Document:

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                                                                   EXHIBIT 10.89

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                                  EZCORP, INC.

                           THIRD AMENDED AND RESTATED
                                CREDIT AGREEMENT

                            DATED AS OF APRIL 8, 2004

                     WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                    AS AGENT

                                       AND

                                  ISSUING BANK

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                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----
<S>      <C>               <C>                                                                                  <C>
ARTICLE I                  Definitions...........................................................................29
         Section 1.1       Definitions...........................................................................29
         Section 1.2       Other Definitional Provisions.........................................................41

ARTICLE II                 Revolving Credit Loan and Swing Loan..................................................42
         Section 2.1       Revolving Credit Commitments..........................................................42
         Section 2.2       Revolving Credit Notes................................................................42
         Section 2.3       Repayment of Revolving Credit Loan....................................................42
         Section 2.4       Interest..............................................................................42
         Section 2.5       Revolving Credit Loan Borrowing Procedure.............................................42
         Section 2.6       Conversions and Continuations.........................................................43
         Section 2.7       Swing Loans...........................................................................43
         Section 2.8       Use of Proceeds.......................................................................44
         Section 2.9       Fees..................................................................................44
         Section 2.10      Determination of Eurodollar Margin and Base Rate Margin...............................44
         Section 2.11      Reduction or Termination of Commitments...............................................45

ARTICLE III                Letters of Credit.....................................................................45
         Section 3.1       Letters of Credit.....................................................................45
         Section 3.2       Procedure for Issuing Letters of Credit...............................................46
         Section 3.3       Presentment and Reimbursement.........................................................46
         Section 3.4       Payment...............................................................................47
         Section 3.5       Letter of Credit Fee..................................................................47
         Section 3.6       Obligations Absolute..................................................................47
         Section 3.7       Limitation of Liability...............................................................48

ARTICLE IV                 Payments..............................................................................48
         Section 4.1       Method of Payment.....................................................................48
         Section 4.2       Voluntary Prepayment..................................................................48
         Section 4.3       Mandatory Prepayments.................................................................49
         Section 4.4       Pro Rata Treatment....................................................................49
         Section 4.5       Non-Receipt of Funds by the Agent.....................................................49
         Section 4.6       Taxes.................................................................................50
         Section 4.7       Tax Forms.............................................................................50
         Section 4.8       Computation of Interest...............................................................51
         Section 4.9       Proceeds of Collateral and Collections under the Guaranty.............................52

ARTICLE V                  Yield Protection; Limitations on Advances; Capital Adequacy...........................52
         Section 5.1       Additional Costs......................................................................52
         Section 5.2       Limitation on Types of Advances.......................................................53
         Section 5.3       Illegality............................................................................53
         Section 5.4       Treatment of Affected Advances........................................................54
         Section 5.5       Compensation..........................................................................54
         Section 5.6       Capital Adequacy......................................................................54
         Section 5.7       Additional Costs in Respect of Letters of Credit......................................54

ARTICLE VI                 Conditions Precedent..................................................................55
         Section 6.1       Initial Extension of Credit...........................................................55
         Section 6.2       All Extensions of Credit..............................................................56
</TABLE>

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<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----
<S>      <C>               <C>                                                                                  <C>
ARTICLE VII                Representations and Warranties........................................................56
         Section 7.1       Existence.............................................................................56
         Section 7.2       Financial Statements..................................................................56
         Section 7.3       Action; No Breach.....................................................................56
         Section 7.4       Operation of Business.................................................................57
         Section 7.5       Litigation and Judgments..............................................................57
         Section 7.6       Rights in Properties; Liens...........................................................57
         Section 7.7       Enforceability........................................................................57
         Section 7.8       Approvals.............................................................................57
         Section 7.9       Debt..................................................................................57
         Section 7.10      Taxes.................................................................................57
         Section 7.11      Use of Proceeds; Margin Securities....................................................57
         Section 7.12      ERISA.................................................................................57
         Section 7.13      Disclosure............................................................................58
         Section 7.14      Subsidiaries..........................................................................58
         Section 7.15      Agreements............................................................................58
         Section 7.16      Compliance with Laws..................................................................58
         Section 7.17      Investment Company Act................................................................58
         Section 7.18      Public Utility Holding Company Act....................................................58
         Section 7.19      Environmental Matters.................................................................58

ARTICLE VIII               Positive Covenants....................................................................59
         Section 8.1       Reporting Requirements................................................................59
         Section 8.2       Maintenance of Existence; Conduct of Business.........................................61
         Section 8.3       Maintenance of Properties.............................................................61
         Section 8.4       Taxes and Claims......................................................................61
         Section 8.5       Insurance.............................................................................61
         Section 8.6       Inspection Rights; Audits.............................................................61
         Section 8.7       Keeping Books and Records.............................................................61
         Section 8.8       Compliance with Laws..................................................................61
         Section 8.9       Compliance with Agreements............................................................61
         Section 8.10      Further Assurances....................................................................61
         Section 8.11      ERISA.................................................................................62
         Section 8.12      Landlord's Waivers or Subordinations..................................................62

ARTICLE IX                 Negative Covenants....................................................................62
         Section 9.1       Debt..................................................................................62
         Section 9.2       Limitation on Liens...................................................................63
         Section 9.3       Mergers, Etc..........................................................................63
         Section 9.4       Restricted Payments...................................................................64
         Section 9.5       Investments...........................................................................64
         Section 9.6       Limitation on Issuance of Capital Stock...............................................64
         Section 9.7       Transactions With Affiliates..........................................................64
         Section 9.8       Disposition of Assets.................................................................64
         Section 9.9       Nature of Business....................................................................65
         Section 9.10      Environmental Protection..............................................................65
         Section 9.11      Accounting............................................................................65
         Section 9.12      Prepayment of Debt....................................................................65
         Section 9.13      Pay-Day Advance Loans.................................................................65

ARTICLE X                  Financial Covenants...................................................................65
         Section 10.1      Consolidated Net Worth................................................................65
</TABLE>

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<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----
<S>      <C>               <C>                                                                                  <C>
         Section 10.2      Senior Leverage Ratio.................................................................65
         Section 10.3      Total Leverage Ratio..................................................................65
         Section 10.4      Capital Expenditures..................................................................66
         Section 10.5      Inventory Turnover....................................................................66
         Section 10.6      Fixed Charge Coverage Ratio...........................................................66

ARTICLE XI                 Default...............................................................................66
         Section 11.1      Events of Default.....................................................................66
         Section 11.2      Remedies..............................................................................67
         Section 11.3      Cash Collateral.......................................................................68
         Section 11.4      Performance by the Agent..............................................................68

ARTICLE XII                The Agent.............................................................................68
         Section 12.1      Appointment, Powers and Immunities....................................................68
         Section 12.2      Rights of Agent as a Lender...........................................................69
         Section 12.3      Sharing of Payments, Etc..............................................................70
         Section 12.4      Indemnification.......................................................................70
         Section 12.5      Independent Credit Decisions..........................................................70
         Section 12.6      Several Commitments...................................................................71
         Section 12.7      Successor Agent.......................................................................71
         Section 12.8      Agent May File Proofs of Claim........................................................71
         Section 12.9      Collateral and Guaranty Matters.......................................................72

ARTICLE XIII               Miscellaneous.........................................................................72
         Section 13.1      Expenses..............................................................................72
         Section 13.2      INDEMNIFICATION.......................................................................72
         Section 13.3      Limitation of Liability...............................................................73
         Section 13.4      No Duty...............................................................................73
         Section 13.5      No Fiduciary Relationship.............................................................73
         Section 13.6      Equitable Relief......................................................................73
         Section 13.7      No Waiver; Cumulative Remedies........................................................73
         Section 13.8      Successors and Assigns................................................................73
         Section 13.9      Survival..............................................................................75
         Section 13.10     Amendments, Etc.......................................................................75
         Section 13.11     Maximum Interest Rate.................................................................75
         Section 13.12     Notices...............................................................................76
         Section 13.13     Governing Law; Venue; Service of Process..............................................76
         Section 13.14     Binding Arbitration...................................................................76
         Section 13.15     Counterparts..........................................................................78
         Section 13.16     Severability..........................................................................78
         Section 13.17     Headings..............................................................................78
         Section 13.18     Non-Application of Chapter 346 of Texas Finance Code..................................78
         Section 13.19     Construction..........................................................................78
         Section 13.20     Independence of Covenants.............................................................78
         Section 13.21     Confidentiality.......................................................................78
         Section 13.22     USA Patriot Act Notice................................................................78
         Section 13.23     WAIVER OF JURY TRIAL..................................................................78
         Section 13.24     ENTIRE AGREEMENT......................................................................78
         Section 13.25     Amendment and Restatement.............................................................79
</TABLE>

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                                INDEX TO EXHIBITS

<TABLE>
<CAPTION>
Exhibit           Description of Exhibit
-------           ----------------------
<S>               <C>
    A             Form of Revolving Credit Note
    B             Form of Swing Note
    C             Advance Request Form
    D             Letter of Credit Request Form
    E             Form of Assignment and Acceptance
    F             Form of Collateral Report
</TABLE>

                               INDEX TO SCHEDULES

<TABLE>
<CAPTION>
Schedule          Description of Schedule
--------          -----------------------
<S>               <C>
1.1(a)            Commitments
1.1(c)            Pay-Day Advance Loan Documents
1.1(d)            Real Property
7.14              List of Subsidiaries
9.1               Existing Debt
9.2               Existing Liens
</TABLE>

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<PAGE>

                   THIRD AMENDED AND RESTATED CREDIT AGREEMENT

      THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT (the "Agreement"), dated
as of April 8, 2004, is among EZCORP, INC., a Delaware corporation (the
"Borrower"), each of the banks or other lending institutions which is or which
may from time to time become a signatory hereto or any successor or assignee
thereof (individually, a "Lender" and, collectively, the "Lenders"), and WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association (successor by
merger to Wells Fargo Bank Texas, National Association), as agent for itself and
the other Lenders (in such capacity, together with its successors in such
capacity, the "Agent") and as the Issuing Bank (hereinafter defined).

                                 R E C I T A L S

      A. The Borrower, the Agent, the Issuing Bank and certain banks or other
lending institutions party thereto have entered into that certain Second Amended
and Restated Credit Agreement dated as of October 30, 2002, as amended through
the date hereof (as amended, the "Existing Credit Agreement").

      B. The Borrower has requested and the Agent, the Issuing Bank and the
Lenders have agreed to restructure the existing revolving credit facility,
standby letter of credit subfacility and swing-line subfacility, and to amend
and modify the Existing Credit Agreement upon the terms and conditions
hereinafter set forth.

      NOW THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the parties hereto agree as follows:

                                   Definitions

Definitions. As used in this Agreement, the following terms have the following
meanings:

            "AAA" is defined in Section 13.14(b).

            "Accumulated Other Comprehensive Income" means, at any particular
      time, the amount shown in the equity section of the Borrower's
      consolidated balance sheet.

            "Act" is defined in Section 13.22.

            "Additional Costs" is defined in Section 5.1.

            "Adjusted Eurodollar Rate" means, for any Eurodollar Advance for any
      Interest Period therefor, the rate per annum (rounded upwards, if
      necessary, to the nearest 1/16 of 1%) determined by the Agent to be equal
      to the Eurodollar Rate for such Eurodollar Advance for such Interest
      Period.

            "Adjustment Date" is defined in Section 2.10.

            "Advance" means an advance of funds by the Lenders or any of them to
      the Borrower pursuant to Article II (inclusive of the Revolving Credit
      Loan and the Swing Loan) and the Continuation or Conversion thereof
      pursuant to Section 2.6 and Article V hereof.

            "Advance Request Form" means a certificate, in substantially the
      form of Exhibit C hereto, properly completed and signed by the Borrower
      requesting an Advance.

            "Affiliate" means, as to any Person, any other Person (a) that
      directly or indirectly, through one or more intermediaries, controls or is
      controlled by, or is under common control with, such Person; (b) that
      directly or indirectly beneficially owns or holds 5% or more of any class
      of voting stock of such Person; or (c) 5% or more of the voting stock of
      which is directly or indirectly beneficially owned or held by the Person
      in question. The term "control" means the possession, directly or
      indirectly, of the power to direct or cause direction of the management
      and policies of a Person, whether through the ownership of voting

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      securities, by contract, or otherwise; provided, however, in no event
      shall the Agent or any Lender be deemed an Affiliate of the Borrower or
      any of its Subsidiaries.

            "Agent" has the meaning set forth in the introductory paragraph of
      this Agreement.

            "Agreement" has the meaning set forth in the introductory paragraph
      of this Agreement, as the same may from time to time be amended, restated,
      supplemented or modified.

            "Applicable Lending Office" means for each Lender and each Type of
      Advance, the lending office of such Lender (or of an Affiliate of such
      Lender) designated for such Type of Advance below its name on the
      signature pages hereof or such other office of such Lender (or of an
      Affiliate of such Lender) as such Lender may from time to time specify to
      the Borrower and the Agent as the office by which its Advances of such
      Type are to be made and maintained.

            "Applicable Rate" means: (a) during the period that an Advance is a
      Base Rate Advance, the Base Rate, plus the Base Rate Margin, and (b)
      during the period that an Advance is a Eurodollar Advance, the Adjusted
      Eurodollar Rate, plus the Eurodollar Margin.

            "Approved Fund" means any Fund that is administered or managed by
      (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
      Affiliate of an entity that administers or manages a Lender.

            "Assigning Lender" is defined in Section 13.8(b).

            "Assignment and Acceptance" means an assignment and acceptance
      entered into by a Lender and its assignee and accepted by the Agent
      pursuant to Section 13.8, in substantially the form of Exhibit E hereto.

            "Average Inventory" means Inventory calculated by dividing the total
      of all ending Inventory for each month for the most recent 13 months by
      13.

            "Base Rate" means as of any date of determination, a rate per annum
      equal to the greater of (a) the Prime Rate in effect on such day, or (b)
      the sum of the Federal Funds Rate in effect on such day plus 0.5%. Any
      change in the Base Rate due to a change in the Prime Rate or the Federal
      Funds Rate shall be effective on the effective date of such change in the
      Prime Rate or the Federal Funds Rate, respectively, without notice to the
      Borrower.

            "Base Rate Advances" means Advances that bear interest at rates
      based upon the Base Rate.

            "Base Rate Margin" has the meaning set forth in Section 2.10.

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

            "Borrower Security Agreement" means that certain Second Amended and
      Restated Borrower Security Agreement dated as of the date hereof, executed
      by the Borrower in favor of the Agent for the benefit of the Lenders, in
      form and substance satisfactory to the Agent and Lenders, as the same may
      be amended, restated, supplemented, or modified from time to time.

            "Brady Law" means the Brady Handgun Violence Prevention
      Act Section 102(s)(1), 18 U.S.C.A. Section 922(s)(1) (West Supp. 2003).

            "Business Day" means (a) any day on which commercial banks are not
      authorized or required to close in Austin, Texas and (b) with respect to
      all borrowings, payments, Conversions, Continuations, Interest Periods,
      and notices in connection with Eurodollar Advances, any day on which
      dealings in Dollar deposits are carried out in the London interbank
      market.

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            "Capital Expenditures" means, for any period, all expenditures of
      the Borrower and its Subsidiaries which are classified as additions to
      property, plant and equipment on the consolidated statement of cash flows
      of the Borrower in accordance with GAAP, including all such expenditures
      so classified as "recurring capital expenditures" and all such
      expenditures associated with Capital Lease Obligations, but excluding all
      such expenditures used to acquire fixed assets from a Target in connection
      with a Permitted Acquisition.

            "Capital Lease Obligation" means, as to any Person, the obligations
      of such Person to pay rent or other amounts under a lease of (or other
      agreement conveying the right to use) real and/or personal property, which
      obligations are required to be classified and accounted for as a capital
      lease on a balance sheet of such Person under GAAP. For purposes of this
      Agreement, the amount of such Capital Lease Obligations shall be the
      capitalized amount thereof, determined in accordance with GAAP.

            "Cash Equivalent Investment" means, as to any Person, (a) securities
      issued or directly and fully guaranteed or insured by the United States or
      any agency or instrumentality thereof (provided that the full faith and
      credit of the United States is pledged in support thereof) having
      maturities of not more than six months from the date of acquisition, (b)
      time deposits and certificates of deposit of any commercial bank having,
      or which is the principal banking subsidiary of a bank holding company
      having, a long-term unsecured debt rating of at least "AAA" or the
      equivalent thereof from Standard & Poor's, a division of The McGraw-Hill
      Companies, Inc. or "Aaa" or the equivalent thereof from Moody's Investors
      Service, Inc. with maturities of not more than six months from the date of
      acquisition by such Person, (c) repurchase obligations with a term of not
      more than seven days for underlying securities of the types described in
      clause (a) above entered into with any bank meeting the qualifications
      specified in clause (b) above, (d) commercial paper issued by any Person
      incorporated in the United States rated at least A-1 or the equivalent
      thereof by Standard & Poor's, a division of The McGraw-Hill Companies,
      Inc. or at least P-1 or the equivalent thereof by Moody's Investors
      Service, Inc. and in each case maturing not more than six months after the
      date of acquisition by such Person and (e) investments in money market
      funds substantially all of whose assets are comprised of securities of the
      types described in clauses (a) through (d) above.

            "Code" means the Internal Revenue Code of 1986, as amended, and the
      regulations promulgated and rulings and decisions issued thereunder.

            "Collateral" means the property in which Liens have been granted to
      the Agent for the benefit of the Lenders pursuant to the Borrower Security
      Agreement, the Subsidiary Security Agreement, the Real Property Security
      Documents, or any other agreement, document, or instrument executed by the
      Borrower or a Guarantor in accordance with Section 8.10, whether such
      Liens are now existing or hereafter arise.

            "Commitment" means, as to each Lender, the obligation of such Lender
      to purchase participations (or with respect to the Swing Lender or the
      Issuing Bank, hold other interests in) the Swing Loan and in Letters of
      Credit as described in Articles II and III hereunder, and the Revolving
      Credit Commitment.

            "Commitment Fee" is defined in Section 2.9.

            "Commitment Fee Rate" means 0.375% per annum.

            "Compliance Certificate" is defined in Section 8.1(c).

            "Consolidated Net Income" means, at any particular time, the
      aggregate net income or loss of the Borrower and its consolidated
      Subsidiaries determined on a consolidated basis as determined in
      accordance with GAAP.

            "Consolidated Net Worth" means, at any particular time, all amounts
      which, in conformity with GAAP, would be included as stockholders' equity
      on a consolidated balance sheet of the Borrower and the Subsidiaries;
      provided, however, there shall be excluded therefrom (a) any amount at
      which shares of

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<PAGE>

      capital stock of the Borrower appear as an asset on the Borrower's balance
      sheet, and (b) the Accumulated Other Comprehensive Income.

            "Continue," "Continuation," and "Continued" shall refer to the
      continuation pursuant to Section 2.6 of a Eurodollar Advance as a
      Eurodollar Advance from one Interest Period to the next Interest Period.

            "Contribution and Indemnification Agreement" means that certain
      Second Amended and Restated Contribution and Indemnification Agreement
      dated as of the date hereof executed by the Borrower and the Guarantors,
      in form and substance satisfactory to the Agent and the Lenders, as the
      same may be amended, restated, supplemented or modified from time to time.

            "Convert," "Conversion," and "Converted" shall refer to a conversion
      pursuant to Section 2.6 or Article V of one Type of Advance into another
      Type of Advance.

            "Debt" means as to any Person at any time (without duplication): (a)
      all obligations of such Person for borrowed money, (b) all obligations of
      such Person evidenced by bonds, notes, debentures, or other similar
      instruments, (c) all obligations of such Person to pay the deferred
      purchase price of property or services, except trade accounts payable of
      such Person arising in the ordinary course of business that are not past
      due by more than 90 days, (d) all Capital Lease Obligations of such
      Person, (e) all Debt or other obligations of others Guaranteed by such
      Person, (f) all obligations secured by a Lien existing on property owned
      by such Person, whether or not the obligations secured thereby have been
      assumed by such Person or are non-recourse to the credit of such Person,
      (g) all reimbursement obligations of such Person (whether contingent or
      otherwise) in respect of letters of credit, bankers' acceptances, surety
      or other bonds and similar instruments, and (h) all liabilities of such
      Person in respect of unfunded vested benefits under any Plan.

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

            "Default Rate" means the lesser of (a) the Maximum Rate or, (b) the
      sum of the Base Rate in effect from day to day plus 5% per annum.

            "Deposit and Cash Management Services" means the deposit and/or cash
      management products and services provided by a Lender in connection with
      any deposit or other accounts of the Borrower or any of its Subsidiaries,
      including without limitation, the extensions of credit made by a Lender to
      or for the account of the Borrower or any of its Subsidiaries in the
      ordinary course of business in connection therewith.

            "Disposition" is defined in Section 9.8.

            "Dollars" and "$" mean lawful money of the United States of America.

            "EBITDA" means, for any period of determination, Consolidated Net
      Income, plus, to the extent that any of the following were deducted in
      calculating such Consolidated Net Income, interest expense, tax expenses,
      and depreciation and amortization. EBITDA will exclude all extraordinary
      items of income and loss and any gain or loss on the sale of assets. In
      the event a Permitted Acquisition shall have been consummated prior to the
      end of the period for which EBITDA is calculated, but during the period
      covered by the calculation, the Borrower shall include the historical
      EBITDA (as calculated in accordance with this definition) of the Target in
      connection with a Permitted Acquisition for the time period covered by the
      calculation.

            "Eligible Assignee" means (a) a Lender, (b) an Affiliate of a
      Lender, (c) an Approved Fund, and (d) any other Person (other than a
      natural person) approved by the Agent, and, unless a Default has occurred
      and is continuing at the time any assignment is effected, in accordance
      with Section 13.8, the

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<PAGE>

      Borrower, such approval not to be unreasonably withheld or delayed by the
      Borrower; provided, however, that neither the Borrower nor an Affiliate of
      the Borrower shall qualify as an Eligible Assignee.

            "Environmental Laws" means any and all federal, state, and local
      laws, regulations, and requirements pertaining to health, safety, or the
      environment, as such laws, regulations, and requirements may be amended or
      supplemented from time to time.

            "Environmental Liabilities" means, as to any Person, all
      liabilities, obligations, responsibilities, Remedial Actions, losses,
      damages, punitive damages, consequential damages, treble damages, costs,
      and expenses, (including, without limitation, all reasonable fees,
      disbursements and expenses of counsel, expert and consulting fees and
      costs of investigation and feasibility studies), fines, penalties,
      sanctions, and interest incurred as a result of any claim or demand, by
      any Person, whether based in contract, tort, implied or express warranty,
      strict liability, criminal or civil statute, including any Environmental
      Law, permit, order or agreement with any Governmental Authority or other
      Person, arising from environmental, health or safety conditions or the
      Release or threatened Release of a Hazardous Material into the
      environment.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
      as amended from time to time, and the regulations and published
      interpretations thereunder.

            "ERISA Affiliate" means any corporation or trade or business which
      is a member of the same controlled group of corporations (within the
      meaning of Section 414(b) of the Code) as the Borrower, which is under
      common control (within the meaning of Section 414(c) of the Code) with the
      Borrower, or which is otherwise affiliated with the Borrower (within the
      meaning of Section 414(m) or Section 414(o) of the Code).

            "Eurodollar Advances" means Advances the interest rates on which are
      determined on the basis of the rates referred to in the definition of
      "Adjusted Eurodollar Rate" in this Section 1.1.

            "Eurodollar Margin" is defined in Section 2.10.

            "Eurodollar Rate" means, for any Eurodollar Advance for any Interest
      Period, the rate per annum obtained by dividing (a) the rate per annum
      determined by the Agent at approximately 11:00 a.m. (London time) on the
      date which is two Business Days prior to the beginning of such Interest
      Period by reference to the British Bankers' Association Interest
      Settlement Rates for deposits in Dollars (as set forth by any service
      selected by the Agent which has been nominated by the British Bankers'
      Association as an authorized information vendor for the purpose of
      displaying such rates) for a period equal to such Interest Period;
      provided that, to the extent that an interest rate is not ascertainable
      pursuant to the foregoing provisions of this definition, the "Eurodollar
      Rate" shall be the interest rate per annum determined by the Agent to be
      the average of the rates per annum at which deposits in Dollars are
      offered for such Interest Period to major banks in the London interbank
      market in London, England at approximately 11:00 a.m. (London time) on the
      date which is two Business Days prior to the beginning of such Interest
      Period by (b) a percentage equal to 100% minus the stated maximum rate of
      all reserve requirements (including any marginal, emergency, supplemental,
      special or other reserves) applicable to any member bank of the Federal
      Reserve System in respect of "Eurocurrency liabilities" as defined in
      Regulation D (or any successor category of liabilities under Regulation
      D). Each determination by the Agent pursuant to this definition shall be
      conclusive absent manifest error.

            "Event of Default" is defined in Section 11.1.

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

            "Existing Credit Agreement" is defined in the recitals of this
      Agreement.

            "Existing Debt" means the Debt listed on Schedule 9.1.

                                       33
<PAGE>

            "Federal Funds Rate" means, for any day, the rate per annum (rounded
      upwards, if necessary, to the nearest 1/16 of 1%) equal to the weighted
      average of the rates on overnight Federal funds transactions with members
      of the Federal Reserve System arranged by Federal funds brokers on such
      day, as published by the Federal Reserve Bank of New York on the Business
      Day next succeeding such day, provided that (a) if the day for which such
      rate is to be determined is not a Business Day, the Federal Funds Rate for
      such day shall be such rate on such transactions on the next preceding
      Business Day as so published on the next succeeding Business Day, and (b)
      if such rate is not so published on such next succeeding Business Day, the
      Federal Funds Rate for any day shall be the average rate charged to Wells
      Fargo Bank, National Association on such day on such transactions as
      determined by the Agent.

            "Fiscal Quarter" means any three-month period ending December 31,
      March 31, June 30, or September 30.

            "Fiscal Year" means each 12-month period ending September 30 of each
      year.

            "Fixed Charge Coverage Ratio" means, for each Fiscal Quarter, the
      quotient determined by dividing (a) the sum of EBITDA, plus Rental
      Expense, minus Capital Expenditures, minus dividends paid in cash by the
      Borrower, minus taxes paid in cash by the Borrower and its consolidated
      Subsidiaries, in each case for the period of such Fiscal Quarter, plus the
      three prior Fiscal Quarters, by (b) the sum of the aggregate interest
      expense, the current portion of long-term Debt (excluding the current
      portion of the outstanding balance under the Revolving Credit Commitments)
      and Rental Expense of the Borrower and its consolidated Subsidiaries, in
      each case for the period of such Fiscal Quarter plus the three prior
      Fiscal Quarters.

            "Foreign Lender" is defined in Section 4.7.

            "Fund" means any Person (other than a natural person) that is (or
      will be) engaged in making, purchasing, holding or otherwise investing in
      commercial loans and similar extensions of credit in the ordinary course
      of its business.

            "Funded Debt" means, at any particular time, the sum of the
      following, calculated on a consolidated basis for the Borrower and the
      Subsidiaries in accordance with GAAP: (a) all obligations for borrowed
      money, including but not limited to senior bank debt, senior notes and
      subordinated debt, (b) all obligations relating to the deferred purchase
      price of property and services, (c) all Capital Lease Obligations, (d) all
      obligations as a reimbursement obligor with respect to an issued letter of
      credit or similar instrument (whether drawn or undrawn), and (e) all
      obligations under a Guarantee of borrowed money, or any other type of
      direct or contingent obligation.

            "GAAP" means generally accepted accounting principles, applied on a
      consistent basis, as set forth in Opinions of the Accounting Principles
      Board of the American Institute of Certified Public Accountants and/or in
      statements of the Financial Accounting Standards Board and/or their
      respective successors and which are applicable in the circumstances as of
      the date in question. Accounting principles are applied on a "consistent
      basis" when the accounting principles applied in a current period are
      comparable in all material respects to those accounting principles applied
      in a preceding period.

            "Governmental Authority" means any nation or government, any state
      or political subdivision thereof and any entity exercising executive,
      legislative, judicial, regulatory, or administrative functions of or
      pertaining to government.

            "Guarantee" by any Person means any obligation, contingent or
      otherwise, of such Person directly or indirectly guaranteeing any Debt or
      other obligation of any other Person and, without limiting the generality
      of the foregoing, any obligation, direct or indirect, contingent or
      otherwise, of such Person (a) to purchase or pay (or advance or supply
      funds for the purchase or payment of) such Debt or other obligation
      (whether arising by virtue of partnership arrangements, by agreement to
      keep-well, to purchase assets, goods, securities or services, to
      take-or-pay, or to maintain financial statement conditions or otherwise)
      or

                                       34
<PAGE>

      (b) entered into for the purpose of assuring in any other manner the
      obligee of such Debt or other obligation of the payment thereof or to
      protect the obligee against loss in respect thereof (in whole or in part),
      provided that the term Guarantee shall not include endorsements for
      collection or deposit in the ordinary course of business. The term
      "Guarantee" used as a verb has a corresponding meaning.

            "Guarantor" means each and every domestic Subsidiary of the Borrower
      whether now in existence or hereafter created which include but are not
      limited to those Subsidiaries listed on Schedule 7.14.

            "Guaranty" means that certain Second Amended and Restated Guaranty
      Agreement dated as of the date hereof, executed by the Guarantors in favor
      of the Agent and the Lenders, in form and substance satisfactory to the
      Agent and the Lenders, as the same has been or may be amended, restated,
      supplemented, or otherwise modified from time to time.

            "Hazardous Material" means any substance, product, waste, pollutant,
      material, chemical, contaminant, constituent, or other material which is
      or becomes listed, regulated, or addressed under any Environmental Law.

            "Indemnity Accounts" means collectively, any and all indemnity
      accounts established and maintained by the Borrower or any Subsidiary to
      secure the Borrower's and/or its Subsidiaries' obligations to be incurred
      with County Bank of Rehoboth Beach, Delaware in connection with Pay-Day
      Advance Loans, such obligations to be established and governed by the
      Pay-Day Advance Loan Documents.

            "Interest Period" means the period commencing, with respect to any
      Eurodollar Advances, on the date such Eurodollar Advances are made or
      Converted from Advances of another Type or, in the case of each
      subsequent, successive Interest Period applicable to a Eurodollar Advance,
      the last day of the next preceding Interest Period with respect to such
      Advance, and ending on the numerically corresponding day in the first,
      second, third or sixth calendar month thereafter, as the Borrower may
      select as provided in Section 2.5 or 2.6 hereof, except that each such
      Interest Period which commences on the last Business Day of a calendar
      month (or on any day for which there is no numerically corresponding day
      in the appropriate subsequent calendar month) shall end on the last
      Business Day of the first, second, third or sixth calendar month
      thereafter, as the case may be. Notwithstanding the foregoing: (a) each
      Interest Period which would otherwise end on a day which is not a Business
      Day shall end on the next succeeding Business Day or, if such succeeding
      Business Day falls in the next succeeding calendar month, on the next
      preceding Business Day; (b) any Interest Period for Eurodollar Advances
      under the Revolving Credit Loan which would otherwise extend beyond the
      Termination Date shall end on the Termination Date and the provisions of
      Section 5.5 shall apply; and (c) no Interest Period for any Eurodollar
      Advances shall have a duration of less than one month, and, if the
      Interest Period for any Eurodollar Advances would otherwise be a shorter
      period, such Advances shall not be available hereunder.

            "Inventory" means at any particular time, inventory (as defined in
      the UCC) of the Borrower or any of the Subsidiaries including, without
      limitation, all materials and goods held by or for the benefit of the
      Borrower or any of the Subsidiaries for sale, lease or consumption.

            "Inventory Turnover" means, for each Fiscal Quarter, the quotient
      determined by dividing the cost of Inventory items sold during the most
      recent 12 month period by the Average Inventory for such period.

            "Issuing Bank" means, with respect to any Letter of Credit, Wells
      Fargo Bank, National Association.

            "Landlord Change" means any change in the landlord for a Leased
      Location.

            "LC Participation" means, with respect to any Lender, at any time,
      the amount of participating interest held by such Lender (or in the case
      of the Issuing Bank, other interests) in respect of a Letter of Credit.

                                       35
<PAGE>

            "Leased Location" means any location which is leased by the Borrower
      or any Subsidiary and at which the Borrower or the applicable Subsidiary
      maintains Collateral.

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

            "Lending Party" is defined in Section 13.21.

            "Letter of Credit" means, any standby letter of credit issued by the
      Issuing Bank for the account of the Borrower pursuant to Article III.

            "Letter of Credit Disbursement" means a disbursement by the Issuing
      Bank to the beneficiary of a Letter of Credit in connection with a drawing
      thereunder.

            "Letter of Credit Liabilities" means, at any time, the sum of (a)
      the aggregate amounts available to be drawn of all outstanding Letters of
      Credits and (b) the aggregate amount of all Letter of Credit Disbursements
      for which the Issuing Bank has not been reimbursed by the Borrower.

            "Letter of Credit Request Form" means, a certificate, in
      substantially the form of Exhibit D hereto, properly completed and signed
      by the Borrower requesting issuance of a Letter of Credit.

            "Lien" means any lien, mortgage, security interest, tax lien,
      financing statement, pledge, charge, hypothecation, assignment,
      preference, priority, or other encumbrance of any kind or nature
      whatsoever (including, without limitation, any conditional sale or title
      retention agreement), whether arising by contract, operation of law, or
      otherwise.

            "Litigation Fund Accounts" means collectively, any and all
      litigation fund accounts established and maintained by the Borrower or any
      Subsidiary to secure the Borrower's and/or its Subsidiaries' obligations
      to be incurred with County Bank of Rehoboth Beach, Delaware in connection
      with Pay-Day Advance Loans, such obligations to be established and
      governed by the Pay-Day Advance Loan Documents.

            "Loan Documents" means this Agreement, the Notes, the Guaranty, the
      Contribution and Indemnification Agreement, the Borrower Security
      Agreement, the Subsidiary Security Agreement, the Real Property Security
      Documents and all other promissory notes, security agreements,
      assignments, deeds of trust, guaranties, and other instruments, documents,
      and agreements now or hereafter executed and delivered pursuant to or in
      connection with this Agreement, as such instruments, documents, and
      agreements may be amended, modified, renewed, extended, or supplemented
      from time to time.

            "Loans" means, collectively, the Revolving Credit Loan and the Swing
      Loan.

            "Material Adverse Effect" means a material adverse effect on (a) the
      business, condition (financial or otherwise), operations, prospects, or
      properties of the Borrower and the Subsidiaries taken as a whole, or (b)
      the validity or enforceability of this Agreement or any of the other Loan
      Documents or the rights or remedies of the Agent or the Lenders hereunder
      or thereunder. In determining whether any individual event could
      reasonably be expected to result in a Material Adverse Effect,
      notwithstanding that such event does not itself have such effect, a
      Material Adverse Effect shall be deemed to have occurred if the cumulative
      effect of such event and all other then existing events could reasonably
      be expected to result in a Material Adverse Effect.

            "Material Debt" is defined in Section 11.1(h).

            "Maximum Rate" means, at any time and with respect to any Lender,
      the maximum rate of interest under applicable law that such Lender may
      charge the Borrower. The Maximum Rate shall be calculated in a manner that
      takes into account any and all fees, payments, and other charges in
      respect of the Loan Documents that constitute interest under applicable
      law. Each change in any interest rate provided for

                                       36
<PAGE>

      herein based upon the Maximum Rate resulting from a change in the Maximum
      Rate shall take effect without notice to the Borrower at the time of such
      change in the Maximum Rate. For purposes of determining the Maximum Rate
      under Texas law, the applicable rate ceiling shall be the applicable
      weekly ceiling described in, and computed in accordance with, Chapter 303
      of the Texas Finance Code.

            "Monthly Payment Date" means the third day of each calendar month of
      each year, the first of which shall be May 3, 2004.

            "Multiemployer Plan" means a multiemployer plan defined as such in
      Section 3(37) of ERISA to which contributions have been made by the
      Borrower or any ERISA Affiliate and which is covered by Title IV of ERISA.

            "Net Proceeds" from any issuance, sale or disposition of any shares
      of equity securities (or any securities convertible or exchangeable for
      any such shares, or any rights, warrants, or options to subscribe for or
      purchase any such shares) means the amount equal to (a) the aggregate
      gross proceeds of such issuance, sale or other disposition, less (b) the
      following: (i) placement agent fees, (ii) underwriting discounts and
      commissions, (iii) bank and other lender fees, and (iv) reasonable legal
      fees and other reasonable expenses payable by the issuer in connection
      with such issuance, sale or other disposition. "Net Proceeds" from any
      disposition of assets means the amount equal to (a) the aggregate gross
      proceeds of such disposition, less (b) the following: (i) sales or other
      similar taxes paid or payable by the seller in connection with such
      disposition, (ii) reasonable broker fees in connection with such
      disposition, (iii) reasonable legal fees and other reasonable expenses
      payable by the seller in connection with such disposition and (iv) the
      amount of any Debt secured by the assets that must be repaid in connection
      with such disposition so long as it is a Debt permitted under this
      Agreement.

            "Notes" means, collectively, the Revolving Credit Notes and the
      Swing Note.

            "Obligated Party" means each Guarantor and any other Person who is
      or becomes party to any written agreement that guarantees or secures
      payment and performance of the Obligations or any part thereof.

            "Obligations" means, collectively, the Primary Obligations and the
      Secondary Obligations.

            "Other Taxes" is defined in Section 4.6(b).

            "Pay-Day Advance Loan Documents" means the documents, instruments
      and agreements which are acceptable to the Agent and the Lenders and are
      more specifically described on Schedule 1.1(c) attached hereto, and all
      amendments, modifications, renewals, extensions, restatements and
      supplements thereto, copies of which have been provided to the Agent and
      the Lenders and are satisfactory in form and substance to the Agent and
      the Lenders; provided that if such amendments, modifications, renewals,
      extensions, restatements and supplements are non-substantive from the
      perspective of the economics of the transactions evidenced by such
      documents, instruments and agreements described on Schedule 1.1(c), prior
      approval by the Agent and the Lenders is not required.

            "Pay-Day Advance Loans" means loans which are anticipated to be
      repaid by the proceeds of deferred presentment checks or through an ACH
      debit from the account of the borrower of the Pay-Day Advance Loan.

            "Pay-Day Only Store" means any location of the Borrower or any of
      its Subsidiaries where the only business conducted at such location is the
      origination and/or processing of Pay-Day Advance Loans and/or other
      unsecured consumer loans (including without limitation, the processing of
      Pay-Day Advance Loans and/or other unsecured consumer loans originated by
      a Person other than the Borrower or any Subsidiary) and other services
      incident to the foregoing.

                                       37
<PAGE>

            "Payment Office" means the operational office of the Agent in
      Denver, Colorado, presently located at 1740 Broadway, 3rd Floor, MAC
      #C7300-034, Denver, Colorado 80274.

            "Payor" is defined in Section 4.5.

            "PBGC" means the Pension Benefit Guaranty Corporation or any entity
      succeeding to all or any of its functions under ERISA.

            "Permitted Acquisitions" means those acquisitions by the Borrower or
      any of its Subsidiaries of all or substantially all of either the assets
      of, or equity interests in, a Person (such Person hereinafter referred to
      as the "Target") so long as (a) the purchase price (whether in cash or
      other consideration) of all such acquisitions shall not exceed either
      $5,000,000 individually or $20,000,000 in the aggregate during the term of
      this Agreement, (b) such acquisitions shall be of either the assets of a
      Target used in, or equity interests in a Target engaged in, the same or
      substantially similar businesses as the Borrower and its Subsidiaries as
      of the date hereof, (c) no Default or Event of Default has occurred and is
      continuing or would result therefrom, (d) such Target has a positive
      EBITDA (as calculated in accordance with the definition of "EBITDA") over
      the most recent 12-month period then ended, and (e) the Borrower has
      furnished to the Agent a Compliance Certificate setting forth (i)
      recalculations of compliance with the covenants contained in Article X for
      the prior four Fiscal Quarters then most recently ended prior to the date
      of such Permitted Acquisition, on a pro forma basis as if such Permitted
      Acquisition had occurred on the first day of such period, and such
      recalculations shall show that such covenants would have been complied
      with if the Permitted Acquisition had occurred on the first day of such
      period and (ii) the Borrower in good faith believes that after giving
      effect to such Permitted Acquisition the covenants contained in Article X
      will continue to be met for the one year period following the consummation
      of such Permitted Acquisition.

            "Permitted Debt" means (a) the Obligations, (b) Existing Debt and
      (c) other Debt permitted by Section 9.1.

            "Permitted Liens" means Liens permitted by Section 9.2.

            "Permitted Withdrawals" means, other than in connection with
      litigation, arbitration or regulatory proceedings, authorized withdrawals,
      if any, by County Bank of Rehoboth Beach, Delaware ("County Bank") from
      the Indemnity Accounts only, pursuant to the provisions of section 7.(a)
      of those certain Nonexclusive Master Sale, Participation, Servicing and
      Indemnification Agreements constituting a part of the Pay-Day Advance Loan
      Documents, for administrative, overhead, and operating expenses and legal
      expenses related to the content, development and structure of County
      Bank's pay-day advance loan program including, by way of example,
      expansion of the Borrower's or Subsidiaries' pay-day advance loan business
      into new markets or operational changes. Such administrative, overhead and
      operating expenses include, by way of example, audit fees and expenses,
      delivery fees, wire fees, inspection fees, background checks, and
      insurance.

