marketable title to the
Owned Property, free and clear of any Liens, except for (i) mortgage liens,
security interests and equipment and vehicle leases securing repayment of
indebtedness of the Company or any of the Subsidiaries, (ii) statutory liens for
current taxes not yet delinquent, (iii) mechanics', carriers', workers',
repairers' and other similar liens imposed by law arising or incurred in the
ordinary course of business for obligations not yet due and payable, (iv) Liens
and other matters that are listed on Schedule 3.1(y) hereto or that will be
satisfied, discharged or removed at or prior to the TD Closing, (v) easements,
rights-of-way, restrictions, minor defects or irregularities in title that do
not individually or in the aggregate interfere in any material respect with the
business of the Company and its Subsidiaries, taken as a whole, (vi) leases
and/or subleases to joint venture entities or partners entered into in the
ordinary course of the Company's business on or before December 31, 1999, and
(vii) leases and/or subleases in the ordinary course of business to operators of
food service, medical, hair care, recreational and other services and amenities
for individual residents of the Real Property (the matters described in clauses
(i) through (vii) are together called the "Permitted Encumbrances").

         The Company or a Subsidiary has a valid and binding leasehold interest
in each Leased Property free and clear of any Liens created by, through or under
the Company or a Subsidiary except for Permitted Encumbrances.

                                       12
<PAGE>   13

         The Company or a Subsidiary has a valid and binding management
agreement for each Managed Property.

         There are no eminent domain proceedings pending or threatened against
the Real Property or any material portion thereof which proceedings (if
resulting in a taking) could be expected, individually or in the aggregate, to
have a Material Adverse Effect on the use of such Real Property as currently
used in the operation of the business of the Company and the Subsidiaries. The
Real Property and the improvements thereon (including the roof and structural
portions of each building) are in good operating order and condition, subject to
ordinary wear and tear. There are no structural, mechanical or other defects of
a material nature in any improvements located on the Real Property. All building
systems in respect of the Real Property are in good condition and working order,
subject to ordinary wear and tear. The Real Property is served by all utilities
required or necessary for the present use thereof.

         (z) ERISA. The Company and the Subsidiaries have complied in all
material respects with the applicable provisions of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), and the Internal Revenue Code
of 1986, as amended (the "Code"), in connection with the Benefit Plans (as
defined below). No reportable event, as defined in Section 4043 of ERISA, has
occurred during the past five years with respect to any Benefit Plan that is
subject to Title IV of ERISA, except where notice for such reportable event is
waived by statutes or regulations. There have been no non-exempt prohibited
transactions under the Code or ERISA with respect to any Benefit Plan which
could result in a material liability to the Company or any Subsidiary. The
present value of all accrued benefits under each Benefit Plan subject to Title
IV of ERISA (based on the current liability, interest rate and other assumptions
used in preparation of the plan's Form 5500 Annual Report) did not, as of the
last annual valuation date, exceed the value of the assets of such plan
allocable to such accrued benefits, as of such date, by $100,000. Neither of the
Company, any Subsidiary, or any Commonly Controlled Entity (as defined below)
has any material liability with respect to any multiemployer plan (as defined in
Section 4001(a)(3) of ERISA). There are no material liabilities of the Company
or any Subsidiary for post-retirement benefits to be provided to their current
and former employees under Benefit Plans which are welfare benefit plans (as
described in Section 3(1) of ERISA), other than with respect to benefits
mandated by applicable law. With respect to each Benefit Plan, no event has
occurred and there exists no condition or set of circumstances in connection
with which the Company or any Subsidiary may, directly or indirectly (through a
Commonly Controlled Entity or otherwise) be subject to material liability under
the Code, ERISA or any other applicable law, except for liability for benefit
claims, funding obligations and administrative expenses payable in the ordinary
course. For purposes of this paragraph, (i) "Commonly Controlled Entity" shall
mean any Person or entity that, together with the Company, any Subsidiary or any
Commonly Controlled Entity, is treated as a single employer under Section 414(b)
or (c), of the Code (or, solely for purposes of Section 302 of ERISA and Section
412 of the Code, Section 414(m) or (o) of ERISA), and (ii) "Benefit Plan" shall
mean any "employee benefit plan," as defined in Section 3(3) of ERISA, which is
maintained or contributed to by the Company, a Subsidiary or Commonly Controlled
Entity to which the Company, a Subsidiary or any Commonly Controlled Entity may
have liability.

                                       13
<PAGE>   14

         (aa) Labor Relations. Neither the Company nor any of the Subsidiaries
is a party to or bound by any labor agreement or collective bargaining agreement
respecting the employees of the Company or the Subsidiaries, nor is there
pending or, to the knowledge of the Company or any Subsidiary, threatened, any
strike, walkout, slowdown or other work stoppage by the employees of the Company
or any Subsidiary. No petition for certification has been filed and is pending
before the National Labor Relations Board with respect to any employee of the
Company or the Subsidiaries, and the Company and the Subsidiaries are in
compliance, in all material respects, with all applicable laws respecting
employment practices, terms and conditions of employment and wages and hours.

         (bb) Licenses. Each of the Company and the Subsidiaries holds all
material licenses, permits, approvals, certificates of inspection, other
authorizations, filings and registrations which are necessary for it to operate
its business as presently conducted (collectively, the "Licenses"). Except as
set forth on Schedule 3.1(bb) and except for instances in which such failure to
maintain good standing or proceedings do not and would not reasonably be
expected to materially and adversely affect the Company's or the Subsidiary's
ability to operate any residence to which such License relates, the Licenses are
in good standing and the Company has no knowledge that any disciplinary
proceeding in respect thereof is pending. Except as set forth on Schedule
3.1(bb), there is no proceeding pending, or to the knowledge of the Company or
any Subsidiary, threatened or probable of assertion to revoke or limit any such
Licenses. Upon obtaining the consents and approvals described on Schedule
3.1(f), none of the transactions contemplated by the Transaction Documents will
terminate, violate or limit the effectiveness of any such Licenses. With respect
to renewal of Licenses, the Company and the Subsidiaries have taken, in a timely
manner, all action known or anticipated to be required to be taken by the
Company and the Subsidiaries reasonably necessary to secure the renewal of the
Licenses prior to the date of their respective expirations. Neither the Company
nor any of the Subsidiaries has any information which would reasonably impact
their ability to secure the renewals of the Licenses prior to the date of their
respective expirations.

         (cc) Legal Compliance. Each of the Company and Subsidiaries has
complied and is in compliance with all applicable laws (including rules,
regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and
charges thereunder) of Federal, state, local and foreign governments (and all
agencies thereof) and of any self-regulatory agencies that regulate the Company
and/or the Subsidiaries, except where failure to so comply would not reasonably
be expected to have a Material Adverse Effect. Except as set forth in Schedule
3.1(cc), neither the Company nor any of the Subsidiaries has received any
notification of any asserted present or past failure by it to comply with such
laws, rules, regulations, codes, plans, injunctions, orders, decrees, rulings or
charges, except where failure to so comply would not, and would not reasonably
be expected to, have a Material Adverse Effect.

         (dd) Litigation; Proceedings. Except as set forth in Schedule 3.1(dd),
(i) there are no material actions, suits, proceedings, investigations or claims
(whether or not purportedly on behalf of the Company or any Subsidiary) pending
or, to the knowledge of the Company or any Subsidiary, threatened against the
Company or any Subsidiary, or the assets, business or goodwill of the Company or
any Subsidiary, in any court or before any arbitrator of any kind or before or
by any governmental or regulatory body or agency; and (ii) there is no material

                                       14
<PAGE>   15

outstanding order, writ, injunction or decree of or stipulation with any court,
arbitrator or governmental or regulatory body or agency against the Company or
any Subsidiary, or the assets, business or goodwill of the Company or any
Subsidiary.

         (ee)     Tax Matters.

                  (i) All Federal, state and local income, and all other
         material federal, state and local, tax returns and tax reports required
         as of the date hereof to be filed by the Company or any of the
         Subsidiaries for taxable periods ending prior to the date hereof and as
         of the TD Closing, have been or will be duly and timely filed prior to
         the due date (as such date may be lawfully extended) by the Company
         with the appropriate governmental agencies, and all such returns and
         reports are true, correct and complete in all material respects.

                  (ii) All Federal, state and local income, and all material
         federal, state and local profits, franchise, sales, use, occupation,
         property, excise, payroll, withholding, employment, estimated and other
         taxes of any nature, including interest, penalties and other additions
         to such taxes ("Taxes"), payable by, or due from, the Company or any of
         the Subsidiaries for all periods prior to the date hereof and as of the
         TD Closing, have been fully paid or adequately reserved for by the
         Company or any of the Subsidiaries, as applicable, or, with respect to
         Taxes required to be accrued, the Company has properly accrued or will
         properly accrue such Taxes in the ordinary course of business
         consistent with past practice of the Company.

                  (iii) (A) Neither the Company nor any of the Subsidiaries has
         received any notice of any assessed or proposed material claim or
         deficiency against it in respect of, or of any present material dispute
         between it and any governmental agency concerning, any Taxes; (B) no
         examination or audit of any material tax return or report of the
         Company or any of the Subsidiaries by any applicable taxing authority
         is currently in progress; and (C) there are no outstanding agreements
         or waivers extending the statutory period of limitation applicable to
         any material tax return or report of the Company or any of the
         Subsidiaries.

         (ff)     Intellectual Property. Except as set forth in Schedule 3.1(ff)
the Company and the Subsidiaries own or have the right to use pursuant to
license, sublicense, agreement or permission all material trademarks, patents,
copyrights, trade names, service marks, software and know-how ("Intellectual
Property") necessary for the operation of its businesses as presently conducted.
Except as set forth in Schedule 3.1(ff), to the knowledge of the Company and the
Subsidiaries, neither the Company nor the Subsidiaries have interfered with or
otherwise come into conflict with any Intellectual Property rights of third
parties, nor has any third party interfered with, infringed upon,
misappropriated, or otherwise come into conflict with any Intellectual Property
rights of the Company or the Subsidiaries. Except as set forth in Schedule
3.1(ff), there is no existing claim or, to the knowledge of the Company and the
Subsidiaries, any basis for any claim against the Company or the Subsidiaries
(A) that any of its or the Subsidiaries' operations, activities or products
infringe the Intellectual Property or other property

                                       15
<PAGE>   16

rights of others or (B) that the Company or the Subsidiaries are wrongfully or
otherwise using the property rights of others.

         (gg) Title to Assets; Related Matters. The Company and the Subsidiaries
have good and marketable title to all of their respective material assets,
rights, interests and other properties, real, personal and mixed, tangible and
intangible, including, without limitation, capital leases and leasehold
interests and all of the assets in the audited consolidated balance sheet of the
Company and the Subsidiaries as of December 31, 1999, except those transferred
in the ordinary course of business since December 31, 1999, are free and clear
of all encumbrances and liens except for Permitted Encumbrances, taxes not yet
due and payable and except as otherwise described in the Current SEC Documents.

         (hh) Rights Plan. Upon the acquisition by TD of the TD Debentures and
Section 2.2 Debentures in the manner contemplated hereby (and assuming the
accuracy of TD's representations in Section 3.3(h) hereof), TD shall be an
"Exempt Person," as that term is defined in the Rights Agreement dated as of
December 10, 1998 between the Company and American Stock Transfer & Trust
Company, as amended by each of the Amendments to Rights Agreement dated as of
April 26, 2000 and May 31, 2000 (as so amended, the "Rights Plan").

         Section 3.2. Representations and Warranties of the Sellers. Each of the
Sellers represents and warrants to TD, as of the date hereof and as of the TD
Closing Date, as follows:

         (a) Title to Section 2.2 Debentures. Such Seller holds of record and
owns beneficially its respective portion of the Section 2.2 Debentures listed on
Schedule 2.2 hereof free and clear of any restriction on transfer (other than
any restrictions under applicable federal and state securities laws), liens,
encumbrances, options, warrants, purchase rights, contracts, commitments,
equities, demands, pledges or other claims of any type. Such Seller is not a
party to any option, warrant, purchase right, or other contract or commitment
that could require it to sell, transfer or otherwise dispose of all or any part
of the Section 2.2 Debentures, and such Seller has not otherwise sold,
transferred or conveyed any interest in or rights to the Section 2.2 Debenture
to any other Person.

         (b) Authorization; Execution. The sale of the Section 2.2 Debentures to
be acquired hereunder by TD has been duly and properly authorized by such Seller
by all necessary action and the Transaction Documents to which it is a party
have been duly executed and delivered by it, and neither the sale of the Section
2.2 Debentures nor the execution and performance of the Transaction Documents
conflicts with or violates any law, regulation or court order applicable to it
or any other agreement to which it is subject, including its governing
instruments.

         (c) Organization; Organizational Documents. Such Seller is duly
organized, validly existing and in good standing under the laws of the state of
its organization; has all requisite power and authority to own and lease its
properties and to carry on its business as presently conducted except where a
lack of such power would not reasonably be expected to have a material adverse
effect upon the financial condition, business, or results of operations of such
Seller; and such Seller has all the power and authority necessary to execute,
deliver and perform its obligations under the Transaction Documents.

                                       16
<PAGE>   17

         (d) Consents; Governmental Approvals. No consent or approval of any
Person, firm or corporation, and no consent, license, approval or authorization
of, or registration, filing or declaration with, any governmental authority is
required to be obtained or made by or on behalf of such Seller in connection
with the sale of the Section 2.2 Debentures, the execution, delivery or
performance by such Seller of any of the Transaction Documents or the completion
of the transactions contemplated thereby.

         (e) Binding Effect. Each of the Transaction Documents to which it is a
party is a legal, valid and binding obligation of such Seller, enforceable
against such Seller in accordance with its terms except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors, rights generally or
limitations on the availability of equitable remedies.

         Section 3.3. Representations and Warranties of TD. TD represents and
warrants to the Company and each of the Sellers, as of the date hereof, as
follows:

         (a) Investment Intent. The TD Securities to be acquired hereunder, and
the Conversion Securities to be acquired upon conversion of any of the TD
Securities acquired hereunder, by TD are being, or will be, acquired for TD's
own account with no intention of distributing or reselling such TD Securities or
Conversion Securities or any part thereof or interest therein in any transaction
that would be in violation of the securities laws of the United States or any
State. It is understood that the certificates evidencing the TD Securities may
bear one or more legends, including a legend substantially as follows:

             THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
             REGISTERED UNDER THE ACT, OR APPLICABLE STATE SECURITIES LAW,
             AND NO INTEREST THEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED,
             OFFERED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS (I) THERE IS
             AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND
             APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION
             INVOLVING SAID SECURITIES, (II) THIS CORPORATION RECEIVES AN
             OPINION OF LEGAL COUNSEL FOR THE HOLDER OF THESE SECURITIES
             REASONABLY SATISFACTORY TO THIS CORPORATION STATING THAT SUCH
             TRANSACTION IS EXEMPT FROM REGISTRATION, OR (III) THIS
             CORPORATION OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION
             IS EXEMPT FROM REGISTRATION.

         (b) TD Status. TD is an "accredited investor" as defined in Rule 501(a)
under the Securities Act, has such knowledge, sophistication and experience in
business and financial matters so as to be capable of evaluating the merits and
risks of the prospective investment in the TD Securities, has so evaluated the
merits and risks of such investment and is able to bear the

                                       17
<PAGE>   18

economic risk of such investment and, at the present time, is able to afford a
complete loss of such investment.

         (c) Authorization; Execution. The purchase of the TD Securities to be
acquired hereunder by TD has been duly and properly authorized by TD by all
necessary action and the Transaction Documents to which it is a party have been
duly executed and delivered by it, and neither the purchase of the TD Securities
to be acquired hereunder nor the execution and performance of the Transaction
Documents conflicts with or violates any law, regulation or court order
applicable to it or any other agreement to which it is subject, including its
governing instruments.

         (d) Organization; Organizational Documents. TD is a chartered bank duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization; has all requisite power and authority to own
and lease its properties and to carry on its business as presently conducted
except where a lack of such power would not reasonably be expected to have a
material adverse effect upon the financial condition, business, or results of
operations of TD; and has all the power and authority necessary to execute,
deliver and perform its obligations under the Transaction Documents.

         (e) Consents; Governmental Approvals. No consent or approval of any
Person, firm or corporation, and no consent, license, approval or authorization
of, or registration, filing or declaration with, any governmental authority is
required to be obtained or made by or on behalf of TD in connection with the
purchase of the TD Securities, the execution, delivery or performance by TD of
any of the Transaction Documents or the completion of the transactions
contemplated thereby.

         (f) Absence of Reliance upon May Purchasers. Except for the
representations and warranties of the Sellers set forth in Section 3.2 hereof
and any express agreement or covenant of any of the May Purchasers set forth in
this Agreement, TD has not relied, and is not relying, upon any representation,
warranty or inducement provided by any of the May Purchasers in connection with
the transactions contemplated by this Agreement.

         (g) Binding Effect. Each of the Transaction Documents to which it is a
party is a legal, valid and binding obligation of TD, enforceable against TD in
accordance with its terms except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors, rights generally or limitations on the availability of
equitable remedies.

         (h) Ownership of Alterra Securities. As of the date hereof and as of
the TD Closing Date, neither TD, nor any "Affiliate" or "Associate" (as those
two terms are defined in the Rights Plan) of TD, "beneficially owns" (as the
term is used in Section 13(d) of the Exchange Act) any shares of the Common
Stock, any security convertible or exchangeable for Common Stock or any right to
acquire Common Stock, other than the right to acquire the TD Securities pursuant
to this Agreement.

                                       18
<PAGE>   19

         Section 3.4. Survival of Representations and Warranties. The
representations and warranties of the parties in this Agreement and in any
document or certificate given pursuant to this Agreement shall survive the TD
Closing, for a period of two years from the TD Closing Date, whereupon no
further claim, including, without limitation, a claim for indemnification
pursuant to ARTICLE VIII hereof, for a breach thereof may be asserted.

                                   ARTICLE IV

                         Conditions to Obligations of TD

         In addition to the matters set forth in Article VI hereof, the
obligation of TD to purchase TD Debentures and the Section 2.2 Debentures
hereunder on the TD Closing Date shall be subject to the satisfaction of each of
the following conditions precedent, except to the extent waived in writing by
TD:

         Section 4.1. Representations and Warranties True and Performance of
Agreements. Each of the representations and warranties of the Company and the
Sellers made in this Agreement, any other Transaction Document and in any other
agreement, certificate or instrument furnished to TD in connection herewith
shall be true and correct in all material respects with the same force and
effect as though such representations and warranties had been made at the time
of, and immediately after giving effect to, the sale of TD Debentures and the
Section 2.2 Debentures and the issuance of the Sellers Debentures except to the
extent that any such representation or warranty was made as of a specified
earlier date, in which case such representation or warranty shall have been true
and correct in all material respects as of such specified date. The Company and
the Sellers shall have performed and complied, in all material respects, with
each and every agreement, covenant and condition required by this Agreement to
be performed or complied with by it prior to or on the TD Closing Date. TD shall
have received on the TD Closing Date a certificate dated the TD Closing Date
signed by the Chief Executive Officer or Chief Operating Officer and the Chief
Financial Officer of the Company to the effect set forth in this Section 4.1

         Section 4.2. No Material Adverse Change. No event, circumstance or
condition shall have occurred subsequent to the date of this Agreement and be
continuing that could reasonably be expected to have a Material Adverse Effect.

         Section 4.3. Suspension of Trading. Prior to or on the TD Closing Date,
(i) trading in the Company's Common Stock shall not have been suspended by the
SEC or by the AMEX (except for any suspension of trading of limited duration
agreed to by the Company solely to permit dissemination of material information
regarding the Company), and trading in securities generally as reported by AMEX
shall not have been suspended or limited, and (ii) there shall not have been
declared a banking moratorium either by the United States or New York State
authorities.