            "Person" means any individual, corporation, business trust,
      association, company, partnership, joint venture, Governmental Authority,
      or other entity.

            "Plan" means any employee benefit plan (within the meaning of
      Section 3(3) of ERISA) established or maintained by the Borrower or any
      ERISA Affiliate, which plan is subject to the provisions of ERISA.

            "Primary Obligations" means all obligations, indebtedness, and
      liabilities of the Borrower to the Agent, the Issuing Bank, and the
      Lenders, or any of them, arising pursuant to any of the Loan Documents,
      now existing or hereafter arising, whether direct, indirect, related,
      unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or
      joint and several, including, without limitation, the obligations,
      indebtedness, and liabilities of the Borrower under this Agreement, the
      Notes and the other Loan Documents (including without limitation, all of
      the Borrower's contingent reimbursement obligations in respect of Letters
      of

                                       38
<PAGE>

      Credit), and all interest accruing thereon and all attorneys' fees and
      other expenses incurred in the enforcement or collection thereof.

            "Prime Rate" means, at any time, the rate of interest per annum then
      most recently announced by Wells Fargo Bank, National Association at its
      principal office in San Francisco as its prime rate, which rate may not be
      the lowest rate of interest charged by Wells Fargo Bank, National
      Association to its borrowers. Each change in any interest rate provided
      for herein based upon the Prime Rate resulting from a change in the Prime
      Rate shall take effect on the date the change is announced by Wells Fargo
      Bank, National Association without notice to the Borrower at the time of
      such change in the Prime Rate.

            "Principal Office" means the principal office of the Agent in
      Austin, Texas, presently located at 111 Congress Avenue, Suite 300,
      Austin, Texas 78701.

            "Prohibited Transaction" means any transaction set forth in Section
      406 or 407 of ERISA or Section 4975(c)(1) of the Code for which there does
      not exist a statutory or administrative exemption.

            "Quarterly Payment Date" means the third day of each January, April,
      July and October of each year, the first of which shall be July 3, 2004.

            "Real Property" means the fee owned real property and interests in
      fee owned real property of the Borrower and the Subsidiaries, including
      without limitation, that fee owned real property identified on Schedule
      1.1(d) attached hereto, and all improvements and fixtures thereon and all
      appurtenances thereto, whether now existing or hereinafter arising.

            "Real Property Security Documents" means all deeds of trust,
      mortgages and other instruments, documents and agreements executed and
      delivered by the Borrower or any Guarantor in favor of the Agent for the
      benefit of the Lenders, which creates a Lien on such Person's interests in
      the Real Property, as the same may be amended, supplemented or modified.

            "Register" is defined in Section 13.8(d).

            "Regulation D" means Regulation D of the Board of Governors of the
      Federal Reserve System as the same may be amended or supplemented from
      time to time.

            "Regulatory Change" means, with respect to any Lender, any change
      after the date of this Agreement in United States federal, state, or
      foreign laws or regulations (including Regulation D) or the adoption or
      making after such date of any interpretations, directives, or requests
      applying to a class of lenders including such Lender of or under any
      United States federal or state, or any foreign, laws or regulations
      (whether or not having the force of law) by any court or governmental or
      monetary authority charged with the interpretation or administration
      thereof.

            "Release" means, as to any Person, any release, spill, emission,
      leaking, pumping, injection, deposit, disposal, disbursement, leaching, or
      migration of Hazardous Materials into the indoor or outdoor environment or
      into or out of property owned by such Person, including, without
      limitation, the movement of Hazardous Materials through or in the air,
      soil, surface water, ground water, or property in violation of
      Environmental Laws.

            "Remedial Action" means all actions required to (a) clean up,
      remove, treat, or otherwise address Hazardous Materials in the indoor or
      outdoor environment, (b) prevent the Release or threat of Release or
      minimize the further Release of Hazardous Materials so that they do not
      migrate or endanger or threaten to endanger public health or welfare or
      the indoor or outdoor environment, or (c) perform pre-remedial studies and
      investigations and post-remedial monitoring and care.

            "Rental Expense" means the amounts paid by the Borrower and each
      Subsidiary to lease facilities for business operations.

                                       39
<PAGE>

            "Reportable Event" means any of the events set forth in Section 4043
      of ERISA.

            "Required Lenders" means at any time while no Advances or Letters of
      Credit Liabilities are outstanding, two or more Lenders having at least
      66 2/3% of the aggregate amount of the Commitments and, at any time while
      Advances or Letter of Credit Liabilities are outstanding, two or more
      Lenders holding at least 66 2/3% of the outstanding aggregate principal
      amount of the Revolving Credit Advances, the LC Participations, and the SL
      Participations.

            "Required Payment" is defined in Section 4.5.

            "Reserve Requirement" means, for any Eurodollar Advance for any
      Interest Period therefor, the average maximum rate at which reserves
      (including any marginal, supplemental or emergency reserves) are required
      to be maintained during such Interest Period under Regulation D by member
      banks of the Federal Reserve System in New York City with deposits
      exceeding one billion Dollars against "Eurocurrency Liabilities" as such
      term is used in Regulation D. Without limiting the effect of the
      foregoing, the Reserve Requirement shall reflect any other reserves
      required to be maintained by such member banks by reason of any Regulatory
      Change against (i) any category of liabilities which includes deposits by
      reference to which the Adjusted Eurodollar Rate is to be determined, or
      (ii) any category of extensions of credit or other assets which include
      Eurodollar Advances.

            "Revolving Credit Commitment" means, as to each Lender, the
      obligation of such Lender to make the Revolving Credit Loan as described
      in Article II hereunder in the principal amount up to but not exceeding
      the amount set forth opposite the name of such Lender on Schedule 1.1(a)
      hereto under the heading "Revolving Credit Commitment", as the same may be
      reduced pursuant to Section 2.11 or terminated pursuant to Section 2.11 or
      11.2. As of the date hereof, the aggregate amount of the Revolving Credit
      Commitments of all Lenders equals $40,000,000.

            "Revolving Credit Loan" means the revolving credit loan made or to
      be made hereunder to Borrower pursuant to Section 2.1.

            "Revolving Credit Loan Advance" means an Advance under the Revolving
      Credit Loan.

            "Revolving Credit Notes" means the promissory notes of the Borrower
      payable to the order of the Lenders in the aggregate principal amount of
      the Revolving Credit Loan, in substantially the form of Exhibit A hereto,
      and all extensions, renewals, and modifications thereof.

            "Rules" is defined in Section 13.14(b).

            "Secondary Obligations" means all obligations, indebtedness, and
      liabilities of the Borrower to the Lenders or any of them, arising
      pursuant to or in connection with the Deposit and Cash Management
      Services, now existing or hereafter arising, whether direct, indirect,
      related, unrelated, fixed, contingent, liquidated, unliquidated, joint,
      several, or joint and several, including without limitation, the
      obligations of the Borrower to pay all fees, costs and expenses (including
      without limitation, reasonable attorneys' fees) provided for in connection
      with the documentation governing the Deposit and Cash Management Services.

            "Senior Funded Debt" means, at any particular time, the sum of the
      following, calculated on a consolidated basis for the Borrower and the
      Subsidiaries in accordance with GAAP: (a) all obligations for borrowed
      money, including but not limited to senior bank debt, senior notes and
      subordinated debt, but excluding any subordinated debt permitted by
      Section 9.1(e), (b) all obligations relating to the deferred purchase
      price of property and services, (c) all Capital Lease Obligations, (d) all
      obligations as a reimbursement obligor with respect to an issued letter of
      credit or similar instrument (whether drawn or undrawn), and (e) all
      obligations under a Guarantee of borrowed money, or any other type of
      direct or contingent obligations.

                                       40
<PAGE>

            "Senior Leverage Ratio" means, as of any Fiscal Quarter end, the
      ratio of Senior Funded Debt to EBITDA, in each case for such Fiscal
      Quarter and the prior three Fiscal Quarters.

            "SL Participation" means, with respect to any Lender, at any time,
      the amount of participating interest held by such Lender (or in the case
      of the Swing Lender, other interests) in respect of the Swing Loan.

            "Subsidiary" means any corporation (or other entity) of which at
      least a majority of the outstanding shares of stock (or other ownership
      interests) having by the terms thereof ordinary voting power to elect a
      majority of the board of directors (or similar governing body) of such
      corporation (or other entity) (irrespective of whether or not at the time
      stock (or other ownership interests) of any other class or classes of such
      corporation (or other entity) shall have or might have voting power by
      reason of the happening of any contingency) is at the time directly or
      indirectly owned or controlled by the Borrower or one or more of the
      Subsidiaries or by the Borrower and one or more of the Subsidiaries.

            "Subsidiary Security Agreement" means collectively, those certain
      Second Amended and Restated Subsidiary Security Agreements dated as of the
      date hereof executed by the Guarantors in favor of the Agent for the
      benefit of the Lenders, in form and substance satisfactory to the Agent
      and the Lenders, as the same may be amended, restated, supplemented, or
      modified from time to time.

            "Swing Commitment" means an amount (subject to reduction or
      cancellation as herein provided) equal to $3,000,000.

            "Swing Lender" means Wells Fargo Bank, National Association.

            "Swing Loan" means the swing loan made or to be made hereunder to
      the Borrower pursuant to Section 2.7.

            "Swing Loan Advance" means an Advance under the Swing Loan.

            "Swing Note" means the promissory note of the Borrower payable to
      the order of the Swing Lender in the principal amount of the Swing
      Commitment in substantially the form of Exhibit B hereto, and all
      extensions, renewals, and modifications thereof.

            "Target" is defined in the definition of "Permitted Acquisition".

            "Taxes" is defined in Section 4.6(a).

            "Termination Date" means 10:00 a.m. (Austin, Texas time) on April 1,
      2007 or such earlier date and time on which the Revolving Credit
      Commitments and Swing Commitment terminate as provided in this Agreement.

            "Total Leverage Ratio" means, as of any Fiscal Quarter end, the
      ratio of Funded Debt to EBITDA, in each case for such Fiscal Quarter and
      the prior three Fiscal Quarters.

            "Type" means any type of Advance (i.e., Base Rate Advance or
      Eurodollar Advance).

            "UCC" means the Uniform Commercial Code as in effect in the State of
      Texas from time to time.

            "Waiver" is defined in Section 8.12.

Other Definitional Provisions. All definitions contained in this Agreement are
equally applicable to the singular and plural forms of the terms defined. The
words "hereof", "herein", and "hereunder" and words of similar import referring
to this Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement. Unless otherwise specified, all Article and Section
references pertain to this Agreement. All accounting terms not

                                       41
<PAGE>

specifically defined herein shall be construed in accordance with GAAP. Terms
used herein that are defined in the UCC, unless otherwise defined herein, shall
have the meanings specified in the UCC. In the event of any changes in
accounting principles required by GAAP or recommended by the Borrower's
certified public accountants and implemented by the Borrower occur and such
changes result in a change in the method of the calculation of financial
covenants, standards, or terms under this Agreement, then the Borrower, the
Agent, and the Lenders agree to enter into negotiations in order to amend such
provisions of this Agreement so as to equitably reflect such changes with the
desired result that the criteria for evaluating such covenants, standards, or
terms shall be the same after such changes as if such changes had not been made.
Until such time as such an amendment shall have been executed and delivered by
the Agent, the Borrower and the Required Lenders, all financial covenants,
standards, and terms in this Agreement shall continue to be calculated or
construed as if such changes had not occurred.

                      Revolving Credit Loan and Swing Loan

Revolving Credit Commitments. Subject to the terms and conditions of this
Agreement, each Lender severally agrees to make one or more Revolving Credit
Loan Advances to the Borrower from time to time from the date hereof to but
excluding the Termination Date in an aggregate principal amount at any time
outstanding up to but not exceeding the amount of such Lender's Revolving Credit
Commitment as then in effect, provided that the aggregate amount of all
Revolving Credit Loan Advances at any time outstanding shall not exceed (a) the
Revolving Credit Commitments, minus (b) the sum of the outstanding Swing Loan
Advances and the Letter of Credit Liabilities. Subject to the foregoing
limitations, and the other terms and provisions of this Agreement, the Borrower
may borrow, repay, and reborrow hereunder the amount of the Revolving Credit
Commitments by means of Base Rate Advances and Eurodollar Advances and, until
the Termination Date, the Borrower may Convert Revolving Credit Loan Advances of
one Type into Revolving Credit Loan Advances of another Type. Revolving Credit
Loan Advances of each Type made by each Lender shall be made and maintained at
such Lender's Applicable Lending Office for Advances of such Type.

Revolving Credit Notes. The obligation of the Borrower to repay each Lender for
Revolving Credit Loan Advances made by such Lender and interest thereon shall be
evidenced by a Revolving Credit Note executed by the Borrower, payable to the
order of such Lender, in the principal amount of such Lender's Revolving Credit
Commitment dated the date hereof.

Repayment of Revolving Credit Loan. The Borrower shall repay the outstanding
principal amount of the Revolving Credit Loan and the Swing Loan on the
Termination Date.

Interest. The unpaid principal amount of the Revolving Credit Loan shall bear
interest at a varying rate per annum equal from day to day to the lesser of (a)
the Maximum Rate or (b) the Applicable Rate. If at any time the Applicable Rate
for any Advance shall exceed the Maximum Rate, thereby causing the interest
accruing on such Advance to be limited to the Maximum Rate, then any subsequent
reduction in the Applicable Rate for such Advance shall not reduce the rate of
interest on such Advance below the Maximum Rate until the aggregate amount of
interest accrued on such Advance equals the aggregate amount of interest which
would have accrued on such Advance if the Applicable Rate had at all times been
in effect. Accrued and unpaid interest on the Revolving Credit Loan Advances
shall be due and payable as follows:

in the case of all Base Rate Advances, on each Monthly Payment Date;

in the case of all Eurodollar Advances, on the last day of the Interest Period
with respect thereto and, in the case of an Interest Period with a duration
greater than three months, at three-month intervals after the first day of such
Interest Period; upon the payment or prepayment of any Eurodollar Advance or the
Conversion of any Eurodollar Advance to an Advance of another Type (but only on
the principal amount so paid, prepaid, or Converted); and with respect to
Revolving Credit Loan Advances and Swing Loan Advances, on the Termination Date.

Notwithstanding the foregoing, upon the occurrence and during the continuance of
an Event of Default, the outstanding principal amounts of all Advances and (to
the fullest extent permitted by law) any other amounts payable by the Borrower
under any Loan Document shall bear interest at the Default Rate at the Required
Lenders' option beginning upon the occurrence of such Event of Default or such
later date as selected by the Required Lenders. Interest payable at the Default
Rate shall be payable from time to time on demand.

Revolving Credit Loan Borrowing Procedure. The Borrower shall give the Agent
notice by means of an Advance Request Form of each requested Revolving Credit
Loan Advance at least one Business Day before the requested date of each Base
Rate Advance, and at least three Business Days before the requested date of each
Eurodollar

                                       42
<PAGE>

Advance, specifying: (a) the requested date of such Revolving Credit Loan
Advance (which shall be a Business Day), (b) the amount of such Revolving Credit
Loan Advance, (c) the Type of Revolving Credit Loan Advance, and (d) in the case
of a Eurodollar Advance, the duration of the Interest Period for such Revolving
Credit Loan Advance. Each Eurodollar Advance under the Revolving Credit Loan
shall be in a minimum principal amount of $1,000,000 or an integral multiple of
$500,000. Each Base Rate Advance under the Revolving Credit Loan shall be in a
minimum principal amount of $500,000 or in greater increments of $100,000. The
Agent shall notify each Lender of the contents of each such notice promptly. Not
later than 1:00 p.m. (Austin, Texas time) on the date specified for each
Revolving Credit Loan Advance hereunder, each Lender will make available to the
Agent at the Principal Office in immediately available funds, for the account of
the Borrower, its pro rata share of each Revolving Credit Loan Advance. After
the Agent's receipt of such funds and subject to the other terms and conditions
of this Agreement, the Agent will make each Revolving Credit Loan Advance
available to the Borrower by depositing the same, in immediately available
funds, in an account of the Borrower (designated by the Borrower) maintained
with the Agent at the Principal Office. All notices by the Borrower under this
Section shall be irrevocable and shall be given not later than 11:00 a.m.
(Austin, Texas time) on the day which is not less than the number of Business
Days specified above for such notice.

Conversions and Continuations. The Borrower shall have the right from time to
time to Convert all or part of a Revolving Credit Loan Advance of one Type into
an Advance of another Type or to Continue Eurodollar Advances as Eurodollar
Advances by giving the Agent written notice at least one Business Day before
Conversion into a Base Rate Advance, and at least three Business Days before
Conversion into or Continuation of a Eurodollar Advance, specifying: (a) the
Conversion or Continuation date, (b) the amount of the Advance to be Converted
or Continued, (c) in the case of Conversions, the Type of Advance to be
Converted into, and (d) in the case of a Continuation of or Conversion into a
Eurodollar Advance, the duration of the Interest Period applicable thereto;
provided that (i) Eurodollar Advances may only be Converted on the last day of
the Interest Period, (ii) except for Conversions into Base Rate Advances, no
Conversions shall be made while a Default has occurred and is continuing, and
(iii) no more than five Interest Periods shall be in effect at the same time.
The Agent shall notify each Lender of the contents of each such notice promptly
and in any event not later than one Business Day after receipt thereof. All
notices by the Borrower under this Section shall be irrevocable and shall be
given not later than 11:00 a.m. (Austin, Texas time) on the day which is not
less than the number of Business Days specified above for such notice. If the
Borrower shall fail to give the Agent the notice as specified above for
Continuation or Conversion of a Eurodollar Advance prior to the end of the
Interest Period with respect thereto, such Eurodollar Advance shall be Converted
automatically into a Base Rate Advance on the last day of the then current
Interest Period for such Eurodollar Advance.

                                  Swing Loans.

Making Swing Loans; Interest Rate. For the convenience of the parties and as an
integral part of the transactions contemplated by the Loan Documents, the Swing
Lender, solely for its own account, agrees, on the terms and conditions
hereinafter set forth, to make Swing Loans to the Borrower (which the Borrower
may repay and reborrow from time to time in accordance with the terms and
provisions hereof) from time to time on any Business Day during the period from
the date hereof to but excluding the Termination Date in an aggregate principal
amount at any one time outstanding which shall not exceed the Swing Commitment;
provided that, the Swing Lender shall not be obligated to make any Swing Loan
(i) which when added to the then outstanding Revolving Credit Loan Advances plus
the outstanding Letter of Credit Liabilities plus the outstanding Swing Loan
Advances would exceed the Revolving Credit Commitments, and (ii) at any time
after any Lender has refused to purchase a participation in any Swing Loan as
provided in Section 2.7(d). All Swing Loans shall bear interest at the lesser of
(A) the Maximum Rate and (B) the Applicable Rate for Base Rate Advances (subject
to Section 2.4) and shall be included within the Primary Obligations hereunder.
Each Swing Loan shall be subject to all the terms and conditions applicable to
the Revolving Credit Loan; provided that, (i) there shall be no minimum Swing
Loan Advance amount or repayment for a Swing Loan except as provided in Section
2.7(c), and (ii) each Swing Loan shall be available and may be prepaid on same
day telephonic notice to be followed promptly with an Advance Request Form
(except for telephonic notices of prepayment) from the Borrower to the Swing
Lender, so long as such notice is received by the Swing Lender prior to 3:00
p.m. (Austin, Texas time).

                                       43
<PAGE>
Swing Note. The Swing Loans made by the Swing Lender shall be evidenced by a
single promissory note of the Borrower in substantially the form of Exhibit B
hereto, payable to the order of the Swing Lender in a principal amount equal to
the Swing Commitment as originally in effect and otherwise duly completed.

Repayment of Swing Loans. Upon the earlier to occur of (i) the date 10 Business
Days after each Swing Loan Advance, and (ii) demand by the Swing Lender, the
Borrower shall promptly borrow Revolving Credit Loans from the Lenders, pursuant
to Section 2.1 hereof and apply the proceeds of such Revolving Credit Loans to
the repayment of such Swing Loan Advance then due.

Participation of Lenders. In the event the Borrower shall fail to repay when due
any Swing Loan, each Lender with a Revolving Credit Commitment shall irrevocably
and unconditionally purchase from the Swing Lender an SL Participation in such
Swing Loan in lawful money of the United States and in the same day funds, in an
amount equal to such Lender's pro rata share (based on the Revolving Credit
Commitments) of the principal amount of such Swing Loans then due. If such
amount is not in fact made available to the Swing Lender by any Lender with a
Revolving Credit Commitment, the Swing Lender shall be entitled to recover such
amount on demand from such Lender together with accrued interest thereon, for
each day from the date of demand therefor, if made prior to 1:00 p.m. (Austin,
Texas time) on any Business Day, or, if made at any other time, from the next
Business Day following the date of such demand, until the date such amount is
paid to the Swing Lender by such Lender at the Federal Funds Rate. If such
Lender does not pay such amount forthwith upon the Swing Lender's demand
therefor, and until such time as such Lender makes the required payment, the
Swing Lender shall be deemed to continue to have outstanding a Swing Loan in the
amount of such unpaid participation obligation for all purposes under the Loan
Documents other than those provisions requiring the other Lenders with a
Revolving Credit Commitment to purchase a participation therein. Thereafter,
each payment of all or any part of the Primary Obligations evidenced by the
Swing Note shall be paid to the Swing Lender for the ratable benefit of the
Swing Lender and the Lenders who are participants in the Swing Loan; provided
that, with respect to any participation hereunder, all interest accruing on the
Swing Loan (or any portion thereof) to which such participation relates prior to
the date of purchase of any participation hereunder shall be payable solely to
the Swing Lender for its own account.

Use of Proceeds. The proceeds of Advances shall be used by the Borrower to
refinance Debt of the Borrower under the Existing Credit Agreement, for working
capital in the ordinary course of business and other general corporate purposes.

Fees. (a) On or prior to each October 30 during the term hereof, beginning
October 30, 2004, the Borrower agrees to pay to the Agent for the account of the
Agent an annual agent fee in an amount to be agreed to by the Borrower and the
Agent pursuant to a side letter agreement, and (b) the Borrower agrees to pay to
the Agent for the account of each Lender a Commitment Fee (herein so called) on
the average daily unused amount of such Lender's Revolving Credit Commitment for
the period from and including the date of this Agreement to and including the
Termination Date at the Commitment Fee Rate, based on a 360 day year and the
actual number of days elapsed. The accrued Commitment Fee shall be payable in
arrears on each Quarterly Payment Date and on the Termination Date. For the
purpose of calculating the Commitment Fee hereunder, the Revolving Credit
Commitments shall be deemed utilized by the amount of all Revolving Credit Loan
Advances and all Letter of Credit Liabilities and without giving effect to any
Swing Loan Advances or SL Participations.

Determination of Eurodollar Margin and Base Rate Margin. The Eurodollar Margin
and the Base Rate Margin shall be defined and determined as follows:

                  "Base Rate Margin" shall mean (i) during the period commencing
         on the date hereof and ending on but not including the first Adjustment
         Date, 0.50% per annum, and (ii) during each period, from and including
         one Adjustment Date to but excluding the next Adjustment Date (herein a
         "Calculation Period"), the percent per annum set forth in the table
         below in this Section 2.10 under the heading "Base Rate Margin"
         opposite the Total Leverage Ratio calculated for the completed four
         Fiscal Quarters which immediately preceded the beginning of the
         applicable Calculation Period.

                  "Eurodollar Margin" shall mean (i) during the period
         commencing on the date hereof and ending on but not including the first
         Adjustment Date, 2.00% per annum, and (ii) during each Calculation
         Period, the percent per annum set forth in the table below in this
         Section 2.10 under the heading "Eurodollar

                                       44
<PAGE>

         Margin" opposite the Total Leverage Ratio calculated for the completed
         four Fiscal Quarters which immediately preceded the beginning of the
         applicable Calculation Period.
<TABLE>
<CAPTION>
          TOTAL LEVERAGE RATIO                 BASE RATE MARGIN            EURODOLLAR MARGIN
<S>                                            <C>                         <C>
Greater than 2.75:1.00                               1.25%                       2.75%
Equal to or less than 2.75:1.00, but                 1.00%                       2.50%
greater than 2.25:1.00
Equal to or less than 2.25:1.00, but                 0.75%                       2.25%
greater than 1.75:1.00
Equal to or less than 1.75:1.00, but                 0.50%                       2.00%
greater than 1.25:1.00
Equal to or less than 1.25:1.00, but                 0.25%                       1.75%
greater than 0.75:1.00
Equal to or less than 0.75:1.00                      0.00%                       1.50%
</TABLE>

                  Upon delivery of the Compliance Certificate pursuant to
         Section 8.1(c) in connection with the financial statements required to
         be delivered pursuant to Section 8.1(b) at the end of each Fiscal
         Quarter commencing with such Compliance Certificate delivered with
         respect to the Fiscal Quarter ending on June 30, 2004, the Eurodollar
         Margin and the Base Rate Margin shall automatically be adjusted as set
         forth in the table above, such automatic adjustment to take effect as
         of the first Business Day after the receipt by the Agent of the related
         Compliance Certificate (each such Business Day when the Eurodollar
         Margin or Base Rate Margin is adjusted pursuant to this sentence or
         below, herein an "Adjustment Date"). If the Borrower fails to deliver
         such Compliance Certificate which so sets forth the Total Leverage
         Ratio within the period of time required by Section 8.1(c), the
         Eurodollar Margin and the Base Rate Margin shall automatically be
         adjusted to highest applicable percentage set forth in the grid above,
         such automatic adjustment to take effect as of the first Business Day
         after the last day on which the Borrower was required to deliver the
         applicable Compliance Certificate in accordance with Section 8.1(c) and
         to remain in effect until subsequently adjusted in accordance herewith
         upon the delivery of a Compliance Certificate.

                    Reduction or Termination of Commitments.

Optional. The Borrower shall have the right to terminate in whole or reduce in
part the unused portion of the Commitments (including the Swing Commitment) upon
at least three Business Days prior notice (which notice shall be irrevocable) to
the Agent and each Lender specifying the effective date thereof, whether a
termination or reduction is being made, and the amount of any partial reduction,
provided that each partial reduction shall be in the amount of $5,000,000 (or in
the case of the Swing Commitment, $1,000,000) or an integral multiple thereof
and the Revolving Credit Commitments (other than the Swing Commitment) shall not
be reduced below the outstanding Letter of Credit Liabilities, and the Borrower
shall simultaneously prepay the amount by which the unpaid principal amount of
the Revolving Credit Loan Advances, the Swing Loan Advances and outstanding
Letter of Credit Liabilities exceeds the Revolving Credit Commitments (after
giving effect to such notice) plus accrued and unpaid interest on the principal
amount so prepaid. The Commitments may not be reinstated after they have been
terminated or reduced. In addition the Swing Commitment may never be more than
the Revolving Credit Commitments (exclusive of the amount of the Swing
Commitment).

Mandatory. Upon the occurrence of any event requiring a mandatory prepayment
under Section 4.3(c), (i) the Revolving Credit Commitments shall automatically
reduce by the amount equal to 100% of the Net Proceeds from the sale of assets
occurring on such date to the extent such amount exceeds either (A) $1,000,000
per Disposition or (B) $3,000,000 in the aggregate for all Dispositions which
have occurred since the date hereof, and (ii) the Borrower shall simultaneously
prepay the amount by which the unpaid principal amount of the Advances plus the
Letter of Credit Liabilities exceeds the Revolving Credit Commitments (after
giving effect to such reduction) plus accrued and unpaid interest on the
principal amount so prepaid.

                                Letters of Credit

         Letters of Credit.

Subject to the terms and conditions of this Agreement, the Issuing Bank agrees
to issue one or more Letters of Credit for the account of the Borrower or any
Guarantor from time to time from the date hereof to but excluding the date 30

                                       45
<PAGE>

days prior to the Termination Date; provided, however, that the outstanding
Letter of Credit Liabilities shall not at any time exceed the lesser of (i)
$4,000,000, and (ii) an amount equal to (A) the Revolving Credit Commitments,
minus (B) the sum of the outstanding Revolving Credit Loan Advances and Swing
Loan Advances. Each Letter of Credit shall have an expiration date not beyond
five Business Days prior to the Termination Date, shall be payable in Dollars,
must support a transaction that is entered into in the ordinary course of the
Borrower's business, must be satisfactory in form and substance to the Issuing
Bank, and shall be issued pursuant to such documents and instruments (including,
without limitation, the Issuing Bank's standard application for issuance of
letters of credit as then in effect) as the Issuing Bank may require. No Letter
of Credit shall require any payment by the Issuing Bank to the beneficiary
thereunder pursuant to a drawing prior to the third Business Day following
presentment of a draft and any related documents to the Issuing Bank.

By the issuance of each Letter of Credit and without any further action on the
part of the Issuing Bank or any of the Lenders in respect thereof, the Issuing
Bank hereby grants to each Lender and each Lender hereby agrees to acquire from
the Issuing Bank a participation in each Letter of Credit and the related Letter
of Credit Liabilities, effective upon the issuance thereof without recourse or
warranty, equal to such Lender's pro rata share (based on the Revolving Credit
Commitments) of such Letter of Credit and Letter of Credit Liabilities. In
furtherance of the foregoing, each Lender hereby absolutely and unconditionally
agrees to pay to the Issuing Bank, as and when required by Section 3.4, such
Lender's pro rata share of each Letter of Credit Disbursement. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant
to this Section 3.1(b) in respect of each Letter of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including without limitation the occurrence and continuance of any Default, and
that each such payment shall be made without any offset, abatement, withholding,
or reduction whatsoever. This agreement to grant and acquire participations is
an agreement between the Issuing Bank and the Lenders, and neither the Borrower
nor any beneficiary of a Letter of Credit shall be entitled to rely thereon. The
Borrower agrees that each Lender purchasing a participation from the Issuing
Bank pursuant to this Section 3.1(b) may exercise all its rights to payment
against the Borrower including the right of setoff, with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation.

The Issuing Bank agrees with each Lender that it shall transfer to such Lender,
without any offset, abatement, withholding, or reduction whatsoever, such
Lender's proportionate share of any payment of a reimbursement obligation of the
Borrower with respect to a Letter of Credit Disbursement, including interest
payments made to the Issuing Bank on such Letter of Credit Disbursement, based
on the proportion that the payment made by such Lender to the Issuing Bank in
respect of the principal amount of such Letter of Credit Disbursement bears to
the outstanding principal amount of such Letter of Credit Disbursement.

Procedure for Issuing Letters of Credit. Each Letter of Credit shall be issued
on at least three Business Days prior notice from the Borrower to the Issuing
Bank by means of a Letter of Credit Request Form describing the transaction
proposed to be supported thereby and specifying (a) the date on which such
Letter of Credit is to be issued (which shall be a Business Day) and the face
amount thereof, (b) the name and address of the beneficiary, (c) whether such
Letter of Credit shall permit a single drawing or multiple drawings, (d) the
conditions permitting the drawing or drawings thereunder, (e) whether the draft
thereunder shall be a sight or time draft and, if the latter, the date when the
draft shall be payable, (f) the form of the draft and any other documents
required to be presented at the time of any drawing (such notice to set forth
the exact wording of such documents or to attach copies thereof), and (g) the
expiration date of such Letter of Credit. Upon fulfillment of the applicable
conditions precedent in Article VI, the Issuing Bank shall make the applicable
Letter of Credit available to the Borrower or, if so requested by the Borrower,
to the beneficiary of the Letter of Credit.

Presentment and Reimbursement. (a) Promptly upon receipt of any documents
purporting to represent a demand for payment under a Letter of Credit, the
Issuing Bank shall give notice to the Borrower of the receipt thereof, which
notice may be telephonic to be followed by written notice (which notice may be
made by electronic mail or other electronic media) to the Borrower's general
counsel and chief financial officer. If the Issuing Bank shall have determined
that a demand for payment under a Letter of Credit appears on its face to be in
conformity with the terms and conditions of such Letter of Credit, the Issuing
Bank shall give notice to the Borrower, which notice may be telephonic, of the
receipt and amount of such drawing and the date on which payment thereon will be
made. If the Borrower shall not have discharged in full by 10:00 a.m. (Austin,
Texas time) on the date of such payment, its obligation to reimburse the Issuing
Bank in the amount of such drawing under such Letter of Credit, then the amount

                                       46
<PAGE>

of such drawing for which the Issuing Bank shall not have been reimbursed by the
Borrower shall be paid by the Borrower to the Issuing Bank or, to the extent the
Issuing Bank shall have received payments with respect to such drawing from the
Lenders, to the Issuing Bank for the account of the Lenders, within three
Business Days after the date of such drawing (but in any event before the
Termination Date), together with interest on such amount at the Default Rate
from the date of payment by the Issuing Bank to the beneficiary under the Letter
of Credit (each such payment made after 10:00 a.m. (Austin, Texas time) on such
due date to be deemed to be made on the next succeeding Business Day). The
obligations of the Borrower under this Section 3.3 shall be unconditional,
absolute, and irrevocable in all respects.

Payment. If the Issuing Bank shall pay any draft presented under a Letter of
Credit issued by it and if the Borrower shall not have discharged in full its
reimbursement obligation by 10:00 a.m. (Austin, Texas time) on the date of such
Letter of Credit Disbursement, then the Issuing Bank shall as promptly as
practicable give telephonic (which shall be promptly confirmed in writing) or
facsimile notice to each Lender of the date of such payment and the amount of
such payment and each Lender shall pay to the Issuing Bank, in immediately
available funds, not later than 3:00 p.m. (Austin, Texas time) on the date of
such payment (or, if Issuing Bank shall notify the Lenders of such payment after
11:00 a.m. (Austin, Texas time) then not later than 12:00 p.m. (Austin, Texas
time) on the next succeeding Business Day), an amount equal to such Lender's pro
rata share of such drawing; provided that, if any Lender shall for any reason
fail to pay the Issuing Bank its pro rata share of the drawing on the date of
such payment, the Issuing Bank shall itself fund such Lender's pro rata share
while retaining the right to proceed against such Lender for reimbursement
therefor. In the event that the Issuing Bank shall fund a Lender's pro rata
share of a drawing, the amount so funded shall bear interest at a rate per annum
equal to the Federal Funds Rate and shall be payable by such Lender when it
reimburses the Issuing Bank for funding its pro rata part (with interest to
accrue from and including the date of such funding to and excluding the date of
reimbursement). In the event that a Lender, after notice, pays its pro rata
share of a drawing hereunder and such payment is not required to fund a Letter
of Credit Disbursement, the Issuing Bank shall return such payment to the Lender
with interest calculated at a rate per annum equal to the Federal Funds Rate
(with interest to accrue from and including the date of such funding to and
excluding the date of return). The obligation of each Lender to pay to the
Issuing Bank such Lender's pro rata part of any drawing under a Letter of Credit
shall be absolute and unconditional under any and all circumstances (including
without limitation the passage of the Termination Date), and such obligations
shall be several and not joint.

Letter of Credit Fee. The Borrower shall pay to the Agent, for the account of
the Lenders, a nonrefundable letter of credit fee for each Letter of Credit
payable in arrears on each Quarterly Payment Date in an amount equal to the
applicable Eurodollar Margin multiplied by the undrawn amount of such Letter of
Credit, based on a 360 day year and the actual number of days in the stated term
of such Letter of Credit. In addition, the Borrower shall pay to the Issuing
Bank, solely for its own account as issuer of Letters of Credit, nonrefundable
fronting, amendment, transfer, negotiation and other fees as determined in
accordance with the Issuing Bank's then current fee policy.

Obligations Absolute. The obligations of the Borrower under this Agreement and
the other Loan Documents (including without limitation the obligation of the
Borrower to reimburse the Issuing Bank for draws under any Letter of Credit)
shall be absolute, unconditional, and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement and the other Loan
Documents under all circumstances whatsoever, including without limitation the
following circumstances:

Any lack of validity or enforceability of any Letter of Credit or any other Loan
Document;

Any amendment or waiver of or any consent to departure from any Loan Document;

The existence of any claim, set-off, counterclaim, defense or other rights which
the Borrower, any Obligated Party, or any other Person may have at any time
against any beneficiary of any Letter of Credit, the Issuing Bank, any Lender,
the Agent, or any other Person, whether in connection with this Agreement or any
other Loan Document or any unrelated transaction;

Any statement, draft, or other document presented under any Letter of Credit
proving to be forged, fraudulent, invalid, or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect whatsoever;

Payment by the Issuing Bank under any Letter of Credit against presentation of a
draft or other document which does not comply with the terms of such Letter of
Credit; or

Any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing.

                                       47
<PAGE>

Limitation of Liability. The Borrower assumes all risks of the acts or omissions
of any beneficiary of any Letter of Credit with respect to its use of such
Letter of Credit. Neither the Issuing Bank, the Lenders, the Agent, nor any of
their officers or directors shall have any responsibility or liability to the
Borrower or any other Person for: (a) the failure of any draft to bear any
reference or adequate reference to any Letter of Credit, or the failure of any
documents to accompany any draft at negotiation, or the failure of any Person to
surrender or to take up any Letter of Credit or to send documents apart from
drafts as required by the terms of any Letter of Credit, or the failure of any
Person to note the amount of any instrument on any Letter of Credit, each of
which requirements, if contained in any Letter of Credit itself, it is agreed
may be waived by the Issuing Bank, (b) errors, omissions, interruptions, or
delays in transmission or delivery of any messages, (c) the validity,
sufficiency, or genuineness of any draft or other document, or any
endorsement(s) thereon, even if any such draft, document or endorsement should
in fact prove to be in any and all respects invalid, insufficient, fraudulent,
or forged or any statement therein is untrue or inaccurate in any respect, (d)
the payment by the Issuing Bank to the beneficiary of any Letter of Credit
against presentation of any draft or other document that does not comply with
the terms of the Letter of Credit, or (e) any other circumstance whatsoever in
making or failing to make any payment under a Letter of Credit. The Borrower
shall have a claim against the Issuing Bank, and the Issuing Bank shall be
liable to the Borrower, to the extent of any direct, but not consequential,
damages suffered by the Borrower which the Borrower proves in a final
nonappealable judgment were caused by (i) the Issuing Bank's willful misconduct
or gross negligence in determining whether documents presented under any Letter
of Credit complied with the terms thereof or (ii) the Issuing Bank's willful
failure to pay under any Letter of Credit after presentation to it of documents
strictly complying with the terms and conditions of such Letter of Credit. The
Issuing Bank may accept documents that appear on their face to be in order,
without responsibility for further investigation, regardless of any notice or
information to the contrary.

                                    Payments

Method of Payment. Except as provided in Article III, all payments of principal,
interest, and other amounts to be made by the Borrower under this Agreement and
the other Loan Documents shall be made to the Agent at the Payment Office for
the account of each Lender's Applicable Lending Office in Dollars and in
immediately available funds by credit to Account Number 4518-151436, without
setoff, deduction, or counterclaim, not later than 1:00 p.m. (Austin, Texas
time) on the date on which such payment shall become due (each such payment made
after such time on such due date to be deemed to have been made on the next
succeeding Business Day). The Borrower shall, at the time of making each such
payment, specify to the Agent the sums payable by the Borrower under this
Agreement and the other Loan Documents to which such payment is to be applied
(and in the event that the Borrower fails to so specify, or if an Event of
Default has occurred and is continuing, the Agent may apply such payment to the
Obligations in such order and manner as it may elect in its sole discretion,
subject to Section 4.4 hereof). Each payment received by the Agent under this
Agreement or any other Loan Document for the account of a Lender shall be paid
by the Agent to such Lender, in immediately available funds, for the account of
such Lender's Applicable Lending Office within one Business Day following
receipt thereof. Whenever any payment under this Agreement or any other Loan
Document shall be stated to be due on a day that is not a Business Day, such
payment may be made on the next succeeding Business Day, and such extension of
time shall in such case be included in the computation of the payment of
interest, the Commitment Fee and any other fees, as the case may be.

Voluntary Prepayment. The Borrower may, upon at least one Business Day prior
notice to the Agent in the case of Base Rate Advances (except as otherwise
provided for under Section 2.7(a) for Swing Loan Advances), and at least three
Business Days prior notice to the Agent in the case of Eurodollar Advances,
voluntarily prepay the Advances in whole at any time or from time to time in
part without premium or penalty but with accrued interest to the date of
prepayment on the amount so prepaid, provided that (a) Eurodollar Advances may
be prepaid only on the last day of the Interest Period for such Advances, and
(b) each partial prepayment shall be in the principal amount of $500,000 or an
integral multiples of $100,000. All notices under this Section shall be
irrevocable and shall be given not later than 11:00 a.m. (Austin, Texas time) on
the day which is not less than the number of Business Days specified above for
such notice. Any such voluntary prepayments shall be applied first to the Swing
Loan Advances, then to Letter of Credit Disbursements for which the Issuing Bank
has not been reimbursed by the Borrower, then to Base Rate Advances under the
Revolving Credit Loan, then to Eurodollar Advances under the Revolving Credit
Loan and then to the remaining Letter of Credit Liabilities. Any prepayments
hereunder shall be accompanied with accrued and unpaid interest on the amount
prepaid to the date of prepayment.

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<PAGE>

Mandatory Prepayments.