                                       19
<PAGE>   20

         Section 4.4. Amendment to Registration Rights Agreement. On or before
the TD Closing Date, the Company and the May Purchasers shall have executed and
delivered to TD the Amendment to Registration Rights Agreement.

         Section 4.5. No Governmental Proceeding or Litigation. At the TD
Closing Date, no order, injunction, decree or judgment of any court or
administrative agency shall be in effect which restrains or prohibits the
transactions contemplated hereby, and no suit, action, investigation, inquiry or
proceeding shall have been instituted, or threatened by any governmental agency
or any Person attacking the validity of this Agreement or seeking to enjoin the
consummation of the transactions contemplated hereby.

         Section 4.6 Legal Opinion. TD shall have received on the TD Closing
Date the legal opinion of Rogers & Hardin, counsel to the Company, dated the TD
Closing date, in form and substance reasonably acceptable to TD.

                                    ARTICLE V

            Conditions to the Company's and the Seller's Obligations

         In addition to the matters set forth in Article VI hereof, the
obligations of the Company and the Sellers under this Agreement to consummate
the sale of the TD Debentures and the Section 2.2 Debentures to be acquired by
TD hereunder and the other transactions contemplated hereby shall be subject to
the satisfaction, on or before each of the TD Closing Date, of the following
conditions except to the extent waived in writing by the Company and the
Sellers:

         Section 5.1. Representations and Warranties True. Each of the
representations and warranties of TD made in this Agreement, any other
Transaction Document and in any other agreement, certificate or instrument
furnished by TD to the Company or any of the Sellers in connection herewith
shall be true and correct in all material respects with the same force and
effect as though such representations and warranties had been made at the time
of, and immediately after giving effect to, the sale of TD Debentures and the
Section 2.2 Debentures and the issuance of the Sellers Debentures except to the
extent that any such representation or warranty was made as of a specified
earlier date, in which case such representation or warranty shall have been true
and correct in all material respects as of such specified date. TD shall have
performed and complied, in all material respects, with each and every agreement,
covenant and condition required by this Agreement to be performed or complied
with by it prior to or on the TD Closing Date.

         Section 5.2. Performance of Agreements. TD shall have performed and
complied, in all material respects, with each and every agreement and condition
required by this Agreement to be performed or complied with by it prior to or on
the TD Closing Date.

         Section 5.3. No Governmental Proceeding or Litigation. At the TD
Closing Date, no order, injunction, decree or judgment of any court or
administrative agency shall be in effect which restrains or prohibits the
transactions contemplated hereby, and no suit, action,

                                       20
<PAGE>   21

investigation, inquiry or proceeding by any governmental body, or legal or
administrative proceeding by any governmental body shall have been instituted,
or threatened in writing, which questions the validity or legality of the
transactions contemplated hereby.

                                   ARTICLE VI

                     Conditions to Each Party's Obligations

         In addition to the matters set forth in Articles IV and V hereof, the
respective obligations of the Company, the Sellers and the Purchasers to
consummate the purchase and sale of the TD Debentures and the Section 2.2
Debentures hereunder and the other transactions contemplated hereby shall be
subject to the satisfaction, on or before each of the TD Closing Date, of the
following conditions, except to the extent waived in writing by the Company, the
Sellers and TD:

         Section 6.1. Hart-Scott-Rodino Compliance. To the extent applicable,
the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, and the rules and regulations promulgated thereunder (the "HSR
Act") shall have expired or been terminated without action by the Justice
Department or the Federal Trade Commission to permit consummation of TD's
acquisition of the TD Debentures and Section 2.2 Debentures and without the
imposition of any condition that would have a Material Adverse Effect after the
TD Closing Date.

                                   ARTICLE VII

                       Additional Covenants of the Company

         In addition to the other covenants and agreements of the Company set
forth in this Agreement, the Company covenants and agrees so long as the TD
Securities remain outstanding, unless expressly stated otherwise that:

         Section 7.1. Registration and Listing. The Company will use its best
efforts to cause its Common Stock to continue to be registered under Sections
12(b) or 12(g) of the Exchange Act, will comply in all respects with its
reporting and filing obligations under the Exchange Act, will comply with all
requirements related to any registration statement filed pursuant to this
Agreement and will not take any action or file any document (whether or not
permitted by the Securities Act or the Exchange Act or the rules thereunder) to
terminate or suspend such registration or to terminate or suspend its reporting
and filing obligations under such Acts. The Company will use its best efforts to
continue the listing or trading of its Common Stock on the AMEX, the New York
Stock Exchange or NASDAQ National Market and comply in all respects with the
Company's reporting, filing and other obligations under the bylaws or rules of
such exchange or NASDAQ, as the case may be.

                                       21
<PAGE>   22

         Section 7.2. Financial Statement and Information. The Company will
furnish or cause to be made available to TD (including, by arranging that TD is
notified of SEC filings by the Company pursuant to an EDGAR watch service) the
following financial statements and information:

         (a) All reports and other written communications delivered by the
Company to its stockholders as such, and all registration statements (when
available to the public) and periodic reports filed by the Company with the SEC
or any securities exchange, pursuant to the Securities Act, the Exchange Act, or
the rules of such securities exchange.

         (b) The Company will permit TD or its representatives to discuss such
financial statements and reports with such officers of the Company as TD or its
representatives may reasonably designate.

         Section 7.3. Public Announcements; Confidentiality. Except as agreed by
the Company and TD and except for such disclosures as may be required by law,
legal process or regulatory authority, no party hereto shall issue any press
release or otherwise make any announcement or disclosure concerning the
transactions herein contemplated unless such information is already in the
public domain.

         Section 7.4. Sales and Transfer Taxes. All transfer taxes incurred in
connection with this Agreement and the transactions contemplated hereby shall be
borne by (i) the Company with respect to the TD Debentures and (ii) each of the
Sellers with respect to the Section 2.2 Debentures and the Sellers Debentures.

         Section 7.5 Conversion of Series B Stock. If, at any time that the
Company elects to exercise its right to convert the then outstanding shares of
Series B Stock into Common Stock pursuant to Section 5 of Part B of the
Certificate of Designations, Rights and Preferences of the Series A 9.75%
Cumulative Convertible Pay-In-Kind Preferred Stock and the Series B Non-Voting
Participating Preferred Stock (the "Designation") filed with the Secretary of
State of the State of Delaware as of May 31, 2000 and constituting a part of the
Restated Certificate (such conversion, a "Designation Conversion"), the shares
of Series B Stock then held by TD pursuant to its conversion of any or all of
the TD Securities would be converted into, as a result of such Designation
Conversion, shares of Common Stock that, upon such Designation Conversion,
together with any other Common Stock owned by TD or any of its Affiliates, would
constitute greater than the Maximum Percentage of the then outstanding shares of
Common Stock, then the Company shall only elect to exercise its Designation
Conversion right if immediately prior to or simultaneous with the effective time
of such Designation Conversion, the Company offers TD the option to exchange (at
or immediately following such Designation Conversion) a portion of its Series B
Stock (or its Common Stock issuable upon such Designation Conversion) into newly
issued shares of Series B Stock or shares of a non-voting capital stock of the
Company having substantially similar rights as the Series B Stock (such stock,
"Exchange Stock") (in either event such that TD shall continue to hold a
non-voting common or participating preferred stock of the Company having rights,
preferences and limitations substantially similar to the Series B Stock (or
Exchange Stock in the event of a subsequent Designation Conversion in which the
Company shall have made a Section 7.5 Exchange Offer (as hereinafter defined))
held by TD immediately

                                       22
<PAGE>   23

prior to such Designation Conversion, including rights substantially similar to
those set forth in Section 7.6) to the extent necessary to allow TD and its
Affiliates, following such Designation Conversion, to hold not more than the
Maximum Percentage of the then outstanding shares of Common Stock (such offer, a
"Section 7.5 Exchange Offer"). To the extent necessary to allow the Company to
either authorize or issue additional shares of Series B Stock or shares of such
Exchange Stock without having to seek the approval of the holders of the Series
B Stock, TD shall agree to structure such Section 7.5 Exchange Offer in a manner
as to permit the issuance of such new shares of Series B Stock or Exchange Stock
immediately following the effective time of such Designation Conversion, such
that at the time of the authorization and/or issuance of such additional shares
of Series B Stock or Exchange Stock there shall be no shares of Series B Stock
outstanding.

         Section 7.6 Series B Stock Redemption Option. If: (i) TD holds Series B
Stock and desires to exercise its redemption right with respect thereto pursuant
to Section 6 of Part B of the Designation (a "Redemption Exercise"); (ii) such
Redemption Exercise would, if then effected, result in TD and its Affiliates
holding more than the Maximum Percentage of the then outstanding shares of
Common Stock, if the Company were to elect to pay the "Redemption Price" (as
defined in Section 6 of Part B of the Designation) by issuing Common Stock; and
(iii) within ten (10) days following TD's written request to the Company to make
a form of payment election pursuant hereto, the Company has not committed to TD
in writing (such commitment, a "Cash Payment Commitment") to pay TD in cash the
"Redemption Price" for such portion of the shares of Series B Stock of TD as may
be necessary so as to ensure that the shares of Common Stock held by TD and its
Affiliates (after giving effect to such Redemption Exercise and the payment of
the related Redemption Price) would not be more than the Maximum Percentage of
the then outstanding Common Stock (which Cash Payment Commitment shall remain
irrevocable for at least ten (10) days after such Cash Payment Commitment is
given to TD), then the Company shall permit TD (notwithstanding the provisions
of the Designation requiring such Redemption Exercise to relate to all, but not
less than all, of the Series B Stock held by TD) to effect a redemption of a
portion of its shares of Series B Stock (the "Partial Redemption Shares") in the
manner contemplated by Section 6 of Part B of the Designation in an amount such
that, if the Company were to elect to pay the "Redemption Price" for the Partial
Redemption Shares in shares of Common Stock, then (after giving effect to such
issuance in payment of the applicable Redemption Price) TD and its Affiliates
would own a number of shares of Common Stock that constitute the Maximum
Percentage of the then outstanding shares of Common Stock (rounded down to a
whole number of shares, if such computation would otherwise result in TD or its
Affiliates owning a fractional share). The Company will afford TD similar rights
with respect to any Exchange Stock that it may issue.

         Section 7.7 Access to Information. From and after the TD Closing Date
and for so long as TD shall hold TD Securities having a face amount of at least
$10 million (or capital stock of the Company into which such TD Securities were
converted or exchanged), the Company shall permit TD to have reasonable access
to the Company's books, records and personnel, provided that any information
provided to TD hereby shall be subject (as if TD were a party thereto) to the
terms of the Confidentiality Agreement by and between the Company and TD Capital
Group Limited, irrespective or whether such Confidentiality Agreement has
expired or terminated in accordance with its terms.

                                       23
<PAGE>   24

         Section 7.8 Exchange of TD Securities. The Company hereby agrees that
TD may, from time to time, to the extent that TD determines that it shall not be
subject to any regulatory prohibition with respect thereto, exchange some or all
of its TD Securities that are Series B Debentures (such TD Securities, the "TD-B
Securities") for Series C Debentures in the manner contemplated by Section 3.5
of the Indenture, except that the making of an "Exchange Offer" (as defined in
the Indenture) by the Company shall not be a prerequisite to TD's exercise of
such right of exchange (this Section 7.8 being deemed a continuous "Exchange
Offer" pursuant to Section 3.5 of the Indenture by the Company to TD with
respect to the TD-B Securities). TD may exercise its right to exchange all or a
portion of the TD-B Securities for Series C Debentures by delivering to the
Company notice of its election to exercise this right, specifying the amount of
TD-B Securities to be so exchanged, together with the TD-B Securities to be so
exchanged. Any Series C Debentures so issued (and any Debentures issued directly
or indirectly in payment of interest thereon) will constitute "TD Securities."

         Section 7.9 Reimbursement of Expenses; HSR Act Filing. The Company
agrees to reimburse TD for all reasonable out-of-pocket fees and expenses
incurred by TD in connection with the negotiation of the terms and conditions of
this Agreement and related due diligence not otherwise reimbursed by the
Company, including, but not limited to, filing fees under the HSR Act, attorneys
fees, and other professional advisor fees, provided that any such expenses
(exclusive of filing fees under the HSR Act) in excess of $25,000 will be
subject to the Company's approval, which approval shall not be unreasonably
withheld. In the event TD and/or the Company shall be obligated to make a filing
under the HSR Act arising out of TD's or the Company's exercise of redemption,
conversion or exchange rights related to TD Securities or Conversion Securities,
the Company and TD agree to reasonably cooperate with one another in the
preparation of, and promptly to make, such filing(s).

                                  ARTICLE VIII

                                 Indemnification

         Section 8.1. Indemnification by the Company.

         (a) The Company shall indemnify and hold harmless TD and its members,
partners, directors, officers, employees, agents, advisers (including legal,
accounting and financial advisers), successors and assigns from and against any
and all Losses which may at any time (including, without limitation, at any time
following the repayment or conversion of the Debentures) be imposed on, incurred
by or asserted against them or any of them in whole or in part arising out of or
attributable to:

         (i)      subject to Section 3.4 hereof, the breach or incorrectness of
                  any representation and warranty of the Company set forth in
                  Section 3.1 of this Agreement;

         (ii)     the failure of the Company to perform any covenant or
                  agreement of the Company set forth in this Agreement; or

                                       24
<PAGE>   25

         (iii)    third party actions against TD as a result of entering into
                  this Agreement or consummating the transactions contemplated
                  hereby.

         (b) TD shall promptly notify the Company in writing of the occurrence
of any event, or of its discovery of any facts, which in TD's opinion entitle or
may entitle it to indemnification hereunder. TD's failure to do so shall not
preclude it from seeking indemnification hereunder from the Company unless such
failure has materially prejudiced the Company's ability to defend as provided
herein. With respect to any threatened or asserted claims of third parties, the
Company shall have the right to defend such claims by counsel of its choosing
and to direct or control the defense and settlement thereof. TD shall cooperate
in all reasonable respects with such counsel. In the event that the Company
fails to defend or to elect to defend any claim which may entitle TD to
indemnification hereunder within ten (10) business days after notice from TD of
such claim, TD may, upon written notice to the Company, elect to undertake the
defense, compromise or settlement of such claim on behalf and for the account
and risk of the Company and without any requirement to obtain the consent of the
Company to any such compromise or settlement.

         (c) Notwithstanding the Company's election to assume the defense of a
claim, TD shall have the right to employ separate counsel and to participate in
the defense of such claim, and the Company shall bear the reasonable fees, costs
and expenses of such separate counsel, if (i) the use of counsel chosen by the
Company to represent TD would present such counsel with a conflict of interest,
(ii) the Company shall not have employed counsel reasonably satisfactory to TD
to represent TD within a reasonable time after notice of the institution of such
claim, or (iii) the Company shall authorize TD to employ separate counsel at the
Company's expense. If the Company assumes the defense of a claim, no compromise
or settlement thereof may be effected by the Company without TD's written
consent unless (a) there is no finding or admission of any violation of law and
no effect on any other claims that may be made against TD, and (b) the sole
relief provided is monetary damages that are to be paid in full by the Company.
For purposes of this Section 8.1 and 8.2 hereof only, the term "TD" shall
include TD, any of its affiliates, each Person, if any, controlling TD or any of
its affiliates, their respective officers, current and former directors,
employees, partners, members and agents, and the successors and assigns of all
of the foregoing Persons.

         (d) The indemnity provided in this Section 8.1 shall be in addition to
any rights that TD may have against the Company under the Securities Act,
Exchange Act or state securities laws, common law, the Indenture, or otherwise
and no representation, warranty, covenant or acknowledgment made herein by TD
shall in any manner be deemed to constitute a waiver of any rights granted to it
under the Securities Act, Exchange Act or state securities laws or in the
Indenture.

         Section 8.2. Indemnification by the Sellers.

         (a) Subject to Section 3.4 hereof, each of the Sellers shall indemnify
and hold harmless TD and its members, partners, directors, officers, employees,
agents, advisers (including legal, accounting and financial advisers),
successors and assigns from and against any

                                       25
<PAGE>   26

and all Losses which may at any time (including, without limitation, at any time
following the repayment or conversion of the Debentures) be imposed on, incurred
by or asserted against them or any of them in whole or in part arising out of or
attributable to the breach or incorrectness of any representation and warranty
of such Seller set forth in Section 3.2 of this Agreement.

         (b) TD shall promptly notify such Seller in writing of the occurrence
of any event, or of its discovery of any facts, which in TD's opinion entitle or
may entitle it to indemnification hereunder. TD's failure to do so shall not
preclude it from seeking indemnification hereunder from such Seller unless such
failure has materially prejudiced such Seller's ability to defend as provided
herein. With respect to any threatened or asserted claims of third parties, such
Seller shall have the right to defend such claims by counsel of its choosing and
to direct or control the defense and settlement thereof. TD shall cooperate in
all reasonable respects with such counsel. In the event that such Seller fails
to defend or to elect to defend any claim which may entitle TD to
indemnification hereunder within ten (10) business days after notice from TD of
such claim, TD may, upon written notice to such Seller, elect to undertake the
defense, compromise or settlement of such claim on behalf and for the account
and risk of such Seller and without any requirement to obtain the consent of
such Seller to any such compromise or settlement.

         (c) Notwithstanding such Seller's election to assume the defense of a
claim, TD shall have the right to employ separate counsel and to participate in
the defense of such claim, and such Seller shall bear the reasonable fees, costs
and expenses of such separate counsel, if (i) the use of counsel chosen by such
Seller to represent TD would present such counsel with a conflict of interest,
(ii) such Seller shall not have employed counsel reasonably satisfactory to TD
to represent TD within a reasonable time after notice of the institution of such
claim, or (iii) such Seller shall authorize TD to employ separate counsel at the
Seller's expense. If such Seller assumes the defense of a claim, no compromise
or settlement thereof may be effected by such Seller without TD's written
consent unless (a) there is no finding or admission of any violation of law and
no effect on any other claims that may be made against TD, and (b) the sole
relief provided is monetary damages that are to be paid in full by such Seller.
For purposes of this Section 8.2 and 8.1 hereof only, the term "TD" shall
include TD, any of its affiliates, each Person, if any, controlling TD or any of
its affiliates, their respective officers, current and former directors,
employees, partners, members and agents, and the successors and assigns of all
of the foregoing Persons.

         (d) The indemnity provided in this Section 8.2 shall be in addition to
any rights that TD may have against the Sellers under the Securities Act,
Exchange Act or state securities laws, common law, or otherwise and no
representation, warranty, covenant or acknowledgment made herein by TD shall in
any manner be deemed to constitute a waiver of any rights granted to it under
the Securities Act, Exchange Act or state securities laws.

         Section 8.3.      Indemnification by TD.

         (a) Subject to Section 3.4 hereof, TD shall indemnify and hold harmless
the Company and each of the Sellers from and against any and all Losses suffered
or incurred by the Company or any of the Sellers as a result of the breach or
incorrectness of any representation and warranty of TD set forth in Section 3.3
of this Agreement.

                                       26
<PAGE>   27

         (b) The Company or such Seller, as applicable shall promptly notify TD
in writing of the occurrence of any event, or of its discovery of any facts,
which in the Company's or such Seller's opinion entitles or may entitle it to
indemnification hereunder. The Company's or such Seller's failure to do so shall
not preclude it from seeking indemnification hereunder from TD unless such
failure has materially prejudiced TD's ability to defend as provided herein.
With respect to any threatened or asserted claims of third parties, TD shall
have the right to defend such claims by counsel of its choosing and to direct or
control the defense and settlement thereof. In the event that TD fails to defend
or to elect to defend any claim which may entitle the Company or such Seller, as
applicable to indemnification hereunder within ten (10) business days after
notice from the Company or such Seller of such claim, the Company or such
Seller, as applicable may, upon written notice to TD, elect to undertake the
defense, compromise or settlement of such claim on behalf and for the account
and risk of TD and without any requirement to obtain the consent of TD to any
such compromise or settlement.