If at any time the amount equal to the sum of (i) the outstanding principal
amount of all Revolving Credit Loan Advances and the Swing Loan Advances, plus
(ii) the Letter of Credit Liabilities, exceeds the aggregate amount of the
Revolving Credit Commitments, the Borrower shall promptly prepay Revolving
Credit Loan Advances, Swing Loan Advances and the Letter of Credit Disbursements
by the amount of the excess or, if no Revolving Credit Loan Advances, Swing Loan
Advances or Letter of Credit Disbursements are outstanding, the Borrower shall
immediately pledge to the Agent cash or Cash Equivalent Investments (subject to
no other Liens) in an amount equal to the excess as security for the
Obligations. Any such mandatory prepayments shall be applied first to Swing Loan
Advances, then to Letter of Credit Disbursements for which the Issuing Bank has
not been reimbursed by the Borrower, then to Base Rate Advances under the
Revolving Credit Loan, then to Eurodollar Advances under the Revolving Credit
Loan, and then to the remaining Letter of Credit Liabilities. Any prepayments
hereunder shall be accompanied with accrued and unpaid interest on the amount
prepaid to the date of prepayment. After any reduction in the Commitments
pursuant to Section 2.11, the Borrower shall promptly prepay the outstanding
Revolving Credit Loan Advances and Swing Loan Advances by the amount which the
sum of the outstanding principal amount of the Advances under the Revolving
Credit Loan and the Swing Loan plus the Letter of Credit Liabilities exceeds the
aggregate amount of the Revolving Credit Commitments, as reduced. Upon the
Disposition of any assets (other than Dispositions of assets permitted under
Sections 9.8(a) and (c)), the Borrower shall promptly prepay the Advances by an
amount equal to the Net Proceeds of such Disposition; provided however, with
respect to any Dispositions permitted under Sections 9.8(b) and (d), the
Borrower shall promptly prepay the Advances by an amount equal to the Net
Proceeds of such Disposition to the extent such amount exceeds either (i)
$1,000,000 per Disposition or (ii) $3,000,000 in the aggregate for all
Dispositions which have occurred since the date hereof. Any such mandatory
prepayments shall be applied first to Swing Loan Advances, then to Letter of
Credit Disbursements for which the Issuing Bank has not been reimbursed by the
Borrower, then to the Base Rate Advances under the Revolving Credit Loan, then
to Eurodollar Advances under the Revolving Credit Loan, and then to the
remaining Letter of Credit Liabilities. Any prepayments hereunder shall be
accompanied with accrued and unpaid interest on the amount prepaid to the date
of prepayment.

Pro Rata Treatment. Except to the extent otherwise provided herein: (a) each
Advance shall be made by the Lenders under Section 2.1, each payment of the
Commitment Fee under Section 2.9, each payment of the Letter of Credit fee under
Section 3.5 (except as provided therein) shall be made for the account of the
Lenders, pro rata according to their respective Revolving Credit Commitments;
(b) each termination or reduction of the Commitments under Section 2.11 shall be
applied to the Revolving Credit Commitments of the Lenders, pro rata according
to the respective Revolving Credit Commitments; (c) the making, Conversion, and
Continuation of Advances of a particular Type (other than Conversions provided
for by Section 5.4) shall be made pro rata among the Lenders holding Advances of
such Type according to the amounts of their respective Revolving Credit
Commitments; (d) each payment and prepayment of principal of or interest on
Advances by the Borrower or any Obligated Party of a particular Type of Loan
shall be made to the Agent for the account of the Lenders pro rata in accordance
with the respective unpaid principal amounts of such Advances of such Revolving
Credit Loan held by such Lenders; (e) any and all other monies received by the
Agent from any source other than pursuant to any of clauses (a) through (d)
hereinabove (including, without limitation, from the Borrower or any Guarantor)
to be applied first against the Primary Obligations and shall be for the pro
rata benefit and account of the Lenders based upon each Lender's aggregate
outstanding Advances of all Types and LC Participations and SL Participations to
the aggregate outstanding Advances of all Types and LC Participations and SL
Participations of all Lenders and then against the Secondary Obligations and
shall be for the pro rata benefit and account of the Lenders based upon their
respective unpaid amounts of the Secondary Obligations; and (f) the Lenders
shall purchase from the Issuing Bank and the Swing Lender pursuant to Section
3.1 and Section 2.7 respectively, participations in the Letters of Credit and
the related Letter of Credit Liabilities and the Swing Loans respectively, pro
rata in accordance with their Revolving Credit Commitments.

Non-Receipt of Funds by the Agent. Unless the Agent shall have been notified by
a Lender or the Borrower (the "Payor") prior to the date on which such Lender is
to make payment to the Agent hereunder or the Borrower is to make a payment to
the Agent for the account of one or more of the Lenders, as the case may be
(such payment being herein called the "Required Payment"), which notice shall be
effective upon receipt, that the Payor does not intend to make the Required
Payment to the Agent, the Agent may assume that the Required Payment has been
made and may, in reliance upon such assumption (but shall not be required to),
make the amount thereof available to the

                                       49
<PAGE>

intended recipient on such date and, if the Payor has not in fact made the
Required Payment to the Agent, (a) the recipient of such payment shall, on
demand, pay to the Agent the amount made available to it together with interest
thereon in respect of the period commencing on the date such amount was so made
available by the Agent until the date the Agent recovers such amount at a rate
per annum equal to (i) if recovered from a Lender, at the Federal Funds Rate for
such period and (ii) if recovered from the Borrower, the rate of interest
applicable to the Swing Loan, and (b) Agent shall be entitled to offset against
any and all sums to be paid to such recipient, the amount calculated in
accordance with the foregoing clause (a).

Taxes.

Any and all payments by the Borrower to or for the account of the Agent or any
Lender under any Loan Document shall be made free and clear of and without
deduction for any and all present or future taxes, duties, levies, imposts,
deductions, assessments, fees, withholdings or similar charges, and all
liabilities with respect thereto, excluding, in the case of the Agent and each
Lender, taxes imposed on or measured by its overall net income, and franchise
taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any
political subdivision thereof) under the laws of which the Agent or such Lender,
as the case may be, is organized or maintains a lending office (all such
non-excluded taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and liabilities being hereinafter referred to
as "Taxes"). If the Borrower shall be required by any laws to deduct any Taxes
from or in respect of any sum payable under any Loan Document to the Agent or
any Lender, (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section), each of the Agent and such Lender receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) the Borrower shall make such deductions, (iii) the Borrower shall pay the
full amount deducted to the relevant taxation authority or other authority in
accordance with applicable laws, and (iv) within 30 days after the date of such
payment, the Borrower shall furnish to the Agent (which shall forward the same
to such Lender) the original or a certified copy of a receipt evidencing payment
thereof. In addition, the Borrower agrees to pay any and all present or future
stamp, court or documentary taxes and any other excise or property taxes or
charges or similar levies which arise from any payment made under any Loan
Document or from the execution, delivery, performance, enforcement or
registration of, or otherwise with respect to, any Loan Document (hereinafter
referred to as "Other Taxes").

If the Borrower shall be required to deduct or pay any Taxes or Other Taxes from
or in respect of any sum payable under any Loan Document to the Agent or any
Lender, the Borrower shall also pay to the Agent or to such Lender, as the case
may be, at the time interest is paid, such additional amount that the Agent or
such Lender specifies is necessary to preserve the after-tax yield (after
factoring in all taxes, including taxes imposed on or measured by net income)
that the Agent or such Lender would have received if such Taxes or Other Taxes
had not been imposed. The Borrower agrees to indemnify the Agent and each Lender
for (i) the full amount of Taxes and Other Taxes (including any Taxes or Other
Taxes imposed or asserted by any jurisdiction on amounts payable under this
Section) paid by the Agent and such Lender, (ii) amounts payable under Section
4.6(c) and (iii) any liability (including additions to tax, penalties, interest
and expenses) arising therefrom or with respect thereto paid by the Agent and
such Lender, in each case whether or not such Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority.
Payment under this clause (d) shall be made within 30 days after the date the
Lender or the Agent makes a demand therefor.

         Tax Forms.

                  Each Lender that is not a "United States person" within the
         meaning of Section 7701(a)(30) of the Code (a "Foreign Lender") shall
         deliver to the Agent, prior to receipt of any payment subject to
         withholding under the Code (or upon accepting an assignment of an
         interest herein), two duly signed completed copies of either IRS Form
         W-8BEN or any successor thereto (relating to such Foreign Lender and
         entitling it to an exemption from, or reduction of, withholding tax on
         all payments to be made to such Foreign Lender by the Borrower pursuant
         to this Agreement) or IRS Form W-8ECI or any successor thereto
         (relating to all payments to be made to such Foreign Lender by the
         Borrower pursuant to this Agreement) or such other evidence
         satisfactory to the Borrower and the Agent that such Foreign Lender is
         entitled to an exemption from, or reduction of, U.S. withholding tax,
         including any exemption pursuant to Section 881(c) of the Code.
         Thereafter and from time to time, each such Foreign Lender shall (A)
         promptly submit to the Agent such additional duly completed and signed
         copies of one of such forms (or such successor forms as shall be
         adopted from time to time by the relevant United States taxing
         authorities) as may then be available under then current United States
         laws and regulations to

                                       50
<PAGE>

         avoid, or such evidence as is satisfactory to the Borrower and the
         Agent of any available exemption from or reduction of, United States
         withholding taxes in respect of all payments to be made to such Foreign
         Lender by the Borrower pursuant to this Agreement, (B) promptly notify
         the Agent of any change in circumstances which would modify or render
         invalid any claimed exemption or reduction, and (C) take such steps as
         shall not be materially disadvantageous to it, in the reasonable
         judgment of such Lender, and as may be reasonably necessary (including
         the re-designation of its Applicable Lending Office) to avoid any
         requirement of applicable laws that the Borrower make any deduction or
         withholding for taxes from amounts payable to such Foreign Lender.

Each Foreign Lender, to the extent it does not act or ceases to act for its own
account with respect to any portion of any sums paid or payable to such Lender
under any of the Loan Documents (for example, in the case of a typical
participation by such Lender), shall deliver to the Agent on the date when such
Foreign Lender ceases to act for its own account with respect to any portion of
any such sums paid or payable, and at such other times as may be necessary in
the determination of the Agent (in the reasonable exercise of its discretion),
(A) two duly signed completed copies of the forms or statements required to be
provided by such Lender as set forth above, to establish the portion of any such
sums paid or payable with respect to which such Lender acts for its own account
that is not subject to U.S. withholding tax, and (B) two duly signed completed
copies of IRS Form W-8IMY (or any successor thereto), together with any
information such Lender chooses to transmit with such form, and any other
certificate or statement of exemption required under the Code, to establish that
such Lender is not acting for its own account with respect to a portion of any
such sums payable to such Lender.

The Borrower shall not be required to pay any additional amount to any Foreign
Lender under Section 4.6 (A) with respect to any Taxes required to be deducted
or withheld on the basis of the information, certificates or statements of
exemption such Lender transmits with an IRS Form W-8IMY pursuant to this Section
4.7 or (B) if such Lender shall have failed to satisfy the foregoing provisions
of this Section 4.7(a); provided that if such Lender shall have satisfied the
requirement of this Section 4.7(a) on the date such Lender became a Lender or
ceased to act for its own account with respect to any payment under any of the
Loan Documents, nothing in this Section 4.7(a) shall relieve the Borrower of its
obligation to pay any amounts pursuant to Section 4.6 in the event that, as a
result of any change in any applicable law, treaty or governmental rule,
regulation or order, or any change in the interpretation, administration or
application thereof, such Lender is no longer properly entitled to deliver
forms, certificates or other evidence at a subsequent date establishing the fact
that such Lender or other Person for the account of which such Lender receives
any sums payable under any of the Loan Documents is not subject to withholding
or is subject to withholding at a reduced rate.

The Agent may, without reduction, withhold any Taxes required to be deducted and
withheld from any payment under any of the Loan Documents with respect to which
the Borrower is not required to pay additional amounts under this Section
4.7(a).

Upon the request of the Agent, each Lender that is a "United States person"
within the meaning of Section 7701(a)(30) of the Code shall deliver to the Agent
two duly signed completed copies of IRS Form W-9. If such Lender fails to
deliver such forms, then the Agent may withhold from any interest payment to
such Lender an amount equivalent to the applicable back-up withholding tax
imposed by the Code, without reduction. If any Governmental Authority asserts
that the Agent did not properly withhold or backup withhold, as the case may be,
any tax or other amount from payments made to or for the account of any Lender,
such Lender shall indemnify the Agent therefor, including all penalties and
interest, any taxes imposed by any jurisdiction on the amounts payable to the
Agent under this Section, and costs and expenses (including attorney's fees and
expenses) of the Agent. The obligation of the Lenders under this Section shall
survive the termination of the Commitments, repayment of all other Obligations
hereunder and the resignation of the Agent.

Computation of Interest. Interest on the Advances and all other amounts payable
by the Borrower hereunder shall be computed on the basis of a year of 360 days
and the actual number of days elapsed (including the first day but excluding the
last day) unless such calculation would result in a usurious rate, in which case
interest shall be calculated on the basis of a year of 365 or 366 days, as the
case may be.

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<PAGE>

           Proceeds of Collateral and Collections under the Guaranty.

Proceeds. Except as otherwise permitted by Section 4.3, any proceeds received by
the Agent from the sale or other liquidation of the Collateral and from
collections under the Guaranty shall first be applied as payment of the accrued
and unpaid fees of the Agent hereunder and then to all other unpaid or
unreimbursed Obligations (including reasonable attorneys' fees and expenses)
owing to the Agent in its capacity as Agent only. Any amount of such proceeds
remaining after the applications described in the preceding sentence shall be
distributed: first, to the Lenders, pro rata, in accordance with the respective
unpaid amounts of the Primary Obligations (including in such Primary Obligations
for purposes of this calculation all Letter of Credit Liabilities) until all
Primary Obligations are paid in full and provided that each Lender's pro rata
portion of such proceeds applicable to Letter of Credit Liabilities shall be
held by the Agent (and not disbursed to the Lenders) as collateral for the
Letter of Credit Liabilities relating thereto;

then to the Lenders, pro rata, in accordance with the respective unpaid amounts
of the Secondary Obligations; and after all Primary Obligations are paid in
full, and all Letter of Credit Liabilities have terminated or are otherwise
satisfied, all remaining portions of the proceeds of the Collateral then held by
the Agent or such Lender as collateral for the Letter of Credit Liabilities
shall be distributed to the Lenders, pro rata, in accordance with their
respective unpaid amounts of the Secondary Obligations.

Noncash Proceeds. Notwithstanding anything to the contrary contained herein, if
the Agent shall ever acquire any Collateral through foreclosure or by a
conveyance in lieu of foreclosure or by retaining any of the Collateral in
satisfaction of all or part of the Obligations or if any proceeds of Collateral
received by the Agent to be distributed and shared pursuant to this Section 4.9
are in a form other than immediately available funds, the Agent shall not be
required to remit any share thereof under the terms hereof and the Lenders shall
only be entitled to their undivided interests in the Collateral or noncash
proceeds as determined hereby. The Lenders shall receive the applicable portions
(as determined in accordance with Section 4.9(a)) of any immediately available
funds consisting of proceeds from such Collateral or proceeds of such noncash
proceeds so acquired only if any when paid in connection with the subsequent
disposition thereof. While any Collateral or other property to be shared
pursuant to this Section 4.9 is held by the Agent pursuant to this clause (b),
the Agent shall hold such Collateral or other property for the benefit of the
Lenders and all matters relating to the management, operation, further
disposition or any other aspect of such Collateral or other property shall be
resolved by the agreement of the Required Lenders.

Payments Set Aside. To the extent that any payment by or on behalf of the
Borrower is made to the Agent or any Lender, or the Agent or any Lender
exercises its right of set-off, and such payment or the proceeds of such set-off
or any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement
entered into by the Agent or such Lender in its discretion) to be repaid to a
trustee, receiver or any other party, in connection with any proceeding under
the Bankruptcy Code of the United States of America, or any other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization or similar
laws of the applicable jurisdictions or otherwise, then (i) to the extent of
such recovery, the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such set-off had not occurred, and (ii) each Lender
severally agrees to pay to the Agent upon demand its applicable share of any
amount so recovered from or repaid by the Agent, plus interest thereon from the
date of such demand to the date such payment is made at a rate per annum equal
to the Federal Funds Rate from time to time in effect.

           Yield Protection; Limitations on Advances; Capital Adequacy

         Additional Costs.

The Borrower shall pay directly to each Lender from time to time such amounts as
such Lender may determine to be necessary to compensate it for any costs
incurred by such Lender which such Lender determines are attributable to its
making or maintaining of any Eurodollar Advances hereunder or its obligation to
make any of such Advances hereunder, or any reduction in any amount receivable
by such Lender hereunder in respect of any such Advances or such obligation
(such increases in costs and reductions in amounts receivable being herein
called "Additional Costs"), resulting from any Regulatory Change which:

changes the basis of taxation of any amounts payable to such Lender under this
Agreement or its Note (or Notes) in respect of any of such Advances (other than
taxes imposed on the overall net income of such Lender or its Applicable Lending
Office for any of such Advances by the jurisdiction in which such Lender has its
principal office or such Applicable Lending Office);

                                       52
<PAGE>

imposes or modifies any reserve, special deposit, minimum capital, capital
ratio, or similar requirement relating to any extensions of credit or other
assets of, or any deposits with or other liabilities or commitments of, such
Lender (including any of such Advances or any deposits referred to in the
definition of "Eurodollar Rate" in Section 1.1 hereof); or imposes any other
condition affecting this Agreement or the Notes or any of such extensions of
credit or liabilities or commitments.

Each Lender will notify the Borrower of any event occurring after the date of
this Agreement which will entitle such Lender to compensation pursuant to this
Section 5.1(a) as promptly as practicable after it obtains knowledge thereof and
determines to request such compensation, and will designate a different
Applicable Lending Office for the Advances affected by such event if such
designation will avoid the need for, or reduce the amount of, such compensation
and will not, in the sole opinion of such Lender, violate any law, rule, or
regulation or be in any way disadvantageous to such Lender, provided that such
Lender shall have no obligation to so designate an Applicable Lending Office
located in the United States of America. Each Lender will furnish the Borrower
with a certificate setting forth the basis and the amount of each request of
such Lender for compensation under this Section 5.1(a). If any Lender requests
compensation from the Borrower under this Section 5.1(a), the Borrower may, by
notice to such Lender (with a copy to the Agent) suspend the obligation of such
Lender to make or Continue making, or Convert Advances into, Advances of the
Type with respect to which such compensation is requested until the Regulatory
Change giving rise to such request ceases to be in effect (in which case the
provisions of Section 5.4 hereof shall be applicable).

Without limiting the effect of the foregoing provisions of this Section 5.1, in
the event that, by reason of any Regulatory Change, any Lender either (i) incurs
Additional Costs based on or measured by the excess above a specified level of
the amount of a category of deposits or other liabilities of such Lender which
includes deposits by reference to which the interest rate on Eurodollar Advances
is determined as provided in this Agreement or a category of extensions of
credit or other assets of such Lender which includes Eurodollar Advances or (ii)
becomes subject to restrictions on the amount of such a category of liabilities
or assets which it may hold, then, if such Lender so elects by notice to the
Borrower (with a copy to the Agent), the obligation of such Lender to make or
Continue making, or Convert Advances into, Eurodollar Advances hereunder shall
be suspended until such Regulatory Change ceases to be in effect (in which case
the provisions of Section 5.4 hereof shall be applicable). Determinations and
allocations by any Lender for purposes of this Section 5.1 of the effect of any
Regulatory Change on its costs of maintaining its obligations to make Eurodollar
Advances or of making or maintaining Eurodollar Advances or on amounts
receivable by it in respect of Eurodollar Advances, and of the additional
amounts required to compensate such Lender in respect of any Additional Costs,
shall be conclusive, provided that such determinations and allocations are made
on a reasonable basis.

Limitation on Types of Advances. Anything herein to the contrary
notwithstanding, if with respect to any Eurodollar Advances for any Interest
Period therefor:

The Agent determines (which determination shall be conclusive) that quotations
of interest rates for the relevant deposits referred to in the definition of
"Eurodollar Rate" in Section 1.1 hereof are not being provided in the relative
amounts or for the relative maturities for purposes of determining the rate of
interest for such Advances as provided in this Agreement; or

Required Lenders determine (which determination shall be conclusive absent
manifest error) and notify the Agent that the relevant rates of interest
referred to in the definition of "Eurodollar Rate" in Section 1.1 hereof on the
basis of which the rate of interest for such Advances for such Interest Period
is to be determined do not accurately reflect the cost to the Lenders of making
or maintaining such Advances for such Interest Period;

then the Agent shall give the Borrower prompt notice thereof specifying the
relevant amounts or periods, and so long as such condition remains in effect,
the Lenders shall be under no obligation to make additional Eurodollar Advances
or to Convert Base Rate Advances into Eurodollar Advances and the Borrower
shall, on the last day(s) of the then current Interest Period(s) for the
outstanding Eurodollar Advances, either prepay such Eurodollar Advances or
Convert such Eurodollar Advances into Base Rate Advances in accordance with the
terms of this Agreement.

Illegality. Notwithstanding any other provision of this Agreement, in the event
that it becomes unlawful for any Lender or its Applicable Lending Office to (a)
honor its obligation to make Eurodollar Advances hereunder or (b) maintain
Eurodollar Advances hereunder, then such Lender shall promptly notify the
Borrower (with a copy to the Agent) thereof and such Lender's obligation to make
or maintain Eurodollar Advances and to Convert Base Rate

                                       53
<PAGE>

Advances into Eurodollar Advances hereunder shall be suspended until such time
as such Lender may again make and maintain Eurodollar Advances (in which case
the provisions of Section 5.4 hereof shall be applicable).

Treatment of Affected Advances. If the Eurodollar Advances of any Lender (such
Eurodollar Advances being hereinafter called "Affected Advances") are to be
Converted pursuant to Section 5.1 or 5.3 hereof, such Lender's Affected Advances
shall be automatically Converted into Base Rate Advances on the last day(s) of
the then current Interest Period(s) for the Affected Advances (or, in the case
of a Conversion required by Section 5.1(b) or 5.3 hereof, on such earlier date
as such Lender may specify to the Borrower with a copy to the Agent) and, unless
and until such Lender gives notice as provided below that the circumstances
specified in Section 5.1 or 5.3 hereof which gave rise to such Conversion no
longer exist:

To the extent that such Lender's Affected Advances have been so Converted, all
payments and prepayments of principal which would otherwise be applied to such
Lender's Affected Advances shall be applied instead to its Base Rate Advances;
and

All Affected Advances which would otherwise be made or Continued by such
Lender as Eurodollar Advances shall be made as or Converted into Base Rate
Advances and all Affected Advances of such Lender which would otherwise be
Converted into Eurodollar Advances shall be Converted instead into (or shall
remain as) Base Rate Advances.

If such Lender gives notice to the Borrower (with a copy to the Agent) that the
circumstances specified in Section 5.1 or 5.3 hereof which gave rise to the
Conversion of such Lender's Affected Advances pursuant to this Section 5.4 no
longer exist (which such Lender agrees to do promptly upon such circumstances
ceasing to exist) at a time when Affected Advances are outstanding, such
Lender's Base Rate Advances shall be automatically Converted, on the first
day(s) of the next succeeding Interest Period(s) for such outstanding Affected
Advances to the extent necessary so that, after giving effect thereto, all
Eurodollar Advances held by the Lenders holding Eurodollar Advances and by such
Lender are held pro rata (as to principal amounts, and Interest Periods) in
accordance with their respective Revolving Credit Commitments.

Compensation. The Borrower shall pay to the Agent for the account of each
Lender, upon the request of such Lender through the Agent, such amount or
amounts as shall be sufficient (in the reasonable opinion of such Lender) to
compensate it for any loss, cost, or expense incurred by it as a result of:

Any payment, prepayment or Conversion of a Eurodollar Advance for any reason
(including, without limitation, the acceleration of the outstanding Advances
pursuant to Section 11.2) on a date other than the last day of an Interest
Period for such Eurodollar Advance; or

Any failure by the Borrower for any reason (including, without limitation, the
failure of any conditions precedent specified in Article VI to be satisfied) to
borrow, Convert, or prepay a Eurodollar Advance on the date for such borrowing,
Conversion, or prepayment, specified in the relevant notice of borrowing,
prepayment, or Conversion under this Agreement.

Capital Adequacy. If after the date hereof, any Lender shall have determined
that the adoption or implementation of any applicable law, rule, or regulation
regarding capital adequacy, or any change therein, or any change in the
interpretation or administration thereof by any central bank or other
Governmental Authority charged with the interpretation or administration
thereof, or compliance by such Lender (or its parent) with any guideline,
request, or directive regarding capital adequacy (whether or not having the
force of law) of any central bank or other Governmental Authority, has or would
have the effect of reducing the rate of return on such Lender's (or its
parent's) capital as a consequence of its obligations hereunder or the
transactions contemplated hereby to a level below that which such Lender (or its
parent) could have achieved but for such adoption, implementation, change or
compliance (taking into consideration such Lender's policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, within 10 Business Days after demand by such Lender (with a copy
to the Agent), the Borrower shall pay to such Lender such additional amount or
amounts as will compensate such Lender (or its parent) for such reduction. A
certificate of such Lender claiming compensation under this Section and setting
forth the additional amount or amounts to be paid to it hereunder shall be
conclusive, provided that the determination thereof is made on a reasonable
basis. In determining such amount or amounts, such Lender may use any reasonable
averaging and attribution methods.

Additional Costs in Respect of Letters of Credit. If as a result of any
Regulatory Change there shall be imposed, modified, or deemed applicable any
tax, reserve, special deposit, or similar requirement against or with respect to
or

                                       54
<PAGE>

measured by reference to Letters of Credit issued or to be issued hereunder or
the Issuing Bank's commitment to issue Letters of Credit hereunder, and the
result shall be to increase the cost to the Issuing Bank of issuing or
maintaining any Letter of Credit or its commitment to issue Letters of Credit
hereunder or reduce any amount receivable by the Issuing Bank hereunder in
respect of any Letter of Credit (which increase in cost, or reduction in amount
receivable, shall be the result of the Issuing Bank's reasonable allocation of
the aggregate of such increases or reductions resulting from such event), then,
upon demand by the Issuing Bank, the Borrower agrees to pay the Issuing Bank,
from time to time as specified by the Issuing Bank, such additional amounts as
shall be sufficient to compensate the Issuing Bank for such increased costs or
reductions in amount. A statement as to such increased costs or reductions in
amount incurred by the Issuing Bank, submitted by the Issuing Bank to the
Borrower, shall be conclusive as to the amount thereof, provided that the
determination thereof is made on a reasonable basis.

                              Conditions Precedent

Initial Extension of Credit. The obligation of each Lender to make its initial
Advance is subject to the condition precedent that the Agent shall have received
on or before the day of such Advance all of the following, each dated (unless
otherwise indicated) the date hereof, in form and substance satisfactory to the
Agent:

Resolutions. Resolutions of the Board of Directors of the Borrower and each
Guarantor certified by its Secretary or an Assistant Secretary which authorize
the execution, delivery, and performance of the Loan Documents to which it is or
is to be a party;

Incumbency Certificate. A certificate of incumbency certified by the Secretary
or an Assistant Secretary of the Borrower and each Guarantor certifying the
names of each of its officers authorized to sign the Loan Documents to which it
is or is to be a party (including the certificates contemplated herein) together
with specimen signatures of such officers;

Certificate or Articles of Incorporation and Certificate of Limited Partnership.
The certificate or articles of incorporation or certificate of limited
partnership, as applicable, of the Borrower and each Guarantor certified by the
Secretary of State of the State of its organization;

Bylaws and Limited Partnership Agreement. The bylaws or limited partnership
agreement, as applicable, of the Borrower and each Guarantor certified by the
Secretary or an Assistant Secretary of such Person;

Existence and Good Standing. Certificates of the appropriate government
officials of the state of organization of the Borrower and each Guarantor as to
its existence and good standing and certificates of appropriate government
officials of each state in which the Borrower and each Guarantor is required to
qualify to do business and where failure to so qualify could reasonably be
expected to have a Material Adverse Effect, as to the Borrower's and each
Guarantor's qualification to do business and good standing in such state, all
dated a current date;

Notes.  The Notes executed by the Borrower;

Guaranty.  The Guaranty executed by the Guarantors;

Contribution and Indemnification Agreement. The Contribution and Indemnification
Agreement executed by the Borrower and the Guarantors;

Borrower Security Agreement. The Borrower Security Agreement executed by the
Borrower;

Subsidiary Security Agreement. The Subsidiary Security Agreement executed by
each Guarantor, as applicable; [Intentionally Left Blank];

Opinion of Counsel. A favorable opinion of legal counsel to the Borrower and
each Guarantor satisfactory to the Agent, as to such matters as the Agent may
reasonably request;

Fees of Lenders. Evidence that all fees of the Agent and the Lenders payable
pursuant to side letter agreements shall have been paid in full by the Borrower;
and

                                       55
<PAGE>

Attorneys' Fees and Expenses. Evidence that the costs and expenses (including
attorneys' fees) referred to in Section 13.1, to the extent incurred, shall have
been paid in full by the Borrower.

All Extensions of Credit. The obligation of each Lender to make any Advance and
of the Issuing Bank to issue any Letter of Credit (including the initial Advance
and the initial Letter of Credit) is subject to the following additional
conditions precedent:

Advance Request Form, Telephonic Request, or Letter of Credit Request Form. The
Agent in respect of Revolving Credit Loan Advances, the Swing Lender in respect
of Swing Loan Advances, and the Issuing Bank in respect of Letters of Credit
shall have received, in accordance with Section 2.5, 2.7 or 3.2, as the case may
be, an Advance Request Form, a telephonic request, or Letter of Credit Request
Form, as applicable, executed by an authorized officer of the Borrower;

No Default. No Default shall have occurred and be continuing, or would result
from such Advance or Letter of Credit;

Representations and Warranties. All of the representations and warranties
contained in Article VII hereof and in the other Loan Documents shall be true
and correct in all material respects on and as of the date of such Advance or
issuance of Letter of Credit with the same force and effect as if such
representations and warranties had been made on and as of such date except to
the extent such representations and warranties speak to a specific date;

No Material Adverse Effect. Neither any Material Adverse Effect or any material
adverse change in the financial or capital markets shall have occurred since the
date of the most recent financial statements delivered to the Agent and the
Lenders pursuant to Section 8.1 hereof; and

Additional Documentation. The Agent shall have received such additional
approvals, opinions, or documents as the Agent or its legal counsel, Winstead
Sechrest & Minick P.C., may reasonably request.

                         Representations and Warranties

         To induce the Agent, the Issuing Bank, and the Lenders to enter into
this Agreement, the Borrower represents and warrants to the Agent, the Issuing
Bank, and the Lenders that:

Existence. The Borrower and each Subsidiary (a) is a corporation (or other
entity as set forth on Schedule 7.14) duly organized, validly existing, and in
good standing under the laws of the jurisdiction of its incorporation or
organization; (b) has all requisite power and authority to own its assets and
carry on its business as now being or as proposed to be conducted; and (c) is
qualified to do business in all jurisdictions in which the nature of its
business makes such qualification necessary and where failure to so qualify
would have a Material Adverse Effect. Each of the Borrower and the Guarantors
has the power and authority to execute, deliver, and perform its obligations
under the Loan Documents to which it is or may become a party.

Financial Statements. The Borrower has delivered to the Agent audited
consolidated financial statements of the Borrower and its Subsidiaries as at and
for the fiscal year ended September 30, 2003, and unaudited consolidated
financial statements of the Borrower and its Subsidiaries for the five-month
period ended February 29, 2004. Such financial statements are true and correct,
have been prepared in accordance with GAAP, and fairly and accurately present,
on a consolidated basis, the financial condition of the Borrower and its
Subsidiaries as of the respective dates indicated therein and the results of
operations for the respective periods indicated therein. As of the date hereof,
neither the Borrower nor any of its Subsidiaries has any material contingent
liabilities, liabilities for taxes, unusual forward or long-term commitments, or
unrealized or anticipated losses from any unfavorable commitments except as
referred to or reflected in such financial statements, and there has been no
Material Adverse Effect since the effective date of the most recent financial
statements referred to in this Section.

Action; No Breach. The execution, delivery, and performance by the Borrower and
each Guarantor of the Loan Documents to which it is or may become a party, and
compliance with the terms and provisions hereof and thereof have been duly
authorized by all requisite action on the part of the Borrower and each
Guarantor and do not and will not (a) violate or conflict with, or result in a
breach of, or require any consent, other than such consents which have

                                       56
<PAGE>

been obtained and copies of which have been provided to the Agent, under (i) the
articles of incorporation or bylaws or the applicable organizational documents
of the Borrower or any Guarantor, (ii) any applicable law, rule, or regulation
or any order, writ, injunction, or decree of any Governmental Authority or
arbitrator, including without limitation, the provisions of the Texas Pawnshop
Act (Chapter 371 of the Texas Finance Code) and the consumer loan provisions of
the Texas Finance Code, or (iii) any agreement or instrument to which the
Borrower or any of the Guarantors is a party or by which any of them or any of
their property is bound or subject, or (b) constitute a default under any such
agreement or instrument, or result in the creation or imposition of any Lien
upon any of the revenues or assets of the Borrower or any Guarantor (except for
Liens in favor of the Agent for the benefit of the Lenders).

Operation of Business. The Borrower and each of its Subsidiaries possess all
licenses, permits, franchises, patents, copyrights, trademarks, and tradenames,
or rights thereto, necessary to conduct their respective businesses
substantially as now conducted and as presently proposed to be conducted, and
the Borrower and each of its Subsidiaries are not in violation of any valid
rights of others with respect to any of the forgoing except where such violation
individually or in combination with all other such violations could not
reasonably be expected to have a Material Adverse Effect.

Litigation and Judgments. There is no action, suit, investigation, or proceeding
before or by any Governmental Authority or arbitrator pending, or to the
knowledge of the Borrower, threatened against or affecting the Borrower or any
Subsidiary, that could, if adversely determined, reasonably be expected to have
a Material Adverse Effect. As of the date hereof, there are no outstanding
judgments against the Borrower or any Subsidiary, except for those certain
default judgments in an aggregate amount not exceeding $15,000 outstanding on
the date hereof.

Rights in Properties; Liens. The Borrower and each Subsidiary have good and
indefeasible title to or valid leasehold interests in their respective
properties and assets, real and personal, including the properties, assets, and
leasehold interests reflected in the financial statements described in Section
7.2, and none of the properties, assets, or leasehold interests of the Borrower
or any Subsidiary is subject to any Lien, except as permitted by Section 9.2.

Enforceability. The Loan Documents to which the Borrower or a Guarantor is a
party, when delivered, shall constitute the legal, valid, and binding
obligations of the Borrower or such Guarantor, as applicable, enforceable
against the Borrower or such Guarantor, as applicable, in accordance with their
respective terms, except as limited by bankruptcy, insolvency, or other laws of
general application relating to the enforcement of creditors' rights and general
principles of equity.

Approvals. No authorization, approval, or consent of, and no filing or
registration with, any Governmental Authority or third party is or will be
necessary for the execution, delivery, or performance by the Borrower of this
Agreement and by the Borrower or any Guarantor of the other Loan Documents to
which the Borrower or such Guarantor, as applicable, is or may become a party or
for the validity or enforceability thereof.

Debt. The Borrower and the Subsidiaries have no Debt, except as permitted by
Section 9.1.

Taxes. The Borrower and each Subsidiary have filed all tax returns (federal,
state, and local) required to be filed, including all income, franchise,
employment, property, and sales tax returns, and have paid all of their
respective liabilities for taxes, assessments, governmental charges, and other
levies that are due and payable other than those being contested in good faith
by appropriate proceedings diligently pursued for which adequate reserves have
been established. The Borrower knows of no pending investigation of the Borrower
or any Subsidiary by any taxing authority or of any pending but unassessed tax
liability of the Borrower or any Subsidiary.

Use of Proceeds; Margin Securities. Neither the Borrower nor any Subsidiary is
engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying margin stock (within
the meaning of Regulations T, U, or X of the Board of Governors of the Federal
Reserve System), and no part of the proceeds of any Advance will be used to
purchase or carry any margin stock or to extend credit to others for the purpose
of purchasing or carrying margin stock.

ERISA. As of the date hereof, the Borrower, each Subsidiary, each ERISA
Affiliate, and each Plan are in compliance in all material respects with all
applicable provisions of ERISA and the Code except for events of noncompliance
that will not have a Material Adverse Effect. Neither a Reportable Event nor a
Prohibited

                                       57
<PAGE>

Transaction has occurred and is continuing with respect to any Plan. No notice
of intent to terminate a Plan has been filed, nor has any Plan been terminated.
No circumstances exist which constitute grounds entitling the PBGC to institute
proceedings to terminate, or appoint a trustee to administer, a Plan, nor has
the PBGC instituted any such proceedings. Neither the Borrower nor any ERISA
Affiliate has completely or partially withdrawn from a Multiemployer Plan. With
respect to any Plan that is subject to Title IV or Section 302 of ERISA or
Section 412 or 4971 of the Code (a) no circumstances exist which constitute
grounds entitling the PBGC to institute proceedings to terminate, or appoint a
trustee to administer, a Plan, nor has the PBGC instituted any such proceedings,
(b) the Borrower and each ERISA Affiliate have met their minimum funding
requirements under ERISA, and no "accumulated funding deficiency" (for which an
excise tax is due or would be due in the absence of a waiver) as defined in
Section 412 of the Code or Section 302(a)(2) of ERISA, whichever may apply, has
been incurred with respect to any Plan, whether or not waived, (c) the present
value of all vested benefits under each Plan do not exceed the fair market value
of all Plan assets allocable to such benefits, determined on a termination basis
as of the most recent valuation date of the Plan and in accordance with ERISA,
and (d) neither the Borrower nor any ERISA Affiliate (i) has incurred any
liability to the PBGC under ERISA, (ii) is subject to any lien imposed under
Section 412(n) of the Code or Section 302(f) or 4068 of ERISA, whichever may
apply, with respect to any Plan or (iii) is required to provide security to a
Plan under Section 401(a)(29) of the Code.

Disclosure. All factual information (taken as a whole) furnished by or on behalf
of the Borrower in writing to the Agent or any Lender (including, without
limitation, all information contained in the Loan Documents) for purposes of or
in connection with this Agreement, the other Loan Documents or any transaction
contemplated herein or therein is, and all other such factual information (taken
as a whole) hereafter furnished by or on behalf of the Borrower to the Agent or
any Lender, will be true and accurate in all material respects on the date as of
which such information is dated or certified and not incomplete by omitting to
state any fact necessary to make such information (taken as a whole) not
misleading in any material respect at such time in light of the circumstances
under which such information was provided.

Subsidiaries. As of the date hereof, the Borrower has no Subsidiaries other than
those listed on Schedule 7.14 hereto, and Schedule 7.14 (a) sets forth the type
of each Subsidiary listed thereon, (b) sets forth the jurisdiction of
incorporation or organization of each Subsidiary, and the percentage of the
Borrower's (or intervening Subsidiary's) ownership of the outstanding voting
stock or other ownership interests of each Subsidiary. All of the outstanding
capital stock of each corporate Subsidiary has been validly issued, is fully
paid, and is nonassessable. There are no outstanding subscriptions, options,
warrants, calls, or rights to acquire, and no outstanding securities or
instruments convertible into, capital stock of any Subsidiary except as listed
on Schedule 7.14.

Agreements. Neither the Borrower nor any Subsidiary is a party to any indenture,
loan, or credit agreement, or to any lease or other agreement or instrument, or
subject to any charter or corporate restriction which could reasonably be
expected to have a Material Adverse Effect. Neither the Borrower nor any
Subsidiary is in default in any material respect in the performance, observance,
or fulfillment of any of the obligations, covenants, or conditions contained in
any agreement or instrument material to its business to which it is a party
other than defaults which could not reasonably be expected to have a Material
Adverse Effect.

Compliance with Laws. Neither the Borrower nor any Subsidiary is in violation of
any law, rule, regulation, order, or decree of any Governmental Authority or
arbitrator, including without limitation, the provisions of the Texas Pawnshop
Act (Chapter 371 of the Texas Finance Code), the consumer loan provisions of the
Texas Finance Code and provisions of the Brady Law and other laws, rules and
regulations related to the regulation of firearms, other than violations which
could not reasonably be expected to have a Material Adverse Effect.

Investment Company Act. Neither the Borrower nor any Subsidiary is an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended.

Public Utility Holding Company Act. Neither the Borrower nor any Subsidiary is a
"holding company"' or a "subsidiary company" of a "holding company" or an
"affiliate" of a "holding company" or a "public utility" within the meaning of
the Public Utility Holding Company Act of 1935, as amended.

Environmental Matters. Except for those matters which will not individually or
collectively have a Material Adverse Effect:

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<PAGE>

The Borrower, each Subsidiary, and all of their respective properties, assets,
and operations are in full compliance with all Environmental Laws. The Borrower
is not aware of, nor has the Borrower received notice of, any past, present, or
future conditions, events, activities, practices, or incidents which may
interfere with or prevent the compliance or continued compliance of the Borrower
and the Subsidiaries with all Environmental Laws; The Borrower and each
Subsidiary have obtained all permits, licenses, and authorizations that are
required under applicable Environmental Laws, and all such permits are in good
standing and the Borrower and its Subsidiaries are in compliance with all of the
terms and conditions of such permits;

No Hazardous Materials exist on, about, or within or have been used, generated,
stored, transported, disposed of on, or Released from any of the properties or
assets of the Borrower or any Subsidiary. The use which the Borrower and the
Subsidiaries make and intend to make of their respective properties and assets
will not result in the use, generation, storage, transportation, accumulation,
disposal, or Release of any Hazardous Material on, in, or from any of their
properties or assets except in compliance with Environmental Laws;

Neither the Borrower nor any of its Subsidiaries nor any of their respective
currently or previously owned or leased properties or operations is subject to
any outstanding or, to the best of its knowledge, threatened order from or
agreement with any Governmental Authority or other Person or subject to any
judicial or docketed administrative proceeding with respect to (i) failure to
comply with Environmental Laws, (ii) Remedial Action, or (iii) any Environmental
Liabilities arising from a Release or threatened Release;

There are no conditions or circumstances associated with the currently or
previously owned or leased properties or operations of the Borrower or any of
its Subsidiaries that could reasonably be expected to give rise to any
Environmental Liabilities;

Neither the Borrower nor any of its Subsidiaries is a treatment, storage, or
disposal facility requiring a permit under the Resource Conservation and
Recovery Act, 42 U.S.C. Section 6901 et seq., regulations thereunder or any
comparable provision of state law. The Borrower and its Subsidiaries are in
compliance with all applicable financial responsibility requirements of all
Environmental Laws;

Neither the Borrower nor any of its Subsidiaries has filed or failed to file any
notice required under applicable Environmental Law reporting a Release; and

No Lien arising under any Environmental Law has attached to any property or
revenues of the Borrower or its Subsidiaries.

                               Positive Covenants

         The Borrower covenants and agrees that, as long as the Obligations or
any part thereof are outstanding or any Lender has any Commitment hereunder, or
the Issuing Bank has any obligation to issue Letters of Credit hereunder, the
Borrower will perform and observe the following positive covenants:

         Reporting Requirements. The Borrower will furnish to the Agent, the
Issuing Bank, and each Lender:

Annual Audited Financial Statements. As soon as available, and in any event
within 90 days after the end of each Fiscal Year of the Borrower and the
Subsidiaries, beginning with the Fiscal Year ending September 30, 2004, a copy
of the annual audited financial statements of the Borrower and the Subsidiaries
for such Fiscal Year containing, on a consolidated basis, balance sheets and
statements of income, retained earnings, and cash flow as at the end of such
Fiscal Year and for the 12-month period then ended, in each case setting forth
in comparative form the figures for the preceding Fiscal Year, all in reasonable
detail and audited and certified by Ernst & Young, or other independent
certified public accountants of recognized standing acceptable to the Agent, to
the effect that such report has been prepared in accordance with GAAP;

                                       59
<PAGE>

Quarterly Financial Statements. As soon as available and in any event within 45
days after the end of each Fiscal Quarter in each Fiscal Year of the Borrower
(for the first three Fiscal Quarters in each Fiscal Year), a copy of an
unaudited financial report of the Borrower and the Subsidiaries as of the end of
such Fiscal Quarter and for the portion of the Fiscal Year then ended,
containing, on a consolidated basis (and, at the request of the Agent, on a
consolidating basis), balance sheets and statements of income, retained
earnings, and cash flow in each case setting forth in comparative form the
figures for the corresponding period of the preceding Fiscal Year, all in
reasonable detail certified by the chief financial officer of the Borrower to
have been prepared in accordance with GAAP and to fairly and accurately present
(subject to year-end audit adjustments) the financial condition and results of
operations of the Borrower and the Subsidiaries, on a consolidated basis (and,
at the request of the Agent, on a consolidating basis), at the date and for the
periods indicated therein;

Compliance Certificate. As soon as available, and in any event within 45 days
after the end of each Fiscal Quarter of each Fiscal Year of the Borrower for the
first three Fiscal Quarters of each Fiscal Year and within 90 days after the end
of the fourth Fiscal Quarter of each Fiscal Year, a certificate (the "Compliance
Certificate") of the chief financial officer of the Borrower (i) stating that to
the best of such officer's knowledge, no Default has occurred and is continuing,
or if a Default has occurred and is continuing, a statement as to the nature
thereof and the action that is proposed to be taken with respect thereto, and
(ii) showing in reasonable detail the most recent Fiscal Quarter calculations
demonstrating compliance with Article X;

Projections. As soon as available and in any event not later than the end of
each Fiscal Year, projections of consolidated financial statements of the
Borrower and its Subsidiaries for the upcoming Fiscal Year;

Quarterly Collateral Reports. As soon as available and in any event within 45
days after the end of each Fiscal Quarter in each Fiscal Year of the Borrower, a
report of the Borrower's and its Subsidiaries' Accounts (as defined in the
Borrower Security Agreement and the Subsidiary Security Agreement) and
Inventory, in form of Exhibit F attached hereto;

Management Letters. Promptly upon receipt thereof, a copy of any management
letter or written report submitted to the Borrower or any Subsidiary by
independent certified public accountants with respect to the business, condition
(financial or otherwise), operations, prospects, or properties of the Borrower
or any Subsidiary;

Notice of Litigation. Promptly after the commencement thereof, notice of all
actions, suits, and proceedings before any Governmental Authority or arbitrator
affecting the Borrower or any Subsidiary which, if determined adversely to the
Borrower or such Subsidiary, could reasonably be expected to have a Material
Adverse Effect;

Notice of Default. As soon as possible and in any event within 10 days after the
Borrower knows of the occurrence of each Default, a written notice setting forth
the details of such Default and the action that the Borrower has taken and
proposes to take with respect thereto;

ERISA Reports. Promptly after the filing or receipt thereof, copies of all
reports, including annual reports or informational returns, notices which the
Borrower or any ERISA Affiliate files with or receives from the PBGC or the U.S.
Department of Labor under ERISA, and any tax returns the Borrower or any ERISA
Affiliate file with the Internal Revenue Service related to any Plan; and as
soon as possible and in any event within five days after the Borrower or any
ERISA Affiliate knows or has reason to know that any Reportable Event (as to
which the thirty day notice requirement to the PBGC has not been waived) or
Prohibited Transaction has occurred with respect to any Plan or that the PBGC or
the Borrower or any Subsidiary or any ERISA Affiliate has instituted or will
institute proceedings under Title IV of ERISA to terminate any Plan, a
certificate of the chief financial officer of the Borrower setting forth the
details as to such Reportable Event or Prohibited Transaction or Plan
termination and the action that the Borrower proposes to take with respect
thereto;

Notice of Material Adverse Effect. As soon as possible and in any event within
10 days after the Borrower knows of the occurrence thereof, written notice of
any matter that could reasonably be expected to have a Material Adverse Effect;

Proxy Statements, Etc. As soon as available, one copy of each financial
statement, report, notice or proxy statement sent by the Borrower or any
Subsidiary to its stockholders generally and one copy of each regular, periodic
or

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<PAGE>

special report, registration statement, or prospectus filed by the Borrower
or any Subsidiary with any securities exchange or the Securities and Exchange
Commission or any successor agency;

General Information. Promptly, such other information concerning the Borrower or
any Subsidiary as the Agent or any Lender may from time to time reasonably
request.

Maintenance of Existence; Conduct of Business. The Borrower will preserve and
maintain, and will cause each Subsidiary to preserve and maintain, its corporate
(or partnership, limited liability company or other entity) existence and all of
its leases, privileges, licenses, permits, franchises, qualifications, and
rights that are necessary or desirable in the ordinary conduct of its business.
The Borrower will conduct, and will cause each Subsidiary to conduct, its
business in an orderly and efficient manner in accordance with good business
practices customary in the industry in which the Borrower and the Subsidiaries
are engaged.

Maintenance of Properties. The Borrower will maintain, keep, and preserve, and
cause each Subsidiary to maintain, keep, and preserve, all of its properties
(tangible and intangible) necessary or useful in the proper conduct of its
business in good working order and condition (ordinary wear and tear excepted).

Taxes and Claims. The Borrower will pay or discharge, and will cause each
Subsidiary to pay or discharge, at or before maturity or before becoming
delinquent (a) all taxes, levies, assessments, and governmental charges imposed
on it or its income or profits or any of its property, and (b) all lawful claims
for labor, material, and supplies, which, if unpaid, might become a Lien upon
any of its property; provided, however, that neither the Borrower nor any
Subsidiary shall be required to pay or discharge any tax, levy, assessment, or
governmental charge which is being contested in good faith by appropriate
proceedings diligently pursued, and for which adequate reserves have been
established.

Insurance. The Borrower will maintain, and will cause each Subsidiary to
maintain, insurance with financially sound and reputable insurance companies in
such amounts and covering such risks as is usually carried by corporations
engaged in similar businesses and owning similar properties in the same general
areas in which the Borrower and the Subsidiaries operate, provided that in any
event the Borrower will maintain and cause each Subsidiary to maintain workmen's
compensation insurance, property insurance, comprehensive general liability
insurance, reasonably satisfactory to the Agent.

Inspection Rights; Audits. At any reasonable time and from time to time, the
Borrower will permit, and will cause each Subsidiary to permit, representatives
of the Agent and each Lender to examine, copy, and make extracts from its books
and records, to visit and inspect its properties, and to discuss its business,
operations, and financial condition with its officers, employees, and
independent certified public accountants.

Keeping Books and Records. The Borrower will maintain, and will cause each
Subsidiary to maintain, proper books of record and account in which full, true,
and correct entries in conformity with GAAP shall be made of all dealings and
transactions in relation to its business and activities.

Compliance with Laws. The Borrower will comply, and will cause each Subsidiary
to comply, in all respects with all applicable laws, rules, regulations, orders,
and decrees of any Governmental Authority or arbitrator, including without
limitation, the provisions of the Texas Pawnshop Act (Chapter 371 of the Texas
Finance Code), the consumer loan provisions of the Texas Finance Code and the
provisions of the Brady Law and other laws, rules and regulations related to the
regulation of firearms, other than such non-compliance which could not
reasonably be expected to have a Material Adverse Effect.

Compliance with Agreements. The Borrower will comply, and will cause each
Subsidiary to comply, in all respects with all agreements, contracts, and
instruments binding on it or affecting its properties or business other than
such non-compliance which could not reasonably be expected to have a Material
Adverse Effect.

Further Assurances. The Borrower will, and will cause each Subsidiary to,
execute and deliver such further agreements and instruments and take such
further action as may be reasonably requested by the Agent to carry out the
provisions and purposes of this Agreement and the other Loan Documents. Without
limiting the foregoing, upon the creation or acquisition of any Subsidiary or a
new store by a new Subsidiary or by an existing Subsidiary in a

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new state, the Borrower shall (a) provide written notice of such event to the
Agent within five Business Days following the date the Borrower has knowledge
thereof, and (b) cause each such domestic Subsidiary to execute and deliver a
supplement to the Guaranty, a supplement to the Contribution and Indemnification
Agreement, a supplement to the Subsidiary Security Agreement, Real Property
Security Documents, Uniform Commercial Code financing statements (delivery
only), and if required by Section 8.12, to provide to the Agent a Waiver for
each Leased Location (subject in all respects to a best efforts standard of
performance), title insurance commitments, surveys of Real Property, appraisals
of Real Property, lender's title insurance policy with any required
endorsements, and a legal opinion of the Borrower's and Guarantors' counsel
(which may in the Agent's discretion be a legal opinion of the Borrower's
in-house counsel), each in form and substance satisfactory to the Agent, within
30 calendar days following the date the Borrower has knowledge thereof. If any
Subsidiary is created or acquired after the date hereof, the Borrower shall
execute and deliver to the Agent (i) an amendment to this Agreement to amend
Schedule 7.14 to this Agreement (which only needs the signature of the Agent to
be effective if the only change is the addition of the new Subsidiary) and (ii)
any other documents which would have otherwise been required to be delivered to
the Agent and the Lenders if such Subsidiary had been a Subsidiary as of the
date hereof.

ERISA. With respect to any Plan that is subject to Title IV or Section 302 of
ERISA or Section 412 or 4971 of the Code, the Borrower will comply, and will
cause each Subsidiary to comply, with all minimum funding requirements, and all
other material requirements of ERISA, if applicable, so as not to give rise to
any liability thereunder which could reasonably be expected to have a Material
Adverse Effect.

Landlord's Waivers or Subordinations.
If a Leased Location is a Pay-Day Only Store, and if any of the Borrower or
its Subsidiaries originates (as a lender) any Pay-Day Advance Loans and/or other
unsecured consumer loans at such Pay-Day Only Store, then the Borrower will, and
will cause each applicable Subsidiary to, deliver promptly a waiver or
subordination of the landlord's lien in the Collateral (a "Waiver") by the
landlord of such Pay-Day Only Store (subject in all respects to a best efforts
standard of performance), the Waiver to be in form and substance reasonably
satisfactory to the Agent.

                  (ii) If at any time any Leased Location is not, or ceases to
         be a Pay-Day Only Store as a result of, among other things, providing
         other consumer products or services such as pawn loans, then (A) the
         Borrower will provide to the Agent written notice of such event within
         30 days after the occurrence of such event and (B) at the request of
         the Agent, the Borrower will, and will cause each applicable Subsidiary
         to, deliver a Waiver for such Leased Location (subject in all respects
         to a best efforts standard of performance) in form and substance
         reasonably satisfactory to the Agent.

Within 45 days after a Landlord Change, the Borrower will, and will cause each
Subsidiary to, deliver (subject in all respects to a best efforts standard of
performance) to the Agent (i) to the extent any Waiver is required under clause
(a) above, an updated Waiver or (ii) an acknowledgment from the new landlord of
the effectiveness of the Waiver, if any, received from the previous landlord,
the Waiver or acknowledgment to be in form and substance reasonably satisfactory
to the Agent.

                               Negative Covenants

         The Borrower covenants and agrees that, as long as the Obligations or
any part thereof are outstanding or any Lender has any Commitment hereunder or
the Issuing Bank has any obligation to issue Letters of Credit hereunder, the
Borrower will perform and observe the following negative covenants:

Debt. The Borrower will not incur, create, assume, or permit to exist, and will
not permit any Subsidiary to incur, create, assume, or permit to exist, any
Debt, except:

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Debt to the Lenders and the Issuing Bank pursuant to the Loan Documents;

Debt listed on Schedule 9.1;

unsecured Debt owed by a Guarantor to another Guarantor evidenced by a
promissory note which is issued to satisfy any applicable state regulatory
requirement for the issuance of a license for consumer loan activity, such
promissory note being pledged to and held by the Agent as Collateral;

Guarantee by the Borrower of real estate lease obligations of a Guarantor;
subordinated Debt which is fully subordinated to the Obligations and is as
evidenced by and subject to documentation, all in form and substance
satisfactory to the Agent and the Required Lenders; and

Debt (other than the Debt described in clauses (a) through and including (e)
above) in an aggregate amount not to exceed $500,000 at any one time
outstanding.

Limitation on Liens. The Borrower will not incur, create, assume, or permit to
exist, and will not permit any Subsidiary to incur, create, assume, or permit to
exist, any Lien upon any of its property, assets, or revenues, whether now owned
or hereafter acquired, except:

Liens disclosed on Schedule 9.2 hereto and Liens in favor of the Agent for the
benefit of the Lenders;

Liens for taxes, assessments, or other governmental charges which are not
delinquent or which are being diligently contested in good faith and for which
adequate reserves have been established;

Liens of mechanics, materialmen, warehousemen, carriers, landlords or other
similar statutory Liens securing obligations that are not yet due and are
incurred in the ordinary course of business;

Liens resulting from good faith deposits to secure payments of workmen's
compensation or other social security programs or to secure the performance of
tenders, statutory obligations, surety and appeal bonds, bids, contracts (other
than for payment of Debt), or leases made in the ordinary course of business;

purchase money Liens securing Permitted Debt described in Section 9.1(f),
provided that the Debt secured by any such Lien encumbers only the asset so
purchased;

Liens on the Indemnity Accounts and the Litigation Fund Accounts in favor of
County Bank of Rehoboth Beach, Delaware;

financing statements filed in connection with operating lease transactions for
computers; and

Liens in favor of a landlord of a Leased Location on only the assets of the
Borrower or any Subsidiary located at such Lease Location so long as no
financing statement will be filed in connection with such Lien unless (i) the
collateral description listed on such financing statement is limited to the
assets of the Borrower or applicable Subsidiary located at such Leased Location,
and (ii) the Borrower or applicable Subsidiary has obtained a Waiver for such
Leased Location from such landlord, such Waiver to be in form and substance
satisfactory to the Agent.

         Neither the Borrower nor any Subsidiary shall enter into or assume any
agreement (other than the Loan Documents) prohibiting the creation or assumption
of any Lien upon its properties or assets whether now owned or hereafter
acquired; provided that in connection with the creation of purchase money Liens
permitted hereby, the Borrower or the Subsidiary may agree that it will not
permit any other Liens (other than the Liens in favor of the Agent for the
benefit of the Lenders) to encumber the assets subject to such purchase money
Lien. Further, the Borrower will not and will not permit any Subsidiaries
directly or indirectly to create or otherwise cause or suffer to exist to become
effective any consensual encumbrance or restriction of any kind on the ability
of any Subsidiary to: (i) pay dividends or make any other distribution on any of
such Subsidiaries' capital stock owned by the Borrower or any Subsidiary of the
Borrower; (ii) subject to subordination provisions pay any Debt owed to the
Borrower or any other Subsidiary; (iii) make loans or advances to the Borrower
or any other Subsidiary; or (iv) transfer any of its properties or assets to the
Borrower or any other Subsidiary not restricted hereby.

Mergers, Etc. The Borrower will not, and will not permit any Subsidiary to
become a party to a merger or consolidation, or to purchase or otherwise acquire
all or a substantial part of the business or assets of any Person or any shares
or other equity interest of any Person (whether or not certificated), or
wind-up, dissolve, or liquidate itself; provided that, (i) a domestic Subsidiary
may wind-up, dissolve or liquidate if no Default exists or would result
therefrom and its assets are transferred to the Borrower or another domestic
Subsidiary; (ii) a foreign Subsidiary may wind-up, dissolve or liquidate if no
Default exists or would result therefrom; (iii) any Subsidiary may merge with
and into the Borrower if the Borrower is the surviving entity and no Default
exists or would result therefrom; (iv) any Subsidiary may merge with and into
any other domestic Subsidiary if the domestic Subsidiary is the surviving
entity, no Default exists or would result therefrom and Section 8.10 is complied
with; (v) any foreign Subsidiary may merge with any other foreign Subsidiary if
no Default exists or would result therefrom; (vi) the Borrower or a Subsidiary
may make investments permitted under Section 9.5 hereof; and (vii) the Borrower
or a Subsidiary may make Permitted Acquisitions.

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Restricted Payments. The Borrower will not declare or pay any dividends or make
any other payment or distribution (whether in cash, property, or obligations) on
account of its capital stock, or redeem, purchase, retire, or otherwise acquire
any of its capital stock, or permit any of its Subsidiaries to purchase or
otherwise acquire any capital stock of the Borrower or another Subsidiary, or
set apart any money for a sinking or other analogous fund for any dividend or
other distribution on its capital stock or for any redemption, purchase,
retirement, or other acquisition of any of its capital stock; provided however,
the Borrower may declare or pay any dividends or make any other payment or
distribution on account of its capital stock during any Fiscal Year in an amount
not to exceed 25% of the Borrower's Consolidated Net Income for such Fiscal
Year.

Investments. Other than pawn loans, Pay-Day Advance Loans (and participations
therein) and other consumer loans (and participations therein) extended in the
ordinary course of business, the Borrower will not make, and will not permit any
Subsidiary to make, any advance, loan, extension of credit, or capital
contribution to or investment in, or purchase to own, or permit any Subsidiary
to purchase or own, any stock, bonds, notes, debentures, or other securities of
any Person, except:

readily marketable direct obligations of the United States of America or any
agency thereof with maturities of 18 months or less from the date of
acquisition;

fully insured certificates of deposit with maturities of one year
or less from the date of acquisition issued by any commercial bank operating in
the United States of America having capital and surplus in excess of
$50,000,000; commercial paper of a domestic issuer if at the time of purchase
such paper is rated in one of the two highest rating categories of Standard and
Poor's, a division of The McGraw-Hill Companies, Inc., or Moody's Investors
Service, Inc.;

auction rate preferred stock and municipal bonds that at the time of purchase
are rated in one of the two highest rating categories of Standard & Poor's, a
division of The McGraw-Hill Companies, Inc., or Moody's Investment Services,
Inc.;

money market funds and mutual funds that invest in securities deemed acceptable
for outright purchase;

investments in Subsidiaries existing on the date of this
Agreement and investments in subsequently created domestic Subsidiaries so long
as the Borrower and the Subsidiaries have complied with the terms and conditions
of Section 8.10;

any loans or investments not covered in the previous sections of this Section
9.5 not to exceed $2,000,000 in the aggregate; and

Permitted Acquisitions.
Notwithstanding anything to the contrary contained herein, neither the Borrower
nor any Subsidiary will make any advance, loan, extension of credit, or capital
contribution to or investment in, or purchase to own, any stock, bonds, notes,
debentures, or other securities of Albemarle & Bond Holdings plc except for
those certain investments in Albemarle & Bond Holdings plc existing on the date
of this Agreement.

Limitation on Issuance of Capital Stock. The Borrower will not permit any of its
Subsidiaries to, at any time issue, sell, assign, or otherwise dispose of (a)
any of its capital stock (or any equivalent interest therein), (b) any
securities exchangeable for or convertible into or carrying any rights to
acquire any of its capital stock (or any equivalent interest therein), or (c)
any option, warrant, or other right to acquire any of its capital stock (or any
equivalent interest therein).

Transactions With Affiliates. The Borrower will not enter into, and will not
permit any Subsidiary to enter into, any transaction, including, without
limitation, the purchase, sale, or exchange of property or the rendering of any
service, with any Affiliate of the Borrower or such Subsidiary, except (a) in
the ordinary course of and pursuant to the reasonable requirements of the
Borrower's or such Subsidiary's business, (b) upon fair and reasonable terms no
less favorable to the Borrower or such Subsidiary than would be obtained in a
comparable arm's-length transaction with a Person not an Affiliate of the
Borrower or such Subsidiary and (c) so long as no Default has occurred and is
continuing or would result therefrom.

Disposition of Assets. The Borrower will not sell, lease, assign, transfer, or
otherwise dispose (collectively "Dispositions") of any of its assets, or permit
any Subsidiary to do so with any of its assets, except:

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Dispositions of Inventory in the ordinary course of business;

Dispositions of obsolete, worn or used equipment;

Dispositions to a Guarantor as to which Agent has in its possession an executed
Guaranty, Contribution and Indemnification Agreement, Subsidiary Security
Agreement and Real Estate Security Documents, if applicable; and

Dispositions of certain store locations (including sales of Real Property and
operating business (which may include the sale of Inventory and pawn loans and
interests in Pay-Day Advance Loans of the Borrower or any Subsidiary in
connection with the sale of such location), but excluding liquidating sales of
Inventory and pawn loans and interests in Pay-Day Advance Loans of the Borrower
or any Subsidiary, which do not occur in connection with the sale of any Real
Property or operating business) owned by the Borrower or any of its Subsidiaries
as of the date hereof so long as the Net Proceeds of such Disposition are
promptly paid to the Agent in accordance with Section 4.3.

Nature of Business. The Borrower will not, and will not permit any Subsidiary
to, engage in any business other than the businesses in which they are engaged
on the date hereof and similar businesses thereto in connection with the
providing of consumer loan products, directly and indirectly. Without in any way
limiting the foregoing, such businesses shall include, but not be limited to,
the following: pawn loans, check-cashing, money wires, Pay-Day Advance Loans,
other consumer loans, directly (as a lender) and indirectly (as a participant),
jewelry and merchandise sales and other services incidental to the foregoing.

Environmental Protection. The Borrower will not, and will not permit any of its
Subsidiaries to, (a) use (or permit any tenant to use) any of their respective
properties or assets for the handling, processing, storage, transportation, or
disposal of any Hazardous Material, (b) generate any Hazardous Material, (c)
conduct any activity that is likely to cause a Release or threatened Release of
any Hazardous Material, or (d) otherwise conduct any activity or use any of
their respective properties or assets in any manner that is likely to violate
any Environmental Law or create any Environmental Liabilities for which the
Borrower or any of its Subsidiaries would be responsible.

Accounting. The Borrower will not, and will not permit any of its Subsidiaries
to, change its Fiscal Year or make any change in accounting treatment or
reporting practices, except as permitted by GAAP and disclosed to the Agent.

Prepayment of Debt. The Borrower will not, and will not permit any Subsidiary
to, prepay any Debt except (i) the Obligations and (ii) intercompany Debt among
Guarantors permitted pursuant to Section 9.1(c).

Pay-Day Advance Loans. The Borrower will not, and will not permit any of its
Subsidiaries to, purchase participation or other interests in any Pay-Day
Advance Loans, or other consumer loans, the applications for which were
originated and processed by a Person other than the Borrower or any Subsidiary
or a Person acquired by the Borrower or any Subsidiary.

                               Financial Covenants

         The Borrower covenants and agrees that, as long as the Obligations or
any part thereof are outstanding or any Lender has any Commitment hereunder or
the Issuing Bank has any obligation to issue Letters of Credit hereunder, the
Borrower will perform and observe the following financial covenants:

Consolidated Net Worth. Beginning with the Fiscal Quarter ending December 31,
2003, the Borrower will maintain at all times Consolidated Net Worth in an
amount not less than (a) $106,400,000.00, plus (b) an amount equal to 100% of
Consolidated Net Income (not less than zero dollars [$0.00]) for all periods
subsequent to the Fiscal Quarter ending December 31, 2003, plus (c) an amount
equal to 100% of the Net Proceeds of all equity offerings (including conversions
of debt securities into common stock) of the Borrower subsequent to December 31,
2003, minus (d) an amount equal to any dividends declared by the Borrower for
all periods subsequent to the Fiscal Quarter ending December 31, 2003 and only
to the extent permitted to be made under Section 9.4.

Senior Leverage Ratio. The Borrower will maintain a Senior Leverage Ratio at the
end of each Fiscal Quarter of not greater than 2.00 to 1.00.

Total Leverage Ratio. The Borrower will maintain a Total Leverage Ratio at the
end of each Fiscal Quarter of not greater than 3.25 to 1.00.

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Capital Expenditures. The Borrower will not permit the aggregate amount of
Capital Expenditures of the Borrower and the Subsidiaries to exceed $8,000,000
during any Fiscal Year.

Inventory Turnover. The Borrower on a consolidated basis will at all times
maintain an Inventory Turnover at the end of each Fiscal Quarter of not less
than 2.00 to 1.00.

Fixed Charge Coverage Ratio. The Borrower will maintain a Fixed Charge Coverage
Ratio at the end of each Fiscal Quarter of not less than 1.25 to 1.00.

                                     Default

Events of Default.  Each of the following shall be deemed an "Event of Default":

The Borrower shall fail to pay when due the Obligations or any part thereof.

Any representation or warranty made or deemed made by the Borrower or any
Obligated Party (or any of their respective officers) in any Loan Document or in
any certificate, report, notice, or financial statement furnished at any time in
connection with this Agreement shall be false, misleading, or erroneous in any
material respect when made or deemed to have been made.

The Borrower shall fail to perform, observe, or comply with any covenant,
agreement, or term contained in Section 8.1, Article IX, or Article X of this
Agreement; or the Borrower or any Obligated Party shall fail to perform,
observe, or comply with any other covenant, agreement, or term contained in this
Agreement or any other Loan Document (other than covenants to pay the
Obligations) and such failure shall continue for a period of 15 days. The
Borrower, any Subsidiary, or any Obligated Party shall commence a voluntary
proceeding seeking liquidation, reorganization, or other relief with respect to
itself or its debts under any bankruptcy, insolvency, or other similar law now
or hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian, or other similar official of it or a substantial part of
its property or shall consent to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other
proceeding commenced against it or shall make a general assignment for the
benefit of creditors or shall generally fail to pay its debts as they become due
or shall take any corporate action to authorize any of the foregoing.

An involuntary proceeding shall be commenced against the Borrower, any
Subsidiary, or any Obligated Party seeking liquidation, reorganization, or other
relief with respect to it or its debts under any bankruptcy, insolvency, or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official for it or a
substantial part of its property, and such involuntary proceeding shall remain
undismissed and unstayed for a period of 30 days.

The Borrower, any Subsidiary, or any Obligated Party shall fail to discharge
within a period of 45 days after the commencement thereof any attachment,
sequestration, or similar proceeding or proceedings involving an aggregate
amount in excess of $250,000 against any of its assets or properties.

A final judgment or judgments for the payment of money in excess of $250,000 in
the aggregate shall be rendered by a court or courts against the Borrower, any
of its Subsidiaries, or any Obligated Party and the same shall not be discharged
(or provision shall not be made for such discharge), or a stay of execution
thereof shall not be procured, within 45 days from the date of entry thereof and
the Borrower or the relevant Subsidiary or Obligated Party shall not, within
said period of 45 days, or such longer period during which execution of the same
shall have been stayed, appeal therefrom and cause the execution thereof to be
stayed during such appeal. The Borrower, any Subsidiary, or any Obligated Party
shall fail to pay when due any principal of or interest on any Material Debt
(hereinafter defined) (other than the Obligations), or the maturity of any such
Debt shall have been accelerated, or any such Debt shall have been required to
be prepaid prior to the stated maturity thereof, or any event shall have
occurred that permits any holder or holders of such Debt or any Person acting on
behalf of such holder or holders to accelerate the maturity thereof or require
any such prepayment. For purposes of this clause (h), the term "Material Debt"
means Debt owed by the Borrower or any Subsidiary the principal amount of which
exceeds $250,000.

This Agreement or any other Loan Document shall cease to be in full force and
effect or shall be declared null and void or the validity or enforceability
thereof shall be contested or challenged by the Borrower, any Subsidiary, any

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Obligated Party or any of their respective shareholders, or the Borrower or any
Obligated Party shall deny that it has any further liability or obligation under
any of the Loan Documents.

Any of the following events shall occur or exist with respect to the Borrower or
any ERISA Affiliate: (i) any Prohibited Transaction involving any Plan; (ii) any
Reportable Event with respect to any Plan; (iii) the filing under Section 4041
of ERISA of a notice of intent to terminate any Plan or the termination of any
Plan; (iv) any event or circumstance that might constitute grounds entitling the
PBGC to institute proceedings under Section 4042 of ERISA for the termination
of, or for the appointment of a trustee to administer, any Plan, or the
institution by the PBGC of any such proceedings; or (v) complete or partial
withdrawal under Section 4201 or 4204 of ERISA from a Multiemployer Plan or the
reorganization, insolvency, or termination of any Multiemployer Plan; and in
each case above, such event or condition, together with all other events or
conditions, if any, have subjected or could in the reasonable opinion of
Required Banks subject the Borrower to any tax, penalty, or other liability to a
Plan, a Multiemployer Plan, the PBGC, or otherwise (or any combination thereof)
which in the aggregate exceed or could reasonably be expected to exceed
$250,000.

Any Person or group of related Persons for purposes of Section 13(d) of the
Exchange Act sells or acquires after the date hereof "beneficial ownership"
(within the meaning of Section 13(d) of the Exchange Act) in excess of 33% of
the total voting power of all classes of capital stock then outstanding of the
Borrower entitled (without regard to the occurrence of any contingency) to vote
in elections of directors of the Borrower.

The Borrower or any of its Subsidiaries, or any of their properties, revenues,
or assets, shall become the subject of an order of forfeiture, seizure, or
divestiture and the same shall not have been discharged (or provisions shall not
be made for such discharge) within 30 days from the date of entry thereof.

Any Material Adverse Effect shall occur.

County Bank of Rehoboth Beach, Delaware during any consecutive 12-month period
shall draw down or withdraw (other than Permitted Withdrawals) an amount equal
to or greater than $300,000 in the aggregate from either (i) any Indemnity
Accounts or any Litigation Fund Accounts (or any combination thereof), (ii) any
letter of credit issued for the account of the Borrower or any of its
Subsidiaries to County Bank of Rehoboth Beach, Delaware, or (iii) any
combination of clauses (i) or (ii) hereof.

         Remedies.

If any Event of Default shall occur and be continuing, the Agent may (and if
directed by Required Lenders, shall) do any one or more of the following:

Acceleration. Declare all outstanding principal of and accrued and unpaid
interest on the Notes, all outstanding Letter of Credit Disbursements, and all
other obligations of the Borrower under the Loan Documents immediately due and
payable, and the same shall thereupon become immediately due and payable,
without notice, demand, presentment, notice of dishonor, notice of acceleration,
notice of intent to accelerate, protest, or other formalities of any kind, all
of which are hereby expressly waived by the Borrower.

Termination of Revolving Credit Commitments. Terminate the Revolving Credit
Commitments and the obligation of the Issuing Bank to issue Letters of Credit
without notice to the Borrower.

Judgment. Reduce any claim to judgment.

Foreclosure. Foreclose or otherwise enforce any Lien granted to the Agent for
the benefit of itself and the Lenders to secure payment and performance of the
Obligations in accordance with the terms of the Loan Documents. Rights. Exercise
any and all rights and remedies afforded by the laws of the State of Texas or
any other jurisdiction, by any of the Loan Documents, by equity, or otherwise.

         Provided, however, that upon the occurrence of an Event of Default
         under subsection (d) or (e) of Section 11.1, the Revolving Credit
         Commitments of all of the Lenders and the obligation of the Issuing
         Bank to issue Letters of Credit shall automatically terminate, and the
         outstanding principal of and accrued and unpaid interest on the Notes
         and all other obligations of the Borrower under the Loan Documents
         shall thereupon become immediately due and payable without notice,
         demand, presentment, notice of dishonor, notice of acceleration, notice
         of intent to accelerate, protest, or other formalities of any kind, all
         of which are hereby expressly waived by the Borrower.

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If an Event of Default shall have occurred and be continuing, each Lender is
hereby authorized at any time and from time to time, without notice to the
Borrower (any such notice being hereby expressly waived by the Borrower), to set
off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing
by such Lender to or for the credit or the account of the Borrower against any
and all of the obligations of the Borrower now or hereafter existing under this
Agreement, such Lender's Note (or Notes), or any other Loan Document,
irrespective of whether or not the Agent or such Lender shall have made any
demand under this Agreement or such Lender's Note (or Notes) or such other Loan
Document and although such obligations may be unmatured. Each Lender agrees
promptly to notify the Borrower (with a copy to the Agent and to each Lender)
after any such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application. The rights
and remedies of each Lender hereunder are in addition to other rights and
remedies (including, without limitation, other rights of setoff) which such
Lender may have.

Cash Collateral. If an Event of Default shall have occurred and be continuing
the Borrower shall, if requested by the Agent or Required Lenders, pledge to the
Agent as security for the Obligations an amount in immediately available funds
equal to the then outstanding Letter of Credit Liabilities, such funds to be
held in a cash collateral account at the Agent without any right of withdrawal
by the Borrower.

Performance by the Agent. If the Borrower shall fail to perform any covenant or
agreement in accordance with the terms of the Loan Documents, the Agent may, at
the direction of Required Lenders, perform or attempt to perform such covenant
or agreement on behalf of the Borrower. In such event, the Borrower shall, at
the request of the Agent, promptly pay any amount reasonably expended by the
Agent or the Lenders in connection with such performance or attempted
performance to the Agent at the Principal Office, together with interest thereon
at the Default Rate from and including the date of such expenditure to but
excluding the date such expenditure is paid in full. Notwithstanding the
foregoing, it is expressly agreed that neither the Agent nor any Lender shall
have any liability or responsibility for the performance of any obligation of
the Borrower under this Agreement or any of the other Loan Documents.

                                    The Agent

Appointment, Powers and Immunities. In order to expedite the various
transactions contemplated by this Agreement, the Lenders and the Issuing Bank
hereby irrevocably appoint and authorize Wells Fargo Bank, National Association
to act as their Agent hereunder and under each of the other Loan Documents.
Wells Fargo Bank, National Association consents to such appointment and agrees
to perform the duties of the Agent as specified herein. The Lenders and the
Issuing Bank authorize and direct the Agent to take such action in their name
and on their behalf under the terms and provisions of the Loan Documents and to
exercise such rights and powers thereunder as are specifically delegated to or
required of the Agent for the Lenders and/or the Issuing Bank, together with
such rights and powers as are reasonably incidental thereto. The Agent is hereby
expressly authorized to act as the Agent on behalf of itself, the other Lenders
and the Issuing Bank:

To receive on behalf of each of the Lenders and the
Issuing Bank any payment of principal, interest, fees (except for the annual
agent fee described in Section 2.9(a)) or other amounts paid pursuant to this
Agreement and the Notes and to distribute to each Lender and/or the Issuing Bank
its share of all payments so received as provided in this Agreement;

To receive all documents and items to be furnished under the Loan Documents;

To act as nominee for and on behalf of the Lenders and the Issuing Bank in and
under the Loan Documents;

To arrange for the means whereby the Advances are to be made available to the
Borrower;

To distribute to the Lenders and the Issuing Bank information, requests,
notices, payments, prepayments, documents and other items received from the
Borrower, the Obligated Parties, and other Persons;

To execute and deliver to the Borrower, the Obligated Parties, and other
Persons, all requests, demands, approvals, notices, and consents received from
the Lenders and the Issuing Bank;

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To the extent permitted by the Loan Documents, to exercise on behalf of each
Lender and the Issuing Bank all rights and remedies of Lenders and the Issuing
Bank upon the occurrence of any Event of Default;

To serve as liaison between the Lenders, the Issuing Bank and the Borrower with
respect to future negotiations, amendments and waivers of the terms of this
Agreement and transmittal of copies of such amendments and waivers for signature
to each Lender and the Issuing Bank;

To receive signed copies of this Agreement, future amendments hereto, waivers of
any terms hereof, and related documents comprising the Loan Documents, and
provide appropriate signed or reproduction copies thereof to each Lender, the
Issuing Bank and the Borrower;

To forward to each Lender and the Issuing Bank copies of all Loan Documents and
opinions furnished to Agent under this Agreement or any of the other Loan
Documents;

To receive notices of Defaults, copies of which shall be forwarded to all
Lenders and the Issuing Bank, and any waivers of Defaults under this Agreement
and forward copies thereof to all Lenders and the Issuing Bank;

To advise each Lender and the Issuing Bank of all notices received or furnished
by Agent hereunder;

To take such other actions as may be requested by Required Lenders; and

To accept, execute, and deliver any and all security documents as the secured
party.

         Neither the Agent nor any of its Affiliates, officers, directors,
employees, attorneys, or agents shall be liable to the Lenders for any action
taken or omitted to be taken by any of them hereunder or otherwise in connection
with this Agreement or any of the other Loan Documents except for its or their
own gross negligence or willful misconduct. Without limiting the generality of
the preceding sentence, the Agent (i) may treat the payee of any Note as the
holder thereof until the Agent receives written notice of the assignment or
transfer thereof signed by such payee and in form satisfactory to the Agent;
(ii) shall have no duties or responsibilities except those expressly set forth
in this Agreement and the other Loan Documents, and shall not by reason of this
Agreement or any other Loan Document be a trustee or fiduciary for any Lender or
the Issuing Bank; (iii) shall not be required to initiate any litigation or
collection proceedings hereunder or under any other Loan Document except to the
extent requested by Required Lenders; (iv) shall not be responsible to the
Lenders or the Issuing Bank for any recitals, statements, representations or
warranties contained in this Agreement or any other Loan Document, or any
certificate or other document referred to or provided for in, or received by any
of them under, this Agreement or any other Loan Document, or for the value,
validity, effectiveness, enforceability, or sufficiency of this Agreement or any
other Loan Document or any other document referred to or provided for herein or
therein or for any failure by any Person to perform any of its obligations
hereunder or thereunder; (v) may consult with legal counsel (including counsel
for the Borrower), independent public accountants, and other experts selected by
it and shall not be liable for any action taken or omitted to be taken in good
faith by it in accordance with the advice of such counsel, accountants, or
experts; and (vi) shall incur no liability under or in respect of any Loan
Document by acting upon any notice, consent, certificate, or other instrument or
writing believed by it to be genuine and signed or sent by the proper party or
parties. As to any matters not expressly provided for by this Agreement, the
Agent shall in all cases be fully protected in acting, or in refraining from
acting, hereunder in accordance with instructions signed by Required Lenders,
and such instructions of Required Lenders and any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders; provided, however, that
the Agent shall not be required to take any action which exposes the Agent to
personal liability or which is contrary to this Agreement or any other Loan
Document or applicable law.

Rights of Agent as a Lender. With respect to its Revolving Credit Commitment,
the Advances made by it and the Notes issued to it, Wells Fargo Bank, National
Association in its capacity as a Lender hereunder shall have the same rights and
powers hereunder as any other Lender and may exercise the same as though it were
not acting as the Agent, and the term "Lender" or "Lenders" shall, unless the
context otherwise indicates, include the Agent in its individual capacity. The
Agent and its Affiliates may (without having to account therefor to any Lender)
accept deposits from, lend money to, act as trustee under indentures of, provide
merchant banking services to, and generally engage in any kind of business with
the Borrower, any of its Subsidiaries, any Obligated Party, and any other Person

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who may do business with or own securities of the Borrower, any Subsidiary, or
any Obligated Party, all as if it were not acting as the Agent and without any
duty to account therefor to the Lenders.