         (c) Notwithstanding TD's election to assume the defense of a claim,
each of the Company and each of the Sellers (as applicable), if entitled to be
indemnified hereunder, shall have the right to employ separate counsel and to
participate in the defense of such claim, and TD shall bear the reasonable fees,
costs and expenses of such separate counsel, if (i) the use of counsel chosen by
TD to represent the Company or such Seller would present such counsel with a
conflict of interest, (ii) TD shall not have employed counsel reasonably
satisfactory to the Company or such Seller to represent TD within a reasonable
time after notice of the institution of such claim, or (iii) TD shall authorize
the Company or such Seller to employ separate counsel at TD's expense. If TD
assumes the defense of a claim, no compromise or settlement thereof may be
effected by TD without the Company's or such Seller's written consent unless (a)
there is no finding or admission of any violation of law and no effect on any
other claims that may be made against the Company or such Seller (as applicable)
and (b) the sole relief provided is monetary damages that are to be paid in full
by TD. For purposes of this Section 8.3, the term "Company" shall include the
Company, any of its affiliates, each Person, if any, controlling the Company or
any of its affiliates, their respective officers, current and former directors,
employees, partners, members and agents, and the successors and assigns of all
of the foregoing Persons. For purposes of this Section 8.3, the term the
"Seller" shall include each of the Sellers, any of its affiliates, each Person,
if any, controlling such Seller or any of its affiliates, its respective
officers, current and former directors, employees, partners, members and agents,
and the successors and assigns of all of the foregoing Persons.

         (d) The indemnity provided in this Section 8.3 shall be in addition to
any rights that the Company and the Sellers may have against TD under common law
or otherwise.

                                   ARTICLE IX

                    Amendments to Amended Purchase Agreement

         Section 9.1.      Additional Debentures.

                                       27
<PAGE>   28

         (a) Section 2.2(a) of the Amended Purchase Agreement is hereby deleted
in its entirety and the following substituted in lieu thereof:

                  "(a) On the terms and subject to the conditions herein set
         forth, at any time after the Initial Closing Date and not later than
         one hundred and eighty (180) days after the Initial Closing Date (the
         "Option Period"), each Purchaser shall have the right from time to time
         to purchase at the face amount thereof from the Company a pro rata
         portion of Series B Debentures having an aggregate face amount of
         $65,000,000 (said amount to be reduced by the face amount of any
         Debentures issued by the Company pursuant to this Section 2.2(a)) as
         set forth opposite the name of each Purchaser on Schedule 2.1(a) by
         tendering payment therefor to the Company; provided, however, that no
         Purchaser may exercise its right to purchase Debentures pursuant hereto
         more than twice without the prior consent of the Company. During the
         Option Period, the Company shall have the concurrent right to issue
         Series B Debentures and/or Series C Debentures to parties approved in
         advance by the Acting Purchasers, such consent not to be unreasonably
         withheld, delayed or conditioned, in an aggregate face amount of
         $65,000,000 (said amount to be reduced by the face amount of Debentures
         acquired by Purchasers upon the exercise of their option pursuant to
         this Section 2.2(a)). Any Debentures issued pursuant to this Section
         2.2(a) are referred to herein as "Additional Debentures." The Series B
         Debentures to be acquired by The Toronto-Dominion Bank or its permitted
         assigns thereunder (collectively, "TD") pursuant to that certain
         Debenture Purchase Agreement dated as of August 10, 2000 between the
         parties hereto and TD (as amended from time to time, the "Debenture
         Purchase Agreement"), and any Debentures or shares of capital stock of
         the Company subsequently acquired by TD pursuant to the exercise by TD
         or the Company of any exchange, conversion, redemption, put or similar
         right or feature pursuant to the Debenture Purchase Agreement, shall be
         deemed purchased by TD from the Company and certain of the Purchasers
         pursuant to this Section 2.2(a) of the Agreement. The Additional
         Debentures acquired by TD pursuant to the Debenture Purchase Agreement
         shall also be deemed to have been acquired by TD as the assignee of
         each Purchaser's pro-rata rights under this Section 2.2(a) to acquire
         such Additional Debentures."

         (b) The May Purchasers hereby approve (in the manner required by
Section 2.2(a) of the Purchase Agreement) the issuance by the Company of the TD
Debentures to TD.

         (c) The Company, TD and the May Purchasers hereby agree that, upon the
consummation of the transactions contemplated by this Agreement, all "Additional
Debentures" (as defined in the Amended Purchase Agreement) will be issued and,
accordingly, the May Purchasers shall have no further right to acquire, and the
Company shall have no further right to issue, Additional Debentures pursuant to
Section 2.2(a) of the Amended Purchase Agreement. The parties hereto, being all
parties to the Amended Purchase Agreement and TD, hereby agree that the TD
Securities to be purchased by or issued to TD pursuant to this Agreement,
together with any Debentures or shares of capital stock of the Company
subsequently acquired by TD pursuant to the exercise by TD or the Company of any
exchange, conversion, redemption, put or similar right or feature pursuant to
this Agreement (such Debentures and capital stock referred to herein as
"Derivative Securities") are also being purchased by TD pursuant to the Purchase

                                       28
<PAGE>   29
Agreement (and, to the extent necessary to effect that result, the Amended
Purchase Agreement is amended accordingly), it being the intent of all parties
hereto that TD be a "First Tier Owner" and that the TD Securities and any
Derivative Securities be "Purchased Securities," as those respective terms are
defined in the Rights Plan, upon the consummation of the purchase and sale of
the TD Debentures and the Section 2.2 Debentures and the issuance of the Sellers
Debentures as contemplated by this Agreement.

         Section 9.2. TPI-HCR. Section 8.2 of the Amended Purchase Agreement is
hereby deleted in its entirety and the following substituted in lieu thereof:

                  Section 8.2 Offer to Remaining Holders of TPI-HCR Membership
         Interests. During the one hundred eighty (180) day period following the
         Initial Closing Date, the Company shall offer, to all holders of
         TPI-HCR Membership Interests other than the Company and its
         Subsidiaries (such holders, the "Remaining Members"), to exchange for
         any or all of the TPI-HCR Membership Interests not then owned by the
         Company and its Subsidiaries, either (at the election of each such
         holder of TPI-HCR Membership Interests): (i) Series C Debentures (in
         the manner outlined below) that, together with the accrued interest
         thereon, have an aggregate principal amount equal to the TPI-HCR
         Membership Interests Value of the TPI-HCR Membership Interests so
         exchanged through the date of closing of such exchange (such amount,
         the "Exchange Amount" and such Debentures, the "Exchange Debentures")
         or (ii) a cash payment in an amount equal to the original capital
         contribution to TPI-HCR made in respect of such TPI-HCR Membership
         Interests, plus an amount computed to provide a per annum return
         thereon of ten percent (10%) compounded annually using a year of 360
         days through the date of closing of such exchange (such amount, the
         "Payment Amount"). To facilitate this Section 8.2 in the event any
         Remaining Member elects to exchange its TPI-HCR Membership Interests
         for Exchange Debentures, (a) RDVEPCO, L.L.C. ("RDVEPCO") hereby agrees,
         promptly upon the request of the Company, to transfer to the Company,
         for the benefit of such Remaining Member, Series B Debentures having a
         face amount, plus accrued interest thereon as of the date of transfer,
         equal to the Exchange Amount therefor (such Series B Debentures, the
         "Transfer Debentures"), such Transfer Debentures to be delivered to the
         Company in order to facilitate the exchange described in clause (c)
         hereof, (b) the Company shall pay RDVEPCO in cash an amount equal to
         such Exchange Amount and (c) upon transfer to the Company by such
         Remaining Holder of good and marketable title to its TPI-HCR Member
         Interests, the Transfer Debentures shall be transferred to such
         Remaining Holder on the books of the Company and immediately thereafter
         exchanged by the Company for the Exchange Debentures of like amount and
         terms pursuant to ss. 3.5 of the Indenture, which Exchange Debentures
         shall be, when so issued, delivered to such Remaining Member. If
         requested by the Company, RDVEPCO shall transfer sufficient Series B
         Debentures to the Company, in trust, to be held for the purposes of
         allowing the Company to make the exchange offer to the Remaining
         Members contemplated hereby, in advance of the Company making such
         offer. Upon the completion of such offer, all such Series B Debentures
         that do not become Transfer Debentures pursuant hereto shall be
         promptly returned to RDVEPCO. Notwithstanding anything in this
         Agreement to the contrary, this Section

                                       29
<PAGE>   30

         8.2 may be further amended, modified or terminated by written agreement
         executed by the Company and RDVEPCO only.

         Section 9.3 Ratification of Purchase Agreement. The Amended Purchase
Agreement, as amended by this Article IX, is hereby ratified and confirmed in
all respects.

                                    ARTICLE X

                                  Miscellaneous

         Section 10.1. No Waiver; Modifications in Writing. (a) No failure or
delay on the part of the Company, any of the Sellers or TD in exercising any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. The remedies provided for herein are cumulative and are not exclusive of
any remedies that may be available to the Company, any of the Sellers or TD at
law or in equity. No waiver of or consent to any departure by the Company, any
of the Sellers or TD from any provision of this Agreement shall be effective
unless in writing and signed by the party entitled to the benefit thereof. No
amendment, modification or termination of any provision of this Agreement shall
be effective unless in writing and signed by or on behalf of the Company, the
May Purchasers and TD except that the provisions of Section 8.2 of the Purchase
Agreement may be amended, modified or terminated by written agreement of the
Company and each of the Sellers provided that such amendment, modification or
termination shall not be binding upon, or impose any obligations on, TD. Any
amendment, supplement or modification of or to any of this Agreement, any waiver
of any provision of this Agreement, and any consent to any departure from the
terms of any provision of this Agreement, shall be effective only in the
specific instance and for the specific purpose for which made or given.

         Section 10.2. Notices. All notices and other communications required or
permitted under this Agreement shall be in writing and, if mailed by prepaid
registered or certified mail, return receipt requested, shall be deemed to have
been received on the earlier of the date shown on the receipt or three (3)
Business Days after the post-mark date thereof. Notices may be given by
recognized overnight courier services and shall be deemed to have been received
as of the regularly scheduled time for delivery established by such courier
service. In addition, notices hereunder may be delivered by hand in which event
the notice shall be deemed effective when delivered or by telecopy in which case
it shall be deemed effective upon confirmation of transmission. All notices and
other communications under this Agreement shall be given to the parties hereto
at the following addresses:

              If to Company:

                    Alterra Healthcare Corporation
                    10000 Innovation Drive
                    Milwaukee, Wisconsin 53226
                    Attention: President
                    Fax: (414) 918-5055

                                       30
<PAGE>   31

              With a copy to:

                    Rogers & Hardin
                    2700 International Tower
                    229 Peachtree Street, N.E.
                    Atlanta, Georgia, 30303
                    Attn: Alan Leet, Esq.
                    Fax: (404) 525-2224

              If to the May Purchasers:

                  RDV Manor Care, L.L.C.
                  RDVEPCO, L.L.C.
                  c/o RDV Corporation
                  126 Ottawa Avenue, N.W.
                  500 Grand Bank Building
                  Grand Rapids, Michigan 49503
                  Attention: Robert H. Schierbeek, Treasurer
                  Fax: (616) 454-4654

                  and

                  Group One Investors, L.L.C.
                  c/o RDV Corporation
                  126 Ottawa Avenue, N.W.
                  500 Grand Bank Building
                  Grand Rapids, Michigan 49503
                  Attention: Robert H. Schierbeek, Treasurer
                  Fax: (616) 454-4654

                  and

                  Holiday Retirement 2000, LLC
                  c/o Emeritus Corporation
                  3131 Elliott Avenue
                  Suite 500
                  Seattle, Washington  98121
                  Attention:  Dan Baty
                  Fax:  (206) 378-4205

                                       31
<PAGE>   32

                  and

                  Elsa D. Prince Living Trust
                  c/o EDP Management Company, LLC
                  P.O. Box 1649
                  190 River Ave., Suite 300
                  Holland, MI  49423

         With a copy to:

                    Hecht & Lentz
                    333 Bridge, N.W., Suite 330
                    Grand Rapids, MI 49504
                    Attention:  David M. Hecht, Esq.
                    Fax:  (616) 776-7203

         If to the Sellers:

                  RDVEPCO, L.L.C.
                  c/o RDV Corporation
                  126 Ottawa Avenue, N.W.
                  500 Grand Bank Building
                  Grand Rapids, Michigan  49503
                  Attention:  Robert H. Schierbeek, Treasurer
                  Fax:  (616) 454-4654

                  and

                  RDV Manor Care, L.L.C.
                  RDVEPCO, L.L.C.
                  c/o RDV Corporation
                  126 Ottawa Avenue, N.W.
                  500 Grand Bank Building
                  Grand Rapids, Michigan 49503
                  Attention: Robert H. Schierbeek, Treasurer
                  Fax: (616) 454-4654

                  and

                  Elsa D. Prince Living Trust
                  c/o EDP Management Company, LLC
                  P.O. Box 1649
                  190 River Ave., Suite 300
                  Holland, MI  49423

                                       32
<PAGE>   33

         If to TD:

                  The Toronto-Dominion Bank
                  55 King Street West
                  Toronto Dominion Bank Tower
                  Toronto, Ontario  M5K-1A2
                  Attention:  Natalie Townsend
                  Fax:  (416) 982-5045

         With a copy (which will not constitute notice) to:

                  Kirkland & Ellis
                  153 E. 53rd Street
                  New York, NY  10022
                  Attention:  John L. Kuehn, Esq.
                  Fax:  (212) 446-4900

Any party hereto may change the address to which notices shall be directed under
this Section by giving written notice of such change to the other parties.

         Section 10.3. Facsimile Signature; Execution in Counterparts. This
Agreement may be executed and delivered (including by facsimile transmission) in
any number of counterparts and by different parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original and all of which counterparts, taken together, shall
constitute but one and the same Agreement.

         Section 10.4. Binding Effect; Assignment. The rights of TD under this
Agreement may not be assigned to any other Person (other than to an Affiliate of
TD acquiring all or a portion of the TD Securities, in which event no consent by
the Company shall be required) except with the prior written consent of the
Company, which consent shall not be unreasonably withheld (provided, however,
the Company may withhold in its sole discretion, reasonably or unreasonably, its
consent to TD's assignment of its rights pursuant to Sections 7.5, 7.6, 7.7,
7.8, and 7.9 hereof other than to an Affiliate of TD). The rights of the other
parties under this Agreement may not be assigned. This Agreement shall be
binding upon the parties hereto, and their respective successors and permitted
assigns. This Agreement shall not be construed so as to confer any right or
benefit upon any Person other than the parties to this Agreement, and their
respective successors and permitted assigns.

         Section 10.5. Governing Law. This Agreement shall be deemed to be a
contract made under the laws of the State of New York, and for all purposes
shall be construed in accordance with the laws of said state, without regard to
its principles of conflicts of laws.

         Section 10.6. Submission to Jurisdiction; Venue.

         (a) Any legal action or proceeding with respect to this Agreement may
be brought in the courts of the State of New York or of the United States for
the Southern District of New

                                       33
<PAGE>   34

York and, by execution and delivery of this Agreement, each of the parties
hereto hereby irrevocably accepts for itself and in respect of its property,
generally and unconditionally, the nonexclusive jurisdiction of the aforesaid
courts. Each of the parties hereto further irrevocably consents to the service
of process out of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to the address of such party set forth in Section 10.2, such
service to become effective 30 days after such mailing. Nothing herein shall
affect the right of any party to serve process in any other manner permitted by
law or to commence legal proceedings or otherwise proceed any party hereto in
any other jurisdiction.

         (b) Each party hereto hereby irrevocably waives any objection which it
may now or hereafter have to the laying of venue of any of the aforesaid actions
or proceedings arising out of or in connection with this Agreement brought in
the courts referred to in clause (a) above and hereby further irrevocably waives
and agrees not to plead or claim in any such court that any such action or
proceeding brought in any such court has been brought in an inconvenient forum.

         Section 10.7. Severability of Provisions. Any provision of this
Agreement that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

         Section 10.8 Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise, (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, and (d) all references herein to Sections,
Schedules and Exhibits shall be construed to refer to Sections of, and Schedules
and Exhibits to, this Agreement.

         Section 10.9. Headings. The Article and Section headings used or
contained in this Agreement are for convenience of reference only and shall not
affect the construction of this Agreement.

         Section 10.10. No Reliance. Each party hereto acknowledges that it has
obtained separate advice with respect to the legal, tax and accounting
consequences of the transactions contemplated by this Agreement, and that it has
neither sought nor relied upon any such advice from any other party hereto or
its Affiliates.

                                       34
<PAGE>   35

         Section 10.11. Entire Agreement. This Agreement and the other
Transaction Documents constitute the entire agreement among the parties with
respect to the purchase and sale of the TD Debentures and Section 2.2 Debentures
to be acquired by TD hereunder, and, as of the date hereof, there are no
promises or undertakings with respect thereto relative to the subject matter
hereof not expressly set forth or referred to herein or therein.

         Section 10.12. Further Assurances. The parties hereto each will execute
and deliver or cause to be executed and delivered such further instruments and
do or cause to be done such further acts as may be reasonably necessary to carry
out their respective obligations under this Agreement.

                        [SIGNATURES FOLLOW ON NEXT PAGE]

                                       35
<PAGE>   36

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first above written.

               ALTERRA HEALTHCARE CORPORATION

                        By:  /s/ Mark w. Ohlendorf
                           ----------------------------------------

                        Name:  Mark W. Ohlendorf
                        Title: Senior Vice President, Chief Financial
                               Officer, Treasurer and Assistant Secretary

               RDVEPCO, L.L.C.

                        By: RDV Altco, L.L.C., a member
                        By: RDV Corporation, a member

                        By:  /s/ Robert H. Schierbeek
                           ----------------------------------------
                        Name:  Robert H. Schierbeek
                        Title: Authorized Signatory

                        By: EDP Assisted Living Properties, L.L.C.,
                                 a member
                        By: Elsa D. Prince Living Trust u/a dated
                                 January 24, 1976

                        By:  /s/ Elsa D. Prince
                           ----------------------------------------
                        Name: Elsa D. Prince
                        Title: Trustee

               ELSA D.PRINCE LIVING TRUST u/a dated
                        January 24, 1976

                        By:  /s/ Elsa D. Prince
                           ----------------------------------------
                             Elsa D. Prince, as Trustee

               RDV MANOR CARE, L.L.C.

                        By: RDV Corporation, its manager

                        By:  /s/ Robert H. Schierbeek
                           ----------------------------------------
                        Title:  Robert H. Schierbeek, Treasurer

                        [SIGNATURES FOLLOW ON NEXT PAGE]

                                       36
<PAGE>   37

               GROUP ONE INVESTORS, L.L.C.

                        By: RDV Corporation, its manager

                        By:  /s/ Robert H. Schierbeek
                           ----------------------------------------
                        Name:  Robert H. Schierbeek
                        Title: Authorized Signatory

               HOLIDAY RETIREMENT 2000, LLC

                        By:  /s/ Daniel R. Baty
                           ----------------------------------------
                        Name:  Daniel R. Baty
                        Title: a member

                        THE TORONTO-DOMINION BANK

                        By:  /s/ John Dryden
                           ------------------------------------
                        Its:      Officer
                            -----------------------------------

                                       37
<PAGE>   38

                                                                       EXHIBIT A

                 AMENDMENT TO THE REGISTRATION RIGHTS AGREEMENT

         This AMENDMENT TO THE REGISTRATION RIGHTS AGREEMENT (the "Amendment")
is entered into as of August 10, 2000, by and between ALTERRA HEALTHCARE
CORPORATION, a Delaware corporation (the "Company"); RDVEPCO, L.L.C., a Michigan
limited liability company, GROUP ONE INVESTORS, L.L.C., a Delaware limited
liability company, HOLIDAY RETIREMENT 2000, L.L.C., A Washington limited
liability company, the ELSA D. PRINCE LIVING TRUST and RDV MANOR CARE, L.L.C., a
Michigan limited liability company (collectively, the "May Purchasers"); HBK
MASTER FUND L.P. ("HBK") and THE TORONTO-DOMINION BANK, a Canadian chartered
bank ("TD").

                                    RECITALS:

         A. The Company, the May Purchasers and HBK have entered into that
certain Registration Rights Agreement dated as of May 31, 2000, (the
"Registration Rights Agreement") wherein the Company granted the May Purchasers
and HBK certain registration rights for certain securities of the Company.

         B. The Company, TD and the May Purchasers have entered into that
certain Debenture Purchase Agreement dated as of August 10, 2000 (the "Debenture
Purchase Agreement") providing, among other things, for the purchase by TD from
the Company and certain of the May Purchasers of certain of the Company's Series
B 9.75% Convertible Pay-In-Kind Debentures (such debentures to be acquired by TD
pursuant to the Debenture Purchase Agreement, together with any debenture issued
in exchange for such debenture pursuant to Section 7.8 of the Debenture Purchase
Agreement and any debentures issued as a pay-in-kind interest payment on any of
such debentures, are referred to herein as the "TD Debentures").

         C. The Company desires to grant to TD registration rights with respect
to the TD Debentures, and TD desires to receive such registration rights, all in
accordance with the terms of this Amendment.

         D. This Amendment is the Amendment to the Registration Rights Agreement
referred to in the Debenture Purchase Agreement. The execution and delivery of
this Amendment by the Company, the May Purchasers, HBK and TD is a condition to
the TD Closing.

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

<PAGE>   39

         1. TD as Investor. TD shall be a party to the Registration Rights
Agreement as an "Investor" and as one of the "Investors" under the Registration
Rights Agreement as those terms are defined in the Registration Rights
Agreement.

         2. TD Debentures as Debentures. The TD Debentures shall be included as
"Debentures" under the Registration Rights Agreement as that term is defined in
the Registration Rights Agreement.

         3. Amendment and Ratification of Agreement. The Registration Rights
Agreement is hereby amended in all respects necessary to give effect to the
foregoing and, as hereby amended, is hereby ratified and confirmed in all
respects.

         4. Governing Law. This Amendment shall be governed by and construed in
accordance the laws of the State of Delaware without giving effect to any
conflict of law or choice of law provision or rule that would cause the
application of the laws of any jurisdiction other than the state of Delaware.

         5. Counterparts; Fax. This Amendment may be separately executed in
counterparts and by the different parties hereto in separate counterparts, each
of which when so executed shall be deemed to constitute one and the same
Amendment. This Amendment may be validly executed by facsimile or other
electronic transmission.

         IN WITNESS WHEREOF, this Amendment to the Registration Rights Agreement
has been executed by the parties hereto as of the date first written above.

                         ALTERRA HEALTHCARE CORPORATION

                          By:
                             ---------------------------------------------------
                          Name:  Mark W. Ohlendorf
                          Title: Senior Vice President, Chief Financial
                          Officer, Treasurer and Assistant Secretary

                        [SIGNATURES FOLLOW ON NEXT PAGE]

                                      A-2

<PAGE>   40

                         RDVEPCO, L.L.C.
                                  By: RDV Altco, L.L.C., a member
                                  By: RDV Corporation, a member

                                  By:
                                     -------------------------------------------
                                  Name:  Jerry L. Tubergen
                                  Title: President

                                  By: EDP Assisted Living Properties, L.L.C.,
                                           a member
                                  By: Elsa D. Prince Living Trust u/a dated
                                           January 24, 1976

                                  By:
                                     -------------------------------------------
                                  Name: Elsa D. Prince
                                  Title: Trustee

                         GROUP ONE INVESTORS, L.L.C.
                                  By: RDV Corporation, its manager

                                  By:
                                     -------------------------------------------
                                  Name:  Jerry L. Tubergen
                                  Title: President

                         HOLIDAY RETIREMENT 2000, L.L.C.

                                  By:
                                     -------------------------------------------
                                  Name:  Daniel R. Baty
                                  Title: a member

                         HBK MASTER FUND L.P.
                 By: HBK Investments L.P., its investment manager
                                  By:
                                     -------------------------------------------
                                  Name:  Kevin A. O'Neal
                                  Title: Authorized Signatory

                        [SIGNATURES FOLLOW ON NEXT PAGE]

                                      A-3
<PAGE>   41

                    ELSA D. PRINCE LIVING TRUST, u/a dated
                             January 24, 1976

                             By:
                                -----------------------------------------
                                  Elsa D. Prince, as Trustee

                    RDV MANOR CARE, L.L.C.
                             By: RDV Corporation, its manager

                             By:
                                -----------------------------------------

                             Its:
                                 ----------------------------------------

                    THE TORONTO-DOMINION BANK

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

                                      A-4<PAGE>   1
                                                                     EXHIBIT 4.1
================================================================================

                              AMENDED AND RESTATED

                                 TRUST AGREEMENT

                                      Among

                       CHRYSLER FINANCIAL COMPANY L.L.C.,
                                  as Depositor,

                     DAIMLERCHRYSLER RETAIL RECEIVABLES LLC

                                       And

                         CHASE MANHATTAN BANK DELAWARE,
                                as Owner Trustee

                             Dated as of May 1, 2000

================================================================================

<PAGE>   2
                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                                                                                ----

<S>                    <C>                                                                             <C>
                                                         ARTICLE I

                                                        Definitions

         SECTION 1.01. Capitalized Terms...........................................................................1
         SECTION 1.02. Other Definitional Provisions...............................................................3

                                                         ARTICLE II

                                                        Organization

         SECTION 2.01. Name........................................................................................4
         SECTION 2.02. Office......................................................................................4
         SECTION 2.03. Purposes and Powers.........................................................................4
         SECTION 2.04. Appointment of Owner Trustee................................................................5
         SECTION 2.05. Initial Capital Contribution of Owner Trust Estate..........................................5
         SECTION 2.06. Declaration of Trust........................................................................5
         SECTION 2.07. Liability of Owners.........................................................................6
         SECTION 2.08. Title to Trust Property.....................................................................6
         SECTION 2.09. Situs of Trust..............................................................................6
         SECTION 2.10. Representations and Warranties of Depositor and Company.....................................6

                                                         ARTICLE III

                                            Certificates and Transfer of Interests

         SECTION 3.01. Initial Ownership...........................................................................8
         SECTION 3.02. The Certificates............................................................................8
         SECTION 3.03. Authentication of Certificates..............................................................8
         SECTION 3.04. Registration of Transfer and Exchange of Certificates;
                       Limitations on Transfer.....................................................................8
         SECTION 3.05. Mutilated, Destroyed, Lost or Stolen Certificates..........................................10
         SECTION 3.06. Persons Deemed Owners......................................................................10
         SECTION 3.07. Access to List of Certificateholders' Names and Addresses..................................10
         SECTION 3.08. Maintenance of Office or Agency............................................................10
         SECTION 3.09. Appointment of Paying Agent................................................................11
         SECTION 3.10. Definitive Certificates....................................................................11
         SECTION 3.11. Fixed Value Securities.....................................................................11

                                                         ARTICLE IV

                                                  Actions by Owner Trustee

         SECTION 4.01. Prior Notice to Owners with Respect to Certain Matters.....................................12
         SECTION 4.02. Action by Owners with Respect to Certain Matters...........................................13
         SECTION 4.03. Action by Owners with Respect to Bankruptcy................................................13
         SECTION 4.04. Restrictions on Owners' Power..............................................................13
         SECTION 4.05. Majority Control...........................................................................14
</TABLE>

                                       i
<PAGE>   3
<TABLE>
<S>                    <C>                                                                                        <C>
                                                         ARTICLE V

                                         Application of Trust Funds; Certain Duties

         SECTION 5.01. Establishment of Deposit Account...........................................................14
         SECTION 5.02. Application of Trust Funds.................................................................14
         SECTION 5.03. Method of Payment..........................................................................14
         SECTION 5.04. Accounting and Reports to Owners, Internal Revenue Service
                       and Others.................................................................................14

                                                         ARTICLE VI

                                            Authority and Duties of Owner Trustee

         SECTION 6.01. General Authority..........................................................................15
         SECTION 6.02. General Duties.............................................................................15
         SECTION 6.03. Action upon Instruction....................................................................16
         SECTION 6.04. No Duties Except as Specified in this Agreement or in
                       Instructions...............................................................................16
         SECTION 6.05. No Action Except Under Specified Documents or Instructions.................................17
         SECTION 6.06. Restrictions...............................................................................17

                                                         ARTICLE VII

                                                  Concerning Owner Trustee

         SECTION 7.01. Acceptance of Trusts and Duties............................................................17
         SECTION 7.02. Furnishing of Documents....................................................................18
         SECTION 7.03. Representations and Warranties.............................................................18
         SECTION 7.04. Reliance; Advice of Counsel................................................................19
         SECTION 7.05. Not Acting in Individual Capacity..........................................................19
         SECTION 7.06. Owner Trustee Not Liable for Certificates or Receivables...................................19
         SECTION 7.07. Owner Trustee May Own Certificates and Notes...............................................20
         SECTION 7.08. Pennsylvania Motor Vehicle Sales Finance Act Licenses......................................20

                                                         ARTICLE VIII

                                                Compensation of Owner Trustee

         SECTION 8.01. Owner Trustee's Fees and Expenses..........................................................20
         SECTION 8.02. Indemnification............................................................................20
         SECTION 8.03. Payments to Owner Trustee..................................................................21

                                                         ARTICLE IX

                                               Termination of Trust Agreement
         SECTION 9.01. Termination of Trust Agreement.............................................................21

                                                         ARTICLE X

                                     Successor Owner Trustees and Additional Owner Trustees
</TABLE>

                                       ii
<PAGE>   4
<TABLE>
<S>                     <C>                                                                                   <C>
         SECTION 10.01. Eligibility Requirements for Owner Trustee.............................................22
         SECTION 10.02. Resignation or Removal of Owner Trustee................................................22
         SECTION 10.03. Successor Owner Trustee................................................................23
         SECTION 10.04. Merger or Consolidation of Owner Trustee...............................................23
         SECTION 10.05. Appointment of Co-Trustee or Separate Trustee..........................................23

                                                         ARTICLE XI

                                                        Miscellaneous

         SECTION 11.01. Supplements and Amendments.............................................................25
         SECTION 11.02. No Legal Title to Owner Trust Estate in Owners.........................................26
         SECTION 11.03. Limitations on Rights of Others........................................................26
         SECTION 11.04. Notices................................................................................26
         SECTION 11.05. Severability...........................................................................26
         SECTION 11.06. Separate Counterparts..................................................................26
         SECTION 11.07. Successors and Assigns.................................................................27
         SECTION 11.08. Covenants of Company...................................................................27
         SECTION 11.09. No Petition............................................................................27
         SECTION 11.10. No Recourse............................................................................27
         SECTION 11.11. Headings...............................................................................27
         SECTION 11.12. GOVERNING LAW..........................................................................27
         SECTION 11.13. Certificate Transfer Restrictions......................................................27
         SECTION 11.14. Depositor Payment Obligation...........................................................28
</TABLE>
<TABLE>
<CAPTION>
<S>           <C>                                                                                             <C>
                                                         EXHIBITS

EXHIBIT A     Form of Certificate.............................................................................A-1
EXHIBIT B     Form of Certificate of Trust of DaimlerChrysler Auto Trust 2000-B...............................B-1
EXHIBIT C     Form of Transferor Certificate..................................................................C-1
EXHIBIT D     Form of Investment Letter.......................................................................D-1
EXHIBIT E     Form of Rule 144A Letter........................................................................E-1
</TABLE>

                                      iii
<PAGE>   5

         AMENDED AND RESTATED TRUST AGREEMENT dated as of May 1, 2000, among
         CHRYSLER FINANCIAL COMPANY L.L.C., a Michigan limited liability
         company, as depositor (the "Depositor"), DAIMLERCHRYSLER RECEIVABLES
         LLC (the "Company"), a Michigan limited liability company, and CHASE
         MANHATTAN BANK DELAWARE, a Delaware banking corporation, as owner
         trustee.

         WHEREAS, the Owner Trustee and the Company entered into a Trust
Agreement dated May 1, 2000 (the "Trust Agreement");

         WHEREAS, the Trust Agreement is being amended and restated as of May 1,
2000;

         WHEREAS, the Depositor and the Company have entered into a Purchase
Agreement dated as of May 1, 2000 (the "Purchase Agreement"), pursuant to which
the Depositor will assign to the Company any and all of the Depositor's rights
and interests with respect to the receipt of amounts from the Reserve Account
and with respect to any Fixed Value Payments and Fixed Value Finance Charges;
and

         WHEREAS, in connection therewith, the Company is willing to assume
certain obligations pursuant hereto;

         NOW, THEREFORE, the Depositor, the Company and the Owner Trustee hereby
agree as follows:

                                   ARTICLE I

                                  Definitions

         SECTION 1.01 Capitalized Terms. For all purposes of this Agreement, the
following terms shall have the meanings set forth below:

         "Administration Agreement" shall mean the Administration Agreement
dated as of May 1, 2000, among the Trust, the Indenture Trustee and CFC, as
Administrator.

         "Agreement" shall mean this Amended and Restated Trust Agreement, as
the same may be amended and supplemented from time to time.

         "Basic Documents" shall mean the Purchase Agreement, the Sale and
Servicing Agreement, the Indenture, the Administration Agreement, the Note
Depository Agreement and the other documents and certificates delivered in
connection therewith.

         "Benefit Plan" shall have the meaning assigned to such term in Section
11.13.

         "Business Trust Statute" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Del. Code ss. 3801 et seq., as the same may be amended from
time to time.

                                       1
<PAGE>   6

         "Certificate" shall mean a certificate evidencing the beneficial
interest of an Owner in the Trust, substantially in the form attached hereto as
Exhibit A.

         "Certificate Balance" shall initially equal $74,354,000, reduced (but
not below zero) by all amounts previously distributed pursuant to Section
5.05(a)(ii)(E) to Certificateholders.

         "Certificate of Trust" shall mean the Certificate of Trust in the form
of Exhibit B filed for the Trust pursuant to Section 3810(a) of the Business
Trust Statute.

         "Certificate Register" and "Certificate Registrar" shall mean the
register mentioned in and the registrar appointed pursuant to Section 3.04.

         "Certificateholder" or "Holder" shall mean a Person in whose name a
Certificate is registered.

         "CFC" shall mean Chrysler Financial Company L.L.C., a Michigan limited
liability company, and any successor in interest.

         "Code" shall mean the Internal Revenue Code of 1986, as amended, and
Treasury Regulations promulgated thereunder.

         "Company" shall mean DaimlerChrysler Retail Receivables LLC, a Michigan
limited liability company, and any successor in interest.

         "Corporate Trust Office" shall mean, with respect to the Owner Trustee,
the principal corporate trust office of the Owner Trustee located at 1201 Market
Street, Wilmington, Delaware 19801, or at such other address as the Owner
Trustee may designate by notice to the Owners, the Depositor and the Company, or
the principal corporate trust office of any successor Owner Trustee at the
address designated by such successor Owner Trustee by notice to the Owners, the
Depositor and the Company.

         "Depositor" shall mean CFC in its capacity as depositor hereunder.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         "Expenses" shall have the meaning assigned to such term in Section
8.02.

         "Indemnified Parties" shall have the meaning assigned to such term in
Section 8.02.

         "Indenture" shall mean the Indenture dated as of May 1, 2000 between
the Trust and Bank One, National Association, as Indenture Trustee.

         "Note Depository Agreement" shall mean the agreement dated May 15,
2000, among the Trust, the Indenture Trustee, the Administrator and The
Depository Trust Company, as the initial

                                       2
<PAGE>   7

Clearing Agency, relating to the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes, as the same may be amended and supplemented
from time to time.

         "Opinion of Counsel" means one or more written opinions of counsel, who
may be an employee of or counsel to the Seller, the Company or the Servicer,
which counsel shall be acceptable to the Indenture Trustee, the Owner Trustee or
the Rating Agencies, as applicable.

         "Owner" shall mean each Holder of a Certificate.

         "Owner Trust Estate" shall mean all right, title and interest of the
Trust in and to the property and rights assigned to the Trust pursuant to
Article II of the Sale and Servicing Agreement, all funds on deposit from time
to time in the Deposit Account and all other property of the Trust from time to
time, including any rights of the Owner Trustee and the Trust pursuant to the
Sale and Servicing Agreement and the Administration Agreement.

         "Owner Trustee" shall mean Chase Manhattan Bank Delaware, a Delaware
banking corporation, not in its individual capacity but solely as owner trustee
under this Agreement, and any successor Owner Trustee hereunder.

         "Paying Agent" shall mean any paying agent or co-paying agent appointed
pursuant to Section 3.09 and shall initially be the Indenture Trustee.

         "Percentage Interest" means, as to any Certificate, the percentage
interest, specified on the face thereof, in the distributions on the
Certificates pursuant to this Agreement.

         "Record Date" shall mean, with respect to any Payment Date, the 15th
day of the month preceding such Payment Date.

         "Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement dated as of May 1, 2000, between the Trust, as issuer, and the
Depositor, as seller and servicer, as the same may be amended or supplemented
from time to time.

         "Secretary of State" shall mean the Secretary of State of the State of
Delaware.

         "Treasury Regulations" shall mean regulations, including proposed or
temporary Regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

         "Trust" shall mean the trust continued pursuant to this Agreement.

         SECTION 1.02 Other Definitional Provisions. (a) Capitalized terms used
and not otherwise defined herein have the meanings assigned to them in the Sale
and Servicing Agreement or, if not defined therein, in the Indenture.

         (b) All terms defined in this Agreement shall have the defined meanings
when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein.

                                       3
<PAGE>   8

         (c) As used in this Agreement and in any certificate or other document
made or delivered pursuant hereto or thereto, accounting terms not defined in
this Agreement or in any such certificate or other document, and accounting
terms partly defined in this Agreement or in any such certificate or other
document to the extent not defined, shall have the respective meanings given to
them under generally accepted accounting principles. To the extent that the
definitions of accounting terms in this Agreement or in any such certificate or
other document are inconsistent with the meanings of such terms under generally
accepted accounting principles, the definitions contained in this Agreement or
in any such certificate or other document shall control.

         (d) The words "hereof," "herein," "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement; Section and Exhibit
references contained in this Agreement are references to Sections and Exhibits
in or to this Agreement unless otherwise specified; and the term "including" and
its variations shall mean "including without limitation".

         (e) The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

         (f) Any agreement, instrument or statute defined or referred to herein
or in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein; references to a
Person are also to its permitted successors and assigns.

                                   ARTICLE II

                                  Organization

         SECTION 2.01. Name. The Trust created hereby shall be known as
"DaimlerChrysler Auto Trust 2000-B," in which name the Owner Trustee may conduct
the business of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued.

         SECTION 2.02. Office. The office of the Trust shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address in Delaware
as the Owner Trustee may designate by written notice to the Owners, the
Depositor and the Company.