Sharing of Payments, Etc. If any Lender shall obtain any payment of any
principal of or interest on any Advance made by it under this Agreement or
payment of any other obligation under the Loan Documents then owed by the
Borrower or any Obligated Party to such Lender, whether voluntary, involuntary,
through the exercise of any right of set-off, banker's lien, counterclaim or
similar right, or otherwise, in excess of its pro rata share (calculated (i)
pursuant to Section 3.5 in respect of letter of credit fees, and (ii) for all
other of the Primary Obligations on the basis of the unpaid principal of and
interest on the Revolving Credit Loan, the Swing Loan, LC Participations and SL
Participations held by it), such Lender shall promptly purchase from the other
Lenders participations in the Primary Obligations owed to them hereunder in such
amounts, and make such other adjustments from time to time as shall be necessary
to cause such purchasing Lender to share the excess payment ratably with each of
the other Lenders in accordance with its pro rata portion thereof. To such end,
all of the Lenders shall make appropriate adjustments among themselves (by the
resale of participations sold or otherwise) if all or any portion of such excess
payment is thereafter rescinded or must otherwise be restored. The Borrower
agrees, to the fullest extent it may effectively do so under applicable law,
that any Lender so purchasing a participation in the Advances and LC
Participations made by the other Lenders may exercise all rights of set-off,
banker's lien, counterclaim, or similar rights with respect to such
participation as fully as if such Lender were a direct holder of Advances to, or
Letter of Credit Disbursements for the account of, the Borrower in the amount of
such participation. Nothing contained herein shall require any Lender to
exercise any such right or shall affect the right of any Lender to exercise, and
retain the benefits of exercising, any such right with respect to any other
indebtedness or obligation of the Borrower.

Indemnification. THE LENDERS HEREBY AGREE TO INDEMNIFY THE AGENT AND THE ISSUING
BANK FROM AND HOLD THE AGENT AND THE ISSUING BANK HARMLESS AGAINST (TO THE
EXTENT NOT REIMBURSED UNDER SECTIONS 13.1 AND 13.2, BUT WITHOUT LIMITING THE
OBLIGATIONS OF THE BORROWER UNDER SECTIONS 13.1 AND 13.2), RATABLY IN ACCORDANCE
WITH THEIR RESPECTIVE REVOLVING CREDIT COMMITMENTS, ANY AND ALL LIABILITIES,
OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, DEFICIENCIES,
SUITS, COSTS, EXPENSES (INCLUDING REASONABLE ATTORNEYS' FEES), AND DISBURSEMENTS
OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED BY, OR
ASSERTED AGAINST THE AGENT AND THE ISSUING BANK IN ANY WAY RELATING TO OR
ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY ACTION TAKEN OR OMITTED TO BE
TAKEN BY THE AGENT AND THE ISSUING BANK UNDER OR IN RESPECT OF ANY OF THE LOAN
DOCUMENTS; PROVIDED, FURTHER, THAT NO LENDER SHALL BE LIABLE FOR ANY PORTION OF
THE FOREGOING TO THE EXTENT CAUSED BY THE AGENT'S OR THE ISSUING BANK'S GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT. WITHOUT LIMITING ANY OTHER PROVISION OF THIS
SECTION, EACH LENDER AGREES TO REIMBURSE THE AGENT AND THE ISSUING BANK PROMPTLY
UPON DEMAND FOR ITS PRO RATA SHARE (CALCULATED ON THE BASIS OF THE REVOLVING
CREDIT COMMITMENTS) OF ANY AND ALL OUT-OF-POCKET EXPENSES (INCLUDING REASONABLE
ATTORNEYS' FEES) INCURRED BY THE AGENT AND THE ISSUING BANK IN CONNECTION WITH
THE PREPARATION, EXECUTION, DELIVERY, ADMINISTRATION, MODIFICATION, AMENDMENT OR
ENFORCEMENT (WHETHER THROUGH NEGOTIATIONS, LEGAL PROCEEDINGS, OR OTHERWISE) OF,
OR LEGAL ADVICE IN RESPECT OF RIGHTS OR RESPONSIBILITIES UNDER, THE LOAN
DOCUMENTS, TO THE EXTENT THAT THE AGENT OR THE ISSUING BANK IS NOT REIMBURSED
FOR SUCH EXPENSES BY THE BORROWER.

Independent Credit Decisions. Each Lender agrees that it has independently and
without reliance on the Agent, the Issuing Bank or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own
credit analysis of the Borrower and decision to enter into this Agreement and
that it will, independently and without reliance upon the Agent, the Issuing
Bank or any other Lender, and based upon such documents and information as it
shall deem appropriate at the time, continue to make its own analysis and
decisions in taking or not taking action under this Agreement or any of the
other Loan Documents. The Agent shall not be required to keep itself informed as
to the performance or observance by the Borrower or any Obligated Party of this
Agreement or any other Loan Document or to inspect the properties or books of
the Borrower or any Obligated Party. Except for notices, reports and other
documents and information expressly required to be furnished to the Lenders and
the Issuing Bank by the Agent hereunder or under the other Loan Documents,
neither the Agent nor the Issuing Bank

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<PAGE>

shall have any duty or responsibility to provide any Lender with any credit or
other financial information concerning the affairs, financial condition or
business of the Borrower or any Obligated Party (or any of their Affiliates)
which may come into the possession of the Agent, the Issuing Bank or any of
their Affiliates.

Several Commitments. The Commitments and other obligations of the Lenders under
this Agreement are several. The default by any Lender in making an Advance in
accordance with its Commitment shall not relieve the other Lenders of their
obligations under this Agreement. In the event of any default by any Lender in
making any Advance, each nondefaulting Lender shall be obligated to make its
Advance but shall not be obligated to advance the amount which the defaulting
Lender was required to advance hereunder. In no event shall any Lender be
required to advance an amount or amounts to the Borrower which shall in the
aggregate exceed such Lender's Revolving Credit Commitment. No Lender shall be
responsible for any act or omission of any other Lender.

Successor Agent. Subject to the appointment and acceptance of a successor Agent
as provided below, the Agent may resign at any time by giving notice thereof to
the Lenders, the Issuing Bank and the Borrower and the Agent may be removed at
any time with or without cause by Required Lenders. Upon any such resignation or
removal, the Required Lenders will have the right to appoint a successor Agent.
If no successor Agent shall have been so appointed by the Required Lenders and
shall have accepted such appointment within 30 days after the retiring Agent's
giving of notice of resignation or the Required Lenders' removal of the retiring
Agent, then the retiring Agent may, on behalf of the Lenders and the Issuing
Bank, appoint a successor Agent, which shall be a commercial bank organized
under the laws of the United States of America or any State thereof and having
combined capital and surplus of at least One $100,000,000. Upon the acceptance
of its appointment as successor Agent, such successor Agent shall thereupon
succeed to and become vested with all rights, powers, privileges, immunities,
and duties of the resigning or removed Agent, and the resigning or removed Agent
shall be discharged from its duties and obligations under this Agreement and the
other Loan Documents. After any Agent's resignation or removal as Agent, the
provisions of this Article XII shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was the
Agent. After the retiring Agent's resignation or removal hereunder as Agent,
each reference herein to a place of giving of notice or delivery to the Agent
shall be deemed to refer to the principal office of the successor Agent as it
may specify to each party hereto.

         In the event that the Agent, for the benefit of itself and the Lenders,
elects or is required to proceed with a foreclosure or other enforcement of any
Lien granted to the Agent for the benefit of itself and the Lenders, the Agent
may, without in any manner limiting its available remedies, and at the request
of the Required Lenders shall, submit a bid for all Lenders (including itself)
in the form of a credit against the Obligations, and the Agent or its designee,
in the event that the Agent or its designee is the successful bidder at any such
foreclosure sale, shall accept title, for the benefit of itself and the Lenders,
to the Collateral sold at such foreclosure sale. The Collateral purchased at any
such sale held shall be owned by the Agent, or its designee, for the benefit of
the Lenders. All monies received or collected by the Agent in respect of the
Collateral in connection with a foreclosure sale, or any other disposition of
the Collateral, shall be paid to the Lenders pro-rata consistent with Section
4.4 hereof.

         Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or other judicial proceeding relative to the Borrower or
any Obligated Party, the Agent (irrespective of whether the principal of any
Advance or Letter of Credit Liabilities shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the Agent
shall have made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the
Advances, Letter of Credit Liabilities and all other Obligations that are owing
and unpaid and to file such other documents as may be necessary or advisable in
order to have the claims of the Lenders and the Agent (including any claim for
the reasonable compensation, expenses, disbursements and advances of the Lenders
and the Agent and their respective agents and counsel and all other amounts due
the Lenders and the Agent under Sections 2.9 and 13.1) allowed in such judicial
proceeding; and to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same; and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such
payments to the Agent and, in the event that the Agent shall consent to the
making of such payments directly to the Lenders, to pay to the Agent any amount
due for the reasonable compensation, expenses, disbursements and advances of the
Agent and its agents and counsel, and any other amounts due the Agent under
Sections 2.9 and 13.1.

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         Nothing contained herein shall be deemed to authorize the Agent to
authorize or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the Obligations
or the rights of any Lender or to authorize the Agent to vote in respect of the
claim of any Lender in any such proceeding.

         Collateral and Guaranty Matters. The Lenders irrevocably authorize the
Agent, at its option and in its discretion: to release any Lien on any property
granted to or held by the Agent under any Loan Document (i) upon termination of
the Revolving Credit Commitments and payment in full of all Obligations (other
than contingent indemnification obligations) and the expiration or termination
of all Letters of Credit, (ii) that is sold or to be sold as part of or in
connection with any sale permitted hereunder or under any other Loan Document,
or (iii) subject to Section 13.10, if approved, authorized or ratified in
writing by the Required Lenders; and to release any Guarantor from its
obligations under the Guaranty if such Person ceases to be a Subsidiary as a
result of a transaction permitted hereunder.

         Upon request by the Agent at any time, the Required Lenders will
confirm in writing the Agent's authority to release its interest in particular
types or items of property, or to release any Guarantor from its obligations
under the Guaranty pursuant to this Section 12.9.

                                  Miscellaneous

Expenses. The Borrower hereby agrees to pay on demand: (a) all reasonable costs
and expenses of the Agent and the Issuing Bank in connection with the
preparation, negotiation, execution, and delivery of this Agreement and the
other Loan Documents and any and all amendments, modifications, renewals,
extensions, and supplements thereof and thereto, including, without limitation,
the reasonable fees and expenses of legal counsel for the Agent and the Issuing
Bank (including the allocated cost of internal counsel of the Agent and the
Issuing Bank), (b) all costs and expenses of the Agent, the Issuing Bank and the
Lenders in connection with any Default and the enforcement of this Agreement or
any other Loan Document, including, without limitation, the fees and expenses of
legal counsel for the Agent, the Issuing Bank and the Lenders, (c) all transfer,
stamp, documentary, or other similar taxes, assessments, or charges levied by
any Governmental Authority in respect of this Agreement or any of the other Loan
Documents, (d) all costs, expenses, assessments, and other charges incurred in
connection with any filing, registration, recording, or perfection of any
security interest or Lien contemplated by this Agreement or any other Loan
Document, and (e) all other costs and expenses incurred by the Agent and the
Issuing Bank in connection with this Agreement or any other Loan Document,
including without limitation all reasonable costs and expenses associated with
appraisals, environmental reports and any other collateral reviews performed in
connection with this Agreement, any other Loan Document or the transactions
contemplated therein.

INDEMNIFICATION. THE BORROWER HEREBY AGREES TO INDEMNIFY THE AGENT, THE ISSUING
BANK AND EACH LENDER AND EACH AFFILIATE THEREOF AND THEIR RESPECTIVE OFFICERS,
DIRECTORS, EMPLOYEES, ATTORNEYS, AND AGENTS FROM, AND HOLD EACH OF THEM HARMLESS
AGAINST, ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS,
DISBURSEMENTS, COSTS, AND EXPENSES (INCLUDING REASONABLE ATTORNEYS' FEES) TO
WHICH ANY OF THEM MAY BECOME SUBJECT WHICH DIRECTLY OR INDIRECTLY ARISE FROM OR
RELATE TO (a) THE NEGOTIATION, EXECUTION, DELIVERY, PERFORMANCE, ADMINISTRATION,
OR ENFORCEMENT OF ANY OF THE LOAN DOCUMENTS, (b) ANY OF THE TRANSACTIONS
CONTEMPLATED BY THE LOAN DOCUMENTS, (c) ANY BREACH BY THE BORROWER OR ANY
SUBSIDIARY OF ANY REPRESENTATION, WARRANTY, COVENANT, OR OTHER AGREEMENT
CONTAINED IN ANY OF THE LOAN DOCUMENTS, (d) THE PRESENCE, RELEASE, THREATENED
RELEASE, DISPOSAL, REMOVAL, OR CLEANUP OF ANY HAZARDOUS MATERIAL LOCATED ON,
ABOUT, WITHIN, OR AFFECTING ANY OF THE PROPERTIES OR ASSETS OF THE BORROWER OR
ANY SUBSIDIARY, (e) THE USE OR PROPOSED USE OF ANY LETTER OF CREDIT, (f) ANY AND
ALL TAXES, LEVIES, DEDUCTIONS, AND CHARGES IMPOSED ON THE ISSUING BANK OR ANY OF
THE ISSUING BANK'S CORRESPONDENTS IN RESPECT OF ANY LETTER OF CREDIT, OR (g) ANY
INVESTIGATION, LITIGATION, OR OTHER PROCEEDING, INCLUDING, WITHOUT LIMITATION,
ANY THREATENED INVESTIGATION, LITIGATION, OR OTHER PROCEEDING

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RELATING TO ANY OF THE FOREGOING AND ANY LEGAL PROCEEDING RELATING TO ANY COURT
ORDER, INJUNCTION OR OTHER PROCESS OR DECREE RESTRAINING OR SEEKING TO RESTRAIN
THE ISSUING BANK FROM PAYING ANY AMOUNT UNDER ANY LETTER OF CREDIT. WITHOUT
LIMITING ANY PROVISION OF THIS AGREEMENT OR OF ANY OTHER LOAN DOCUMENT, IT IS
THE EXPRESS INTENTION OF THE PARTIES HERETO THAT EACH PERSON TO BE INDEMNIFIED
UNDER THIS SECTION SHALL BE INDEMNIFIED FROM AND HELD HARMLESS AGAINST ANY AND
ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS, DISBURSEMENTS,
COSTS, AND EXPENSES (INCLUDING REASONABLE ATTORNEYS' FEES) ARISING OUT OF OR
RESULTING FROM THE SOLE OR CONTRIBUTORY NEGLIGENCE OF SUCH PERSON; PROVIDED
HOWEVER, NO PERSON SHALL BE INDEMNIFIED HEREUNDER FOR ITS OWN GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT.

Limitation of Liability. None of the Agent, the Issuing Bank, any Lender, or any
Affiliate, officer, director, employee, attorney, or agent thereof shall have
any liability with respect to, and the Borrower hereby waives, releases, and
agrees not to sue any of them upon, any claim for any special, indirect,
incidental, or consequential damages suffered or incurred by the Borrower in
connection with, arising out of, or in any way related to, this Agreement or any
of the other Loan Documents, or any of the transactions contemplated by this
Agreement or any of the other Loan Documents, including without limitation, any
damages suffered or incurred by the Borrower in connection with Swing Loan
Advances made by telephonic notice pursuant to Section 2.7(a) hereto, except for
such Person's gross negligence or willful misconduct.

No Duty. All attorneys, accountants, appraisers, and other professional Persons
and consultants retained by the Agent, the Issuing Bank and the Lenders shall
have the right to act exclusively in the interest of the Agent, the Issuing Bank
and the Lenders and shall have no duty of disclosure, duty of loyalty, duty of
care, or other duty or obligation of any type or nature whatsoever to the
Borrower or any of the Borrower's shareholders or any other Person.

No Fiduciary Relationship. The relationship between the Borrower and each of the
Agent, the Issuing Bank and the Lenders is solely that of debtor and creditor,
and neither the Agent, the Issuing Bank nor any Lender has any fiduciary or
other special relationship with the Borrower, and no term or condition of any of
the Loan Documents shall be construed so as to deem the relationship between the
Borrower and any of the Agent, the Issuing Bank and the Lenders to be other than
that of debtor and creditor.

Equitable Relief. The Borrower recognizes that in the event the Borrower fails
to pay, perform, observe, or discharge any or all of the Obligations, any remedy
at law may prove to be inadequate relief to the Agent, the Issuing Bank and the
Lenders. The Borrower therefore agrees that the Agent, the Issuing Bank and the
Lenders, if the Agent, the Issuing Bank or the Lenders so request, shall be
entitled to temporary and permanent injunctive relief in any such case without
the necessity of proving actual damages.

No Waiver; Cumulative Remedies. No failure on the part of the Agent, the Issuing
Bank or any Lender to exercise and no delay in exercising, and no course of
dealing with respect to, any right, power, or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, power, or privilege under this Agreement preclude any other or
further exercise thereof or the exercise of any other right, power, or
privilege. The rights and remedies provided for in this Agreement and the other
Loan Documents are cumulative and not exclusive of any rights and remedies
provided by law.

         Successors and Assigns.

This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns. The Borrower may not assign
or transfer any of its rights or obligations hereunder without the prior written
consent of the Agent, the Issuing Bank and all of the Lenders. Any Lender may
sell participations to one or more banks or other institutions in or to all or a
portion of its rights and obligations under this Agreement and the other Loan
Documents (including, without limitation, all or a portion of its Commitments
and the Advances owing to it and the LC Participations held by it); provided,
however, that (i) such Lender's obligations under this Agreement and the other
Loan Documents (including, without limitation, its Commitments) shall remain
unchanged, (ii) such Lender shall remain solely responsible for the performance
of such obligations, (iii) such Lender shall remain the holder of its Note (or
Notes) and LC Participations for all purposes of this Agreement, (iv) the
Borrower

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<PAGE>
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under this Agreement and the other Loan
Documents, and (v) such Lender shall not sell a participation that conveys to
the participant the right to vote or give or withhold consents under this
Agreement or any other Loan Document, other than the right to vote upon or
consent to (A) any increase of such Lender's Commitments, (B) any reduction of
the principal amount of, or interest to be paid on, the Advances and LC
Participations of such Lender, (C) any reduction of any commitment fee or other
amount payable to such Lender under any Loan Document, or (D) any postponement
of any date for the payment of any amount payable in respect of the Advances or
LC Participations of such Lender.

The Borrower and each of the Issuing Bank and the Lenders agree that any Lender
(the "Assigning Lender") may at any time assign to one or more Eligible
Assignees all, or a proportionate part of all, of its rights and obligations
under this Agreement and the other Loan Documents (including, without
limitation, its Commitments, Advances and LC Participations); provided, however,
that (i) each such assignment shall be of a consistent, and not a varying,
percentage of all of the Assigning Lender's rights and obligations under this
Agreement and the other Loan Documents, (ii) except in the case of an assignment
of all of a Lender's rights and obligations under this Agreement and the other
Loan Documents, the amount of the Revolving Credit Commitments of the Assigning
Lender being assigned pursuant to each assignment (determined as of the date of
the Assignment and Acceptance with respect to such assignment) shall in no event
be less than $2,500,000, and (iii) the parties to each such assignment shall
execute and deliver to the Agent for its acceptance and recording in the
Register (as defined below), an Assignment and Acceptance, together with the
Note subject to such assignment, and a processing and recordation fee of $3,000.
Upon such execution, delivery, acceptance, and recording, from and after the
effective date specified in each Assignment and Acceptance, which effective date
shall be at least five Business Days after the execution thereof, or, if so
specified in such Assignment and Acceptance, the date of acceptance thereof by
the Agent, (x) the Eligible Assignee thereunder shall be a party hereto as a
"Lender" and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, have the rights and
obligations of a Lender hereunder and under the Loan Documents and (y) the
Assigning Lender shall, to the extent that rights and obligations hereunder have
been assigned by it pursuant to such Assignment and Acceptance, relinquish its
rights and be released from its obligations under this Agreement and the other
Loan Documents (and, in the case of an Assignment and Acceptance covering all or
the remaining portion of an Assigning Lender's rights and obligations under the
Loan Documents, such Assigning Lender shall cease to be a party thereto).

By executing and delivering an Assignment and Acceptance, the Assigning Lender
and the Eligible Assignee thereunder confirm to and agree with each other and
the other parties hereto as follows: (i) other than as provided in such
Assignment and Acceptance, such Assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties, or representations made in or in connection with the Loan Documents
or the execution, legality, validity, and enforceability, genuineness,
sufficiency, or value of the Loan Documents or any other instrument or document
furnished pursuant thereto; (ii) such Assigning Lender makes no representation
or warranty and assures no responsibility with respect to the financial
condition of the Borrower or any Obligated Party or the performance or
observance by the Borrower or any Obligated Party of its obligations under the
Loan Documents; (iii) such Eligible Assignee confirms that it has received a
copy of the Loan Documents, together with copies of the financial statements
referred to in Section 7.2 and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
such Assignment and Acceptance; (iv) such Eligible Assignee will, independently
and without reliance upon the Agent, the Issuing Bank or any Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement and the other Loan Documents; (v) such Eligible Assignee confirms
that it is an Eligible Assignee; (vi) such Eligible Assignee appoints and
authorizes the Agent to take such action as agent on its behalf and exercise
such powers under the Loan Documents are as delegated to the Agent by the terms
thereof, together with such powers as are reasonably incidental thereto; and
(vii) such Eligible Assignee agrees that it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

The Agent shall maintain at its Principal Office a copy of each Assignment and
Acceptance delivered to and accepted by it and a register for the recordation of
the names and addresses of the Lenders and the Revolving Credit Commitments of,
and principal amount of the Advances owing to, and LC Participations held by,
each Lender from time to time (the "Register"). The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Agent, the Issuing Bank and the Lenders may treat each Person
whose name is recorded in the Register as a Lender hereunder for all purposes
under the Loan Documents. The Register shall be

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available for inspection by the Borrower, any Lender or the Issuing Bank at any
reasonable time and from time to time upon reasonable prior notice.

Upon its receipt of an Assignment and Acceptance executed by an Assigning Lender
and Eligible Assignee representing that it is an Eligible Assignee, together
with any Note subject to such assignment, the Agent shall, if such Assignment
and Acceptance has been completed and is in substantially the form of Exhibit E
hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register, and (iii) give prompt written notice thereof
to the Borrower. Within five Business Days after its receipt of such notice, the
Borrower, at its expense, shall execute and deliver to the Agent in exchange for
the surrendered Note a new Note to the order of such Eligible Assignee in an
amount equal to the Revolving Credit Commitment assumed by it pursuant to such
Assignment and Acceptance and, if the Assigning Lender has retained a Revolving
Credit Commitment, a new Note to the order of the Assigning Lender in an amount
equal to the Revolving Credit Commitment retained by it hereunder (each such
promissory note shall constitute a "Note" for purposes of the Loan Documents).
Such new Notes shall be in an aggregate principal amount of the surrendered
Note, shall be dated the effective date of such Assignment and Acceptance, and
shall otherwise be in substantially the form of Exhibit A or B, as applicable.
Any Lender may, in connection with any assignment or participation or proposed
assignment or participation pursuant to this Section, disclose to the Eligible
Assignee or participant or proposed Eligible Assignee or participant, any
information relating to the Borrower or its Subsidiaries furnished to such
Lender by or on behalf of the Borrower or its Subsidiaries.

Survival. All representations and warranties made in this Agreement or any other
Loan Document or in any document, statement, or certificate furnished in
connection with this Agreement shall survive the execution and delivery of this
Agreement and the other Loan Documents, and no investigation by the Agent, the
Issuing Bank or any Lender or any closing shall affect the representations and
warranties or the right of the Agent, the Issuing Bank or any Lender to rely
upon them. Without prejudice to the survival of any other obligation of the
Borrower hereunder, the obligations of the Borrower under Article V and Sections
13.1 and 13.2 shall survive repayment of the Notes and termination of the
Revolving Credit Commitments and the Letters of Credit.

Amendments, Etc. No amendment or waiver of any provision of this Agreement, the
Notes, or any other Loan Document to which the Borrower or any Obligated Party
is a party, nor any consent to any departure by the Borrower or any Obligated
Party therefrom, shall in any event be effective unless the same shall be agreed
or consented to by Required Lenders and the Borrower or the Obligated Party, as
applicable, and each such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided, that
no amendment, waiver, or consent shall: (a) increase the Commitment of any
Lender or subject any Lender to any additional obligations without the written
consent of such Lender; (b) reduce the principal of, or interest on, the Notes
or any fees or other amounts due to the Lenders (or any of them) hereunder or
under any other Loan Document without the written consent of each Lender
directly affected thereby; (c) postpone any date fixed for any payment of
principal of, or interest on, the Notes or Letter of Credit Disbursements or any
fees or other amounts due to the Lenders (or any of them) hereunder or under any
other Loan Document without the written consent of each Lender directly affected
thereby; (d) waive any of the conditions specified in Article VI without the
written consent of each Lender; (e) change the percentage of the Revolving
Credit Commitments or of the aggregate unpaid principal amount of the Notes or
Letter of Credit Liabilities or the number of Lenders which shall be required
for the Lenders or any of them to take any action under this Agreement without
the written consent of each Lender; (f) change any provision contained in this
Section 13.10 without the written consent of each Lender; (g) release the
Borrower from any of its obligations under this Agreement or the other Loan
Documents or, except as provided in Section 12.9, release any Guarantor from its
obligations under its Guaranty without the written consent of each Lender; and
(h) release any Collateral securing the Guaranty, or the Obligations except in
accordance with and as contemplated by the Loan Documents without the written
consent of each Lender. Notwithstanding anything to the contrary contained in
this Section, no amendment, waiver, or consent shall be made (i) with respect to
Article XII hereof without the prior written consent of the Agent, (ii) with
respect to Section 2.7 hereof without the prior written consent of the Swing
Lender, or (iii) with respect to Article III hereof without the prior written
consent of the Issuing Bank.

Maximum Interest Rate. No provision of this Agreement or of any other Loan
Document shall require the payment or the collection of interest in excess of
the maximum amount permitted by applicable law. If any excess of interest in
such respect is hereby provided for, or shall be adjudicated to be so provided,
in any Loan Document or otherwise

                                       75
<PAGE>
in connection with this loan transaction, the provisions of this Section shall
govern and prevail and neither the Borrower nor the sureties, guarantors,
successors, or assigns of the Borrower shall be obligated to pay the excess
amount of such interest or any other excess sum paid for the use, forbearance,
or detention of sums loaned pursuant hereto. In the event any Lender ever
receives, collects, or applies as interest any such sum, such amount which would
be in excess of the maximum amount permitted by applicable law shall be applied
as a payment and reduction of the principal of the indebtedness evidenced by the
Notes and the LC Participations; and, if the principal of the Notes and the LC
Participations has been paid in full, any remaining excess shall forthwith be
paid to the Borrower. In determining whether or not the interest paid or payable
exceeds the Maximum Rate, the Borrower and each Lender shall, to the extent
permitted by applicable law, (a) characterize any non-principal payment as an
expense, fee, or premium rather than as interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and
spread the total amount of interest throughout the entire contemplated term of
the indebtedness evidenced by the Notes and LC Participations so that interest
for the entire term does not exceed the Maximum Rate.

Notices. Except as provided in Sections 2.7 and 8.1(m), all notices and other
communications provided for in this Agreement and the other Loan Documents to
which the Borrower or any Guarantor is a party shall be given or made by telex,
telegraph, telecopy, cable, electronic mail or other electronic media or in
writing and telexed, telecopied, telegraphed, cabled, mailed by certified mail
return receipt requested, or delivered to the intended recipient at the "Address
for Notices" specified below its name on the signature pages hereof or any other
Loan Document, or, as to any party at such other address as shall be designated
by such party in a notice to each other party given in accordance with this
Section. Except as otherwise provided in this Agreement, all such communications
shall be deemed to have been duly given when transmitted by telex or telecopy or
electronic mail or other electronic media, subject to telephone confirmation of
receipt, or delivered to the electronic mail address, subject to telephone
confirmation of receipt, or when personally delivered or, in the case of a
mailed notice, when duly deposited in the mails, in each case given or addressed
as aforesaid; provided, however, notices to the Agent pursuant to Article II and
to the Issuing Bank pursuant to Article III shall not be effective until
received by the Agent or the Issuing Bank, as applicable.

Governing Law; Venue; Service of Process. This Agreement shall be governed by
and construed in accordance with the laws of the State of Texas and the
applicable laws of the United States of America. This Agreement has been entered
into in Travis County, Texas, and it shall be performable for all purposes in
Travis County, Texas. Subject to Section 13.14 of this Agreement, any action or
proceeding against the Borrower under or in connection with any of the Loan
Documents may be brought in any state or federal court in Travis County, Texas.
The Borrower hereby irrevocably (a) submits to the nonexclusive jurisdiction of
such courts, and (b) waives any objection it may now or hereafter have as to the
venue of any such action or proceeding brought in any such court or that any
such court is an inconvenient forum. The Borrower agrees that service of process
upon it may be made by certified or registered mail, return receipt requested,
at its address specified or determined in accordance with the provisions of
Section 13.12. Nothing herein or in any of the other Loan Documents shall affect
the right of the Agent, the Issuing Bank or any Lender to serve process in any
other manner permitted by law or shall limit the right of the Agent, the Issuing
Bank or any Lender to bring any action or proceeding against the Borrower or
with respect to any of its property in courts in other jurisdictions. Subject to
Section 13.14 of this Agreement, any action or proceeding by the Borrower
against the Agent, the Issuing Bank or any Lender shall be brought only in a
court located in Travis County, Texas.

         Binding Arbitration.

Arbitration. The parties hereto agree, upon demand by any party, to submit to
binding arbitration all claims, disputes and controversies between or among them
(and their respective employees, officers, directors, attorneys, and other
agents), whether in tort, contract or otherwise arising out of or relating to in
any way (i) the loan and related Loan Documents which are the subject of this
Agreement and its negotiation, execution, collateralization, administration,
repayment, modification, extension, substitution, formation, inducement,
enforcement, default or termination; or (ii) requests for additional credit.

Governing Rules. Any arbitration proceeding will (i) proceed in a location in
Texas selected by the American Arbitration Association ("AAA"); (ii) be governed
by the Federal Arbitration Act (Title 9 of the United States Code),
notwithstanding any conflicting choice of law provision in any of the documents
between the parties; and (iii) be conducted by the AAA, or such other
administrator as the parties shall mutually agree upon, in accordance with the
AAA's commercial dispute resolution procedures, unless the claim or counterclaim
is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and
costs in which case the arbitration shall be conducted in

                                       76
<PAGE>
accordance with the AAA's optional procedures for large, complex commercial
disputes (the commercial dispute resolution procedures or the optional
procedures for large, complex commercial disputes to be referred to, as
applicable, as the "Rules"). If there is any inconsistency between the terms
hereof and the Rules, the terms and procedures set forth herein shall control.
Any party who fails or refuses to submit to arbitration following a demand by
any other party shall bear all costs and expenses incurred by such other party
in compelling arbitration of any dispute. Nothing contained herein shall be
deemed to be a waiver by any party that is a bank of the protections afforded to
it under 12 U.S.C. Section 91 or any similar applicable state law.

No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration
requirement does not limit the right of any party to (i) foreclose against real
or personal property collateral; (ii) exercise self-help remedies relating to
collateral or proceeds of collateral such as setoff or repossession; or (iii)
obtain provisional or ancillary remedies such as replevin, injunctive relief,
attachment or the appointment of a receiver, before during or after the pendency
of any arbitration proceeding. This exclusion does not constitute a waiver of
the right or obligation of any party to submit any dispute to arbitration or
reference hereunder, including those arising from the exercise of the actions
detailed in clauses (i), (ii) and (iii) of this Section 13.14(c).

Arbitrator Qualifications and Powers. Any arbitration proceeding in which the
amount in controversy is $5,000,000.00 or less will be decided by a single
arbitrator selected according to the Rules, and who shall not render an award of
greater than $5,000,000.00. Any dispute in which the amount in controversy
exceeds $5,000,000.00 shall be decided by majority vote of a panel of three
arbitrators; provided however, that all three arbitrators must actively
participate in all hearings and deliberations. The arbitrator will be a neutral
attorney licensed in the State of Texas with a minimum of ten years experience
in the substantive law applicable to the subject matter of the dispute to be
arbitrated. The arbitrator will determine whether or not an issue is
arbitratable and will give effect to the statutes of limitation in determining
any claim. In any arbitration proceeding the arbitrator will decide (by
documents only or with a hearing at the arbitrator's discretion) any pre-hearing
motions which are similar to motions to dismiss for failure to state a claim or
motions for summary adjudication. The arbitrator shall resolve all disputes in
accordance with the substantive law of Texas and may grant any remedy or relief
that a court of such state could order or grant within the scope hereof and such
ancillary relief as is necessary to make effective any award. The arbitrator
shall also have the power to award recovery of all costs and fees, to impose
sanctions and to take such other action as the arbitrator deems necessary to the
same extent a judge could pursuant to the Federal Rules of Civil Procedure, the
Texas Rules of Civil Procedure or other applicable law. Judgment upon the award
rendered by the arbitrator may be entered in any court having jurisdiction. The
institution and maintenance of an action for judicial relief or pursuit of a
provisional or ancillary remedy shall not constitute a waiver of the right of
any party, including the plaintiff, to submit the controversy or claim to
arbitration if any other party contests such action for judicial relief.

Discovery. In any arbitration proceeding discovery will be permitted in
accordance with the Rules. All discovery shall be expressly limited to matters
directly relevant to the dispute being arbitrated and must be completed no later
than 20 days before the hearing date and within 180 days of the filing of the
dispute with the AAA. Any requests for an extension of the discovery periods, or
any discovery disputes, will be subject to final determination by the arbitrator
upon a showing that the request for discovery is essential for the party's
presentation and that no alternative means for obtaining information is
available.

Class Proceedings and Consolidations. The resolution of any dispute arising
pursuant to the terms of this Agreement shall be determined by a separate
arbitration proceeding and such dispute shall not be consolidated with other
disputes or included in any class proceeding.

Payment Of Arbitration Costs And Fees. The arbitrator shall award all costs and
expenses of the arbitration proceeding.

Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and
the parties shall take all action required to conclude any arbitration
proceeding within 180 days of the filing of the dispute with the AAA. No
arbitrator or other party to an arbitration proceeding may disclose the
existence, content or results thereof, except for disclosures of information by
a party required in the ordinary course of its business or by applicable law or
regulation. If more than one agreement for arbitration by or between the parties
potentially applies to a dispute, the arbitration provision most directly
related to the Loan Documents or the subject matter of the dispute shall
control.

                                       77
<PAGE>
This arbitration provision shall survive termination, amendment or expiration of
any of the Loan Documents or any relationship between the parties.

Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Signatures hereby transmitted by facsimile or other
electronic means shall be effective as originals.

Severability. Any provision of this Agreement held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the
remainder of this Agreement and the effect thereof shall be confined to the
provision held to be invalid or illegal.

Headings. The headings, captions, and arrangements used in this Agreement are
for convenience only and shall not affect the interpretation of this Agreement.

Non-Application of Chapter 346 of Texas Finance Code. The provisions of Chapter
346 of the Texas Finance Code are specifically declared by the parties hereto
not to be applicable to this Agreement or any of the other Loan Documents or to
the transactions contemplated hereby.

Construction. The Borrower, the Agent, the Issuing Bank and each Lender
acknowledge that each of them has had the benefit of legal counsel of its own
choice and has been afforded an opportunity to review this Agreement and the
other Loan Documents with its legal counsel and that this Agreement and the
other Loan Documents shall be construed as if jointly drafted by the parties
hereto.

Independence of Covenants. All covenants hereunder shall be given independent
effect so that if a particular action or condition is not permitted by any of
such covenants, the fact that it would be permitted by an exception to, or be
otherwise within the limitations of, another covenant shall not avoid the
occurrence of a Default if such action is taken or such condition exists.

Confidentiality. The Agent and each Lender (each, a "Lending Party") agrees to
keep confidential any information furnished or made available to it by the
Borrower pursuant to this Agreement that is marked confidential; provided that
nothing herein shall prevent any Lending Party from disclosing such information
(a) to any other Lending Party or any affiliate of any Lending Party, or any
officer, director, employee, agent, or advisor of any Lending Party or affiliate
of any Lending Party, (b) to any other Person if reasonably incidental to the
administration of the credit facility provided herein, (c) as required by any
law, rule, or regulation, (d) upon the order of any court or administrative
agency, (e) upon the request or demand of any regulatory agency or authority,
(f) that is or becomes available to the public or that is or becomes available
to any Lending Party other than as a result of a disclosure by any Lending Party
prohibited by this Agreement, (g) in connection with any litigation to which
such Lending Party or any of its affiliates may be a party, (h) to the extent
necessary in connection with the exercise of any remedy under this Agreement or
any other Loan Document, and (i) subject to provisions substantially similar to
those contained in this Section, to any actual or proposed participant or
assignee.

USA Patriot Act Notice. Each Lender, the Issuing Bank and the Agent (for itself
and not on behalf of any Lender) hereby notifies the Borrower that pursuant to
the requirements of the USA Patriot Act (Title III of Pub.L.107.56 (signed into
law October 26, 2001)) (the "Act"), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender,
the Issuing Bank or the Agent, as applicable, to identify the Borrower in
accordance with the Act.

WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF
THE PARTIES HERETO HEREBY IRREVOCABLY AND EXPRESSLY WAIVES ALL RIGHT TO A TRIAL
BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT,
TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS OR
THE TRANSACTIONS CONTEMPLATED THEREBY OR THE ACTIONS OF THE AGENT, THE ISSUING
BANK, OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF.

ENTIRE AGREEMENT. THIS AGREEMENT, THE NOTES, AND THE OTHER LOAN DOCUMENTS
REFERRED TO HEREIN REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND

                                       78
<PAGE>
MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.

Amendment and Restatement. This Agreement amends and restates in its entirety
the Existing Credit Agreement. The execution of this Agreement and the other
Loan Documents executed in connection herewith does not extinguish the
indebtedness outstanding in connection with the Existing Credit Agreement nor
does it constitute a novation with respect to such indebtedness. THE BORROWER
REPRESENTS AND WARRANTS THAT AS OF THE DATE HEREOF THERE ARE NO CLAIMS OR
OFFSETS AGAINST OR DEFENSES OR COUNTERCLAIMS TO ITS OR ANY OBLIGATED PARTIES'
OBLIGATIONS UNDER THE EXISTING CREDIT AGREEMENT, THE OTHER LOAN DOCUMENTS AND
THE DOCUMENTATION RELATING TO THE DEPOSIT AND CASH MANAGEMENT SERVICES.

                  [Remainder of Page Intentionally Left Blank.]

                                       79
<PAGE>
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the day and year first above written.

                                    BORROWER:

                                    EZCORP, INC.

                                    By:
                                          --------------------------------------
                                          Daniel N. Tonissen
                                          Senior Vice President

                                    Address for Notices:

                                    1901 Capital Parkway
                                    Austin, TX 78746
                                    Fax No.:  (512) 314-3404
                                    Telephone No.:  (512) 314-2289
                                    Email: dtonissen@ezcorp.com
                                    Attention:      Daniel N. Tonissen
                                                    Chief Financial Officer

                                       80
<PAGE>
                                    AGENT, ISSUING BANK AND LENDERS:

                                    WELLS FARGO BANK, NATIONAL ASSOCIATION, as
                                    Agent, Issuing Bank
                                    and a Lender

                                    By:
                                          --------------------------------------
                                          Richard Gan
                                          Vice President

                                    Address for Notices:

                                    111 Congress Avenue, Suite 300
                                    Austin, Texas  78701
                                    Fax No.:  (512) 344-7318
                                    Telephone No.:  (512) 344-7037
                                    Email:  ganr@wellsfargo.com
                                    Attention:  Richard Gan

                                    Address for Operational Notices:

                                    Wells Fargo Bank, N.A.
                                    1700 Lincoln, 3rd Floor
                                    MAC # C7300-034
                                    Denver, Colorado  80274
                                    Fax No.:  (303) 863-5533
                                    Telephone No.:  (303) 863-5415
                                    Email:  kevin.j.rapp@wellsfargo.com
                                    Attention:  Kevin J. Rapp

                                    with a copy to:

                                    Winstead, Sechrest & Minick P.C.
                                    5400 Renaissance Tower
                                    1201 Elm Street
                                    Dallas, Texas  75270
                                    Fax No.:  (214) 745-5390
                                    Telephone No.:  (214) 745-5265
                                    Email:  rmatthews@winstead.com
                                    Attention:  T. Randall Matthews, Esq.

                                    Lending Office for Base Rate Advances and
                                    Eurodollar Advances:

                                    111 Congress Avenue, Suite 300
                                    Austin, Texas 78701

                                       81
<PAGE>
                                    GUARANTY BANK,
                                    as a Lender

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

                                    Address for Notices and Applicable Lending
                                    Office:  301 Congress Avenue, Suite 300
                                    Austin, TX  78701
                                    Fax No.:  (512) 320-1041
                                    Telephone No.:  (512) 320-1273
                                    Attn:    Dan Leonard

                                    Lending Office for Base Rate Advances and
                                    Eurodollar Advances:

                                    8333 Douglas Avenue, 2nd Floor
                                    Dallas, TX  75225
                                    Attn:    Loan Support

                                       82<PAGE>

                                                                    EXHIBIT 10.2

                      AMENDED AND RESTATED CREDIT AGREEMENT

         THIS AMENDED AND RESTATED CREDIT AGREEMENT (this "Agreement") is made
and entered into as of April 9, 2004, between DHI Mortgage Company, Ltd., a
Texas limited partnership (formerly known as CH Mortgage Company I, Ltd) (the
"Company"), U.S. Bank National Association, as agent ("Agent") and Lenders
referred to below ("Lenders").

                                    RECITALS

         WHEREAS, the Company and the Agent and the Lenders party thereto
previously entered into that certain Credit Agreement dated as of August 13,
1999, as amended by a First Amendment to Credit Agreement dated as of August 14,
2000, a Second Amendment to Credit Agreement dated as of August 10, 2001, a
Third Amendment to Credit Agreement dated as of February 22, 2002, a Fourth
Amendment to Credit Agreement dated as of August 12, 2002, a Fifth Amendment to
Credit Agreement dated as of September 25, 2002, a Sixth Amendment to Credit
Agreement dated as of October 18, 2002, a Seventh Amendment to Credit Agreement
dated as of February 28, 2003, an Eighth Amendment to Credit Agreement dated as
of August 12, 2003 and a Ninth Amendment to Credit Agreement dated as of
February 12, 2004 (as amended, the "Prior Credit Agreement") pursuant to which
the Lenders party thereto provided to the Company a secured mortgage warehousing
line of credit upon the terms and subject to the conditions and limitations set
forth therein; and

         WHEREAS, the Company and the Agent and the Lenders referred to below
have reached agreement on the terms, conditions and limitations of this Amended
and Restated Credit Agreement to be entered into in amendment, restatement and
replacement of the Prior Credit Agreement;

         NOW, THEREFORE, the parties hereto hereby agree as follows:

                                    ARTICLE I

                                  GENERAL TERMS

         Section 1.01 Certain Definitions. As used in this Agreement, the
following terms have the following meanings.

         "Advance" means (a) a Prime Rate Advance, (b) a Balance Funded Rate
Advance or (c) a LIBOR Rate Advance.

         "Affiliate" means, as to any Person, each other Person that directly or
indirectly (through one or more intermediaries or otherwise) controls, is
controlled by, or is under common control with, such Person.

         "Agent" has the meaning assigned to such term in the preamble hereof.

                                      -1-
<PAGE>

         "Aggregate Commitment Amounts" means the total of the Commitment
Amounts of the Lenders, which is $250,000,000 initially, subject to increase in
accordance with Section 10.11(d), but not to exceed $350,000,000.

         "Agreement" means this Credit Agreement, as the same may from time to
time be amended, modified or supplemented.

         "Applicable Margin" means, with respect to:

                  (a) Prime Rate Advances, 0%, and

                  (b) LIBOR Rate Advance, 0.825%.

         "Approval Amount" means, with respect to U.S. Bank, $125,000,000.

         "Balance Calculation Period" means each calendar month.

         "Balance Funded Amount" means with respect to any Lender for any
Balance Calculation Period, the average of the Qualifying Balances of such
Lender for such Balance Calculation Period. As used in this paragraph,
"Qualifying Balances" shall mean, with respect to any Lender, for any day the
lesser of (a) the amount of such Lender's Loans on such day, and (b) the sum of
the collected balances in all identified non-interest bearing accounts of the
Borrowers maintained with such Lender less (i) amounts necessary to satisfy
reserve and deposit insurance requirements and (ii) amounts required to
compensate such Lender for services rendered in accordance with such Lender's
system of charges for services to similar accounts.

         "Balance Funded Rate" means a rate of 0.825% per annum.

         "Balance Funded Rate Advance" means an outstanding Loan that bears
interest as provided in Section 2.04(a)(i).

         "Balances Deficiency" as defined in Section 2.04(a)(i).

         "Balances Deficiency Fee" as defined in Section 2.04(a)(i).

         "Balances Surplus" as defined in Section 2.04(a)(i).

         "Borrowers" means the Company and the Co-Borrowers.

         "Borrowing Base" means at any date the Collateral Value of all Eligible
Mortgage Loans which have been delivered to and held by Agent or otherwise
identified as Mortgage Collateral.

         "Borrowing Base Certificate" means a certificate in the form attached
hereto as Exhibit C.

         "Borrowing Date" means the Business Day specified by the Company in a
borrowing request as the date on which it requests the Lender to make Loans.

                                      -2-
<PAGE>

         "Business Day" means a day, other than a Saturday or Sunday, on which
commercial banks are open for business with the public in Minneapolis, Minnesota
and on which the federal wire system is open.

         "Capitalized Servicing Rights" means as of any Person, all rights to
service Mortgage Loans which would be capitalized under GAAP (regardless of
whether such rights result from asset securitizations, whole loan sales or
originations of Mortgage Loans).

         "Cash Equivalents" means (a) securities issued or directly and fully
guaranteed or Insured by the United States Government or any agency or
instrumentality thereof which mature within 90 days from the date of
acquisition, (b) time deposits, which mature within 90 days from date of
acquisition, with, and certificates of deposit, which mature within 90 days from
the date of acquisition, of, Agent or any Lender or any other domestic
commercial bank having capital and surplus in excess of $200,000,000, which has,
or the holding company of which has, a commercial paper rating of at least A-1
or the equivalent thereof by Standard & Poor's Ratings Group (a division of
McGraw Hill, Inc.) or P-1 or the equivalent thereof by Moody's Investors
Service, Inc., or (c) overnight investments in money market mutual funds
registered under the 1940 Act.

         "Change of Control" means the occurrence of Parent not owning, directly
or indirectly, (1) all of the issued and outstanding ownership interests of the
Company or (2) a controlling interest in any other Borrower.

         "Closing Date": The later of the date of this Agreement and the date on
which all conditions of Section 3.1 are fulfilled or waived by the Majority
Lenders in writing.

         "Co-Borrowers" means each Person who becomes a party to this Agreement
as a Co-Borrower pursuant to a Joinder Agreement and Section 3.03.

         "Co-Borrower Sublimit" means $10,000,000.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time, together with the regulations from time to time promulgated with respect
thereto.

         "Collateral" has the meaning given to it in the Security Agreement.

         "Collateral Value" means:

         (a) with respect to each Eligible Mortgage Loan that is a Conforming
Mortgage Loan and included in the Borrowing Base, ninety-eight percent (98%) of
the least of: (i) the outstanding principal balance of the Mortgage Note
constituting such Conforming Mortgage Loan; (ii) the amount at which an Investor
has committed to purchase the Conforming Mortgage Loan pursuant to a Take-out
Commitment or the weighted average commitment price under the applicable
Take-Out Commitment (excluding from the commitment price any stated servicing
release premium); or (iii) at the election of the Agent, the Market Value of the
Mortgage Note constituting such Mortgage Loan; and

                                      -3-
<PAGE>

         (b) with respect to each Eligible Mortgage Loan that is a Jumbo
Mortgage Loan and included in the Borrowing Base, ninety-eight percent (98%) of
the least of: (i) the outstanding principal balance of the Mortgage Note
constituting such Jumbo Mortgage Loan; (ii) the amount at which an Investor has
committed to purchase the Jumbo Mortgage Loan pursuant to a Take-Out Commitment
or the weighted average commitment price under the applicable Take-Out
Commitment (excluding from the commitment price any stated servicing release
premium); or (iii) at the election of the Agent, the Market Value of the
Mortgage Note constituting such Jumbo Mortgage Loan.

         (c) with respect to each Eligible Mortgage Loan that is a Nonconforming
Mortgage Loan and included in the Borrowing Base, ninety-eight percent (98%) of
the least of: (i) the outstanding principal balance of the Mortgage Note
constituting such Nonconforming Mortgage Loan; (ii) the amount at which an
Investor has committed to purchase the Nonconforming Mortgage Loan pursuant to a
Take-Out Commitment or the weighted average commitment price under the
applicable Take-Out Commitment (excluding from the commitment price any stated
servicing release premium); and (iii) at the election of the Agent, the Market
Value of the Mortgage Note constituting such Nonconforming Mortgage Loan.

         "Commitment" means, as to any Lender, the obligation of such Lender to
make Loans to the Borrowers pursuant to Section 2.01 hereof in an aggregate
amount not to exceed such Lender's Commitment Amount.

         "Commitment Amount" means, as to any Lender, the amount set opposite
such Lender's name as its Commitment Amount on Schedule 5.

         "Company" means DHI Mortgage Company, Ltd., a Texas limited
partnership, formerly known as CH Mortgage Company I, Ltd.

         "Company's Consolidated Tangible Net Worth" means, as of any date, the
remainder of (a) all assets of the Company and the Restricted Subsidiaries on a
Consolidated basis minus (b) the sum of (i) all GAAP Indebtedness and all
Contingent Indebtedness of the Company and the Restricted Subsidiaries, (ii) all
assets of the Company and the Restricted Subsidiaries which would be classified
as intangible assets under GAAP, including Capitalized Servicing Rights,
goodwill (whether representing the excess cost over book value of assets
acquired or otherwise), patents, trademarks, trade names, copyrights,
franchises, deferred charges and intercompany receivables, (iii) investments in
and advances to Unrestricted Subsidiaries, and (iv) investments in and advances
(other than loans permitted pursuant to Section 6.05(f)) to JV's.

         "Confirmation" means a Confirmation of Borrowing/Paydown/ Conversion in
the form of Exhibit B.

         "Conforming Mortgage Loan" means a first priority Mortgage Loan that
has been FHA-insured or VA-guaranteed or that has been underwritten in
accordance with Fannie Mae guidelines and/or meets all applicable requirements
for sale to Fannie Mae or Freddie Mac or for guaranty by Ginnie Mae.

                                      -4-
<PAGE>

         "Consolidated" refers to the consolidation of any Person, in accordance
with GAAP, with its properly consolidated subsidiaries excluding all
Unrestricted Subsidiaries. References herein to a Person's Consolidated
financial statements refer to the consolidated financial statements of such
Person and its properly consolidated subsidiaries excluding all Unrestricted
Subsidiaries.

         "Contingent Indebtedness" of any Person at a particular date means the
sum (without duplication) at such date of (a) all obligations of such Person in
respect of letters of credit, acceptances, or similar obligations issued or
created for the account of such Person, (b) all obligations of such Person under
any contract, agreement or understanding of such Person pursuant to which such
Person guarantees, or in effect guarantees, any indebtedness or other
obligations of any other Person in any matter, whether directly or indirectly,
contingently or absolutely, in whole or in part, (c) all liabilities secured by
any Lien on any property owned by such Person, whether or not such Person has
assumed or otherwise become liable for the payment thereof and (d) any liability
of such Person or any Affiliate thereof in respect of unfunded vested benefits
under in ERISA Plan, excluding any GAAP Indebtedness.

         "CP Facility Documents" means (a) Amended and Restated Loan Agreement
dated as of July 25, 2003 among CH Funding LLC, Atlantic Assets Securitization
Corp., Falcon Asset Securitization Corporation, Bank One, NA (Main Office
Chicago), Lloyds TSB Bank PLC, Credit Lyonnais New York Branch and Company (b)
Master Repurchase Agreement dated as of July 9, 2002 between the Company and CH
Funding, LLC, (c) Addendum to Master Purchase Agreement dated as of July 9, 2002
between the Company and CH Funding, LLC, (d) Collateral Agency Agreement dated
as of July 9, 2002 between CH Funding, LLC, Credit Lyonnais New York Branch, as
Administrative Agent and U.S. Bank National Association as Collateral Agent (e)
all amendments to date and still in effect including the Omnibus Amendment dated
as of August 26, 2002 ("First Omnibus Amendment"), the Second Omnibus Amendment
dated as of November 25, 2002, Fourth Omnibus Amendment dated July 25, 2003 and
Fifth Omnibus Amendment dated as of December 19, 2003, and (f) any documents or
instruments amending or restating any of the foregoing documents in a manner
approved in advance in writing by the Agent.

         "Debtor Laws" means all applicable liquidation, conservatorship,
bankruptcy, moratorium, arrangement, receivership, insolvency, reorganization or
similar laws from time to time in effect affecting the rights of creditors
generally and general principles of equity.

         "Default" means any of the events specified in Section 7.01 hereof,
whether or not any requirement for notice or lapse or time or any other
condition has been satisfied.

         "Distribution" means (a) any cash dividend or any other cash
distribution made by a Person on, or in respect of, any stock, partnership
interest, or other equity interest in such Person and (b) any and all funds,
cash or other payments made in respect of the purchase, redemption, acquisition
or retirement of any beneficial interest, stock, partnership interest, or other
equity interest in such Person.

                                      -5-
<PAGE>

         "Drawdown Termination Date:" means the earlier of April 8, 2005, or the
day on which the Notes first become due and payable in full.

         "Eligible Mortgage Loan" means a Mortgage Loan as described in Schedule
1 attached hereto.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, together with the regulations from time to time
promulgated with respect thereto.

         "ERISA Affiliation" means all members of the group of corporations and
trades or businesses (whether or not incorporated) which, together with the
Company, are treated as a single employer under Section 414 of the Code.

         "ERISA Plan" means any pension benefit plan subject to Title IV of
ERISA or Section 412 of the Code maintained or contributed to by the Company or
any ERISA Affiliate with respect to which the Company has a fixed or contingent
liability.

         "Event of Default" means any of the events specified in Section 7.01
hereof, provided that any requirement in connection with such event for the
giving of notice or the lapse of time, or the happening of any further
condition, event or act has been satisfied.

         "Exit Date": the Closing Date or any date thereafter on which a Lender
terminates its status as a Lender hereunder.

         "Exiting Lenders": A Lender that is terminating its status as a Lender
hereunder.

         "Fannie Mae" means Fannie Mae, a corporation created under the laws of
the United States, and any successor thereto.

         "Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100th of one percent) equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of Minneapolis on the Business Day
next succeeding such day, provided that (i) if the day for which such rate is to
be determined is not a Business Day, the Federal Funds Rate for such day shall
be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (ii) if such rate is not so
published for any day, the Federal Funds Rate for such day shall be the average
rate quoted to Agent on such day on such transactions as determined by Agent.

         "FHA" means the Federal Housing Administration and any successor
thereto.

         "Fiscal Quarter" means each period of three calendar months ending
December 31, March 31, June 30 and September 30 of each year.

                                      -6-
<PAGE>

         "Fiscal Year" means each period of twelve calendar months ending
September 30 of each year.

         "Four Quarter Period" means as of the end of any Fiscal Quarter, the
period of four consecutive Fiscal Quarters then ended.

         "Freddie Mac" means Freddie Mac, a corporation created under the laws
of the United States, and any successor thereto.

         "Funding and Settlement Account" means account number 104756234365 of
the Borrowers with Agent.

         "GAAP" means those generally accepted accounting principles and
practices which are recognized as such by the Financial Accounting Standards
Board (or any generally recognized successor) and which, in the case of the
Borrowers, are applied for all periods after the date hereof in a manner
consistent with the manner in which such principles and practices were applied
to the financing statements described in Section 4.06. If any change in any
accounting principle or practice is required by the Financial Accounting
Standards Board (or any such successor) in order for such principle or practice
to continue as a generally accepted accounting principle or practice, all
reports and financial statements required hereunder with respect to the
Borrowers or with respect to the Borrowers and their Consolidated subsidiaries
may be prepared in accordance with such change, but all calculations and
determinations to be made hereunder may be made in accordance with such change
only after notice of such change is given to each Lender and Majority Lenders
agree to such change insofar as it affects the accounting of the Borrowers.

         "GAAP Indebtedness" of any Person at a particular date mean the sum
(without duplication) at such date of (a) all indebtedness of such Person for
borrowed money or for the deferred purchase price of property or services or
which is evidenced by a note, bond, debenture, or similar instrument, and (b)
all obligations of such Person under any lease required by GAAP to be
capitalized on the balance sheet of such Person.

         "General Partner" means the general partner of the Company which on the
date hereof is DHI Mortgage Company GP, Inc., a Delaware corporation, formerly
known as CH Mortgage Company GP, Inc.

         "Ginnie Mae" means the Government National Mortgage Association, or any
successor thereto.

         "Good Funds Wire Clearing Account" means account number 104756234340 of
the Company with Agent.

         "Governmental Authority" means any nation or government, any agency,
department, state or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

                                      -7-
<PAGE>

         "Government Requirement" means any law, statute, code, ordinance,
order, rule, regulation, judgment, decree, injunction, franchise, permit,
certificate, license, authorization or other direction or requirement
(including, without limitation, any of the foregoing which relate to
environmental standards or controls, energy regulations and occupational, safety
and health standards or controls) of any arbitrator, court or other Governmental
Authority, which exercises jurisdiction over the Company and its Restricted
Subsidiaries or any of its Property.

         "HELOC Mortgage Loan" means a Nonconforming Mortgage Loan that is a
home equity line of credit that provides for no more than two advances.

         "HELOC Mortgage Loan Sublimit" means five percent (5%) of the Aggregate
Commitment Amounts.

         "Immediately Available Funds" means funds with good value on the day
and in the city in which payment is received.

         "Investor" means any Person listed on Schedule 2 and any other Person
approved in writing by Agent who agrees to purchase Mortgage Collateral pursuant
to a Take-Out Commitment.

         "Joinder Agreement" means an agreement in the form attached hereto as
Exhibit E.

         "Jumbo Mortgage Loan" means a Mortgage Loan which would in all respects
be a Conforming Loan but for the fact that the original unpaid principal amount
of the underlying Mortgage Note is more than the maximum principal amount
allowable for purchase by Fannie Mae or Freddie Mac (but does not exceed
$1,000,000).

         "Jumbo Sublimit" means twenty-five percent (25%) of the Aggregate
Commitment Amounts.

         "JV" means a joint venture (whether structured as a corporation,
partnership, limited liability company, or other entity or arrangement) between
the Company and one or more builders, developers, title companies, or other
service providers in the residential real estate industry for the purpose of
making Mortgage Loans.

         "Lenders" means each signatory hereto (other than the Company and any
other Borrowers) including U.S. Bank in its capacity as a Lender hereunder
rather than as Agent, and the successors of each as holder of a Note (or a
portion thereof) that has been transferred in accordance with Section 10.11.

         "LIBOR Business Day": a Business Day which is also a day for trading by
and between banks in United States dollar deposits in the interbank LIBOR market
and a day on which banks are open for business in New York City.

         "LIBOR Rate:" on any date of determination, the average offered rate
for deposits in United States dollars having a maturity of one month (rounded
upward, if necessary, to the

                                      -8-
<PAGE>

nearest 1/16 of 1%) for delivery of such deposits on such date of determination
which appears on the Telerate Page 3750 or any successor thereto as of 11:00
a.m., London time (or such other time as of which such rate appears) on such
date of determination, adjusted for any reserve requirement and any subsequent
costs arising from a change in government regulation, or the rate for such
deposits determined by the Agent at such time based on such other published
service of general application as shall be selected by the Agent for such
purpose; provided, that in lieu of determining the rate in the foregoing manner,
the Agent may determine the rate based on rates at which United States dollar
deposits having a maturity of one month are offered to the Agent in the
interbank LIBOR market at such time for delivery in Immediately Available Funds
on such date of determination in an amount equal to $1,000,000 (round upward, if
necessary, to the nearest 1/16 of 1%).

         "LIBOR Rate Advance": an outstanding Loan that bears interest as
provided in Section 2.04(a)(iii).

         "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (whether statutory or otherwise), or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, any conditional sale or other
title retention agreement, any financing lease having substantially the same
economic effect as any of the foregoing, and the filing of any financing
statement under the Uniform Commercial Code or comparable law of any
jurisdiction in respect of any of the foregoing).

         "Loan" has the meaning given it in Section 2.01.

         "Loan Document" means any, and "Loan Documents" shall mean all, of this
Agreement, the Notes, the Security Instruments and any and all other agreements
or instruments now or hereafter executed and delivered by the Company, the
Borrowers or any other Person in connection with, or as security for the payment
or performance of any or all of the Obligations, as any of such may be renewed,
amended or supplemented from time to time.

         "Majority Lenders" means (i) if there are less than three Lenders,
Lenders collectively having Percentage Shares totaling in the aggregate one
hundred percent (100%); and (ii) if there are three or more Lenders, Lenders
collectively having Percentage Shares totaling in the aggregate at least
sixty-six and two-thirds percent (66 2/3%).

         "Market Value" means at any date with respect to any Mortgage Loan, the
bid price quoted in writing to the Agent as of the computation date by two
nationally recognized dealers selected by the Agent who at the time are making a
market in similar Mortgage Loans (excluding from such bid price any stated
servicing release premium included therein), multiplied, in any case, by the
outstanding principal amount thereof.

         "Material Adverse Effect" means any material adverse effect on (a) the
validity or enforceability of this Agreement, the Notes or any other Loan
Document, (b) the business, operations, total Property or financial condition of
the Company and its Restricted Subsidiaries

                                      -9-
<PAGE>

on a Consolidated basis, (c) the collateral under the Security Agreement, or (d)
the ability of any Borrower to fulfill its obligations under this Agreement, the
Notes, or any other Loan Document to which it is a party.

         "Maximum Rate" means, with respect to each Lender, the maximum
nonusurious rate of interest that such Lender is permitted under applicable law
to contract for, take, charge, or receive with respect to its Loans. All
determinations herein of the Maximum Rate, or of any interest rate determined by
reference to the Maximum Rate, shall be made separately for each Lender as
appropriate to assure that the Loan Documents are not construed to obligate any
Person to pay interest to any Lender at a rate in excess of the Maximum Rate
applicable to such Lender.

         "Mortgage" means a mortgage or deed of trust, on standard forms in form
and substance satisfactory to Agent, securing a Mortgage Note and granting a
perfected first or second priority lien on residential real property consisting
of land and a single-family dwelling thereon which is completed and ready for
occupancy.

         "Mortgage Assignment" means an instrument duly executed and in
recordable form assigning a Mortgage, in blank and all like intervening
instruments that have been executed with respect to such Mortgage and which is
in form acceptable to Agent and satisfies all Requirements of Law.

         "Mortgage Collateral" means all Mortgage Notes (a) which are made
payable to the order of any of the Borrowers or have been endorsed (without
restriction or limitation) payable to the order of any of the Borrowers, (b) in
which Agent has been granted and continues to hold a perfected first priority
security interest, (c) which are in form and substance acceptable to Agent in
its reasonable discretion, (d) which are secured by Mortgages, and (e) with
respect to Eligible Mortgage Loans, conform in all respects with all the
requirements for purchase of such Mortgage Notes under the Take-Out Commitments
and are valid and enforceable in accordance with their respective terms.

         "Mortgage Loan" means a one-to-four-family mortgage loan which is
evidenced by a Mortgage Note and secured by a Mortgage, together with the rights
and obligations of a holder thereof and payments thereon and proceeds therefrom.

         "Mortgage Note" means the Note or other evidence of indebtedness
evidencing the indebtedness of an Obligor under a Mortgage Loan.

         "Mortgage-Backed Security" means (a) any security (including, without
limitation, a participation certificate) guaranteed by Ginnie Mae that
represents an interest in a pool of mortgages, deeds of trust or other
instruments creating a Lien on Property which is improved by a completed single
family residence, including but not limited to a condominium, planned unit
development or townhouse, (b) a security (including a participation certificate)
issued by Fannie Mae or Freddie Mac that represent interests in such a pool, and
(c) a privately-placed security representing undivided interests in or otherwise
supported by such a pool.

                                      -10-
<PAGE>

         "Nonconforming Mortgage Loan" means a Mortgage Loan that (a) is neither
a Conforming Mortgage Loan nor a Jumbo Mortgage Loan, (b) generally meets
Standard & Poor's Ratings Group (a division of McGraw Hill, Inc.) underwriting
guidelines for Subprime Mortgage Loans, (c) has a FICO score equal to or in
excess of the requirements of the Investor under the applicable Take-Out
Commitment for such Mortgage Loan, (d) has a combined loan-to-value ratio of not
more than 100%, and (e) has a face amount of no more than $100,000, in the case
of a Mortgage Loan made pursuant to a home equity line of credit (except for a
Mortgage Loan made pursuant to a home equity line of credit in California, in
which case the face amount shall be no more than $500,000), and no more than
$400,000, in the case of any other Mortgage Loan.

         "Nonconforming Sublimit" means fifteen percent (15%) of the Aggregate
Commitment Amounts.

         "Note" means any promissory note delivered by the Company to a Lender
pursuant to Section 2.02 in the form attached hereto as Exhibit A, and all
renewals, modifications and extensions thereof. "Notes" means collectively each
Lender's Note.

         "Obligations" means all present and future GAAP Indebtedness and
Contingent Indebtedness, obligations, and Liabilities of the Borrowers, or any
of them, to Agent or any Lender, and all renewals and extensions thereof, or any
part thereof, arising pursuant to this Agreement or any other Loan Document, and
all interest accrued thereon, and reasonable attorneys' fees and other costs
incurred in the drafting, negotiation, enforcement or collection thereof,
regardless of whether such indebtedness, obligations, and liabilities are
direct, indirect, fixed, contingent, joint, several or joint and several.

         "Obligor" means the Person or Persons obligated to pay the indebtedness
which is the subject of a Mortgage Loan.

         "Operating Account" means the non-interest bearing demand checking
account established by the Company with Agent to be used for the Company's
operations.

         "Parent" means D.R. Horton, Inc., a Delaware Corporation, which owns
indirectly through one or more of its wholly-owned Subsidiaries, one hundred
percent (100%) of the general and limited partnership interests in the Company.

         "PBGC" means the Pension Benefit Guaranty Corporation or any
Governmental Authority succeeding to any of its functions.

         "Percentage Share" means, with respect to any Lender (a) when used in
Section 2.01, in any borrowing request or when no Loans are outstanding
hereunder, the percentage set forth opposite such Lender's name on Schedule 5,
and (b) when used otherwise, the percentage obtained by dividing (i) the sum of
the unpaid principal balance of such Lender's Loans at the time in question by
(ii) the sum of the aggregate unpaid principal balance of all Loans at such
time.

                                      -11-
<PAGE>

         "Person" means any individual, corporation, partnership, joint venture,
association, joint stock company, limited liability company, trust,
unincorporated organization, Governmental Authority, or any other form of
entity.

         "Prime Rate" means at the time of any determinations thereof, the rate
per annum which is most recently publicly announced by U.S. Bank as its "Prime
Rate", which may be a rate at, above or below the rate at which U.S. Bank lends
to other Persons.

         "Prime Rate Advance" means an outstanding Loan that bears interest as
provided in Section 2.04(a)(ii).

         "Property" means any interest in any kind of property or asset, whether
real, personal or mixed, or tangible or intangible.

         "Regulation D" means Regulation D issued by the Board of Governors of
the Federal Reserve system as in effect from time to time.

         "Regulation T" means Regulation T issued by the Board of Governors of
the Federal Reserve System as in effect from time to time.

         "Regulation U" means Regulation U issued by the Board of Governors of
the Federal Reserve System as in effect from time to time.

         "Regulation X" means Regulation X issued by the Board of Governors of
the Federal Reserve System as in effect from time to time.

         "Regulatory Change" means any change after the date hereof in United
States federal, state or foreign laws or regulations or the adoption or making
after such date of any interpretations, directives or requests applying to a
class of banks including any Lender under any United States federal, state or
foreign laws or regulations (whether or not having the force of law) by any
court or governmental or monetary authority charged with the interpretation or
administration thereof.

         "Reportable Event" means (a) a reportable event described in Sections
4043(b)(5) or (6) of ERISA or the regulations promulgated thereunder, or (b) any
other reportable event described in Section 4043(b) of ERISA or the regulations
promulgated thereunder other than a reportable event not subject to the
provision for 30-day notice to the PBGC pursuant to a waiver by the PBGC under
Section 4043(a) of ERISA.

         "Required Mortgage Documents" means as to any Mortgage Loan, the items
described in Section 4.02 of the Security Agreement.

         "Requirement of Law" as to any Person means the charter and by-laws or
other organizational or governing documents of such Person, and any law,
statute, code, ordinance, order, rule, regulation judgment, decree, injunction,
franchise, permit, certificate, license, authorization or other determination,
direction or requirement (including, without limitation, any

                                      -12-
<PAGE>

of the foregoing which relate to environmental standards or controls, energy
regulations and occupational, safety and health standards or controls) of any
arbitrator, court or other Governmental Authority, in each case applicable to or
binding upon such Person or any of its Property or to which such Person or any
of its Property is subject.

         "Restricted Subsidiary" means any subsidiary of the Company in
existence on the date hereof and any Subsidiary hereafter acquired or formed by
the Company which the Company does not designate as an Unrestricted Subsidiary.

         "Risk Rating" means the risk rating of a Mortgage Loan determined by
the underwriting guidelines of the Company or other applicable standards of an
Investor to which such Mortgage Loan is to be sold by a Borrower under a
Take-Out Commitment, provided that such underwriting guidelines or other
applicable standards comply with industry standards (as defined by Standard &
Poor's Rating Group).

         "Security Agreement" means the Amended and Restated Pledge and Security
Agreement of even date herewith between the Borrowers and Agent, substantially
in the form attached hereto as Exhibit F, as the same may from time to time be
further supplemented, amended or restated.

         "Security Instrument" means (a) the Security Agreement and (b) such
other executed documents as are or may be necessary to grant to Agent a
perfected first prior and continuing security interest in and to all Mortgage
collateral, and any and all other agreements or instruments now or hereafter
executed and delivered by the Borrowers in connection with, or as security for
the payment or performance of, all or any of the Obligations, including the
Borrowers' obligations under the Notes and this Agreement, as such agreements
may be amended, modified or supplemented from time to time.

         "Subprime Mortgage Loans" means any loans with credit characteristics
which do not fit the traditional requirements for a Risk Rating of "A" (as
defined by Standard & Poor's Rating Group), generally due to the overall
underlying credit quality, credit bureau score, loan-to-value ratio, lack of
credit history, etc. but which do fit the traditional requirements for a Risk
Rating of "B" or "C" (as defined by Standard & Poor's Rating Group).

         "Subsidiary" means, with respect to any Person, any corporation,
association, partnership, joint venture, or other business or corporate entity,
enterprise or organization which is directly or indirectly (through out or more
intermediaries) controlled by or owned fifty percent (50%) or more by such
Person.

         "Swingline Commitment" means the discretionary revolving credit
facility provided by U.S. Bank to the Borrowers described in Section 2.01.

         "Swingline Loan" means a loan made by U.S. Bank to the Borrowers
pursuant to Section 2.01.

                                      -13-
<PAGE>

         "Take-Out Commitment" means with respect to any Mortgage Loan shall
mean a bona fide current, unused and unexpired whole loan commitment or forward
sale Mortgage-Backed Security commitment issued in favor of and held by the
Company made by an Approved Investor, under which such Approved Investor agrees
prior to the expiration thereof, upon the satisfaction of certain terms and
conditions therein, to purchase such Mortgage Loan or related Mortgage-Backed
Security at a specified price, which commitment is not subject to any term or
condition which is not customary in commitments of like nature or which, in the
reasonably anticipated course of events, cannot be fully complied with prior to
the expiration thereof.

         "Termination Event" means (a) the occurrence with respect to any ERISA
Plan of a Reportable Event, (b) the withdrawal of the Company or any ERISA
Affiliate from a plan during a plan year in which it was a "substantial
employer", as defined in Section 4001(a)(2) of ERISA, (c) the distribution to
affected parties of a notice of intent to terminate any ERISA Plan or the
treatment of any ERISA plan amendment as a termination under Section 4041 of
ERISA, (d) the institution of proceedings to terminate any ERISA Plan by the
PBGC under Section 4042 of ERISA, or (e) any other event or condition which
might constitute grounds under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, any ERISA Plan.

         "UCC" means the Texas Uniform Commercial Code, as the same may
hereafter be amended.

         "Unrestricted Subsidiary" means (i) any Subsidiary of the Company that
at the time of acquisition or formation of such Subsidiary by the Company shall
be designated as an Unrestricted Subsidiary by the Board of Directors of the
Company in the manner provided below and (ii) any Subsidiary of an Unrestricted
Subsidiary. The Board of Directors of the General Partner may designate any
newly acquired or formed Subsidiary to be an Unrestricted Subsidiary, provided
that no Default or Event of Default shall have occurred and be continuing at the
time of or, after giving effect to such designation. The Board of Directors may
designate any Unrestricted Subsidiary to be a Restricted Subsidiary by
delivering written notice of such designation to Agent together with a
compliance certificate signed by the President, Accounting Director or Chief
Financial Officer of General Partner which shall certify to Agent and Lenders
that at the date of and, after giving effect to such designation, the Company
shall be in compliance with all covenants set forth in the Loan Documents and no
Default or Event of Default shall have Occurred and be continuing.

         "VA" means the U.S. Department of Veterans Affairs and any successor
thereto.

         "Wet Warehousing Loans" means Eligible Mortgage Loans which are
included in the Borrowing Base, but for which the Required Mortgage Documents
have not been delivered to Agent.

         "Wet Warehousing Sublimit" means fifty-five percent (55%) of the
Aggregate Commitment Amounts during the last four (4) Business Days in any
calendar month and the first four (4) Business Days in the next succeeding
calendar month or thirty percent (30%) of the Aggregate Commitment Amounts at
any other time.

                                      -14-
<PAGE>

         Section 1.02 Other Definitional Provisions.

         (a) Unless otherwise specified therein, all terms defined in this
Agreement shall have the above-defined meanings when used in the Notes or any
other Loan Document, certificate, report or other document made or delivered
pursuant hereto.

         (b) Each term defined in the singular form in Section 1.01 means the
plural thereof when the plural form of such term is used in this Agreement, the
Notes or any other Loan Document, certificate, report or other document made or
delivered pursuant hereto, and each term defined in the plural form in Section
1.01 shall mean the singular thereof when the singular form of such term is used
herein or therein.

         (c) The words "hereof," "herein," "hereunder" and similar terms when
used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and section, subsection, schedule and
exhibit references herein are references to sections, subsections, schedules and
exhibits to this Agreement unless otherwise specified. The word "or" is not
exclusive, and the word "including" (in its various forms) means "including
without limitation."

         (d) Unless the context otherwise requires or unless otherwise provided
herein the terms defined in this Agreement which refer to a particular
agreement, instrument or document also refer to and include all renewals,
extensions, modifications, amendments and restatements of such agreement,
instrument or document, provided that nothing contained in this section shall be
construed to authorize any such renewal, extension, modification, amendment or
restatement.

         (e) As used herein, in the Notes or in any other Loan Document,
certificate or report or other document made or delivered pursuant hereto,
accounting terms relating to any Person and not specifically defined in this
Agreement or therein shall have the respective meanings given to them under
GAAP.

         Section 1.03 Exhibits and Schedules. All Exhibits and Schedules
attached to this Agreement are a part hereof for all purposes.

         Section 1.04 Calculations and Determinations. All calculations under
the Loan Documents of interest and of fees shall be made on the basis of actual
days elapsed and a year of 360 days. Each determination by Agent or a Lender of
amounts to be paid under Sections 2.07 and 2.08 or any other matters which are
to be determined hereunder by Agent or a Lender (such as any LIBOR Rate or
Business Day) shall, in the absence of manifest error, be conclusive and
binding. Unless otherwise expressly provided herein or unless Agent otherwise
consents all financial statements and reports furnished to Agent or any Lender
hereunder shall be prepared and all financial computations and determinations
pursuant hereto shall be made in accordance with GAAP.

                                   ARTICLE II

                                TERMS OF CREDITS

                                      -15-
<PAGE>

         Section 2.01 Commitments and Discretionary Swingline Commitment.

         (a) Commitments. Subject to the terms and conditions contained in this
Agreement, each Lender agrees to make loans ("Loans") to the Borrowers on a
revolving credit basis from time to time on any Business Day from the date of
this Agreement through the Drawdown Termination Date. The aggregate principal
amount of any Lender's Loans at any time outstanding (after giving effect to the
other transactions contemplated by the borrowing request pursuant to which a
Loan is requested) shall not exceed the lesser of: (i) such Lender's Percentage
Share of the Borrowing Base or (ii) such Lender's Commitment Amount. At no time
shall the aggregate amount of all Loans outstanding at any time exceed the
lesser of (A) the Borrowing Base, and (B) the Aggregate Commitment Amounts at
such time. Loans may be requested as Prime Rate Advances, LIBOR Rate Advances,
Balance Funded Rate Advances or any combination of the foregoing.

         (b) Discretionary Swingline Commitment. Upon the terms and subject to
the conditions of this Agreement, until the Drawdown Termination Date, U.S.
Bank, in its sole discretion, may lend to the Borrowers loans (each such loan, a
"Swingline Loan") at such times and in such amounts as the Company shall
request, up to an aggregate principal amount at any time outstanding equal to
the amount by which U.S. Bank's Approval Amount exceeds the principal amount
outstanding under U.S. Bank's Note; provided, that U.S. Bank will not make a
Swingline Loan if (i) after giving effect thereto, the total principal amount of
outstanding Loans and Swingline Loans would exceed the lesser of the Aggregate
Commitment Amounts at such time or the Borrowing Base, or (ii) U.S. Bank has
received written notice from the Company or any Lender that one or more of the
conditions precedent set forth in Article III for the making of a Loan have not
been satisfied.

         Section 2.02 Promissory Notes. The Loans (including the Swingline Loans
in the case of U.S. Bank) made by each Lender pursuant to this Article II shall
be evidenced by a Note payable to the order of such Lender.

         Section 2.03 Obtaining Loans; Refinancing of Swingline Loans.

         (a) Notice and Manner of Obtaining Loans. The Company shall give Agent
telephonic notice of each request for Loans not later than 1:00 p.m.
(Minneapolis, Minnesota time) on the requested Borrowing Date and of each
request for Swingline Loans not later than 3:00 p.m. (Minneapolis, Minnesota
time) on the requested Borrowing Date. Each request for Loans or Swingline Loans
shall specify the aggregate amount of Loans or Swingline Loans requested,
whether each such Loan or Swingline Loan is being made to permit a Co-Borrower
to originate or acquire one or more Mortgage Loans (and, if so, specifying the
Co-Borrower), and whether such Loans to be made by each Lender are to be funded
as Prime Rate Advances, LIBOR Rate Advances or Balance Funded Rate Advances;
provided, that any portion of a Loan not so designated shall be funded as a
LIBOR Rate Advance. On the first Business Day after the Closing Date, the
Company shall be deemed to have requested Loans in an amount equal to the
outstanding principal balance of all Loans under the Prior Credit Agreement, and
such Loans shall be used to refinance such Loans under the Prior Credit
Agreement. Agent shall notify each

                                      -16-
<PAGE>

Lender via facsimile and telephone by not later than 2:00 P.M. (Minneapolis,
Minnesota time) on the date it receives such request of each request for Loans
received from the Company, of such Lenders's Percentage Share of the Loans
requested and whether such Lender's Loans are to funded as Prime Rate Advances,
LIBOR Rate Advances or Balance Funded Rate Advances. The Company shall, not
later than the following Business Day, confirm any such request by delivering to
Agent a Confirmation. Each request for Loans shall be irrevocable and binding on
the Company and any applicable Co-Borrower. If all conditions precedent to such
Loan have been met, each Lender shall deposit into the Funding and Settlement
Account in immediately available dollars by not later than 4:00 P.M.
(Minneapolis, Minnesota time) on the Borrowing Date the amount of such Lender's
Loan and upon receipt of such funds, Agent shall promptly make such funds
available to the Company and any applicable Co-Borrower by depositing such funds
in the Good Funds Wire Clearing Account or the Operating Account, as requested
by the Company. On the Borrowing Date of requested Swingline Loans, U.S. Bank
may deposit into the Funding and Settlement Account in Immediately Available
Funds by not later than 4:00 p.m. (Minneapolis, Minnesota time) on the requested
Borrowing Date the amount of the requested Swingline Loans. Unless Agent shall
have received notice from a Lender prior to 3:00 P.M. (Minneapolis, Minnesota
time) on any Borrowing Date that such Lender will not make available to Agent
such Lender's Loan, Agent may in its discretion assume that such Lender has made
such Loan available to Agent in accordance with this section and Agent may if it
chooses, in reliance upon such assumption make such Loan available to the
Company and any applicable Co-Borrower. If and to the extent such Lender shall
not so make its Loan available to Agent, such Lender shall, on demand, pay to
Agent the amount of such Loan together with interest thereon, for each day from
the date such amount is made available to the Company and any applicable
Co-Borrower until the date such amount is paid or repaid to Agent at the Federal
Funds Rate. If such Lender does not pay such amount promptly upon Agent's demand
therefor, Agent shall notify the Company and the Company and each applicable
Co-Borrower shall immediately repay such amount to Agent together with accrued
interest thereon at the applicable rate or rates provided in Section 2.04. Agent
shall use its best efforts to demand any such amount from both such Lender and
the Company, provided, that any failure by Agent to make any such demand on both
such Lender and the Company shall not in any manner affect such Lender's, the
Company's or any applicable Co-Borrower's obligation to pay or repay such
amount, with interest, as set forth herein. The failure of any Lender to make
any Loan to be made by it hereunder shall not relieve any other Lender of its
obligation hereunder, if any, to make its Loan, but no Lender shall be
responsible for the failure of any other Lender to make any Loan to be made by
such other Lender. Each request for Loans or Swingline Loans shall be deemed to
be a representation by the Company that (i) no Event of Default or Default has
occurred or will exist upon the making of the requested Loans or Swingline Loans
and (ii) the representations and warranties contained in Section 4 hereof and in
Section 5 of the Security Agreement are true and correct with the same force and
effect as if made on and as of the date of such request.