         SECTION 2.03. Purposes and Powers. The purpose of the Trust is to
engage in the following activities:

              (i) to issue the Notes pursuant to the Indenture and the
         Certificates pursuant to this Agreement and to sell the Notes and the
         Certificates;

                                       4
<PAGE>   9

              (ii) with the proceeds of the sale of the Notes and the
         Certificates, to purchase the Receivables, to fund the Reserve Account,
         to pay the organizational, start-up and transactional expenses of the
         Trust and to pay the balance to the Depositor pursuant to the Sale and
         Servicing Agreement;

              (iii) to assign, grant, transfer, pledge, mortgage and convey the
         Trust Estate pursuant to the Indenture and to hold, manage and
         distribute to the Owners pursuant to the terms of the Sale and
         Servicing Agreement any portion of the Trust Estate released from the
         Lien of, and remitted to the Trust pursuant to, the Indenture;

              (iv) to enter into and perform its obligations under the Basic
         Documents to which it is to be a party;

              (v) to sell the Fixed Value Payments to the Depositor and, if
         requested by the Company (as assignee of the Depositor), subsequently
         to acquire the Fixed Value Payments and to issue and sell the Fixed
         Value Securities;

              (vi) to engage in those activities, including entering into
         agreements, that are necessary or suitable to accomplish the foregoing
         or are incidental thereto or connected therewith; and

              (vii) subject to compliance with the Basic Documents, to engage in
         such other activities as may be required in connection with
         conservation of the Owner Trust Estate and the making of distributions
         to the Owners and the Noteholders and in respect of the Fixed Value
         Securities.

The Trust is hereby authorized to engage in the foregoing activities. The Trust
shall not engage in any activity other than in connection with the foregoing or
other than as required or authorized by the terms of this Agreement or the Basic
Documents.

         SECTION 2.04. Appointment of Owner Trustee. The Depositor hereby
appoints the Owner Trustee as trustee of the Trust effective as of the date
hereof, to have all the rights, powers and duties set forth herein.

         SECTION 2.05. Initial Capital Contribution of Owner Trust Estate. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1. The Owner Trustee hereby
acknowledges receipt in trust from the Depositor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial Owner Trust Estate
and shall be deposited in the Deposit Account. The Depositor shall pay
organizational expenses of the Trust as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such
expenses paid by the Owner Trustee.

         SECTION 2.06. Declaration of Trust. The Owner Trustee hereby declares
that it will hold the Owner Trust Estate in trust upon and subject to the
conditions set forth herein for the use and benefit of the Owners, subject to
the obligations of the Trust under the Basic Documents. It is the intention of
the parties hereto that the Trust constitute a business trust under the Business
Trust Statute and that this Agreement constitute the governing instrument of
such business trust. It is the intention of the parties hereto that, solely for
income and franchise tax

                                       5
<PAGE>   10

purposes, (i) so long as there is a sole Owner, the Trust shall be treated as a
security arrangement, with the assets of the Trust being the Receivables and
other assets held by the Trust, the owner of the Receivables being the sole
Owner and the Notes being non-recourse debt of the sole Owner and (ii) if there
is more than one Owner, the Trust shall be treated as a partnership for income
and franchise tax purposes, with the assets of the partnership being the
Receivables and other assets held by the Trust, the partners of the partnership
being the Owners (including the Company as assignee of the Depositor pursuant to
the Purchase Agreement, in its capacity as recipient of distributions from the
Reserve Account) and the Notes being debt of the partnership. The parties agree
that, unless otherwise required by appropriate tax authorities, the Trust will
file or cause to be filed annual or other necessary returns, reports and other
forms consistent with the characterization of the Trust as provided in the
preceding sentence for such tax purposes. Effective as of the date hereof, the
Owner Trustee shall have all rights, powers and duties set forth herein and in
the Business Trust Statute with respect to accomplishing the purposes of the
Trust.

         SECTION 2.07. Liability of Owners. The Owners (including the Company)
shall be entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the general
corporation law of the State of Delaware.

         SECTION 2.08. Title to Trust Property. Legal title to all the Owner
Trust Estate shall be vested at all times in the Trust as a separate legal
entity except where applicable law in any jurisdiction requires title to any
part of the Owner Trust Estate to be vested in a trustee or trustees, in which
case title shall be deemed to be vested in the Owner Trustee, a co-trustee
and/or a separate trustee, as the case may be.

         SECTION 2.09. Situs of Trust. The Trust will be located and
administered in the State of Delaware. All bank accounts maintained by the Owner
Trustee on behalf of the Trust shall be located in the State of Delaware or the
State of New York. The Trust shall not have any employees in any state other
than Delaware; provided, however, that nothing herein shall restrict or prohibit
the Owner Trustee from having employees within or without the State of Delaware.
Payments will be received by the Trust only in Delaware or New York, and
payments will be made by the Trust only from Delaware or New York. The only
office of the Trust will be at the Corporate Trust Office in Delaware.

         SECTION 2.10. Representations and Warranties of Depositor and Company.
(a) The Depositor hereby represents and warrants to the Owner Trustee that:

              (i) The Depositor is duly organized and validly existing as a
         limited liability company in good standing under the laws of the State
         of Michigan, with power and authority to own its properties and to
         conduct its business as such properties are currently owned and such
         business is presently conducted.

              (ii) The Depositor is duly qualified to do business as a foreign
         limited liability company in good standing and has obtained all
         necessary licenses and approvals in all jurisdictions in which the
         ownership or lease of its property or the conduct of its business shall
         require such qualifications.

                                       6
<PAGE>   11

              (iii) The Depositor has the power and authority to execute and
         deliver this Agreement and to carry out its terms; the Depositor has
         full power and authority to sell and assign the property to be sold and
         assigned to and deposited with the Trust and the Depositor has duly
         authorized such sale and assignment and deposit to the Trust by all
         necessary corporate action; and the execution, delivery and performance
         of this Agreement have been duly authorized by the Depositor by all
         necessary action of a limited liability company.

              (iv) The consummation of the transactions contemplated by this
         Agreement and the fulfillment of the terms hereof do not conflict with,
         result in any breach of any of the terms and provisions of, or
         constitute (with or without notice or lapse of time) a default under,
         the articles of organization or operating agreement of the Depositor,
         or any indenture, agreement or other instrument to which the Depositor
         is a party or by which it is bound; nor result in the creation or
         imposition of any Lien upon any of its properties pursuant to the terms
         of any such indenture, agreement or other instrument (other than
         pursuant to the Basic Documents); nor violate any law or, to the best
         of the Depositor's knowledge, any order, rule or regulation applicable
         to the Depositor of any court or of any federal or state regulatory
         body, administrative agency or other governmental instrumentality
         having jurisdiction over the Depositor or its properties.

              (v) To the Depositor's best knowledge, there are no proceedings or
         investigations pending or threatened before any court, regulatory body,
         administrative agency or other governmental instrumentality having
         jurisdiction over the Depositor or its properties: (A) asserting the
         invalidity of this Agreement, (B) seeking to prevent the consummation
         of any of the transactions contemplated by this Agreement or (C)
         seeking any determination or ruling that might materially and adversely
         affect the performance by the Depositor of its obligations under, or
         the validity or enforceability of, this Agreement.

              (vi) The representations and warranties of the Company and the
         Depositor in Sections 3.01 and 3.02 of the Purchase Agreement are true
         and correct.

         (b) The Company hereby represents and warrants to the Owner Trustee
that:

              (i) The Company has been duly organized and is validly existing as
         a limited liability company in good standing under the laws of the
         jurisdiction of its organization, with the power and authority to own
         its properties and to conduct its business as such properties are
         currently owned and such business is presently conducted.

              (ii) The Company is duly qualified to do business as a foreign
         limited liability company in good standing and has obtained all
         necessary licenses and approvals in all jurisdictions in which the
         ownership or lease of its property or the conduct of its business shall
         require such qualifications.

              (iii) The Company has the power and authority to execute and
         deliver this Agreement and to carry out its terms; the Company has full
         power and authority to purchase the Certificates; and the execution,
         delivery and performance of this Agreement has been duly authorized by
         the Company by all necessary action.

                                       7
<PAGE>   12

              (iv) The consummation of the transactions contemplated by this
         Agreement and the fulfillment of the terms hereof do not conflict with,
         result in any breach of any of the terms and provisions of, or
         constitute (with or without notice or lapse of time) a default under,
         the articles of organization or operating agreement of the Company, or
         any indenture, agreement or other instrument to which the Company is a
         party or by which it is bound; nor result in the creation or imposition
         of any Lien upon any of its properties pursuant to the terms of any
         such indenture, agreement or other instrument (other than pursuant to
         the Basic Documents); nor violate any law or, to the best of the
         Company's knowledge, any order, rule or regulation applicable to the
         Company of any court or of any federal or state regulatory body,
         administrative agency or other governmental instrumentality having
         jurisdiction over the Company or its properties.

              (v) There are no proceedings or investigations pending or, to the
         Company's best knowledge, threatened before any court, regulatory body,
         administrative agency or other governmental instrumentality having
         jurisdiction over the Company or its properties: (A) asserting the
         invalidity of this Agreement, (B) seeking to prevent the consummation
         of any of the transactions contemplated by this Agreement or (C)
         seeking any determination or ruling that might materially and adversely
         affect the performance by the Company of its obligations under, or the
         validity or enforceability of, this Agreement.

                                  ARTICLE III

                     Certificates and Transfer of Interests

         SECTION 3.01. Initial Ownership. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05 and until the issuance of
the Certificates, the Depositor shall be the sole beneficiary of the Trust.

         SECTION 3.02. The Certificates. The Certificates shall be issued in
minimum denominations of a one percent Percentage Interest in the Trust. The
Certificates shall be executed on behalf of the Trust by manual or facsimile
signature of an authorized officer of the Owner Trustee. Certificates bearing
the manual or facsimile signatures of individuals who were, at the time when
such signatures shall have been affixed, authorized to sign on behalf of the
Trust, shall be validly issued and entitled to the benefit of this Agreement,
notwithstanding that such individuals or any of them shall have ceased to be so
authorized prior to the authentication and delivery of such Certificates or did
not hold such offices at the date of authentication and delivery of such
Certificates.

         A transferee of a Certificate shall become a Certificateholder and
shall be entitled to the rights and subject to the obligations of a
Certificateholder hereunder upon such transferee's acceptance of a Certificate
duly registered in such transferee's name pursuant to Section 3.04.

         SECTION 3.03. Authentication of Certificates. On the Closing Date, the
Owner Trustee shall cause the Certificates in an aggregate Percentage Interest
equal to 100% to be executed on behalf of the Trust, authenticated and delivered
to or upon the written order of the Depositor, signed by its chairman of the
board, its president, any vice president, secretary or any

                                       8
<PAGE>   13

assistant treasurer, without further corporate action by the Depositor, in the
respective authorized denominations. No Certificate shall entitle its Holder to
any benefit under this Agreement or be valid for any purpose unless there shall
appear on such Certificate a certificate of authentication substantially in the
form set forth in Exhibit A, executed by the Owner Trustee or The Chase
Manhattan Bank, as the Owner Trustee's authenticating agent, by manual
signature; such authentication shall constitute conclusive evidence that such
Certificate shall have been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.

         SECTION 3.04. Registration of Transfer and Exchange of Certificates;
Limitations on Transfer. The Certificate Registrar shall keep or cause to be
kept, at the office or agency maintained pursuant to Section 3.08, a Certificate
Register in which, subject to such reasonable regulations as it may prescribe,
the Owner Trustee shall provide for the registration of Certificates and of
transfers and exchanges of Certificates as herein provided. The Chase Manhattan
Bank shall be the initial Certificate Registrar.

         The Certificates have not been and will not be registered under the
Securities Act and will not be listed on any exchange. No transfer of a
Certificate shall be made unless such transfer is made pursuant to an effective
registration statement under the Securities Act and any applicable state
securities laws or is exempt from the registration requirements under the
Securities Act and such state securities laws. In the event that a transfer is
to be made in reliance upon an exemption from the Securities Act and state
securities laws, in order to assure compliance with the Securities Act and such
laws, the Holder desiring to effect such transfer and such Holder's prospective
transferee shall each certify to the Owner Trustee in writing the facts
surrounding the transfer in substantially the forms set forth in Exhibit C (the
"Transferor Certificate") and either Exhibit D (the "Investment Letter") or
Exhibit E (the "Rule 144A Letter"). Except in the case of a transfer as to which
the proposed transferee has provided a Rule 144A Letter, there shall also be
delivered to the Owner Trustee an Opinion of Counsel that such transfer may be
made pursuant to an exemption from the Securities Act and state securities laws,
which Opinion of Counsel shall not be an expense of the Trust or the Owner
Trustee; provided that such Opinion of Counsel in respect of the applicable
state securities laws may be a memorandum of law rather than an opinion if such
counsel is not licensed in the applicable jurisdiction. The Depositor shall
provide to any Holder of a Certificate and any prospective transferee designated
by any such Holder, information regarding the Certificates and the Receivables
and such other information as shall be necessary to satisfy the condition to
eligibility set forth in Rule 144A(d)(4) for transfer of any such Certificate
without registration thereof under the Securities Act pursuant to the
registration exemption provided by Rule 144A. Each Holder of a Certificate
desiring to effect such a transfer shall, and does hereby agree to, indemnify
the Trust, the Owner Trustee, and the Depositor against any liability that may
result if the transfer is not so exempt or is not made in accordance with
federal and state securities laws. The Owner Trustee shall cause each
Certificate to contain a legend in the form set forth on the form of Certificate
attached hereto as Exhibit A.

         Upon surrender for registration of transfer of any Certificate at the
office or agency maintained pursuant to Section 3.08 and subject to the
satisfaction of the preceding paragraph, the Owner Trustee shall execute,
authenticate and deliver (or shall cause The Chase Manhattan Bank as its
authenticating agent to authenticate and deliver), in the name of the designated

                                       9
<PAGE>   14

transferee or transferees, one or more new Certificates of like tenor and in
authorized denominations of a like aggregate Percentage Interest, dated the date
of authentication by the Owner Trustee or any authenticating agent; provided
that prior to such execution, authentication and delivery, the Owner Trustee
shall have received an Opinion of Counsel to the effect that the proposed
transfer will not cause the Trust to be characterized as an association (or a
publicly traded partnership) taxable as a corporation or alter the tax
characterization of the Notes for federal income tax purposes or Michigan income
and single business tax purposes. At the option of a Holder, Certificates may be
exchanged for other Certificates of like tenor and of authorized denominations
of a like aggregate Percentage Interest, upon surrender of the Certificates to
be exchanged at the office or agency maintained pursuant to Section 3.08.

         Every Certificate presented or surrendered for registration of transfer
or exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by
the Holder or such Holder's attorney duly authorized in writing. Each
Certificate surrendered for registration of transfer or exchange shall be
cancelled and subsequently disposed of by the Owner Trustee in accordance with
its customary practice.

         No service charge shall be made for any registration of transfer or
exchange of Certificates, but the Owner Trustee or the Certificate Registrar may
require payment of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with any transfer or exchange of Certificates.

         The preceding provisions of this Section notwithstanding, the Owner
Trustee shall not make, and the Certificate Registrar shall not register
transfers or exchanges of, Certificates for a period of 15 days preceding the
due date for any payment with respect to the Certificates.

         SECTION 3.05. Mutilated, Destroyed, Lost or Stolen Certificates. If (a)
any mutilated Certificate shall be surrendered to the Certificate Registrar, or
if the Certificate Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Certificate and (b) there shall be delivered
to the Certificate Registrar and the Owner Trustee such security or indemnity as
may be required by them to save each of them harmless, then in the absence of
notice that such Certificate has been acquired by a protected purchaser, the
Owner Trustee on behalf of the Trust shall execute and the Owner Trustee or The
Chase Manhattan Bank, as the Owner Trustee's authenticating agent, shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Certificate, a new Certificate of like tenor and
denomination. In connection with the issuance of any new Certificate under this
Section, the Owner Trustee or the Certificate Registrar may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith. Any duplicate Certificate issued pursuant to
this Section shall constitute conclusive evidence of ownership in the Trust, as
if originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

         SECTION 3.06. Persons Deemed Owners. Prior to due presentation of a
Certificate for registration of transfer, the Owner Trustee, the Certificate
Registrar or any Paying Agent may treat the Person in whose name any Certificate
is registered in the Certificate Register as the owner of such Certificate for
the purpose of receiving distributions pursuant to Section 5.02 and

                                       10
<PAGE>   15

for all other purposes whatsoever, and none of the Owner Trustee, the
Certificate Registrar or any Paying Agent shall be bound by any notice to the
contrary.

         SECTION 3.07. Access to List of Certificateholders' Names and
Addresses. The Owner Trustee shall furnish or cause to be furnished to the
Servicer and the Depositor, within 15 days after receipt by the Owner Trustee of
a written request therefor from the Servicer or the Depositor, a list, in such
form as the Servicer or the Depositor may reasonably require, of the names and
addresses of the Certificateholders as of the most recent Record Date. If a
Certificateholder applies in writing to the Owner Trustee, and such application
states that the applicant desires to communicate with other Certificateholders
with respect to their rights under this Agreement or under the Certificates,
then the Owner Trustee shall, within five Business Days after the receipt of
such application, afford such applicant access during normal business hours to
the current list of Certificateholders. Each Holder, by receiving and holding a
Certificate, shall be deemed to have agreed not to hold any of the Depositor,
the Company, the Certificate Registrar or the Owner Trustee accountable by
reason of the disclosure of its name and address, regardless of the source from
which such information was derived.

         SECTION 3.08. Maintenance of Office or Agency. The Owner Trustee shall
maintain in the Borough of Manhattan, The City of New York, an office or offices
or agency or agencies where Certificates may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Owner Trustee
in respect of the Certificates and the Basic Documents may be served. The Owner
Trustee initially designates The Chase Manhattan Bank, 55 Water Street, New
York, New York 10041 as its office for such purposes. The Owner Trustee shall
give prompt written notice to the Company and to the Certificateholders of any
change in the location of the Certificate Register or any such office or agency.

         SECTION 3.09. Appointment of Paying Agent. The Paying Agent shall make
distributions to Certificateholders from the Deposit Account pursuant to Section
5.02 and shall report the amounts of such distributions to the Owner Trustee.
Subject to the provisions of Section 5.05 of the Sale and Servicing Agreement,
any Paying Agent shall have the revocable power to withdraw funds from the
Deposit Account for the purpose of making the distributions referred to above.
The Owner Trustee may revoke such power and remove the Paying Agent if the Owner
Trustee determines in its sole discretion that the Paying Agent shall have
failed to perform its obligations under this Agreement in any material respect
or that it is in the interest of the Certificateholders to do so. The Paying
Agent initially shall be the Indenture Trustee, and any co-paying agent chosen
by the Indenture Trustee and acceptable to the Owner Trustee. The Person acting
as Indenture Trustee shall not be permitted to resign as Paying Agent so long as
such Person is acting as the Indenture Trustee. The Owner Trustee shall cause
such successor Paying Agent or any additional Paying Agent appointed by the
Owner Trustee to execute and deliver to the Owner Trustee an instrument in which
such successor Paying Agent or additional Paying Agent shall agree with the
Owner Trustee that, as Paying Agent, such successor Paying Agent or additional
Paying Agent will hold all sums, if any, held by it for payment to the
Certificateholders in trust for the benefit of the Certificateholders entitled
thereto until such sums shall be paid to such Certificateholders. The Paying
Agent shall return all unclaimed funds to the Owner Trustee and upon removal of
a Paying Agent such Paying Agent shall also return all funds in its possession
to the Owner Trustee. The provisions of Sections 7.01, 7.03, 7.04 and 8.01 shall
apply to the Owner Trustee also in its role as Paying Agent, for so long as the
Owner

                                       11
<PAGE>   16

Trustee shall act as Paying Agent and, to the extent applicable, to any other
paying agent appointed hereunder. Any reference in this Agreement to the Paying
Agent shall include any co-paying agent unless the context requires otherwise.

         SECTION 3.10. Definitive Certificates. The Certificates, upon original
issuance, will be issued in definitive, fully registered form.