         (b) Refinancing of Swingline Loans.

                  (i) Permitted Refinancings of Swingline Loans. U.S. Bank, at
         any time in its sole and absolute discretion, may, upon notice given to
         each other Lender by not later than

                                      -17-
<PAGE>

         2:00 P.M. (Minneapolis, Minnesota time) on any Business Day, request
         that each Lender (including U.S. Bank) make a Loan in an amount equal
         to its Percentage Share of a portion of the aggregate unpaid principal
         amount of any outstanding Swingline Loans for the purpose of
         refinancing such Swingline Loans. Such Loans shall be made as LIBOR
         Advances, unless the Company specifies otherwise.

                  (ii) Mandatory Refinancings of Swingline Loans. Not later than
         2:00 P.M. (Minneapolis time) at least on a weekly basis, U.S. Bank will
         notify each other Lender of the aggregate amount of Swingline Loans
         which are then outstanding and the amount of Loans required to be made
         by each Lender (including U.S. Bank) to refinance such outstanding
         Swingline Loans (which shall be in the amount of each Lender's
         Percentage Share of such outstanding Swingline Loans). Such Loans shall
         be made as LIBOR Advances, unless the Company specifies otherwise.

                  (iii) Lenders' Obligation to Fund Refinancings of Swingline
         Loans. Upon the giving of notice by U.S. Bank under Section 2.03(b)(i)
         or 2.03(b)(ii), each Lender (including U.S. Bank) shall make a Loan in
         an amount equal to its Percentage Share of the aggregate principal
         amount of Swingline Loans to be refinanced, and provide proceeds of
         such Loans, in Immediately Available Funds, by not later than 3:00 P.M.
         (Minneapolis time) on the date such notice was received; provided,
         however, that a Lender shall not be obligated to make any such Loan
         unless (A) U.S. Bank believed in good faith that all conditions to
         making the subject Swingline Loan were satisfied at the time such
         Swingline Loan was made, or (B) if the conditions to such Swingline
         Loan were not satisfied, such Lender had actual knowledge, by receipt
         of the statements furnished to it pursuant to Section 4.01 or
         otherwise, that any such condition had not been satisfied and failed to
         notify U.S. Bank in a writing received by U.S. Bank prior to the time
         it made such Swingline Loan that U.S. Bank was not authorized to make a
         Swingline Loan until such condition had been satisfied, or U.S. Bank
         was obligated to give notice of the occurrence of an Event of Default
         or a Default to Lenders pursuant to Section 8.08 and failed to do so,
         or (C) any conditions to the making of such Swingline Loan that were
         not satisfied had been waived in writing by Majority Lenders prior to
         or at the time such Swingline Loan was made. The proceeds of Loans made
         pursuant to the preceding sentence shall be paid to U.S. Bank (and not
         to any Borrower) and applied to the payment of principal of the
         outstanding Swingline Loans, and the Company authorizes Agent to charge
         the Funding and Settlement Account or any other account (other than
         escrow or custodial accounts) maintained by the Company with Agent (up
         to the amount available therein) in order to immediately pay U.S. Bank
         the principal amount of such Swingline Loans to the extent Loans made
         by the Lenders are not sufficient to repay in full the principal of the
         outstanding Swingline Loans requested or required to be refinanced.
         Upon the making of a Loan by a Lender pursuant to this Section
         2.03(b)(iii), the amount so funded shall become due under such Lender's
         Note and the outstanding principal amount of the Swingline Loans shall
         be correspondingly reduced. If any portion of any Loan made by Lenders
         pursuant to this Section 2.03(b)(iii) should be recovered by or on
         behalf of any Borrower from U.S. Bank in bankruptcy or otherwise, the
         loss of the amount so recovered shall be ratably shared among all
         Lenders in the

                                      -18-
<PAGE>

         manner contemplated by Section 9.11. Each Lender's obligation to make
         Loans referred to in this Section 2.03(b) shall, subject to the proviso
         to the first sentence of this Section 2.03(b)(iii), be absolute and
         unconditional and shall not be affected by any circumstance, including,
         without limitation, (1) any setoff, counterclaim, recoupment, defense
         or other right which such Lender may have against U.S. Bank, any
         Borrower or anyone else for any reason whatsoever; (2) the occurrence
         or continuance of a Default or an Event of Default; (3) any adverse
         change in the condition (financial or otherwise) of the Company or any
         Co-Borrower; (4) any breach of this Agreement by any Borrower, the
         Agent or any Lender; or (5) any other circumstance, happening or event
         whatsoever, whether or not similar to any of the foregoing; provided,
         that in no event shall a Lender be obligated to make a Loan if, after
         giving effect thereto, the outstanding principal balance of such
         Lender's Note would exceed its Commitment Amount.

         Section 2.04 Interest; Balances Deficiency Fees; Continuations and
Conversions.

         (a) Interest Rates; Balances Deficiency Fees. The Borrowers will pay
the Agent monthly in arrears, within two Business Days after the Company's
receipt of Agent's statement therefor, interest on the unpaid principal balance
of each Advance of each Lender from time to time outstanding as follows:

                  (i) with respect to Balance Funded Rate Advances, at the
         Balance Funded Rate; provided, that if for any Balance Calculation
         Period the Balance Funded Amount maintained by the Company with any
         Lender is less than an amount equal to the average daily aggregate
         unpaid principal balance of the Balance Funded Rate Advances owed to
         such Lender during such Balance Calculation Period (such deficiency
         being herein referred to as the "Balances Deficiency"), the Borrowers
         will pay such Lender a fee (the "Balances Deficiency Fee") for said
         Balance Calculation Period on the Balances Deficiency at a per annum
         rate equal to the average daily LIBOR Rate plus Applicable Margin in
         effect during said Balance Calculation Period; and provided further,
         that if the Balance Funded Amount maintained by the Company with any
         Lender for any Balance Calculation Period exceeds the weighted average
         daily aggregate unpaid principal balance of the Balance Funded Rate
         Advances owed to such Lender during such Balance Calculation Period
         (such excess being defined herein as the "Balances Surplus"), then such
         Balances Surplus, or, if the Company and such Lender shall so agree,
         the charges reduction benefit for such Balances Surplus (as determined
         by such Lender), may be carried forward and applied to succeeding
         Balance Calculation Periods (but not to any Balance Calculation Period
         occurring in any subsequent calendar year);

                  (ii) with respect to Prime Rate Advances, the Prime Rate plus
         the Applicable Margin, as adjusted automatically on and as of the
         effective date of any change in the Prime Rate;

                  (iii) with respect to LIBOR Rate Advance the LIBOR Rate plus
         the Applicable Margin, as adjusted automatically on and as of the
         effective date of any change in the LIBOR Rate; and

                                      -19-
<PAGE>

                  (iv) with respect to any Obligations not paid when due (A)
         consisting of Balance Funded Rate Advances, a rate per annum equal to
         the Balance Funded Rate plus 4.0% per annum,(B) consisting of LIBOR
         Rate Advances, a rate per annum equal to the LIBOR Rate plus 4.0% per
         annum, (C) consisting of Prime Rate Advances, a rate per annum equal to
         the Prime Rate plus 4.0% per annum, and (D) consisting of other
         Obligations, a rate per annum equal to the Prime Rate plus the
         Applicable Margin plus 4.0% for the period from the date such
         Obligations were due until the same are paid.

         (b) Payment of Interest and Fees. Agent shall use its best efforts to
provide the Company with a statement for interest on the Notes, the facility
fees with respect to the Commitments and the collateral handling fees with
respect to Mortgage Loans pledged under the Pledge and Security Agreement, in
each case accrued through the last day of each calendar month, on or before the
third Business Day (and in any case, no later than the tenth Business Day), of
the next succeeding calendar month, but shall have no liability to any Borrower
for its failure to do so. Interest on the Notes, facility fees and collateral
handling fees accrued through the last day of each calendar month shall be due
and payable on the second Business Day after the date the Company receives such
statement from Agent; provided, that interest payable at the rates provided for
in Section 2.04 (a)(iv) shall be payable on demand. Any Balances Deficiency Fee
payable hereunder shall be due and payable quarterly after each Balance
Calculation Period within two Business Days after receipt by the Company from
any Lender of a statement therefor (a copy of which shall be provided to Agent)
containing the calculations made to determine such Balances Deficiency Fee,
which statement shall be conclusive absent manifest error unless approved by
such Lender.

         (c) Designation and Conversions of Outstanding Advances. Subject to the
terms and conditions of this Agreement, the Company shall designate, on any
Borrowing Date, all or portions of the Loans to be made on such Borrowing Date
as one or more LIBOR Rate Advances, Balance Funded Rate Advances or Prime Rate
Advances. Any portion of an outstanding Loan not designated as a Prime Rate
Advance or a Balance Funded Rate Advance shall be funded as a LIBOR Rate
Advance. Thereafter, subject to the terms and conditions of this Agreement, the
Company shall have the option to convert all or any portion of any outstanding
Advance consisting of Loans into Advances of another type (i.e., LIBOR Rate
Advances, Balance Funded Rate Advances or Prime Rate Advances); provided,
however, that (i) no Advance may be requested as or converted into a Balance
Funded Rate or, [without the written consent of the Lenders to which it is owed
(a copy of which shall be provided to Agent) a Balance Funded Rate Advance if an
Event of Default or Default has occurred and is continuing on the proposed date
of conversion, and (ii) no Advance owed to any Lender may be requested as or
converted into a Balance Funded Rate Advance without the prior consent of such
Lender, which shall be confirmed to Agent in writing by such Lender, if the
Balance Funded Amount maintained by the Company at such Lender is less than the
aggregate amount of Balance Funded Rate Advances owed to such Lender, after
giving effect to such conversion. The Company shall provide Agent with
telephonic notice of each proposed conversion not later than 1:00 P.M.
(Minneapolis, Minnesota time) on the date of any conversion, which notice shall
set forth the proposed date therefor. Each such notice shall specify (A) the
amount to be converted, and (B) the date for the conversion. Any notice given by
the Company under this Section 2.04(c)

                                      -20-
<PAGE>

shall be irrevocable. The Company shall promptly confirm any such proposed
conversion by delivering to Agent a duly completed and executed Confirmation.
Agent shall notify each Lender affected by such proposed conversion by not later
than 2:00 P.M. (Minneapolis, Minnesota time) on the date it receives such notice
of the Advances of such Lender being converted and the types of Advances into
which such Advances are being converted.

         Section 2.05 Fees.

         (a) The Company shall pay to the Agent, on behalf of each Lender, a
facility fee ("Facility Fee") in the amount of 0.100% per annum of each Lender's
Commitment Amount. The Facility Fee shall be payable monthly in arrears on the
first Business Day of each month commencing May 1, 2004 and shall be computed on
the basis of a 360-day year and applied to the actual number of days elapsed in
such month; provided, that on May 1, 2004, the Company shall pay the prorated
portion of the Facility Fee due from the date the Credit Agreement is executed
by all parties thereto (the "Closing Date") to April 30, 2004. If the Credit
Agreement terminates on any date other than the last of the then current month,
the Company shall pay the prorated portion of the Facility Fee due from the
beginning of the then current month to and including the date on which the
Credit Agreement terminates.

         (b) The Company shall pay to the Agent for its own account, an Agent
fee and collateral handling fees agreed to in that certain letter agreement
dated of even date herewith between the Company and Agent.

         Section 2.06 Mandatory Repayments. The unpaid principal amount of each
Note, together with all interest accrued thereon, shall be due and payable on
the Drawdown Termination Date. In addition, if at any time the aggregate
outstanding principal amount of all Loans exceeds the Borrowing Base, the
Company and the applicable Co-Borrowers shall repay the amount of such excess
within twenty-four hours after having knowledge thereof or receiving notice
thereof from Agent.

         Section 2.07 Payments to Lenders. All payments of Interest on the
Notes, all payments of principal, including any principal payment made with
proceeds of Mortgage Collateral, and fees hereunder shall be made directly to
Agent for prompt distribution to the applicable Lenders to whom such payment is
owed in federal or other Immediately Available Funds before 1:00 p.m.
(Minneapolis, Minnesota time) on the respective dates when due via wire transfer
to the Funding and Settlement Account. Any payment received by Agent after such
time will be deemed to have been made on the next following Business Day. Should
any such payment become due and payable on a day other than a Business Day, the
maturity of such payment shall be extended to the next succeeding Business Day,
and, in the case of a payment of principal or past due interest, interest shall
accrue and be payable thereon for the period of such extension as provided in
the Loan Document under which such payment is due. Each payment under a Loan
Document shall be payable at the place provided therein and, if no specific
place of payment is provided, shall be payable at the place of payment of the
Notes. When Agent collects or receives money on account of the Obligations,
Agent shall distribute the money so collected or received, and Agent and Lenders
shall apply all such money so distributed, as follows:

                                      -21-
<PAGE>

         (a) first, for the payment of all Obligations which are then due, and
if such money is insufficient to pay all such Obligations, (i) first to any
reimbursements due Agent under Section 5.05, (ii) second to the payment of any
Swingline Loans then outstanding, (iii) third to the payment of the Loans then
due, and (iv) then to the partial payment of all other Obligations then due in
proportion to the amounts thereof, or as Lenders shall otherwise agree;

         (b) then for the prepayment of amounts owing under the Loan Documents
if so specified by the Company;

         (c) then for the prepayment of principal on the Notes, together with
accrued and unpaid interest on the principal so prepaid; and

         (d) last, for the payment or prepayment of any other Obligations.

         All payments applied to principal or interest on any Note shall be
applied first to any Interest then due and payable, then to principal then due
and payable, and last to any prepayment of principal and interest. All
distributions of amounts described in any of subsections (b), (c) or (d) above
shall be made by Agent pro rata to Agent and each Lender then owed Obligations
described in such subsection in proportion to all amounts owed all Lenders which
are described in such subsection.

         Section 2.08 Increased Capital Requirements. In the event that, as a
result of any Regulatory Change, compliance by any Lender with any applicable
law or governmental rule, requirement, regulation, guideline or order (whether
or not having the force of law) regarding capital adequacy has the effect of
reducing the rate of return on such Lender's capital as a consequence of such
Lender's Commitment or amounts outstanding under such Lender's Note to a level
below that which such Lender would have achieved but for such compliance (taking
into consideration such Lender's policies with respect to capital adequacy),
then from time to time the Borrowers shall pay to such Lender, within thirty
days after written demand by such Lender, such additional amount or amounts as
will compensate such Lender for such reduction; provided, that the Borrowers
shall not be obligated to pay any such additional amount (i) unless such Lender
shall first have notified the Borrowers in writing that it intends to seek such
compensation pursuant to this Section, or (ii) to the extent such additional
amount is attributable to the period ending 91 days prior to the date of the
first such notice with respect to such Regulatory Change (the "Excluded
Period"), except to the extent any amount is attributable to the Excluded Period
as a result of the retroactive application of the applicable Regulatory Change.
A certificate, which shall be conclusive except for manifest error, as to the
amount of any such reduction (including calculations in reasonable detail
showing how such Lender computed such reduction and a statement that such Lender
has not allocated to its Commitment or amounts outstanding under its Note a
proportionately greater amount of such reduction than is attributable to each of
its other commitments to lend or to each of its other outstanding credit
extensions that are affected similarly by such compliance by such Lender,
whether or not such Lender allocates any portion of such reduction to such other
commitments or credit extensions) shall be furnished promptly by such Lender to
the Borrowers.

                                      -22-
<PAGE>

         Section 2.09 Provisions Relating to LIBOR Rate Advances and Balance
Funded Rate Advances.

         (a) Interest Rate Not Ascertainable, Etc. If, on the date for
determining the LIBOR Rate in respect of any LIBOR Rate Advance, any Lender
determines (which determination shall be conclusive and binding, absent error)
that the LIBOR Rate will not adequately and fairly reflect the cost to such
Lender of funding such LIBOR Rate Advance, then such Lender shall notify Agent,
and Agent shall notify the Company, of such determination, whereupon the
obligation of such Lender to make, or to convert any Advances to, LIBOR Rate
Advances shall be suspended until such Lender notifies Agent, and Agent notifies
the Company, that the circumstances giving rise to such suspension no longer
exist. Outstanding LIBOR Rate Advances owed to such Lender shall thereupon
automatically be converted to bear interest at a rate equal to the Federal Funds
Rate plus 0.50%, and in such event, the Company will thereafter be entitled to
designate subsequent Advances to bear interest at the Federal Funds Rate plus
0.50%.

         (b) Increased Cost. If, after the date hereof, any Regulatory Change or
compliance with any request or directive (whether or not having the force of
law) of any governmental authority, central bank or comparable agency:

                  (i) shall subject any Lender to any tax, duty or other charge
         with respect to LIBOR Rate Advances or Balance Funded Rate Advances,
         its Note, or its obligation to make LIBOR Rate Advances or Balance
         Funded Rate Advances, or shall change the basis of taxation of payment
         to such Lender of the principal of or interest on LIBOR Rate Advances
         or Balance Funded Rate Advances or any other amounts due under this
         Agreement in respect of LIBOR Rate Advances or Balance Funded Rate
         Advances or its obligation to make LIBOR Rate Advances or Balance
         Funded Rate Advances (except for changes in the rate of tax on the
         overall net income of such Lender imposed by the laws of the United
         States or any jurisdiction in which such Lender's principal office is
         located); or

                  (ii) shall impose, modify or deem applicable any reserve,
         special deposit, capital requirement or similar requirement (including,
         without limitation, any such requirement imposed by the Board of
         Governors of the Federal Reserve System, but excluding any such
         requirement to the extent included in calculating the LIBOR Rate)
         against assets of, deposits with or for the account of, or credit
         extended by, any Lender or shall impose on any Lender or on the
         interbank LIBOR market any other condition affecting LIBOR Rate
         Advances or Balance Funded Rate Advances, such Lender's Note, or its
         obligation to make LIBOR Rate Advances or Balance Funded Rate Advances;

and the result of any of the foregoing is to increase the cost to such Lender of
making or maintaining any LIBOR Rate Advance or Balance Funded Rate Advance, or
to reduce the amount of any sum received or receivable by such Lender under this
Agreement or under its Note, then, within 30 days after written demand by such
Lender, the Borrowers shall pay to such Lender such additional amount or amounts
as will compensate such Lender for such increased

                                      -23-
<PAGE>

cost or reduction; provided, that the Borrowers shall not be obligated to pay
any such additional amount (i) unless such Lender shall first have notified the
Company in writing that it intends to seek such compensation pursuant to this
Section, or (ii) to the extent such additional amount is attributable to the
period ending 91 days prior to the date of the first such notice with respect to
such Regulatory Change (the "Excluded Period"), except to the extent any amount
is attributable to the Excluded Period as a result of the retroactive
application of the applicable Regulatory Change. A certificate of any Lender
claiming compensation under this Section 2.09(b), setting forth the additional
amount or amounts to be paid to it hereunder and stating in reasonable detail
the basis for the charge and the method of computation (including a statement
that such Lender has not allocated to its Commitment or amounts outstanding
under its Note a proportionately greater amount of such compensation than is
attributable to each of its other commitments to lend or to each of its other
outstanding credit extensions that are affected by such compliance by such
Lender, whether or not such Lender allocates any portion or such compensation to
such other commitments or credit extensions), shall be conclusive in the absence
of manifest error. In determining such amount, such Lender may use any
reasonable averaging and attribution methods. Failure on the part of any Lender
to demand compensation for any increased costs or reduction in amounts received
or receivable with respect to any period shall not constitute a waiver of such
Lender's rights to demand compensation for any increased costs or reduction in
amounts received or receivable in any subsequent period.

         (c) Illegality. If, after the date of this Agreement, the adoption of,
or any change in, any applicable law, rule or regulation, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender with any request or directive (whether or
not having the force of law) of any such authority, central bank or comparable
agency shall make it unlawful or impossible for such Lender to make, maintain or
fund LIBOR Rate Advances or Balance Funded Rate Advances, such Lender shall
notify the Company and Agent, whereupon the obligation of such Lender to make or
convert Advances into LIBOR Rate Advances or Balance Funded Rate Advances, shall
be suspended until such Lender notifies the Company and Agent that the
circumstances giving rise to such suspension no longer exist. If any Lender
determines that it may not lawfully continue to maintain any LIBOR Rate Advances
or Balance Funded Rate Advances, all of the affected Advances shall be
automatically converted as of the date of such Lender's notice to bear interest
at a rate equal to the Federal Funds Rate plus 0.50% and, in such event, the
Company will thereafter be entitled to designate subsequent Advances to bear
interest at the Federal Funds Rate plus 0.50%.

                                   ARTICLE III

                              CONDITIONS PRECEDENT

         The obligation of each Lender to make Loans hereunder is subject to
fulfillment of the conditions precedent stated in this Article III.

         Section 3.01 Initial Borrowing. The obligation of each Lender to fund
any Loan hereunder shall be subject to, in addition to the conditions precedent
specified in Section 3.02,

                                      -24-
<PAGE>

delivery to Agent of the following (each of the following documents being duly
executed and delivered and in form and substance satisfactory to Agent, and,
with the exception of the Notes, each in a sufficient number of originals that
Agent, its counsel and each Lender may have an executed original of each
document);

         (a) an executed counterpart of this Agreement and of all instruments,
certificates and opinions referred to in this Article III not theretofore
delivered (except the borrowing request which is to be delivered at the time
provided in Subsection 3.02(a) hereof);

         (b) the Notes;

         (c) the Security Agreement dated of even date herewith,

         (d) a certificate of the Secretary or Assistant Secretary of General
Partner setting forth (i) resolutions of its board of directors authorizing the
execution, delivery, and performance of the Loan Documents to which it is a
party and identifying the officers authorized to sign such instruments, (ii)
specimen signatures of the officers so authorized, (iii) articles of
incorporation of General Partner certified by the appropriate Secretary of State
as of a recent date acceptable to the Agent in its sole discretion, (iv) bylaws
of General Partner, certified as being accurate and complete and (v) limited
partnership agreement of the Company, certified as being accurate and complete;

         (e) a certificate of the existence and good standing for each of the
Company and General Partner in their respective states of incorporation or
organization dated as of a recent date acceptable to the Agent in its sole
discretion;

         (f) an opinion of counsel for the Borrowers in form and substance
acceptable to Agent;

         (g) a Borrowing Base Certificate dated as of the date of the first
Borrowing, certified by the President, Accounting Director or Chief Financial
Officer of General Partner; and

         (h) such other documents as Agent may reasonably request at any time at
or prior to the date of the initial Borrowing hereunder.

         Section 3.02 All Borrowings. The obligation of each Lender to fund any
Loan pursuant to this Agreement is subject to the following further conditions
precedent:

         (a) the Company shall make a request for such Loan in accordance with
Section 2.03 (and thereafter deliver to Agent a Confirmation with respect
thereto, as required by Section 2.03) accompanied by the Required Mortgage
Documents, if applicable;

         (b) all Property in which the Borrowers have granted a Lien to Agent
shall have been physically delivered to the possession of Agent or a bailee
acceptable to Agent to the extent that such possession is required under this
Agreement or appropriate for the purpose of perfecting the Lien of Agent in such
Collateral;

                                      -25-
<PAGE>

         (c) the representations and warranties of the Company and each
Restricted Subsidiary contained in this Agreement or any Security Instrument
(other than those representations and warranties which are by their terms
limited to the date of the agreement in which they are initially made) shall be
true and correct in all material respects on and as of the date of such Loan;

         (d) no Default or Event of Default shall have occurred and be
continuing and no change or event which constitutes a Material Adverse Effect
shall have occurred as of the date of such Loan;

         (e) the Funding and Settlement Account and the Operating Account shall
be established and in existence;

         (f) the making of such Loan shall not be prohibited by any Governmental
Requirement;

         (g) the delivery to Agent of such other documents and opinions of
counsel, including such documents as may be necessary or desirable to perfect or
maintain the priority of any Lien granted or intended to be granted hereunder or
otherwise and including favorable written opinions of counsel with respect
thereto, as Agent may reasonably request; and

         (h) the aggregate amount of all Loans and Swingline Loans outstanding,
after giving effect to such Loan, does not exceed the lesser of (i) the
Borrowing Base and (ii) the Aggregate Commitment Amount.

         The making of any request for any Loan or Swingline Loan by the Company
shall be deemed to constitute a representation and warranty by the Company on
the date thereof and on the date on which such Loan or Swingline Loan is made as
to the facts specified in Subsections (c) and (d) of this Section 3.02.

         Section 3.03 New Co-Borrowers. The Company may, at any time, add (i)
any Person from which the Company regularly purchases Mortgage Loans in the
ordinary course of its business, or (ii) any Affiliate that will warehouse
Mortgage Loans hereunder, as a Co-Borrower hereunder with the prior written
consent of the Majority Lenders by entering into a Joinder Agreement with the
Agent and such Person; provided, that, without limiting the Majority Lender's
right to consent to such matters, the effectiveness of any such Joinder
Agreement, and of the addition of any such Person as a Co-Borrower hereunder,
shall be subject to the following conditions precedent:

         (a) The Agent shall have received the following, all of which must be
in form and content satisfactory to the Agent, in its sole discretion:

                         (1) The Joinder Agreement.

                                      -26-
<PAGE>

                         (2) Certified copies of the new Co-Borrower's articles
                  of incorporation and bylaws or other organizational documents,
                  and certificates of good standing dated no less recently than
                  thirty (30) days prior to the date of the Joinder Agreement.

                         (3) A copy of resolutions of the board of directors or
                  other governing authority of the new Co-Borrower, certified as
                  of the date of the Joinder Agreement by its corporate
                  secretary (or the equivalent), authorizing the execution,
                  delivery and performance of the Joinder Agreement (and thereby
                  the assumption of the Obligations under the Loan Documents)
                  and all other instruments or documents to be delivered by the
                  new Co-Borrower pursuant to this Agreement and the Joinder
                  Agreement.

                         (4) A certificate of the corporate secretary (or the
                  equivalent) of the new Co-Borrower, as to the incumbency and
                  authenticity of the signatures of the officers of the new
                  Co-Borrower executing the Joinder Agreement, and all other
                  instruments or documents to be delivered by such new
                  Co-Borrower pursuant to the Joinder Agreement and this
                  Agreement (the Agent being entitled to rely thereon until a
                  new such certificate has been furnished to the Agent).

                         (5) A tax, lien and judgment search of the appropriate
                  public records for the new Co-Borrower in the States where its
                  chief executive office is located, including a search of
                  Uniform Commercial Code financing statements, which search
                  shall not have disclosed the existence of any prior Lien on
                  the Collateral other than in favor of the Agent, for the
                  benefit of the Secured Parties, or as permitted hereunder.

                         (6) Executed financing statements in recordable form
                  naming the new Co-Borrower as debtor, covering the Collateral
                  and ready for filing in all jurisdictions required by the
                  Agent.

                         (7) Copies of the new Co-Borrower's errors and
                  omissions insurance policy or mortgage impairment insurance
                  policy and blanket bond coverage policy, all in form and
                  content satisfactory to the Agent, showing compliance of the
                  new Co-Borrower as of the date of the Joinder Agreement with
                  the related provisions of Section 5.06.

                         (8) An opinion of counsel for each Co-Borrower in form
                  and substance reasonably satisfactory to the Agent.

         (b) The representations and warranties contained in Article 4 hereof
applicable to the Co-Borrower shall be accurate and complete in all material
respects as if made on and as of the date of, and after giving effect to, the
Joinder Agreement.

         (c) The Borrowers shall have performed all agreements to be performed
by them hereunder, and after giving effect to the addition of the new
Co-Borrower hereunder, there shall exist no Default or Event of Default
hereunder.

                                      -27-
<PAGE>

Each of the Co-Borrowers (including, without limitation, any Co-Borrower that
becomes a party hereto pursuant to a Joinder Agreement) hereby authorizes the
Company, on behalf of the Borrowers, to execute and deliver Joinder Agreements
and Notes on behalf of all of the Borrowers.

         3.04 Forece Majeure. Notwithstanding Borrowers' satisfaction of the
conditions set forth in this Agreement, the Agent and the Lenders have no
obligations to fund a Loan if the Lenders or the Agent are unable to deliver
such funds as a result of any fire or other casualty, failure of power, strike,
lockout or other labor trouble, banking moratorium, embargo, sabotage,
confiscation, condemnation, riot, civil disturbance, insurrection, act of
terrorism, war or other activity of armed forces, act of God or other similar
reason beyond the control of the Lenders and the Agent. The Lenders and the
Agent will fund the requested Loan as soon as reasonably possible following the
occurrence of such an event.

                                   ARTICLE IV

                     BORROWER REPRESENTATIONS AND WARRANTIES

         Each Borrower represents and warrants as follows:

         Section 4.01 Organization and Good Standing. Each Borrower (a) is duly
formed and existing in good standing under the laws of the jurisdiction of its
formation, (b) is duly qualified as a foreign organization and in good standing
in all jurisdictions in which its failure to be so qualified could have a
Material Adverse Effect, (c) has the organizational power and authority to own
its properties and assets and to transact the business in which it is engaged
and is or will be qualified in the jurisdictions wherein it proposes to transact
business in the future and (d) is in compliance with all Requirements of Law
except to the extent that the failure to comply therewith could not, in the
aggregate, have a Material Adverse Effect.

         Section 4.02 Authorization and Power. Each Borrower has the requisite
organizational power and authority to execute, deliver and perform the Loan
Documents to which it is a party; each Borrower is duly authorized to and has
taken all action necessary to authorize it to, execute, deliver and perform the
Loan Documents to which it is a party and is and will continue to be duly
authorized to perform such Loan Documents.

         Section 4.03 No Conflicts or Consents. Neither the execution and
delivery by any Borrower of the Loan Documents to which it is a party, nor the
consummation of any of the transactions herein or therein contemplated, nor
compliance with the terms and provisions hereof or with the terms and provisions
thereof, will (a) materially contravene or conflict with any Requirement of Law
to which any Borrower is subject, or any indenture, mortgage, deed of trust, or
other agreement or instrument to which any Borrower is a party or by which any
Borrower may be bound, or to which the Property of any Borrower may be subject,
or (b) result in the creation or imposition of any Lien, other than the Lien of
the Security Agreement, on the Property of any Borrower. All actions, approvals,
consents, waivers, exemptions, variances,

                                      -28-
<PAGE>

franchises, orders, permits, authorizations, rights and licenses required to be
taken, given or obtained, as the case may be, from any Governmental Authority
that are necessary in connection with the transactions contemplated by the Loan
Documents have been obtained.

         Section 4.04 Enforceable Obligations. This Agreement, the Notes and the
other Loan Documents are the legal, valid and binding obligations of the
Borrowers, enforceable in accordance with their respective terms, except as
limited by Debtor Laws.

         Section 4.05 No Liens. The applicable Borrowers have good and
indefeasible title to the Mortgage Collateral free and clear of all Liens and
other adverse claims of any nature, other than Liens in the Mortgage Collateral
in favor of Agent.

         Section 4.06 Financial Condition of the Company. The Company has
delivered to Agent and each Lender copies of its unaudited Consolidated balance
sheet as of January 31, 2004; such financial statements fairly present the
financial condition of the Company as of such date and have been prepared in
accordance with GAAP; as of the date thereof, there were no material
obligations, liabilities or GAAP Indebtedness or Contingent Indebtedness
(including material contingent and indirect liabilities and obligations or
unusual forward or long-term commitments) of the Company which are not reflected
in such financial statements and no change which constitutes a Material Adverse
Effect has occurred in the financial condition or business of the Company since
January 31, 2004. The Company has also delivered to Agent and each Lender
management reports for the month ended February 29, 2004; such reports fairly
and accurately present the Company's commitment position, pipeline position,
servicing and production as of the end of such months and for the fiscal year to
date for the periods ending on such dates.

         Section 4.07 Full Disclosure. Each material fact or condition relating
to the Loan Documents or the financial condition, business, or property of any
Borrower that is a Material Adverse Effect has been disclosed in writing to
Agent. All information previously furnished by the Company and its Restricted
Subsidiaries or any Borrower to Agent in connection with the Loan Documents was
and all information furnished in the future by the Company and its Restricted
Subsidiaries or any Borrower to Agent or Lenders will be true and accurate in
all material respects or based on reasonable estimates on the date the
information is stated or certified. To the best knowledge of the Company,
neither the financial statements referred to in Section 4.07 hereof, nor any
borrowing request, officer's certificate or statement delivered by the Company
and its Restricted Subsidiaries or any Borrower to Agent and each Lender in
connection with this Agreement, contains any untrue statement of material fact.

         Section 4.08 No Default. Neither the Company nor any Restricted
Subsidiary is in default under any loan agreement, mortgage, security agreement
or other material agreement or obligation to which it is a party or by which any
of its Property is bound the consequence of which could result in a Material
Adverse Effect.

         Section 4.09 No Litigation. There are no material actions, suits or
legal, equitable, arbitration or administrative proceedings pending, or to the
knowledge of the Company,

                                      -29-
<PAGE>

threatened, against the Company or any Restricted Subsidiary the adverse
determination of which could constitute a Material Adverse Effect.

         Section 4.10 Taxes. All tax returns required to be filed by the Company
and each Restricted Subsidiary in any jurisdiction have been filed or extended
and all taxes, assessments, fees and other governmental charges upon the Company
and each Restricted Subsidiary or upon any of its properties, income or
franchises have been paid prior to the time that such taxes could give rise to a
Lien thereon, unless protested in good faith by appropriate proceedings and with
respect to which reserves in conformity with GAAP have been established on the
books of the Company or such Restricted Subsidiary. Neither the Company nor any
Restricted Subsidiary has any knowledge of any proposed tax assessment against
the Company or any Restricted Subsidiary.

         Section 4.11 Principal Office, etc. The principal office, chief
executive office and principal place of business of the Company and each
Restricted Subsidiary is at the address set forth in Section 10.01. The
principal office, chief executive office and principal place of business of each
Co-Borrower is at the address set forth in the applicable Joinder Agreement.

         Section 4.12 Compliance with ERISA. None of the Company, any Restricted
Subsidiary or any ERISA Affiliate of the Company or any Restricted Subsidiary
currently maintains, contributes to, is required to contribute to or has any
liability, whether absolute or contingent, with respect to an ERISA Plan. With
respect to all other employee benefit plans maintained or contributed to by the
Company and each Restricted Subsidiary, the Company and each Restricted
Subsidiary is in material compliance with ERISA.

         Section 4.13 Subsidiaries. Neither the Company nor any Restricted
Subsidiary presently has any Subsidiary or owns any stock in any other
corporation or association except those listed in Schedule 3. As of the date
hereof, the Company and each Restricted Subsidiary owns, directly or indirectly,
the equity interest in each of its Subsidiaries which is indicated in Schedule
3.

         Section 4.14 Indebtedness. The Company has no indebtedness outstanding
other than the GAAP Indebtedness and Contingent Indebtedness permitted by
Section 6.02.

         Section 4.15 Permits. The Company and each Restricted Subsidiary has
all permits and licenses necessary for the operation of its business.

         Section 4.16 Status Under Certain Federal Statutes. Neither the Company
nor any Restricted Subsidiary is (a) a "holding company" or a "subsidiary
company" of a "holding company" or an "affiliate" of a "holding company" or of a
"subsidiary company" of a "holding company", as such terms are defined in the
Public Utility Holding Company Act of 1935, as amended, (b) a "public utility",
as such term is defined in the Federal Power Act, as amended, (c) an "investment
company", or a company "controlled" by an "investment company" within the
meaning of the Investment Company Act of 1949, as amended or (d) a "rail
carrier", or a "person controlled by or affiliated with a rail carrier", within
the meaning of Title 49, U.S.C., and neither

                                      -30-
<PAGE>

the Company nor any Restricted Subsidiary is a "carrier" to which 49 U.S.C.
Section 11301(b)(1) is applicable.

         Section 4.17 No Approvals Required. Other than consents and approvals
previously obtained and actions previously taken, neither the execution and
delivery of the Loan Documents, nor the consummation of any of the transactions
contemplated hereby or thereby requires the consent or approval of, the giving
of notice to, or the registration, recording or filing by any the Borrowers or
any Restricted Subsidiary of any document with, or the taking of any other
action in respect of, any Governmental Authority which has jurisdiction over any
the Borrowers or any Restricted Subsidiary or any of its Property, except for
(a) the filing of the Mortgages, Uniform Commercial Code financing statements
and other similar filings to perfect the interest of Agent in the Collateral,
and (b) such other consents, approvals, notices, registrations, filings or
action as may be required in the ordinary course of business of any the
Borrowers and Restricted Subsidiaries in connection with the performance of the
obligations of the Borrowers hereunder.

         Section 4.18 Individual Mortgage Loans. The Company and the applicable
Co-Borrowers hereby represent with respect to each Mortgage Note and Mortgage
Loan that is part of the Collateral:

         (a) The Company and the applicable Co-Borrowers have good and
marketable title to each Mortgage Note and Mortgage, was the sole owner thereof
and had full right to pledge the Mortgage Loan to Agent free and clear of any
other Lien except any such Lien which has been disclosed to Agent in writing and
which is permitted hereunder;

         (b) To the best knowledge of the Company and the applicable
Co-Borrowers, other than the permitted thirty (30) day delinquency period for
payments permitted by the definition of Eligible Mortgage Loan, there is no
default, breach, violation or event of acceleration existing under any Mortgage
or the related Mortgage Note and there is no event which, with the passage of
time or with notice and/or the expiration of any grace or cure period, would
constitute a default, breach, violation or event of acceleration and no such
default, breach, violation or event of acceleration has been waived;

         (c) To the best of the knowledge of the Company and the applicable
Co-Borrowers, the physical condition of the Property subject to the Mortgage has
not deteriorated since the date of origination of the related secured Mortgage
Loan (normal wear and tear excepted) and there is no proceeding pending for the
total or partial condemnation of any Mortgaged Property;

         (d) Each Mortgage contains customary and enforceable provisions such as
to render the rights and remedies of the holder thereof adequate for the
realization against the related Property subject to the Mortgage of the benefits
of the security provided thereby, including, (i) in the case of a Mortgage
designated as a deed of trust, by trustee's sale, and (ii) otherwise, by
judicial foreclosure;

         (e) Each Mortgage Loan is a first or second lien one-to-four-family
loan which is not a construction loan, has been underwritten by the originator,
investor or mortgage insurer thereof

                                      -31-
<PAGE>

in accordance with such originator's, investor's or mortgage insurer's then
current underwriting guidelines, and is a Conforming Loan, a Nonconforming Loan,
an FHA loan, a VA loan or Jumbo Mortgage Loan;

         (f) Each Mortgage Note is payable in monthly installments of principal
and interest, or interest only, as applicable, with interest payable in arrears,
and no Mortgage Note provides for any extension of the original term;

         (g) No Mortgage Loan is a loan in respect of the purchase of a
manufactured home or mobile home or the land on which a manufactured home or
mobile home will be placed; no Mortgage securing a Mortgage Loan secures
commercial property;

         (h) The origination practices used by the originator of the Mortgage
Loans and the collection practices used by the Company and the applicable
Co-Borrowers with respect to each Mortgage Loan have been in all material
respects legal, proper, prudent and customary in the loan origination and
servicing business;

         (i) To the best knowledge of the Company and the applicable Co
Borrowers, each Mortgage Loan was originated in compliance with all applicable
laws and no fraud or misrepresentation was committed by any Person in connection
therewith; and

         (j) Each Mortgage Loan matures within thirty (30) years after the date
of origination thereof.

         Section 4.19 Ginnie Mae, FHA, VA, Fannie Mae and Freddie Mac
Eligibility of the Borrowers. Each of the Borrowers is (a) an FHA-approved,
non-supervised mortgagee in good standing and an eligible lender under the VA
loan guaranty program, meeting all requirements of law and governmental
regulation so as to be eligible to originate, purchase, hold and service
FHA-insured Mortgage Loans, VA-guaranteed Mortgage Loans and conventional
Mortgage Loans and to issue Mortgage-Backed Securities guaranteed by Ginnie Mae;
(b) an approved seller/servicer of Mortgage Loans to Fannie Mae and to Freddie
Mac in the Freddie Mac regions in which it operates, meeting all applicable
Fannie Mae and Freddie Mac regulations so as to be able to service Mortgage
Loans for Fannie Mae and Freddie Mac; and (c) a Fannie Mae, Freddie Mac and
Ginnie Mae-approved servicer of Mortgage-Backed Securities, meeting all
applicable regulations of Fannie Mae, Freddie Mac and Ginnie Mae so as to be
able to service the Mortgage Loans that secure Mortgage-Backed Securities.

         Section 4.20 Co-Borrowers. Each Co-Borrower originates and sells to the
Company Mortgage Loans. The Company will receive benefit from each Loan or
Swingline Loan made hereunder to enable a Co-Borrower to originate a Mortgage
Loan, whether or not such Mortgage Loan is thereafter sold to the Company,
because of the continuing business relationship between the Company and such
Co-Borrower.

                                    ARTICLE V

                              AFFIRMATIVE COVENANTS

                                      -32-
<PAGE>

         The Company and each Restricted Subsidiary shall at all times comply
with the covenants contained in this Article V, from the date hereof and for so
long as any part of the Obligations or any Commitment is outstanding unless
Majority Lenders have agreed otherwise.