         SECTION 3.11. Fixed Value Securities. Pursuant to the Sale and
Servicing Agreement and the Purchase Agreement, promptly following the sale of
the Standard Receivables and Fixed Value Receivables to the Trust on the Closing
Date, the Trust will sell to the Depositor the Fixed Value Payments and Fixed
Value Finance Charges in accordance with Section 2.02 of the Sale and Servicing
Agreement. Neither the Depositor nor the Company (as assignee of the Depositor)
shall transfer such Fixed Value Payments and Fixed Value Finance Charges to any
Person other than the Trust and except as contemplated by the Purchase
Agreement. At any time after the Trust sells the Fixed Value Payments and Fixed
Value Finance Charges to the Depositor, at the option of the Company (as
assignee of the Depositor) and upon 10 days prior written notice to the Owner
Trustee and the Indenture Trustee, the Company will be permitted to sell to the
Trust, and the Trust shall be obligated to purchase from the Company (subject to
the availability of funds), all or any portion of the Fixed Value Payments
and/or Fixed Value Finance Charges due under the Receivables, subject to the
terms and conditions of the Sale and Servicing Agreement. Upon any such sale,
(i) the Depositor, the Company and the Owner Trustee will enter into an
amendment to this Agreement to provide for, at the election of the Company, the
issuance of certificates representing ownership interests in the Trust to the
extent of the Fixed Value Payments and/or Fixed Value Finance Charges due under
the Receivables or the issuance of indebtedness by the Trust secured by the
Fixed Value Payments and/or Fixed Value Finance Charges due under the
Receivables and to make any other provisions herein that are necessary or
desirable in connection therewith and (ii) the Owner Trustee and the Depositor
will enter into any other agreements or instruments related thereto as may be
requested by the Company; provided, however, that the Owner Trustee may, but
shall not be obligated to, enter into any such amendment, agreement or
instrument that affects the Owner Trustee's own rights, duties or immunities
under this Agreement; and provided, further, that the obligation of the Owner
Trustee to enter into any such amendment or other agreement or instrument is
subject to the following conditions precedent:

         (a) Such amendment and other agreements and instruments, in forms
satisfactory to the Owner Trustee and, in the case of amendments or agreements
to be executed and delivered by the Indenture Trustee, the Indenture Trustee,
shall have been executed by each other party thereto and delivered to the Owner
Trustee;

         (b) The Company shall have delivered to the Owner Trustee and the
Indenture Trustee an Officer's Certificate and an Opinion of Counsel to the
effect that each condition precedent (including the requirement with respect to
all required filings) provided by this Section has been complied with and such
amendment or other agreement or instrument is authorized or permitted by this
Agreement;

         (c) The Rating Agency Condition shall have been satisfied with respect
to such sale and issuance;

                                       12
<PAGE>   17

         (d) Such sale and issuance and such amendment or other agreement or
instrument shall not adversely affect in any material respect the interest of
any Noteholder or Certificateholder, and the Company shall have provided to the
Owner Trustee and the Indenture Trustee an Officer's Certificate to such effect;

         (e) The Owner Trustee and the Indenture Trustee shall have received an
Opinion of Counsel to the effect that such sale and issuance will not have any
material adverse tax consequence to the Trust or to any Noteholder or
Certificateholder; and

         (f) All filings and other actions required to continue the first
perfected interest of the Trust in the Owner Trust Estate and of the Indenture
Trustee in the Collateral shall have been duly made or taken by the Company.

                                   ARTICLE IV

                            Actions by Owner Trustee

         SECTION 4.01. Prior Notice to Owners with Respect to Certain Matters.
With respect to the following matters, the Owner Trustee shall not take action
unless at least 30 days before the taking of such action, the Owner Trustee
shall have notified the Certificateholders in writing of the proposed action and
the Owners shall not have notified the Owner Trustee in writing prior to the
30th day after such notice is given that such Owners have withheld consent or
provided alternative direction:

         (a) the initiation of any claim or lawsuit by the Trust (except claims
or lawsuits brought in connection with the collection of the Receivables) and
the compromise of any action, claim or lawsuit brought by or against the Trust
(except with respect to the aforementioned claims or lawsuits for collection of
the Receivables);

         (b) the election by the Trust to file an amendment to the Certificate
of Trust (unless such amendment is required to be filed under the Business Trust
Statute);

         (c) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;

         (d) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment materially adversely affects the interests of the Owners;

         (e) the amendment, change or modification of the Administration
Agreement, except to cure any ambiguity or to amend or supplement any provision
in a manner or add any provision that would not materially adversely affect the
interests of the Owners; or

         (f) the appointment pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement of a
successor Certificate Registrar, or

                                       13
<PAGE>   18

the consent to the assignment by the Note Registrar, Paying Agent or Indenture
Trustee or Certificate Registrar of its obligations under the Indenture or this
Agreement, as applicable.

         SECTION 4.02. Action by Owners with Respect to Certain Matters. The
Owner Trustee shall not have the power, except upon the direction of the Owners,
to (a) remove the Administrator under the Administration Agreement pursuant to
Section 8 thereof, (b) appoint a successor Administrator pursuant to Section 8
of the Administration Agreement, (c) remove the Servicer under the Sale and
Servicing Agreement pursuant to Section 8.01 thereof or (d) except as expressly
provided in the Basic Documents, sell the Receivables after the termination of
the Indenture. The Owner Trustee shall take the actions referred to in the
preceding sentence only upon written instructions signed by the Owners.

         SECTION 4.03. Action by Owners with Respect to Bankruptcy. The Owner
Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy relating to the Trust without the unanimous prior approval of all
Owners and the delivery to the Owner Trustee by each such Owner of a certificate
certifying that such Owner reasonably believes that the Trust is insolvent.

         SECTION 4.04. Restrictions on Owners' Power. The Owners shall not
direct the Owner Trustee to take or to refrain from taking any action if such
action or inaction would be contrary to any obligation of the Trust or the Owner
Trustee under this Agreement or any of the Basic Documents or would be contrary
to Section 2.03, nor shall the Owner Trustee be obligated to follow any such
direction, if given.

         SECTION 4.05. Majority Control. Except as expressly provided herein,
any action that may be taken by the Owners under this Agreement may be taken by
the Holders of the Certificates evidencing not less than a majority of the
Percentage Interests evidenced by the Certificates. Except as expressly provided
herein, any written notice of the Owners delivered pursuant to this Agreement
shall be effective if signed by the Holders of the Certificates evidencing not
less than a majority of the Percentage Interests evidenced by the Certificates
at the time of the delivery of such notice.

                                   ARTICLE V

                   Application of Trust Funds; Certain Duties

         SECTION 5.01. Establishment of Deposit Account. The Deposit Account
shall be established and maintained pursuant to Section 5.01 of the Sale and
Servicing Agreement. The Deposit Account shall be under the sole dominion and
control of the Indenture Trustee for the benefit of Noteholders and the
Certificateholders, as applicable in accordance with the Sale and Servicing
Agreement.

         SECTION 5.02. Application of Trust Funds. (a) On each Payment Date, the
Servicer is obligated to instruct the Indenture Trustee to make distributions
and allocations in accordance with Section 5.05(a) of the Sale and Servicing
Agreement. Distributions to

                                       14
<PAGE>   19

Certificateholders will be made in accordance with Section 5.05(a)(ii) (D) and
(E) of the Sale and Servicing Agreement.

         (a) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to an Owner, such tax shall reduce the amount
otherwise distributable to the Owner in accordance with this Section. The Paying
Agent is hereby authorized and directed to retain from amounts otherwise
distributable to the Owners sufficient funds for the payment of any tax that is
legally owed by the Trust (but such authorization shall not prevent the Owner
Trustee from contesting any such tax in appropriate proceedings and withholding
payment of such tax, if permitted by law, pending the outcome of such
proceedings). The amount of any withholding tax imposed with respect to an Owner
shall be treated as cash distributed to such Owner at the time it is withheld by
the Trust and remitted to the appropriate taxing authority. If there is a
possibility that withholding tax is payable with respect to a distribution (such
as a distribution to a non-U.S. Owner), the Paying Agent may in its sole
discretion withhold such amounts in accordance with this paragraph.

         SECTION 5.03. Method of Payment. Subject to Section 9.01(c),
distributions required to be made to Certificateholders on any Payment Date
shall be made by the Paying Agent to each Certificateholder of record on the
preceding Record Date by wire transfer, in immediately available funds, to the
account of such Holder at a bank or other entity having appropriate facilities
therefor, if such Certificateholder shall have provided to the Certificate
Registrar appropriate written instructions at least five Business Days prior to
such Payment Date, or, if not, by check mailed to such Certificateholder at the
address of such Holder appearing in the Certificate Register.

         SECTION 5.04. Accounting and Reports to Owners, Internal Revenue
Service and Others. The Owner Trustee shall deliver to each Owner such
information, reports or statements as may be required by the Code and applicable
Treasury Regulations and as may be required to enable each Owner to prepare its
federal and state income tax returns. Consistent with the Trust's
characterization for tax purposes, as a security arrangement for the issuance of
non-recourse debt, no federal income tax return shall be filed on behalf of the
Trust unless either (i) the Owner Trustee shall receive an Opinion of Counsel
that, based on a change in applicable law occurring after the date hereof, or as
a result of a transfer by the Company permitted by Section 3.04, the Code
requires such a filing or (ii) the Internal Revenue Service shall determine that
the Trust is required to file such a return. Notwithstanding the preceding
sentence, the Owner Trustee shall file Internal Revenue Service Form 8832 and
elect for the Trust to be treated as a domestic eligible entity with a single
owner that is disregarded as a separate entity, which election shall remain in
effect so long as the Company or any other party is the sole Owner. In the event
that the Trust is required to file tax returns, the Owner Trustee shall prepare
or shall cause to be prepared any tax returns required to be filed by the Trust
and shall remit such returns to the Company (or if the Company no longer owns
any Certificates, the Owner designated for such purpose by the Company to the
Owner Trustee in writing) at least five (5) days before such returns are due to
be filed. The Company (or such designee Owner, as applicable) shall promptly
sign such returns and deliver such returns after signature to the Owner Trustee
and such returns shall be filed by the Owner Trustee with the appropriate tax
authorities. In no event shall the Owner Trustee or the Company (or such
designee Owner, as applicable) be liable for any liabilities, costs or expenses
of the Trust or the Noteholders arising out of the application of any

                                       15
<PAGE>   20

tax law, including federal, state, foreign or local income or excise taxes or
any other tax imposed on or measured by income (or any interest, penalty or
addition with respect thereto or arising from a failure to comply therewith)
except for any such liability, cost or expense attributable to any act or
omission by the Owner Trustee or the Company (or such designee Owner, as
applicable), as the case may be, in breach of its obligations under this
Agreement.

                                   ARTICLE VI

                      Authority and Duties of Owner Trustee

         SECTION 6.01. General Authority. The Owner Trustee is authorized and
directed to execute and deliver the Basic Documents to which the Trust is to be
a party and each certificate or other document attached as an exhibit to or
contemplated by the Basic Documents to which the Trust is to be a party and any
amendment or other agreement or instrument described in Section 3.11, in each
case, in such form as the Company shall approve, as evidenced conclusively by
the Owner Trustee's execution thereof. In addition to the foregoing, the Owner
Trustee is authorized, but shall not be obligated, to take all actions required
of the Trust pursuant to the Basic Documents. The Owner Trustee is further
authorized from time to time to take such action as the Administrator recommends
with respect to the Basic Documents.

         SECTION 6.02. General Duties. It shall be the duty of the Owner Trustee
to discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Agreement and the Basic Documents to which the Trust is a
party and to administer the Trust in the interest of the Owners, subject to the
Basic Documents and in accordance with the provisions of this Agreement.
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the Basic
Documents to the extent the Administrator has agreed in the Administration
Agreement to perform any act or to discharge any duty of the Owner Trustee
hereunder or under any Basic Document, and the Owner Trustee shall not be held
liable for the default or failure of the Administrator to carry out its
obligations under the Administration Agreement.

         SECTION 6.03. Action upon Instruction. (a) Subject to Article IV and in
accordance with the terms of the Basic Documents, the Owners may by written
instruction direct the Owner Trustee in the management of the Trust. Such
direction may be exercised at any time by written instruction of the Owners
pursuant to Article IV.

         (b) The Owner Trustee shall not be required to take any action
hereunder or under any Basic Document if the Owner Trustee shall have reasonably
determined, or shall have been advised by counsel, that such action is likely to
result in liability on the part of the Owner Trustee or is contrary to the terms
hereof or of any Basic Document or is otherwise contrary to law.

         (c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Agreement or under
any Basic Document, the Owner Trustee shall promptly give notice (in such form
as shall be appropriate under the circumstances) to the Owners requesting
instruction as to the course of action to be adopted, and

                                       16
<PAGE>   21

to the extent the Owner Trustee acts in good faith in accordance with any
written instruction of the Owners received, the Owner Trustee shall not be
liable on account of such action to any Person. If the Owner Trustee shall not
have received appropriate instruction within 10 days of such notice (or within
such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but shall be under no duty to,
take or refrain from taking such action not inconsistent with this Agreement or
the Basic Documents, as it shall deem to be in the best interests of the Owners,
and shall have no liability to any Person for such action or inaction.

         (d) In the event that the Owner Trustee is unsure as to the application
of any provision of this Agreement or any Basic Document or any such provision
is ambiguous as to its application, or is, or appears to be, in conflict with
any other applicable provision, or in the event that this Agreement permits any
determination by the Owner Trustee or is silent or is incomplete as to the
course of action that the Owner Trustee is required to take with respect to a
particular set of facts, the Owner Trustee may give notice (in such form as
shall be appropriate under the circumstances) to the Owners requesting
instruction and, to the extent that the Owner Trustee acts or refrains from
acting in good faith in accordance with any such instruction received, the Owner
Trustee shall not be liable, on account of such action or inaction, to any
Person. If the Owner Trustee shall not have received appropriate instruction
within 10 days of such notice (or within such shorter period of time as
reasonably may be specified in such notice or may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from
taking such action not inconsistent with this Agreement or the Basic Documents,
as it shall deem to be in the best interests of the Owners, and shall have no
liability to any Person for such action or inaction.

         SECTION 6.04. No Duties Except as Specified in this Agreement or in
Instructions. The Owner Trustee shall not have any duty or obligation to manage,
make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee is a party, except as expressly provided by the terms
of this Agreement or in any document or written instruction received by the
Owner Trustee pursuant to Section 6.03; and no implied duties or obligations
shall be read into this Agreement or any Basic Document against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at any time or to otherwise
perfect or maintain the perfection of any security interest or lien granted to
it hereunder or to prepare or file any Securities and Exchange Commission filing
for the Trust or to record this Agreement or any Basic Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense, promptly
take all action as may be necessary to discharge any liens on any part of the
Owner Trust Estate that result from actions by, or claims against, the Owner
Trustee that are not related to the ownership or the administration of the Owner
Trust Estate.

         SECTION 6.05. No Action Except Under Specified Documents or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Owner Trust Estate except (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee pursuant to this Agreement, (ii) in accordance with

                                       17
<PAGE>   22

the Basic Documents and (iii) in accordance with any document or instruction
delivered to the Owner Trustee pursuant to Section 6.03.

         SECTION 6.06. Restrictions. The Owner Trustee shall not take any action
(a) that is inconsistent with the purposes of the Trust set forth in Section
2.03 or (b) that, to the actual knowledge of the Owner Trustee, would result in
the Trust's becoming taxable as a corporation for federal income tax purposes.
The Owners shall not direct the Owner Trustee to take action that would violate
the provisions of this Section.

                                  ARTICLE VII

                            Concerning Owner Trustee

         SECTION 7.01. Acceptance of Trusts and Duties. The Owner Trustee
accepts the trusts hereby created and agrees to perform its duties hereunder
with respect to such trusts, but only upon the terms of this Agreement. The
Owner Trustee also agrees to disburse all moneys actually received by it
constituting part of the Owner Trust Estate upon the terms of the Basic
Documents and this Agreement. The Owner Trustee shall not be answerable or
accountable hereunder or under any Basic Document under any circumstances,
except (i) for its own willful misconduct or negligence or (ii) in the case of
the inaccuracy of any representation or warranty contained in Section 7.03
expressly made by the Owner Trustee. In particular, but not by way of limitation
(and subject to the exceptions set forth in the preceding sentence):

         (a) The Owner Trustee shall not be liable for any error of judgment
made in good faith by the Owner Trustee;

         (b) The Owner Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in accordance with the instructions of the
Administrator or any Owner;

         (c) No provision of this Agreement or any Basic Document shall require
the Owner Trustee to expend or risk funds or otherwise incur any financial
liability in the performance of any of its rights or powers hereunder or under
any Basic Document if the Owner Trustee shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured or provided to it;

         (d) Under no circumstances shall the Owner Trustee be liable for
indebtedness evidenced by or arising under any of the Basic Documents, including
the principal of and interest on the Notes or any amounts payable on the
Certificates;

         (e) The Owner Trustee shall not be responsible for or in respect of the
validity or sufficiency of this Agreement or for the due execution hereof by the
Depositor or the Company or for the form, character, genuineness, sufficiency,
value or validity of any of the Owner Trust Estate, or for or in respect of the
validity or sufficiency of the Basic Documents, other than the certificate of
authentication on the Certificates, and the Owner Trustee shall in no event
assume or incur any liability, duty or obligation to any Noteholder or to any
Owner, other than as expressly provided for herein or expressly agreed to in the
Basic Documents;

                                       18
<PAGE>   23

         (f) The Owner Trustee shall not be liable for the default or misconduct
of the Administrator, CFC, as Seller or Depositor, the Company, the Indenture
Trustee or the Servicer under any of the Basic Documents or otherwise, and the
Owner Trustee shall have no obligation or liability to perform the obligations
of the Trust under this Agreement or the Basic Documents that are required to be
performed by the Administrator under the Administration Agreement, the Indenture
Trustee under the Indenture or the Servicer or CFC, as Depositor or as Seller,
under the Sale and Servicing Agreement; and

         (g) The Owner Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Agreement, or to institute, conduct or
defend any litigation under this Agreement or otherwise or in relation to this
Agreement or any Basic Document, at the request, order or direction of any of
the Owners, unless such Owners have offered to the Owner Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred by the Owner Trustee therein or thereby. The right of the Owner
Trustee to perform any discretionary act enumerated in this Agreement or in any
Basic Document shall not be construed as a duty, and the Owner Trustee shall not
be answerable for other than its negligence or willful misconduct in the
performance of any such act.

         SECTION 7.02. Furnishing of Documents. The Owner Trustee shall furnish
to the Owners, promptly upon receipt of a written request therefor, duplicates
or copies of all reports, notices, requests, demands, certificates, financial
statements and any other instruments furnished to the Owner Trustee under the
Basic Documents.

         SECTION 7.03. Representations and Warranties. The Owner Trustee hereby
represents and warrants to the Company, for the benefit of the Owners, that:

         (a) It is a banking corporation duly organized and validly existing in
good standing under the laws of the State of Delaware. It has all requisite
corporate power and authority to execute, deliver and perform its obligations
under this Agreement.

         (b) It has taken all corporate action necessary to authorize the
execution and delivery by it of this Agreement, and this Agreement will be
executed and delivered by one of its officers who is duly authorized to execute
and deliver this Agreement on its behalf.

         (c) Neither the execution or the delivery by it of this Agreement, nor
the consummation by it of the transactions contemplated hereby, nor compliance
by it with any of the terms or provisions hereof will contravene any federal or
Delaware law, governmental rule or regulation governing the banking or trust
powers of the Owner Trustee or any judgment or order binding on it, or
constitute any default under its charter documents or bylaws or any indenture,
mortgage, contract, agreement or instrument to which it is a party or by which
any of its properties may be bound.

         SECTION 7.04. Reliance; Advice of Counsel. (a) The Owner Trustee shall
incur no liability to anyone in acting upon any signature, instrument, notice,
resolution, request, consent, order, certificate, report, opinion, bond, or
other document or paper believed by it to be genuine and believed by it to be
signed by the proper party or parties. The Owner Trustee may accept a certified
copy of a resolution of the board of directors or other governing body of any

                                       19
<PAGE>   24
corporate party as conclusive evidence that such resolution has been duly
adopted by such body and that the same is in full force and effect. As to any
fact or matter the method of determination of which is not specifically
prescribed herein, the Owner Trustee may for all purposes hereof rely on a
certificate, signed by the president or any vice president or by the treasurer
or other authorized officers of the relevant party, as to such fact or matter,
and such certificate shall constitute full protection to the Owner Trustee for
any action taken or omitted to be taken by it in good faith in reliance thereon.

         (b) In the exercise or administration of the trusts hereunder and in
the performance of its duties and obligations under this Agreement or the Basic
Documents, the Owner Trustee (i) may act directly or through its agents or
attorneys pursuant to agreements entered into with any of them, and the Owner
Trustee shall not be liable for the conduct or misconduct of such agents or
attorneys if such agents or attorneys shall have been selected by the Owner
Trustee with reasonable care, and (ii) may consult with counsel, accountants and
other skilled Persons to be selected with reasonable care and employed by it.
The Owner Trustee shall not be liable for anything done, suffered or omitted in
good faith by it in accordance with the written opinion or advice of any such
counsel, accountants or other such Persons and not contrary to this Agreement or
any Basic Document.

         SECTION 7.05. Not Acting in Individual Capacity. Except as provided in
this Article VII, in accepting the trusts hereby created Chase Manhattan Bank
Delaware acts solely as Owner Trustee hereunder and not in its individual
capacity, and all Persons having any claim against the Owner Trustee by reason
of the transactions contemplated by this Agreement or any Basic Document shall
look only to the Owner Trust Estate for payment or satisfaction thereof.

         SECTION 7.06. Owner Trustee Not Liable for Certificates or Receivables.
The recitals contained herein and in the Certificates (other than the signature
and countersignature of the Owner Trustee on the Certificates) shall be taken as
the statements of the Depositor and the Company, and the Owner Trustee assumes
no responsibility for the correctness thereof. The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, of any
Basic Document or of the Certificates (other than the signature and
countersignature of the Owner Trustee on the Certificates) or the Notes, or of
any Receivable or related documents. The Owner Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of any Receivable, or the perfection and priority of any security
interest created by any Receivable in any Financed Vehicle or the maintenance of
any such perfection and priority, or for or with respect to the sufficiency of
the Owner Trust Estate or its ability to generate the payments to be distributed
to Certificateholders under this Agreement or the Noteholders under the
Indenture, including, without limitation: the existence, condition and ownership
of any Financed Vehicle; the existence and enforceability of any insurance
thereon; the existence and contents of any Receivable on any computer or other
record thereof; the validity of the assignment of any Receivable to the Trust or
of any intervening assignment; the completeness of any Receivable; the
performance or enforcement of any Receivable; the compliance by the Depositor,
the Company or the Servicer with any warranty or representation made under any
Basic Document or in any related document or the accuracy of any such warranty
or representation, or any action of the Administrator, the Indenture Trustee or
the Servicer or any subservicer taken in the name of the Owner Trustee.

                                       20
<PAGE>   25

         SECTION 7.07. Owner Trustee May Own Certificates and Notes. The Owner
Trustee in its individual or any other capacity may become the owner or pledgee
of Certificates or Notes and may deal with the Depositor, the Company, the
Administrator, the Indenture Trustee and the Servicer in banking transactions
with the same rights as it would have if it were not Owner Trustee.

         SECTION 7.08. Pennsylvania Motor Vehicle Sales Finance Act Licenses.
The Owner Trustee, in its individual capacity, shall use its best efforts to
maintain, and the Owner Trustee, as Owner Trustee, shall cause the Trust to use
its best efforts to maintain, the effectiveness of all licenses required under
the Pennsylvania Motor Vehicle Sales Finance Act in connection with this
Agreement and the Basic Documents and the transactions contemplated hereby and
thereby until such time as the Trust shall terminate in accordance with the
terms hereof.

                                  ARTICLE VIII

                          Compensation of Owner Trustee

         SECTION 8.01. Owner Trustee's Fees and Expenses. The Owner Trustee
shall receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof between the Depositor and the
Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by the
Depositor for its other reasonable expenses hereunder, including the reasonable
compensation, expenses and disbursements of such agents, representatives,
experts and counsel as the Owner Trustee may employ in connection with the
exercise and performance of its rights and its duties hereunder.

         SECTION 8.02. Indemnification. The Depositor shall be liable as primary
obligor for, and shall indemnify the Owner Trustee and its successors, assigns,
agents and servants (collectively, the "Indemnified Parties") from and against,
any and all liabilities, obligations, losses, damages, taxes, claims, actions
and suits, and any and all reasonable costs, expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature whatsoever
(collectively, "Expenses") which may at any time be imposed on, incurred by, or
asserted against the Owner Trustee or any Indemnified Party in any way relating
to or arising out of this Agreement, the Basic Documents, the Owner Trust
Estate, the administration of the Owner Trust Estate or the action or inaction
of the Owner Trustee hereunder, except only that the Depositor shall not be
liable for or required to indemnify an Indemnified Party from and against
Expenses arising or resulting from any of the matters described in the third
sentence of Section 7.01. The indemnities contained in this Section shall
survive the resignation or termination of the Owner Trustee or the termination
of this Agreement. In any event of any claim, action or proceeding for which
indemnity will be sought pursuant to this Section, the Owner Trustee's choice of
legal counsel shall be subject to the approval of the Depositor, which approval
shall not be unreasonably withheld.

         SECTION 8.03. Payments to Owner Trustee. Any amounts paid to the Owner
Trustee pursuant to this Article VIII shall be deemed not to be a part of the
Owner Trust Estate immediately after such payment.

                                       21
<PAGE>   26

                                   ARTICLE IX

                         Termination of Trust Agreement

         SECTION 9.01. Termination of Trust Agreement. (a) The Trust shall
dissolve upon the final distribution by the Owner Trustee of all moneys or other
property or proceeds of the Owner Trust Estate in accordance with the terms of
the Indenture, the Sale and Servicing Agreement and Article V. The bankruptcy,
liquidation, dissolution, death or incapacity of any Owner shall not (x) operate
to dissolve or terminate this Agreement or the Trust or (y) entitle such Owner's
legal representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the
Trust or Owner Trust Estate or (z) otherwise affect the rights, obligations and
liabilities of the parties hereto.

         (b) Except as provided in Section 9.01(a), none of the Depositor, the
Company or any Owner shall be entitled to revoke, dissolve or terminate the
Trust.

         (c) Notice of any dissolution of the Trust, specifying the Payment Date
upon which Certificateholders shall surrender their Certificates to the Paying
Agent for payment of the final distribution and cancellation, shall be given by
the Owner Trustee by letter to Certificateholders mailed within five Business
Days of receipt of a termination notice of such termination from the Servicer
given pursuant to Section 9.01(c) of the Sale and Servicing Agreement, stating
(i) the Payment Date upon or with respect to which final payment of the
Certificates shall be made upon presentation and surrender of the Certificates
at the office of the Paying Agent therein designated, (ii) the amount of any
such final payment and (iii) that the Record Date otherwise applicable to such
Payment Date is not applicable, payments being made only upon presentation and
surrender of the Certificates at the office of the Paying Agent therein
specified. The Owner Trustee shall give such notice to the Certificate Registrar
(if other than the Owner Trustee) and the Paying Agent at the time such notice
is given to Certificateholders. Upon presentation and surrender of the
Certificates, the Paying Agent shall cause to be distributed to
Certificateholders amounts distributable on such Payment Date pursuant to
Section 5.02.

         In the event that all of the Certificateholders shall not surrender
their Certificates for cancellation within six months after the date specified
in the above mentioned written notice, the Owner Trustee shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within one year after the second notice all the Certificates shall
not have been surrendered for cancellation, the Owner Trustee may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost thereof shall be paid out of the funds and other assets that shall
remain subject to this Agreement. Subject to applicable escheat laws, any funds
remaining in the Trust after exhaustion of such remedies shall be distributed by
the Paying Agent to the Company.

         (d) Upon the winding up of the Trust in accordance with Section 3808 of
the Business Trust Statute, the Owner Trustee shall cause the Certificate of
Trust to be cancelled by filing a certificate of cancellation with the Secretary
of State in accordance with the provisions of Section 3810 of the Business Trust
Statute and the Trust and this Agreement (other than Article VIII) shall
terminate and be of no further force or effect.

                                       22
<PAGE>   27

                                   ARTICLE X

             Successor Owner Trustees and Additional Owner Trustees

         SECTION 10.01. Eligibility Requirements for Owner Trustee. The Owner
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Business Trust Statute; authorized to exercise corporate trust
powers; having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by federal or state authorities; and
having (or having a parent that has) time deposits that are rated at least "A-1"
by Standard & Poor's and "P-1" by Moody's. If such corporation shall publish
reports of condition at least annually pursuant to law or to the requirements of
the aforesaid supervising or examining authority, then for the purpose of this
Section, the combined capital and surplus of such corporation shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. In case at any time the Owner Trustee shall cease to be
eligible in accordance with the provisions of this Section, the Owner Trustee
shall resign immediately in the manner and with the effect specified in Section
10.02.

         SECTION 10.02. Resignation or Removal of Owner Trustee. The Owner
Trustee may at any time resign and be discharged from the trusts hereby created
by giving written notice thereof to the Administrator. Upon receiving such
notice of resignation, the Administrator shall promptly appoint a successor
Owner Trustee by written instrument, in duplicate, one copy of which instrument
shall be delivered to the resigning Owner Trustee and one copy to the successor
Owner Trustee. If no successor Owner Trustee shall have been so appointed and
have accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Owner Trustee may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee.

         If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 10.01 and shall fail to resign after
written request therefor by the Administrator, or if at any time the Owner
Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Administrator may remove the Owner
Trustee. If the Administrator shall remove the Owner Trustee under the authority
of the immediately preceding sentence, the Administrator shall promptly appoint
a successor Owner Trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the outgoing Owner Trustee so removed and one
copy to the successor Owner Trustee, and shall pay all fees owed to the outgoing
Owner Trustee.

         Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 10.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Administrator shall provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.

                                       23
<PAGE>   28

         SECTION 10.03. Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to
the Administrator and to its predecessor Owner Trustee an instrument accepting
such appointment under this Agreement, and thereupon the resignation or removal
of the predecessor Owner Trustee shall become effective, and such successor
Owner Trustee, without any further act, deed or conveyance, shall become fully
vested with all the rights, powers, duties and obligations of its predecessor
under this Agreement, with like effect as if originally named as Owner Trustee.
The predecessor Owner Trustee shall upon payment of its fees and expenses
deliver to the successor Owner Trustee all documents and statements and monies
held by it under this Agreement; and the Administrator and the predecessor Owner
Trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for fully and certainly vesting and confirming in the
successor Owner Trustee all such rights, powers, duties and obligations.

         No successor Owner Trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor Owner Trustee shall
be eligible pursuant to Section 10.01.

         Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Administrator shall mail notice thereof to all
Certificateholders, the Indenture Trustee, the Noteholders and the Rating
Agencies. If the Administrator shall fail to mail such notice within 10 days
after acceptance of such appointment by the successor Owner Trustee, the
successor Owner Trustee shall cause such notice to be mailed at the expense of
the Administrator.

         SECTION 10.04. Merger or Consolidation of Owner Trustee. Any
corporation into which the Owner Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Owner Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee
hereunder, without the execution or filing of any instrument or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, that such corporation shall be eligible pursuant to
Section 10.01 and, provided, further, that the Owner Trustee shall mail notice
of such merger or consolidation to the Rating Agencies.

         SECTION 10.05. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Owner Trust Estate or any Financed Vehicle may at the time be located,
the Administrator and the Owner Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Administrator and Owner Trustee to act as co-trustee, jointly
with the Owner Trustee, or as separate trustee or separate trustees, of all or
any part of the Owner Trust Estate, and to vest in such Person, in such
capacity, such title to the Trust or any part thereof and, subject to the other
provisions of this Section, such powers, duties, obligations, rights and trusts
as the Administrator and the Owner Trustee may consider necessary or desirable.
If the Administrator shall not have joined in such appointment within 15 days
after the receipt by it of a request so to do, the Owner Trustee alone shall
have the power to make such appointment. No co-trustee or separate trustee under
this Agreement shall be required to meet the terms of

                                       24
<PAGE>   29

eligibility as a successor Owner Trustee pursuant to Section 10.01 and no notice
of the appointment of any co-trustee or separate trustee shall be required
pursuant to Section 10.03.

         Each separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

         (a) All rights, powers, duties and obligations conferred or imposed
upon the Owner Trustee shall be conferred upon and exercised or performed by the
Owner Trustee and such separate trustee or co-trustee jointly (it being
understood that such separate trustee or co-trustee is not authorized to act
separately without the Owner Trustee joining in such act), except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed, the Owner Trustee shall be incompetent or unqualified to
perform such act or acts, in which event such rights, powers, duties and
obligations (including the holding of title to the Owner Trust Estate or any
portion thereof in any such jurisdiction) shall be exercised and performed
singly by such separate trustee or co-trustee, but solely at the direction of
the Owner Trustee;

         (b) No trustee under this Agreement shall be personally liable by
reason of any act or omission of any other trustee under this Agreement; and

         (c) The Administrator and the Owner Trustee acting jointly may at any
time accept the resignation of or remove any separate trustee or co-trustee.

         Any notice, request or other writing given to the Owner Trustee shall
be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection
to, the Owner Trustee. Each such instrument shall be filed with the Owner
Trustee and a copy thereof given to the Administrator.

         Any separate trustee or co-trustee may at any time appoint the Owner
Trustee as its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor co-trustee or separate trustee.

                                       25
<PAGE>   30

                                   ARTICLE XI

                                  Miscellaneous

         SECTION 11.01. Supplements and Amendments. This Agreement may be
amended by the Depositor, the Company and the Owner Trustee, with prior written
notice to the Rating Agencies, without the consent of any of the Noteholders or
the Certificateholders, to cure any ambiguity, to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions in this Agreement
(including for the issuance of Fixed Value Securities pursuant to Section 2.03
of the Sale and Servicing Agreement) or of modifying in any manner the rights of
the Noteholders or the Certificateholders; provided, however, that such action
shall not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Noteholder or Certificateholder.

         This Agreement may also be amended from time to time by the Depositor,
the Company and the Owner Trustee, with prior written notice to the Rating
Agencies, with the consent of the Holders (as defined in the Indenture) of Notes
evidencing not less than a majority of the Outstanding Amount of the Notes, the
consent of the Holders of Certificates evidencing not less than a majority of
the Percentage Interests evidenced by the Certificates, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Noteholders or the Certificateholders; provided, however, that no such amendment
shall (a) increase or reduce in any manner the amount of, or accelerate or delay
the timing of, collections of payments on Receivables or distributions that
shall be required to be made for the benefit of the Noteholders or the
Certificateholders or (b) reduce the aforesaid percentage of the Outstanding
Amount of the Notes or of the Percentage Interests evidenced by the Certificates
required to consent to any such amendment, without the consent of the Holders of
all the outstanding Notes and Certificates.

         Promptly after the execution of any such amendment or consent, the
Owner Trustee shall furnish written notification of the substance of such
amendment or consent to each Certificateholder, the Indenture Trustee and each
of the Rating Agencies.

         It shall not be necessary for the consent of Certificateholders,
Noteholders or the Indenture Trustee pursuant to this Section to approve the
particular form of any proposed amendment or consent, but it shall be sufficient
if such consent shall approve the substance thereof. The manner of obtaining
such consents (and any other consents of Certificateholders provided for in this
Agreement or in any other Basic Document) and of evidencing the authorization of
the execution thereof by Certificateholders shall be subject to such reasonable
requirements as the Owner Trustee may prescribe.

         Promptly after the execution of any amendment to the Certificate of
Trust, the Owner Trustee shall cause the filing of such amendment with the
Secretary of State.

         Prior to the execution of any amendment to this Agreement or the
Certificate of Trust, the Owner Trustee shall be entitled to receive and rely
upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement. The Owner Trustee

                                       26
<PAGE>   31

may, but shall not be obligated to, enter into any such amendment that affects
the Owner Trustee's own rights, duties or immunities under this Agreement or
otherwise.

         In connection with the execution of any amendment to this Agreement or
any amendment of any other agreement to which the Issuer is a party, the Owner
Trustee shall be entitled to receive and conclusively rely upon an Opinion of
Counsel to the effect that such amendment is authorized or permitted by the
Basic Documents and that all conditions precedent in the Basic Documents for the
execution and delivery thereof by the Issuer or the Owner Trustee, as the case
may be, have been satisfied.

         SECTION 11.02. No Legal Title to Owner Trust Estate in Owners. The
Owners shall not have legal title to any part of the Owner Trust Estate. The
Owners shall be entitled to receive distributions with respect to their
undivided ownership interest therein only in accordance with Articles V and IX.
No transfer, by operation of law or otherwise, of any right, title or interest
of the Owners to and in their ownership interest in the Trust shall operate to
terminate this Agreement or the trusts hereunder or entitle any transferee to an
accounting or to the transfer to it of legal title to any part of the Owner
Trust Estate.

         SECTION 11.03. Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Owner Trustee, the Depositor, the
Company, the Owners, the Administrator and, to the extent expressly provided
herein, the Indenture Trustee and the Noteholders, and nothing in this
Agreement, whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Owner Trust Estate
or under or in respect of this Agreement or any covenants, conditions or
provisions contained herein.

         SECTION 11.04. Notices. (a) Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing and shall be
deemed given upon receipt by the intended recipient or three Business Days after
mailing if mailed by certified mail, postage prepaid (except that notice to the
Owner Trustee shall be deemed given only upon actual receipt by the Owner
Trustee), if to the Owner Trustee, addressed to the Corporate Trust Office; if
to the Depositor, addressed to Chrysler Financial Company L.L.C., 27777 Franklin
Road, Southfield, Michigan 48034, Attention of Assistant Secretary; if to the
Company, addressed to DaimlerChrysler Retail Receivables, LLC, 27777 Franklin
Road, Southfield, Michigan 48034, Attention of Assistant Secretary; or, as to
each party, at such other address as shall be designated by such party in a
written notice to each other party.

         (b) Any notice required or permitted to be given to a Certificateholder
shall be given by first-class mail, postage prepaid, at the address of such
Holder as shown in the Certificate Register. Any notice so mailed within the
time prescribed in this Agreement shall be conclusively presumed to have been
duly given, whether or not the Certificateholder receives such notice.

         SECTION 11.05. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any

                                       27
<PAGE>   32

such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

         SECTION 11.06. Separate Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

         SECTION 11.07. Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, each of the
Depositor, the Company and its permitted assignees, the Owner Trustee and its
successors and each Owner and its successors and permitted assigns, all as
herein provided. Any request, notice, direction, consent, waiver or other
instrument or action by an Owner shall bind the successors and assigns of such
Owner.

         SECTION 11.08. Covenants of Company. In the event that any litigation
with claims in excess of $1,000,000 to which the Company is a party which shall
be reasonably likely to result in a material judgment against the Company that
the Company will not be able to satisfy shall be commenced by an Owner, during
the period beginning nine months following the commencement of such litigation
and continuing until such litigation is dismissed or otherwise terminated (and,
if such litigation has resulted in a final judgment against the Company, such
judgment has been satisfied), the Company shall not make any distribution on or
in respect of its membership interests to any of its members, or repay the
principal amount of any indebtedness of the Company held by CFC, unless (i)
after giving effect to such distribution or repayment, the Company's liquid
assets shall not be less than the amount of actual damages claimed in such
litigation or (ii) the Rating Agency Condition shall have been satisfied with
respect to any such distribution or repayment. The Company will not at any time
institute against the Trust any bankruptcy proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Certificates, the Notes, this Agreement or any of the Basic
Documents.

         SECTION 11.09. No Petition. The Owner Trustee, by entering into this
Agreement, each Certificateholder, by accepting a Certificate, and the Indenture
Trustee and each Noteholder, by accepting the benefits of this Agreement, hereby
covenant and agree that they will not at any time institute against the Company
or the Trust, or join in any institution against the Company or the Trust of,
any bankruptcy proceedings under any United States federal or state bankruptcy
or similar law in connection with any obligations relating to the Certificates,
the Notes, this Agreement or any of the Basic Documents.

         SECTION 11.10. No Recourse. Each Certificateholder by accepting a
Certificate acknowledges that such Certificateholder's Certificates represent
beneficial interests in the Trust only and do not represent interests in or
obligations of the Depositor, the Servicer, the Company, the Administrator, the
Owner Trustee, the Indenture Trustee or any Affiliate thereof and no recourse
may be had against such parties or their assets, except as may be expressly set
forth or contemplated in this Agreement, the Certificates or the Basic
Documents.

         SECTION 11.11. Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

                                       28
<PAGE>   33

         SECTION 11.12. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         SECTION 11.13. Certificate Transfer Restrictions. The Certificates may
not be acquired by or for the account of (i) an employee benefit plan (as
defined in Section 3(3) of ERISA) that is subject to the provisions of Title I
of ERISA, (ii) a plan described in Section 4975(e)(1) of the Code or (iii) any
entity whose underlying assets include plan assets by reason of a plan's
investment in the entity (each, a "Benefit Plan"). By accepting and holding a
Certificate, the Holder thereof shall be deemed to have represented and
warranted that it is not a Benefit Plan.

         SECTION 11.14. Depositor Payment Obligation. The Depositor shall be
responsible for payment of the Administrator's fees under the Administration
Agreement and shall reimburse the Administrator for all expenses and liabilities
of the Administrator incurred thereunder. In addition, the Depositor shall be
responsible for the payment of all fees and expenses of the Trust, the Owner
Trustee and the Indenture Trustee paid by any of them in connection with any of
their obligations under the Basic Documents to obtain or maintain any required
license under the Pennsylvania Motor Vehicle Sales Finance Act.

                                       29
<PAGE>   34

         IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Trust Agreement to be duly executed by their respective officers
hereunto duly authorized, as of the day and year first above written.

                   CHRYSLER FINANCIAL COMPANY L.L.C.,
                      as Depositor

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

                   DAIMLERCHRYSLER RETAIL RECEIVABLES LLC

                   By:   Chrysler Financial Receivables Corporation,
                         as a Member

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

                   CHASE MANHATTAN BANK DELAWARE,
                    not in its individual capacity but solely as Owner Trustee

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

                                       30
<PAGE>   35

                                                                       EXHIBIT A

                               Form of Certificate

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN EXEMPTION THEREFROM. IN ADDITION, THE TRANSFER OF THIS
CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS AND CONDITIONS SET FORTH IN
SECTION 3.04 OF THE TRUST AGREEMENT UNDER WHICH THIS CERTIFICATE IS ISSUED (A
COPY OF WHICH TRUST AGREEMENT IS AVAILABLE FROM THE OWNER TRUSTEE OR UPON
REQUEST), INCLUDING RECEIPT BY THE OWNER TRUSTEE OF AN INVESTMENT LETTER IN
WHICH THE TRANSFEREE MAKES CERTAIN REPRESENTATIONS.

No. R-1                                              Percentage Interest:     %
                                                                         -----

                        DAIMLERCHRYSLER AUTO TRUST 2000-B

                                   CERTIFICATE

evidencing a fractional undivided interest in the Trust, as defined below, the
property of which includes a pool of retail installment sale contracts and the
Amortizing Payments on the Fixed Value Receivables (each as defined herein)
secured by new and used automobiles and light duty trucks.

(This Certificate does not represent an interest in or obligation of Chrysler
Financial Company L.L.C. or any of its affiliates, except to the extent
described below.)

         THIS CERTIFIES THAT                        . is the registered owner of
a            PERCENT nonassessable, fully-paid, undivided percentage interest in
DaimlerChrysler Auto Trust 2000-B (the "Trust"), formed by Chrysler Financial
Company L.L.C., a Michigan limited liability company (the "Depositor"), and
DaimlerChrysler Retail Receivables LLC, a Michigan limited liability company
(the "Company"). The initial Certificate Balance is $74,354,000.

                                     A-1-1

<PAGE>   36

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within-mentioned Trust
Agreement.

CHASE MANHATTAN BANK DELAWARE,               CHASE MANHATTAN BANK DELAWARE,
as Owner Trustee                    or       as Owner Trustee

                                             by:    THE CHASE MANHATTAN BANK,
                                                    as Authenticating Agent

by:                                          by:
   -------------------------                    -------------------------
     Authorized Signatory                       Authorized Signatory

                                     A-1-2
<PAGE>   37

         The Trust was created pursuant to a Trust Agreement dated as of May 1,
2000, as amended and restated by an Amended and Restated Trust Agreement dated
as of May 1, 2000 (as so amended and restated and further amended or
supplemented from time to time, the "Trust Agreement"), among the Depositor, the
Company and Chase Manhattan Bank Delaware, as owner trustee (the "Owner
Trustee"), a summary of certain of the pertinent provisions of which is set
forth below. To the extent not otherwise defined herein, the capitalized terms
used herein have the meanings assigned to them in the Trust Agreement or the
Sale and Servicing Agreement dated as of May 1, 2000 (as amended and
supplemented from time to time, the "Sale and Servicing Agreement"), between the
Trust and the Depositor, as seller and as servicer (in such capacity, the
"Servicer"), as applicable.

         This Certificate is one of the duly authorized class of certificates
(herein called the "Certificates"). Also issued under an Indenture dated as of
May 1, 2000 (the "Indenture"), between the Trust and Bank One, National
Association, as indenture trustee, are the four classes of Notes designated as
"Class A-1 6.72% Asset Backed Notes," "Class A-2 7.30% Asset Backed Notes,"
"Class A-3 7.53% Asset Backed Notes" and "Class A-4 7.63% Asset Backed Notes"
(collectively, the "Notes"). This Certificate is issued under and is subject to
the terms, provisions and conditions of the Trust Agreement, to which Trust
Agreement the Holder of this Certificate by virtue of its acceptance hereof
assents and by which such Holder is bound. The property of the Trust consists of
a pool of retail installment sale contracts for new and used automobiles and
light duty trucks and the Amortizing Payments on the Fixed Value Receivables
(collectively, the "Receivables"), all monies received on or after April 27,
2000, security interests in the vehicles financed thereby, certain bank accounts
and the proceeds thereof, proceeds from claims on certain insurance policies and
certain other rights under the Trust Agreement and the Sale and Servicing
Agreement and all proceeds of the foregoing. The term "Fixed Value Receivables"
shall mean retail sale contracts secured by new automobiles or light duty trucks
with a series of fixed level payment monthly installments (the "Amortizing
Payments") and a final fixed value payment that is greater than each Amortizing
Payment. Distributions, if any, in respect of this Certificate will be made
pursuant to Section 5.02 of the Trust Agreement.

         It is the intent of the Depositor, the Company, the Servicer and the
Certificateholder that, for purposes of federal income, state and local income
and single business tax and any other income taxes, the Trust will be treated as
a security arrangement for the issuance of debt by the sole Certificateholder.
The Company, by acceptance of the Certificates, agrees to treat, and to take no
action inconsistent with the above treatment for so long as the Company is the
sole Owner.

         Solely in the event the Certificates are held by more than a single
Owner, it is the intent of the Depositor, the Company, the Servicer and the
Certificateholders that, for purposes of federal income, state and local income
and single business tax and any other income taxes, the Trust will be treated as
a partnership and the Certificateholders (including the Company) will be treated
as partners in the partnership. The Company and the other Certificateholders, by
acceptance of a Certificate, agree to treat, and to take no action inconsistent
with the Treatment of, the Certificates for such tax purposes as partnership
interests in the Trust.

                                     A-1-3
<PAGE>   38

         Each Certificateholder, by its acceptance of a Certificate covenants
and agrees that such Certificateholder will not at any time institute against
the Company, or join in any institution against the Company of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Certificates, the Notes, the
Trust Agreement or any of the Basic Documents.

         Distributions on this Certificate will be made as provided in the Trust
Agreement by the Paying Agent by wire transfer or check mailed to the
Certificateholder of record in the Certificate Register without the presentation
or surrender of this Certificate or the making of any notation hereon. Except as
otherwise provided in the Trust Agreement and notwithstanding the above, the
final distribution on this Certificate will be made after due notice by the
Owner Trustee of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency maintained for that
purpose by the Paying Agent in the Borough of Manhattan, The City of New York.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon shall have been
executed by an authorized officer of the Owner Trustee, by manual signature,
this Certificate shall not entitle the Holder hereof to any benefit under the
Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.

         THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

                                     A-1-4
<PAGE>   39

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not
in its individual capacity, has caused this Certificate to be duly executed.

                            DAIMLERCHRYSLER AUTO TRUST 2000-B

                            by:  CHASE MANHATTAN BANK DELAWARE,
                                 not in its individual capacity but solely as
                                 Owner Trustee

Dated:                      by:
                               ----------------------------------------
                                         Authorized Signatory

                                     A-1-5

<PAGE>   40

                            [REVERSE OF CERTIFICATE]

         The Certificates do not represent an obligation of, or an interest in,
the Depositor, the Servicer, the Company, the Owner Trustee or any affiliates of
any of them and no recourse may be had against such parties or their assets,
except as expressly set forth or contemplated herein or in the Trust Agreement
or the Basic Documents. In addition, this Certificate is not guaranteed by any
governmental agency or instrumentality and is limited in right of payment to
certain collections and recoveries with respect to the Receivables (and certain
other amounts), all as more specifically set forth herein and in the Sale and
Servicing Agreement. A copy of each of the Sale and Servicing Agreement and the
Trust Agreement may be examined by any Certificateholder upon written request
during normal business hours at the principal office of the Depositor and at
such other places, if any, designated by the Depositor.

         The Trust Agreement permits, with certain exceptions therein provided,
the amendment thereof and the modification of the rights and obligations of the
Depositor and the Company and the rights of the Certificateholders under the
Trust Agreement at any time by the Depositor, the Company and the Owner Trustee
with the consent of the Holders of the Certificates and the Notes, each voting
as a class, evidencing not less than a majority of the Percentage Interests
evidenced by the outstanding Certificates or a majority of the Outstanding
Amount of the Notes of each such class. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and on all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent is made upon this Certificate. The Trust Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

         As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registerable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies of the Certificate Registrar maintained by
the Owner Trustee in the Borough of Manhattan, The City of New York, accompanied
by a written instrument of transfer in form satisfactory to the Owner Trustee
and the Certificate Registrar duly executed by the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of authorized denominations evidencing the same aggregate interest
in the Trust will be issued to the designated transferee. The initial
Certificate Registrar appointed under the Trust Agreement is The Chase Manhattan
Bank, New York, New York.

         Except as provided in the Trust Agreement, the Certificates are
issuable only as registered Certificates. As provided in the Trust Agreement and
subject to certain limitations therein set forth, Certificates are exchangeable
for new Certificates of authorized denominations evidencing the same aggregate
denomination, as requested by the Holder surrendering the same. No service
charge will be made for any such registration of transfer or exchange, but the
Owner Trustee or the Certificate Registrar may require payment of a sum
sufficient to cover any tax or governmental charge payable in connection
therewith.

         The Owner Trustee, the Certificate Registrar and any agent of the Owner
Trustee or the Certificate Registrar may treat the Person in whose name this
Certificate is registered as the

                                     A-1-6
<PAGE>   41

owner hereof for all purposes, and none of the Owner Trustee, the Certificate
Registrar or any such agent shall be affected by any notice to the contrary.

         The obligations and responsibilities created by the Trust Agreement and
the Trust created thereby shall terminate upon the payment to Certificateholders
of all amounts required to be paid to them pursuant to the Trust Agreement and
the Sale and Servicing Agreement and the disposition of all property held as
part of the Owner Trust Estate. The Servicer of the Receivables may at its
option purchase the Owner Trust Estate at a price specified in the Sale and
Servicing Agreement, and such purchase of the Receivables and other property of
the Trust will effect early retirement of the Certificates; provided, however,
such right of purchase is exercisable only as of the last day of any Collection
Period as of which the Pool Balance is less than or equal to 10% of the Original
Pool Balance.

         The Certificates may not be acquired by (a) an employee benefit plan
(as defined in Section 3(3) of ERISA) that is subject to the provisions of Title
I of ERISA, (b) a plan described in Section 4975(e)(1) of the Code or (c) any
entity whose underlying assets include plan assets by reason of a plan's
investment in the entity or which uses plan assets to acquire Certificates
(each, a "Benefit Plan"). By accepting and holding this Certificate, the Holder
hereof shall be deemed to have represented and warranted that it is not a
Benefit Plan.

                                     A-1-7

<PAGE>   42

                                   ASSIGNMENT

         FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

--------------------------------------------------------------------------------
 (Please print or type name and address, including postal zip code, of assignee)

the within Certificate, and all rights thereunder, and hereby irrevocably

constitutes and appoints              , attorney, to transfer said Certificate
                        --------------
on the books of the Certificate Registrar, with full power of substitution in

the premises.

Dated:                                                                 */
                                                                       -
                               ----------------------------------------
                                         Signature Guaranteed:

                                                                       */
                                                                       -
                                            ----------------------------

-----------------

  */     NOTICE: The signature to this assignment must correspond with the name
  -      of the registered owner as it appears on the face of the within
         Certificate in every particular, without alteration, enlargement or any
         change whatever. Such signature must be guaranteed by an "eligible
         guarantor institution" meeting the requirements of the Certificate
         Registrar, which requirements include membership or participation in
         STAMP or such other "signature guarantee program" as may be determined
         by the Certificate Registrar in addition to, or in substitution for,
         STAMP, all in accordance with the Securities Exchange Act of 1934, as
         amended.

                                     A-1-8

<PAGE>   43

                                                                       EXHIBIT B

        Form of Certificate of Trust of DaimlerChrysler Auto Trust 2000-B

         THIS Certificate of Trust of DaimlerChrysler Auto Trust 2000-B (the

"Trust"), dated          , 2000-B, is being duly executed and filed by Chase
                ---------
Manhattan Bank Delaware, a Delaware banking corporation, as trustee, to form a

business trust under the Delaware Business Trust Act (12 Del. Code, ss. 3801 et

seq.).

         1. Name. The name of the business trust formed hereby is

DAIMLERCHRYSLER AUTO TRUST 2000-B.

         2. Delaware Trustee. The name and business address of the trustee of

the Trust in the State of Delaware is Chase Manhattan Bank Delaware, 1201 Market

Street, Wilmington, Delaware 19801, Attention: Corporate Trustee Administration

Department.

         3. Effective Date. This Certificate of Trust shall be effective upon

its filing with the Secretary of State of the State of Delaware.

         IN WITNESS WHEREOF, the undersigned, being the sole trustee of the

Trust, has executed this Certificate of Trust as of the date first above

written.

                     CHASE MANHATTAN BANK DELAWARE,
                     not in its individual capacity but as owner trustee under
                     the Trust Agreement dated as of             , 2000-B
                                                     ------------

                     by:
                        ----------------------------------------
                               Name:
                               Title:

                                      B-1
<PAGE>   44

                                                                       EXHIBIT C

                         FORM OF TRANSFEROR CERTIFICATE

                         [DATE]

[Seller]
[Seller Address]
[Owner Trustee]
[Owner Trustee Address]

                  Re:      DaimlerChrysler Auto Trust 2000-B Certificates

Ladies and Gentlemen:

         In connection with our disposition of the above-referenced Certificates
(the "Certificates") we certify that (a) we understand that the Certificates
have not been registered under the Securities Act of 1933, as amended (the
"Act"), and are being transferred by us in a transaction that is exempt from the
registration requirements of the Act and (b) we have not offered or sold any
Certificates to, or solicited offers to buy any Certificates from, any person,
or otherwise approached or negotiated with any person with respect thereto, in a
manner that would be deemed, or taken any other action which would result in, a
violation of Section 5 of the Act.

                          Very truly yours,

                          [NAME OF TRANSFEROR]

                          By:
                             --------------------------
                                Authorized Officer

                                       C-1
<PAGE>   45

                                                                       EXHIBIT D

                            FORM OF INVESTMENT LETTER

                      [DATE]

[Seller]
[Seller Address]
[Owner Trustee]
[Owner Trustee Address]

                  Re:      DaimlerChrysler Auto Trust 2000-B  Certificates

Ladies and Gentlemen:

         In connection with our acquisition of the above-referenced Certificates
(the "Certificates") we certify that (a) we understand that the Certificates are
not being registered under the Securities Act of 1933, as amended (the "Act"),
or any state securities laws and are being transferred to us in a transaction
that is exempt from the registration requirements of the Act and any such laws,
(b) we are an "accredited investor," as defined in Regulation D under the Act,
and have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and receive
answers from the seller concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificates, (d) we are acquiring the Certificates for
investment for our own account and not with a view to any distribution of such
Certificates (but without prejudice to our right at all times to sell or
otherwise dispose of the Certificates in accordance with clause (f) below), (e)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, or taken any other action that would result in a
violation of Section 5 of the Act or any state securities laws and (f) we will
not sell, transfer or otherwise dispose of any Certificates unless (1) such
sale, transfer or other disposition is made pursuant to an effective
registration statement under the Act and in compliance with any relevant state
securities laws or is exempt from such registration requirements and, if
requested, we will at our expense provide an Opinion of Counsel satisfactory to
the addresses of this certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Amended and Restated Trust dated as of May 1, 2000, between Chrysler
Financial Company L.L.C., as Depositor, DaimlerChrysler Retail Receivables LLC
and Chase Manhattan Bank Delaware, as Owner Trustee.

                        Very truly yours,

                        [NAME OF TRANSFEROR]

                        By:
                           -------------------------------
                              Authorized Officer

                                       D-1
<PAGE>   46

                                                                       EXHIBIT E

                            FORM OF RULE 144A LETTER

                      [DATE]

[Seller]
[Seller Address]
[Owner Trustee]
[Owner Trustee Address]

                  Re:      DaimlerChrysler Auto Trust 2000-B Certificates

Ladies and Gentlemen:

         In connection with our acquisition of the above-referenced Certificates
(the "Certificates") we certify that (a) we understand that the Certificates are
not being registered under the Securities Act of 1933, as amended (the "Act"),
or any state securities laws and are being transferred to us in a transaction
that is exempt from the registration requirements of the Act and any such laws,
(b) we have such knowledge and experience in financial and business matters that
we are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and receive
answers from the seller concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificates, (d) we have not, nor has anyone acting on
our behalf, offered, transferred, pledged, sold or otherwise disposed of the
Certificates or any interest in the Certificates, or solicited any offer to buy,
transfer, pledge or otherwise dispose of the Certificates or any interest in the
Certificates from any person in any manner, or made any general solicitation by
means of general advertising or in any other manner, or taken any other action
that would constitute a distribution of the Certificates under the Act or that
would render the disposition of the Certificates a violation of Section 5 of the
Act or any state securities laws or require registration pursuant thereto, and
we will not act, or authorize any person to act, in such manner with respect to
the Certificates, (e) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Act. We are aware that the sale to us is being
made in reliance on Rule 144A. We are acquiring the Certificates for our own
account or for resale pursuant to Rule 144A and understand that such
Certificates may be resold, pledged or transferred only (i) to a person
reasonably believed to be a qualified institutional buyer that purchases for its
own account or for the account of a qualified institutional buyer to whom notice
is given that the resale, pledge or transfer is being made in reliance on Rule
144A or (ii) pursuant to another exemption from registration under the Act.

                       Very truly yours,

                       [NAME OF TRANSFEROR]

                       By:
                          --------------------------------
                             Authorized Officer

                                      E-1

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