         Section 5.01 Financial Statement and Reports. The Company shall furnish
to Agent and each Lender the following, all in form and detail reasonably
satisfactory to Agent:

         (a) Promptly after becoming available, and in any event within ninety
(90) days after the close of each Fiscal Year of the Company, the audited
balance sheet of the Company as of the end of such year, and the audited related
statements of income, partners' equity and cash flows of Company for such year,
setting forth in each case in comparative form the corresponding figures for the
preceding Fiscal Year, accompanied by the related report of independent
certified public accountant of national standing prepared on a GAAP basis;

         (b) Promptly after becoming available, and in any event within thirty
(30) days after the end of each month, including the twelfth month in the Fiscal
Year of the Company, a balance sheet of the Company as of the end of such month
and the related statements of income, partners' equity and cash flows of the
Company for such month and the period from the first day of the then current
fiscal year of the Company through the end of such month, certified by the Chief
Financial Officer, Accounting Director or President of General Partner to have
been calculated on a GAAP basis;

         (c) Promptly upon receipt thereof, a copy of each other report
submitted to the Company by independent accountants in connection with any
annual, interim or special audit of the books of the Company;

         (d) Promptly and in any event within thirty (30) days after the end of
each calendar month in each Fiscal Year of the Company, and within fifteen (15)
days after the completion of each year-end audit by the Company's independent
public accountants, a completed Officer's Certificate in the form of Exhibit D
hereto, executed by the President, Chief Financial Officer or Accounting
Director of General Partner;

         (e) Promptly and in any event within thirty (30) days after the end of
each month, a Borrowing Base Certificate substantially in the form of Exhibit C
hereto;

         (f) Promptly and in any event within thirty (30) days after the end of
each month, a management report regarding (i) the Company's pipeline and
commitment position, including investor type, amount and rate of committed
Mortgage Loans and expiration date and (ii) the Company's production statistics,
including type of product and/or origination source (retail or correspondent)
and geographic concentration in each case in form and detail as reasonably
required by Agent, prepared as of the end of such month and for the Fiscal Year
to date; and

         (g) Such other information concerning the business, properties or
financial condition of the Company and its Restricted Subsidiaries as Agent or
any Lender may reasonably request.

                                      -33-
<PAGE>

         Section 5.02 Taxes and Other Liens. Each Borrower and each Restricted
Subsidiary shall pay and discharge promptly all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or upon any of
its Property as all claims of any kind (including claims for labor, materials,
supplies and rent) which, if unpaid, might become a Lien upon any or all of its
Property; provided, however, each Borrower and each Restricted Subsidiary shall
not be required to pay any such tax, assessment, charge, levy or claim if the
amount, applicability or validity thereof shall currently be contested in good
faith by appropriate proceedings diligently conducted by or on behalf of the
Company, applicable Borrower or such Restricted Subsidiary and if the Company,
applicable Borrower or such Restricted Subsidiary shall have set up reserves
therefor adequate under GAAP.

         Section 5.03 Maintenance. Each of the Borrowers and Restricted
Subsidiaries shall (a) maintain its corporate or partnership existence, rights
and franchises; (b) observe and comply in all material respects with all
Governmental Requirements, and (c) maintain its Properties (and any Properties
leased by or consigned to it or held under title retention or conditional sales
contracts) in good and workable condition at all times and make all repairs,
replacements, additions, betterments and improvements to its Properties as are
needful and proper so that the business carried on in connection therewith may
be conducted properly and efficiently at all times.

         Section 5.04 Further Assurances. The Borrowers shall, within three (3)
Business Days after the request of Agent, cure any defects in the execution and
delivery of the Notes, this Agreement or any other Loan Document and the
Borrowers shall, at its expense, promptly execute and deliver to Agent upon
request all such other and further documents, agreements and instruments in
compliance with or accomplishment of the covenants and agreements of the
Borrowers and each Restricted Subsidiary in this Agreement and in the other Loan
Documents or to further evidence and more fully describe the collateral intended
as security for the Notes, or to correct any omissions in this Agreement or the
other Loan Documents, or more fully to state the security for the obligations
set out herein or in any of the other Loan Documents, or to make any recordings,
to file any notices, or obtain any consents.

         Section 5.05 Reimbursement of Expenses. The Borrowers shall pay,
subject to the limitation in Section 10.19 hereof (in the case of each
Co-Borrower) (a) all reasonable legal fees (including, without limitation,
allocated costs for in-house legal service) incurred by Agent in connection with
the preparation, negotiation or execution of this Agreement, the Notes and the
other Loan Documents and any amendments, consents or waivers executed in
connection therewith, (b) all fees, charges or taxes for the recording or filing
of the Security Instruments, (c) all out-of-pocket expenses of Agent in
connection with the legal administration of this Agreement, the Notes and the
other Loan Documents, including courier expenses incurred in connection with the
Mortgage Collateral, and (d) all amounts expended, advanced or incurred by Agent
to satisfy any obligation of any Borrower under this Agreement or any of the
other Loan Documents or to collect the Notes, or to enforce the rights of Agent
or any Lender under this Agreement or any of the other Loan Documents or to
collect the Note, or to enforce the rights of Agent or any Lender under this
Agreement or any of the other Loan Documents, which amounts shall include all
underwriting expenses, collateral liquidation costs, court costs, attorneys'
fees

                                      -34-
<PAGE>

(including, without limitation, for trial, appeal or other proceedings), fees of
auditors and accountants, and investigation expenses reasonably incurred by
Agent or any Lender in connection with any such matters, together with interest
at the post-maturity rate specified in the Note on each item specified in clause
(a) through (d) from thirty (30) days after the date of written demand or
request for reimbursement until the date of reimbursement.

         Section 5.06 Insurance. Each Borrower shall maintain with financially
sound and reputable insurers, insurance with respect to its properties and
business against such liabilities, casualties, risks and contingencies and in
such types and amounts as is customary in the case of Persons engaged in the
same or similar businesses and similarly situated, including, without
limitation, a fidelity bond or bonds with financially sound and reputable
insurers with such coverage and in such amounts as is customary in the case of
Persons engaged in the same or similar business and similarly situated. The
improvements on the land covered by each Mortgage shall be kept continuously
insured at all times by responsible insurance companies against fire and
extended coverage hazard under policies, binders, letters, or certificates of
insurance, with a standard mortgagee clause in favor of the applicable Borrower
and its assigns. Each such policy must be in an amount equal to the lesser of
the maximum insurable value of the improvements or the original principal amount
of the Mortgage Note, without reduction by reason of any co-insurance, reduced
rate contribution, or similar clause of the policies or binders. Upon request of
Agent, each Borrower shall furnish or cause to be furnished to Agent from time
to time a summary of the insurance coverage of such Borrower in form and
satisfactory to Agent and if requested shall furnish Agent copies of the
applicable policies.

         Section 5.07 Accounts and Records. The Company and each Restricted
Subsidiary shall keep true and accurate books of record and shall account for
all dealings or transactions in relation to its business and activities, in
accordance with GAAP. The Company and each Restricted Subsidiary shall maintain
and implement administrative and operating procedures (including, without
limitation, an ability to recreate all records pertaining to the performance of
the Company's or such Restricted Subsidiary's obligations under any servicing
agreements in the event of the destruction of the originals of such records) and
keep and maintain all documents, books, records, computer tapes and other
information reasonably necessary or advisable for the performance by the Company
and each Restricted Subsidiary of its obligations under any servicing
agreements.

         Section 5.08 Right of Inspection. The Borrowers shall permit authorized
representatives of Agent or any Lender to examine their servicing records and
books of records and account and make copies or extracts thereof and to visit
and inspect any of the Properties of the Borrowers, all upon reasonable notice
during normal business hours, provided that if no Event of Default has occurred
and is continuing, such visits and inspections at the Borrowers' premises shall
be limited to periods of no more than two (2) consecutive days on two occasions
(total of four days) during each twelve-month period. Such visits and
inspections shall be at Agent's or such Lender's expense unless an Event of
Default has occurred and is continuing, in which case it shall be at the
Borrowers' expense. The Borrowers shall permit authorized representatives of
Agent or any Lender to discuss the business, operations, assets and financial
condition of the Borrowers and the Restricted Subsidiaries with its officers at
any time.

                                      -35-
<PAGE>

         Section 5.09 Notice of Certain Events. The Company shall promptly
notify Agent and each Lender upon (a) the receipt of any notice from, or the
taking of any other action by, the holder of any promissory note, debenture or
other evidence of GAAP Indebtedness and Contingent Indebtedness of the Company
or any Restricted Subsidiary with respect to a claimed default, together with a
detailed statement by a responsible officer of the Company specifying the notice
given or other action taken by such holder and the nature of the claimed default
and what action the Company is taking or proposes to take with respect thereto;
(b) the commencement of, or any determination in, any legal, judicial or
regulatory proceedings between the Company or any Restricted Subsidiary and any
Governmental Authority or any other Person which, if adversely determined, could
have a Material Adverse Effect; (c) any material adverse change in the business,
operations, prospects or financial condition of the Company or any Restricted
Subsidiary, including, without limitation, the insolvency of the Company or any
Restricted Subsidiary, (d) any event or condition which could have a Material
Adverse Effect or (e) the occurrence of any Termination Event.

         Section 5.10 Performance of Certain Obligations and Information
Regarding Investors. The Company and the applicable Co-Borrowers shall perform
and observe in all material respects each of the provisions of each Take-Out
Commitment and any servicing agreement on its part to be performed or observed
and will cause all things to be done which are necessary to have each item of
Mortgage Collateral covered by a Take-Out Commitment comply with the
requirements of such Take-Out Commitment. The Company and the applicable
Co-Borrowers will deliver to Agent financial information concerning any Person
Lenders are reviewing to determine whether to approve such Person as an
Investor.

         Section 5.11 Use of Proceeds; Margin Stock. The proceeds of all
Borrowings shall be used by the Borrowers solely for the origination or
acquisition of Mortgage Loans in the ordinary course of the Borrowers' business.
None of such proceeds shall be used for the purpose of purchasing or carrying
any "margin stock" as defined in Regulation U, or for the purpose of reducing or
retiring any GAAP Indebtedness and Contingent Indebtedness which was originally
incurred to purchase or carry margin stock or for any other purpose which might
constitute this transaction a "purpose credit" within the meaning of such
Regulation U.

         Section 5.12 Notice of Default. The Company shall furnish to Agent and
each Lender immediately upon becoming aware of the existence of any Default or
Event of Default, a written notice specifying the nature and period of existence
thereof and the action which the Company is taking or proposes to take with
respect thereto.

         Section 5.13 Compliance with Loan Documents. The Company shall cause
each Restricted Subsidiary to promptly comply with any and all covenants and
provisions of the Loan Documents to be complied with by such Person.

         Section 5.14 Operations and Properties. The Company and each Restricted
Subsidiary shall comply with all rules, regulations and guidelines applicable to
it. The Borrowers shall act prudently and in accordance with customary industry
standards in managing and operating their Property.

                                      -36-
<PAGE>

         Section 5.15 Maintenance of Qualifications. Each the Borrowers will
maintain its status as an FHA-approved mortgagee, as an approved lender under
the VA guarantee program, as an approved seller/servicer of Mortgage Loans to
Fannie Mae and to Freddie Mac in the Freddie Mac regions in which it operates
and as an FHA-approved direct endorsement mortgagee, and its eligibility to
issue Mortgage-Backed Securities or to service the Mortgage Loan pools formed
with respect to Mortgage-Backed Securities.

                                   ARTICLE VI

                               NEGATIVE COVENANTS

         The Company and each Restricted Subsidiary shall at all times comply
with the covenants contained in this Article VI, from the date hereof and for so
long as any part of the Obligations or any Commitment is outstanding unless
Majority Lenders have agreed otherwise:

         Section 6.01 No Merger. Each of the Borrowers shall not merge or
consolidate with or into any Person, if immediately prior to any such merger or
consolidation a Default or Event of Default exists or would occur as a result
thereof, or if as a result of any such merger or consolidation a Change of
Control would occur.

         Section 6.02 Limitation on GAAP Indebtedness and Contingent
Indebtedness. At no time shall the Company or any Restricted Subsidiary incur,
create, contract, assume, have outstanding, guarantee or otherwise be or become,
directly or indirectly, liable in respect of any GAAP Indebtedness or Contingent
Indebtedness except:

         (a) the Obligations;

         (b) trade debt (including, without limitation, trade debt for services
provided by an Affiliate), equipment leases, loans for the purchase of equipment
used in the ordinary course of the Borrower's business and indebtedness for
taxes and assessments not yet due and payable owed in the ordinary course of
business;

         (c) unsecured GAAP Indebtedness or unsecured Contingent Indebtedness
owing to Parent or any Affiliate of Parent, including unsecured Contingent
Indebtedness of the Company to CH Funding , LLC under the CP Facility Documents;
and

         (d) Contingent Indebtedness to Persons other than Parent or Affiliate
of Parent (including GAAP Indebtedness and Contingent Obligations of CH Funding,
LLC under the CP Facility Documents).

         Section 6.03 Business. The Company shall not, directly or indirectly,
other than through an Unrestricted Subsidiary, engage in any business which
differs materially from that currently engaged in by the Company or any other
business customarily engaged in by other Persons in the mortgage banking
business.

                                      -37-
<PAGE>

         Section 6.04 Liquidations, Dispositions of Substantial Assets. Except
as expressly provided below in this section, neither the Company nor any
Restricted Subsidiary shall dissolve or liquidate or sell, transfer, lease or
otherwise dispose of any material portion of its property or assets or business.
The Company and the Restricted Subsidiaries may sell Mortgage Loans and the
right to service Mortgage Loans in the ordinary course of their business
(including sales or transfers of Mortgage Loans by the Company to CH Funding
under the CP Facility Documents), any Restricted Subsidiary may sell its
property, assets or business to the Company or another Restricted Subsidiary,
and any Restricted Subsidiary may liquidate or dissolve if at the time thereof
and immediately thereafter, the Company and the Restricted Subsidiaries are in
compliance with all covenants set forth in the Loan Documents and no Default or
Event of Default shall have occurred and be continuing.

         Section 6.05 Loans, Advances, and Investments. Neither the Company nor
any Restricted Subsidiary shall make any loan (other than Mortgage Loans),
advance, or capital contribution to, or investment in (including any investment
in any Restricted Subsidiary, joint venture or partnership), or purchase or
otherwise acquire any of the capital stock, securities, ownership interests, or
evidences of indebtedness of, any Person (collectively, "Investment"), or
otherwise acquire any interest in, or control of, another Person, except for the
following:

         (a) Cash Equivalents;

         (b) Any acquisition of securities or evidences of indebtedness of
others when acquired by the Borrowers in settlement of accounts receivable or
other debts arising in the ordinary course of its business, so long as the
aggregate amount of any such securities or evidences of indebtedness is not
material to the business or condition (financial or otherwise) of a the
Borrowers;

         (c) Mortgage Notes acquired in the ordinary course of the Borrowers'
business;

         (d) Investment in any existing Affiliate or any Subsidiary (including
Investments by the Company in CH Funding, LLC, a Delaware limited liability
company) or JV; provided that at the time any such investment is made and
immediately thereafter, the Company and the Restricted Subsidiaries are in
compliance with all covenants set forth in the Loan Documents and no Default or
Event of Default shall have occurred and be continuing;

         (e) Loans to officers or employees in an aggregate amount not to exceed
$300,000; and

         (f) Loans made to JV's in an amount not to exceed $10,000,000 at any
one time outstanding, secured by Mortgage Loans originated with the proceeds of
such loans and covered by a bona fide current, unused and unexpired whole loan
commitment issued in favor of and held by such JV made by an Approved Investor
or the Company.

         Section 6.06 Use of Proceeds. The Borrowers shall not permit the
proceeds of the Loans to be used for any purpose other than those permitted by
Section 5.11 hereof. The

                                      -38-
<PAGE>

Borrowers shall not, directly or indirectly, use any of the proceeds of the
Loans for the purpose, whether immediate, incidental or ultimate, of buying any
"margin stock" or of maintaining, reducing or retiring any GAAP Indebtedness and
Contingent Indebtedness originally incurred to purchase a stock that is
currently any "margin stock", or for any other purpose which might constitute
this transaction a "purpose credit", in each case within the meaning of
Regulation U or otherwise take or permit to be taken any action which would
involve a violation of Regulation U, Regulation T or Regulation X or any other
regulation of the Board of Governors of the Federal Reserve System.

         Section 6.07 Actions with Respect to Mortgage Collateral. The Borrowers
shall not:

         (a) Compromise, extend, release, or adjust payments on any Mortgage
Collateral, accept a conveyance of mortgaged property in full or partial
satisfaction of any Mortgage Collateral, or release any Mortgage securing or
underlying any Mortgage Collateral;

         (b) Agree to the amendment or termination of any Take-Out Commitment in
which Agent has a security interest or to substitution of a Take-out Commitment
for a Take-Out Commitment in which Agent has a security interest hereunder, if
such amendment, termination or substitution may reasonably be expected (as
determined by Majority Lenders in their sole discretion) to have a Material
Adverse Effect; or

         (c) Transfer, sell, assign, or deliver any Mortgage Collateral pledged
to Agent to any Person other than Agent, except pursuant to a Take-Out
Commitment and except by the Company to CH Funding, LLC under the CP Facility
Documents.

         Section 6.08 Transactions with Affiliates. The Company shall not enter
into any transactions including, without limitation, any purchase, sale, lease
or exchange of property or the rendering of any service, with any Affiliate
other than a Restricted Subsidiary unless such transactions are otherwise
permitted under this Agreement (including, without limitation, the transactions
permitted under Section 6.02) and are in the ordinary course of the Company's
business.

         Section 6.09 Liens. The Company shall not grant, create, incur, assume,
permit or suffer to exist any Lien, upon any of its Mortgage Notes or servicing
rights or any property related thereto, including but not limited to the
mortgages securing such Mortgage Notes and the proceeds of the Mortgage Notes
and Servicing Rights (whether or not part of the Mortgage Collateral), other
than (a) Liens in an aggregate amount not to exceed $2,000,000, (b) Liens which
secure payment of the Obligations, (c) such non-consensual Liens as may be
deemed to arise as a matter of law pursuant to any Take-Out Commitment and (d)
Liens described on Schedule 4.

         Section 6.10 ERISA Plans. Neither the Company nor any Restricted
Subsidiary shall adopt or agree to maintain or contribute to ERISA Plan. The
Company shall promptly notify Agent and each Lender in writing in the event an
ERISA Affiliate adopts an ERISA Plan.

         Section 6.11 Change of Principal Office; Fiscal Year. The Company shall
not move its principal office, executive office or principal place of business
from the address set forth in Section 10.01 or change its Fiscal Year, without
prior written notice to Agent and each Lender.

                                      39
<PAGE>

         Section 6.12 Limitation on Distributions and Redemptions. The Company
will not make any Distribution, except as expressly provided in this section.
Distributions may be made by the Company (i) at any time with respect to a
Distribution to pay or reimburse taxes (whether gross receipts, income or
franchise taxes and whether state or federal) actually incurred by the General
Partner or any limited partner in the Company due to its status as General
Partner or limited partner in the Company or actually incurred by any Affiliate
due to its status as an Affiliate of the Company and whose income or gross
receipts are required to be, or are, reported with the Company's on a
consolidated basis, or (ii) within sixty (60) days after the end of each Fiscal
Quarter with respect to any other Distribution, and with respect to all
Distributions described in clauses (i) and (ii) of this sentence, to the extent
that the aggregate value of all Distributions made by the Company in the Four
Quarter Period ending on the last day of the most recently ended Fiscal Quarter
does not exceed Company's profit for such Four Quarter Period, so long as no
Default or Event of Default exists at the time such Distribution is made, or
will occur as a result of the making thereof.

         Section 6.13 Tangible Net Worth. As of the end of each calendar month,
Company's Consolidated Tangible Net Worth shall not be less than $45,000,000.

         Section 6.14 Tangible Net Worth Ratio. The ratio of (i) the sum of GAAP
Indebtedness and Contingent Indebtedness to (ii) the Company's Consolidated
Tangible Net Worth shall not be more than 12.0 to 1.0 as of the end of each
calendar month.

         Section 6.15 Net Income. As of the end of each Fiscal Quarter, the
Company's Consolidated income, calculated in accordance with GAAP, for the two
consecutive Fiscal Quarters then ended shall not be less than $1.00.

         Section 6.16 Custodian. The Company will not appoint any collateral
agent or custodian for its Mortgage Loans other than U.S. Bank.

         Section 6.17 Payments to Parent. Upon the occurrence and continuation
of an Event of Default, the Company shall not make any payment on any
indebtedness owed by it to Parent or any Affiliate of Parent.

                                   ARTICLE VII

                                EVENTS OF DEFAULT

         Section 7.01 Nature of Event. An Event of Default shall exist if any
one or more of the following occurs:

         (a) The Company and the applicable Co-Borrowers fail to make any
payment of principal of or interest on any Note or any fee or other amount
required to be paid to Agent or any Lender pursuant to this Agreement or any
other Loan Document within two (2) calendar days after notice of such failure is
given by Agent to the Company and the applicable Co-Borrowers;

         (b) Default is made in the due observance or performance by the Company
and the applicable Co-Borrowers or any Restricted Subsidiaries of any covenant
or agreement set forth

                                       40
<PAGE>

in Article VI or Section 5.01 and such default continues unremedied for thirty
(30) calendar days;

         (c) Default is made in the due observance or performance by the Company
and the applicable Co-Borrowers or any Restricted Subsidiaries of any covenant
or agreement set forth in any Loan Document (other than as referred to in
subsections (a) or (b) above) and such default continues unremedied for thirty
(30) calendar days after notice of such default is given by Agent to the Company
and the applicable Co-Borrowers;

         (d) Any material statement, warranty or representation by or on behalf
of the Company and the applicable Co-Borrowers contained in any Loan Document or
in any borrowing request, proves to have been incorrect or misleading in any
material respect as of the date made or deemed made;

         (e) Any Borrower or any Restricted Subsidiary:

                  (i) suffers the entry against it of a judgment, decree or
         order for relief by a court of competent jurisdiction in an involuntary
         proceeding commenced under any applicable bankruptcy, insolvency or
         other similar law of any jurisdiction now or hereafter in effect,
         including the federal Bankruptcy Code, as from time to time amended, or
         has any such proceeding commenced against it which remains undismissed
         for a period of sixty (60) days; or

                  (ii) commences a voluntary case under any applicable
         bankruptcy, insolvency or similar law now or hereafter in effect,
         including the federal Bankruptcy Code, as from time to time amended; or
         applies for or consents to the entry of any order for relief in an
         involuntary case under any such law; or makes a general assignment for
         the benefit of creditors; or fails generally to pay (or admits in
         writing its inability to pay) its debts as such debts become due; or
         takes partnership action, corporate action or other action to authorize
         any of the foregoing; or

                  (iii) suffers the appointment of or taking possession by a
         receiver, liquidator, assignee, custodian, trustee, sequestrator, or
         similar official of all or a substantial part of its assets or of any
         part of the Mortgage Collateral in a proceeding brought against or
         initiated by it, and such appointment or taking possession is neither
         made ineffective nor discharged within sixty (60) days after the making
         thereof, or such appointment or taking possession is it any time
         consented to, requested by, or acquiesced to by it; or

                  (iv) suffers the entry against it of a final judgment for the
         payment of money in excess of $500,000 (not covered by insurance
         satisfactory to Agent in its discretion), unless the same is discharged
         within thirty (30) days after the date of carry thereof or an appeal or
         appropriate proceeding for review thereof is taken within such period
         and a stay of execution pending such appeal is obtained; or

                  (v) suffers a writ or warrant of attachment or any similar
         process to be issued by any court against all or any substantial part
         of its assets or any part of the Mortgage Collateral;

                                       41
<PAGE>

provided, however, if any event set forth in this Section 7.01(e) occurs with
respect to any Restricted Subsidiary, the occurrence of such event shall not
constitute an Event of Default unless it could have a Materially Adverse Effect.

         (f) The Company or any Restricted Subsidiary fails to make when due or
within any applicable grace period (after giving effect to any applicable notice
requirement), any payment on any GAAP Indebtedness and Contingent Indebtedness
(other than the Obligations); or any event or condition occurs under any
provision contained in any agreement under which such obligation is governed,
evidenced or secured (or any other material breach or default under such
obligation or agreement occurs) if a Material Adverse Effect is caused thereby;

         (g) Any Loan Document shall for any reason cease to be in full force
and effect, or be declared null and void or unenforceable in whole or in part as
the result of any action initiated by any Person other than Agent or any Lender;
or the validity or enforceability of any such document shall be challenged or
denied by any Person other than Agent or any Lender;

         (h) Either (i) any "accumulated funding deficiency" (as defined in
Section 412(a) of the Code in excess of $25,000 exists with respect to any ERISA
Plan, whether or not waived by the Secretary of the Treasury or his delegate, or
(ii) any Termination Event occurs with respect to any ERISA Plan and the then
current value of such ERISA Plan's benefits guaranteed under Title IV of ERISA
exceeds the then current value of such ERISA Plan's assets available for the
payment of such benefits by more than $10,000 (or in the case of a Termination
Event involving the withdrawal of a substantial employer, the withdrawing
employer's proportionate share of such excess exceeds such amount) or (iii) the
Company or any of its Restricted Subsidiaries or any ERISA Affiliate withdraws
from a multiemployer plan resulting in liability under Title IV of ERISA of an
amount in excess of $10,000; or

         (i) A Change of Control occurs.

         Section 7.02 Default Remedies. Except as provided in the following
sentence, upon the occurrence of an Event of Default, Agent may (and upon
written instructions from Majority Lenders, Agent shall) declare the Commitments
to be terminated and/or declare the entire principal and all interest accrued on
the Notes to be, and the Notes, together with all Obligations, shall thereupon
become, forthwith due and payable, without any presentment, demand, protest,
notice of protest and nonpayment, notice of acceleration or of intent to
accelerate or other notice of any kind, all of which hereby are expressly
waived. Notwithstanding the foregoing, (a) if an Event of Default specified in
Subsections 7.01(e)(i), (ii) or (iii) above occurs with respect to the Company,
the Commitments shall automatically and immediately terminate and the Notes and
all other Obligations shall become automatically and immediately due and
payable, both as to principal and interest, without any action by Agent or any
Lender and without presentment, demand, protest, notice of protest and
nonpayment, notice of acceleration or of intent to accelerate, or any other
notice of any kind, all of which are hereby expressly waived, anything contained
herein or in any Notes to the contrary notwithstanding, and (b) if an Event of
Default specified in Sections 7.01(b), (c), (d), (e), (f) or (g) occurs with
respect to a Co-Borrower, the Agent and the Lenders shall not have the right to
declare the Commitments to be terminated, declare the entire principal and all
interest accrued on the Notes to be forthwith due and payable, or exercise any
of their other rights hereunder or under the Loan Documents (except that the

                                       42
<PAGE>

Lenders shall have no further obligation to make Loans to enable such
Co-Borrower to originate Mortgage Loans, and the Agent and the Lenders may
exercise their remedies with respect to the Mortgage Loans pledged by such
Co-Borrower to the Agent pursuant to the Pledge and Security Agreement) for 10
Business Days after the occurrence of such Event of Default, or thereafter if
all Loans made to enable such Co-Borrower to originate or acquire Mortgage Loans
hereunder have been repaid in full.

                                  ARTICLE VIII

                                 INDEMNIFICATION

         Section 8.01 Indemnification. Each the Borrowers agrees to indemnify
Agent and each Lender and each director, officer, agent, attorney, employee,
representative and Affiliate of Agent and each Lender (each an "Indemnified
Party"), upon demand, from and against any and all liabilities, obligations,
claims, losses, damages, penalties, actions, judgments, suits, costs, expenses
or disbursements (including reasonable fees of attorneys, accountants, experts
and advisors) of any kind or nature whatsoever (in this Section 8.01
collectively called "liabilities and costs") which to any extent (in whole or in
part) may be imposed on, incurred by, or asserted against any Indemnified Party
growing out of, resulting from or in any other way associated with any of the
Mortgage Collateral, the Loan Documents and the transactions and events
(including the enforcement or defense thereof) at any time associated therewith
or contemplated therein.

         THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH
         LIABILITIES AND COSTS ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR
         IN PART, UNDER ANY CLAIM OR THEORY OF STRICT LIABILITY, OR ARE CAUSED
         IN WHOLE OR PART, BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND BY SUCH
         INDEMNIFIED PARTY,

provided only that such Indemnified Party shall be not entitled under this
section to receive Indemnification for that portion, if any, of any liabilities
and costs which is proximately caused by its own individual gross negligence or
willful misconduct. The foregoing provisions of this Section 8.01 shall not
apply to liabilities and costs incurred by any Lender (unless such Lender is
Agent) which may be imposed on or asserted against such Lender by any other
Lender.

         Section 8.02 Limitation of Liability. None of Agent, Lenders, their
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement.
THE FOREGOING EXCULPATION SHALL APPLY TO ANY NEGLIGENT ACT OR OMISSION OF ANY
KIND BY ANY SUCH PERSON, PROVIDED THAT SUCH PERSON SHALL BE LIABLE FOR ITS OWN
INDIVIDUAL GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

                                   ARTICLE IX

                                      AGENT

         Section 9.01 Appointment and Authorization. Each Lender appoints and
authorizes Agent to take such actions as agent on its behalf and to exercise
such powers under this Agreement and the other Loan Documents as are delegated
to Agent by the terms hereof and

                                      43
<PAGE>

thereof, together with such powers as are reasonably incidental thereto. Neither
Agent nor any of its directors, officers or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
this Agreement or the other Loan Documents, WHETHER OR NOT AMOUNTING TO SIMPLE
NEGLIGENCE, except for its or their own gross negligence or willful misconduct;
provided, however, that Agent shall be protected in acting or refraining from
acting upon the instruction of the requisite Lenders under Section 9.06; and
provided, further, that Agent shall not be required to take any action that
exposes it to personal liability or is contrary to any Loan Document, other
agreement or applicable law. Agent shall act as an independent contractor in
performing its obligations as Agent hereunder and under the other Loan Documents
and nothing herein contained shall be deemed to create a fiduciary relationship
among or between Agent, the Borrowers or Lenders.

         Section 9.02 Note Holders. Agent may treat the payee of any Note as the
holder thereof until written notice of transfer shall have been filed with it
signed by such payee.

         Section 9.03 Consultation With Counsel. Agent may consult with legal
counsel selected by it and shall not be liable for any action taken or suffered
in good faith by it in accordance with the advice of such counsel.

         Section 9.04 Documents. Agent shall not be under a duty to examine into
or pass upon the validity, effectiveness, genuineness or value of the Notes, the
other Loan Documents or any other instrument or document furnished pursuant
thereto or thereunder. Agent makes no representation or warranty to any Lender,
nor shall Agent be responsible for any representations, warranties or statements
made in connection with this Agreement or any other Loan Document. Agent shall
be entitled to assume that this Agreement and the other Loan Documents are
valid, effective and genuine and what they purport to be. Agent (i) shall
execute and deliver the Security Agreement, whereupon each provision thereof
which is contemplated to be binding upon Lenders shall be binding upon Lenders
and each of them; and (ii) shall not waive, amend or otherwise modify any
provision of the Pledge and Security Agreement without the written consent of
Lenders required pursuant to Section 10.02.

         Section 9.05 Agent and Affiliates. With respect to its Commitments and
the Loans made by it in its capacity as a Lender, the entity that is Agent shall
have the same rights and powers under this Agreement and the other Loan
Documents as any other Lender and may exercise the same as though it were not
Agent, and the entity that is Agent and its Affiliates may accept deposits from,
lend money to and generally engage in any kind of business with the Borrowers or
any Subsidiary as if it were not Agent.

         Section 9.06 Action by Agent. Agent shall be entitled to use its
discretion with respect to exercising or refraining from exercising any rights
which may be vested in it by, or with respect to taking or refraining from
taking any action or actions which it may be able to take under or in respect
of, this Agreement and the other Loan Documents. Agent shall incur no liability
under or in respect of this Agreement or any of the other Loan Documents by
acting upon any notice, consent, certificate, warranty or other paper or
instrument believed by it to be genuine or authentic or to be signed by the
proper party or parties, or with respect to anything which it may do or refrain
from doing in the reasonable exercise of its judgment, or which may seem to it
to be necessary or desirable in the premises. Agent may employ agents and
attorneys-

                                      44
<PAGE>

in-fact in carrying out its responsibilities under the Loan Documents, and shall
not be responsible for the negligence or misconduct of any such agents or
attorneys-in-fact as long as Agent was not grossly negligent in selecting or
directing such agents or attorneys-in-fact, EVEN IF SUCH SELECTION AMOUNTED TO
SIMPLE NEGLIGENCE. Agent shall not be responsible for delays in performance
resulting from acts beyond its control. Such acts shall include, without
limitation, acts of God, strikes, lockouts, riots, acts of war or terrorism,
epidemics, nationalization, expropriation, currency restrictions, governmental
regulations superimposed after the fact, fire, communication line failures,
computer viruses, power failures, earthquakes or other disasters.

         Section 9.07 Credit Analysis. Each Lender has made, and shall continue
to make, its own independent investigation or evaluation of the operations,
business, property and condition, financial and otherwise, of the Borrowers in
connection with its Commitments and Loans and has made its own appraisal of the
creditworthiness of the Borrowers. Except as explicitly provided herein, Agent
has no duty or responsibility, either initially or on a continuing basis, to
provide any Lender with any credit or other information with respect to such
operations, business, property, condition or creditworthiness, whether such
information comes into its possession on or before the first Event of Default or
at any time thereafter.

         Section 9.08 Notices of Event of Default, etc. In the event that any
Lender shall have acquired actual knowledge of any Event of Default or Default,
other than as a result of its receipt of financial statements delivered to it
pursuant to Section 5.01, such Lender shall promptly give notice thereof to
Agent. Agent shall, promptly upon receipt of any such notice provide a copy
thereof to the other Lenders. Upon receipt from any Lender of a request that
Agent give notice to the Borrowers of the occurrence of an Event of Default or
Default under Article 7, Agent shall promptly forward such request to the other
Lenders and will take such action and assert such rights under this Agreement
and the other Loan Documents as Majority Lenders shall direct in writing.

         Section 9.09 Indemnification. Each Lender agrees to indemnify Agent (to
the extent not reimbursed by the Borrowers), ratably according to its Percentage
Share, from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by or asserted
against Agent in any way relating to or arising out of this Agreement or the
other Loan Documents or any action taken or omitted by Agent under this
Agreement or the other Loan Documents, WHETHER OR NOT AGENT'S SIMPLE NEGLIGENCE
CAUSES THE SAME IN WHOLE OR IN PART; provided that no Lender shall be liable for
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from
Agent's gross negligence or willful misconduct. Without limitation of the
foregoing, each Lender agrees to reimburse Agent promptly upon demand for its
Percentage Share (determined under clause (l) of the definition thereof) of any
out-of-pocket expenses (including counsel fees) incurred by Agent in connection
with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement and the other Loan Documents, to the extent that Agent is not
reimbursed for such expenses by the Borrowers, WHETHER OR NOT SUCH OUT-OF-POCKET
EXPENSES RESULTED, IN WHOLE OR IN PART, FROM AGENT'S SIMPLE

                                      45
<PAGE>

NEGLIGENCE; provided, that no Lender shall be liable for any portion of any such
expenses resulting from Agent's gross negligence or willful misconduct.

         Section 9.10 Payments. All payments of principal of the Notes and all
other funds received by Agent in respect of any payments made by the Borrowers
pursuant to this Agreement, the Notes or the other Loan Documents, other than
payments under Sections 2.08 and 2.09, and subject to the effect of Section
9.11, shall be distributed forthwith by Agent (in like currency and funds) to
Lenders on the date received or deemed received pursuant to Section 2.07, in
accordance with Section 2.04(b) in the case of payments of interest and Balances
Deficiency Fees, and ratably according to each Lender's Percentage Share in the
case of any other payment received by Agent. If Agent does not make any such
distribution (or provide Federal Reserve Bank reference numbers for the wire
transfer of the amount thereof) on the date any such payment is received or
deemed received pursuant to Section 2.07, Agent will pay interest to each Lender
entitled to receive a portion of such distribution on the amount distributable
to it at the Federal Funds Rate from such date until the date such distribution
is made, such interest to be payable with such distribution. Notwithstanding any
of the foregoing or any other provision of this Agreement, upon and after the
occurrence of an Event of Default or Default, (a) all proceeds received by Agent
from the sale or other disposition of the Collateral shall be applied in
accordance with Section 17 of the Security Agreement.

         Section 9.11 Sharing of Set-Offs and Other Payments. The Agent agrees,
and each Lender agrees, that if it shall, whether through the exercise of rights
under Security Instruments or rights of banker's lien, set-off, or counterclaim
against the Borrowers or otherwise, obtain payment of a portion of the aggregate
Obligations owed to it which, taking into account all distributions made by
Agent under Section 2.07, causes Agent or such Lender to have received more than
it would have received had such payment been received by Agent and distributed
pursuant to Section 2.07, then (a) it shall be deemed to have simultaneously
purchased and shall be obligated to purchase interests in the Obligations as
necessary to cause Agent and all Lenders to share all payments as provided for
in Section 2.07, and (b) such other adjustments shall be made from time to time
as shall be equitable to ensure that Agent and all Lenders share all payments of
Obligations as provided in Section 2.07; provided, however, that nothing herein
contained shall in any way affect the right of Agent or any Lender to obtain
payment (whether by exercise of rights of banker's lien, set-off or counterclaim
or otherwise) of indebtedness other than the Obligations. The Borrowers
expressly consents to the foregoing arrangements and agrees that any holder of
any such interest or other participation in the Obligations, whether or not
acquired pursuant to the foregoing arrangements, may to the fullest extent
permitted by law exercise any and all rights of banker's lien, set-off, or
counterclaim as fully as if such holder were a holder of the Obligations in the
amount of such interest or other participation. If all or any part of any funds
transferred pursuant to this section is thereafter recovered from a Lender under
this section which received the same, the purchase provided for in this section
shall be deemed to have been rescinded to the extent of such recovery, together
with interest, if any, if interest is required pursuant to court order to be
paid on account of the possession of such funds prior to such recovery.

         Section 9.12 Successor Agent. Agent may resign at any time by giving
ten days written notice thereof to Lenders and the Borrowers. The Majority
Lenders may remove Agent for acts

                                      46
<PAGE>

constituting gross negligence or willful misconduct by giving notice thereto to
Agent, Lenders and the Borrowers. Upon any such resignation or removal, the
Borrowers shall have the right to appoint a successor Agent, which successor
Agent shall be reasonably acceptable to Majority Lenders; provided, however if
an Event of Default has occurred and is continuing or if no successor Agent
shall have been so appointed by the Borrowers and so accepted by Majority
Lenders within 15 days after the retiring Agent's giving of notice of its
resignation of Agent or after the Majority Lenders' giving of notice of the
removal of such Agent, then the Majority Lenders shall have the right to appoint
a successor Agent, which successor Agent shall be reasonably acceptable to the
Borrowers (unless an Event of Default has occurred and is continuing). If no
successor Agent shall have be so appointed by the Majority Lenders and so
accepted by the Borrowers within 30 days after the retiring Agent's giving of
notice of its resignation of Agent or after the Majority Lenders' giving of
notice of the removal of such Agent, then the retiring Agent or the Agent being
removed, as the case may be, may, on behalf of Lenders, appoint an Agent or
custodian which shall be a Lender or a commercial bank organized under the laws
of the United States of America or of any State thereof and having a combined
capital and surplus of at least $100,000,000 and which shall be reasonably
acceptable to the Borrowers (unless an Event of Default has occurred and is
continuing). Any such resignation or removal shall be effective upon the
appointment of a successor Agent. Upon the acceptance of any appointment as
Agent hereunder by a successor Agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Agent, and the retiring Agent or the Agent being removed, as the
case may be, shall be discharged from its duties and obligations, under this
Agreement and the other Loan Documents. After any Agent's resignation or removal
hereunder, the provisions of this Section 9 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was acting as Agent under
this Agreement and any other Loan Document.

         Section 9.13 Notice of New Investors. Agent shall use reasonable
efforts to provide prompt notice to each Lender (which notice may be telephonic)
of its approval of any new Investor after the date hereof; provided, however,
that Agent shall have no liability to any Lender or other Person for its failure
to provide the notice described in this Section 9.13.

                                    ARTICLE X

                                  MISCELLANEOUS

         Section 10.01 Notices. Any notice or request required or permitted to
be given under or in connection with this Agreement, the Notes or the other Loan
Documents (except as may otherwise be expressly required therein) shall be in
writing and shall be mailed by first class or express mail, postage prepaid, or
sent by telex, telegram, telecopy or other similar form of rapid transmission,
confirmed by mailing (by first class or express mail, postage prepaid) written
confirmation at substantially the same time as such rapid transmission, or
personally delivered to an officer of the receiving party. All such
communications shall be mailed, sent or delivered to the parties hereto at their
respective addresses as follows:

                         Any Borrower:    DHI Mortgage Company, Ltd.
                                          12357 Riata Trace Parkway, Suite C150
                                          Austin, Texas  78727

                                      47
<PAGE>

                                          Attn: Randall C. Present
                                          FAX: (512) 345-7348
                                          TEL: (512) 345-4663

                         With copies to:  Samuel R. Fuller
                                          Ted I. Harbour

                                          Bill W. Wheat
                                          1901 Ascension Blvd., Suite 100
                                          Arlington, Texas  76006
                                          FAX: (817) 856-8249
                                          TEL: (817) 856-8200

                         Agent:           U.S. Bank National Association
                                          U.S. Bancorp Center
                                          BC-MN-HO3B
                                          800 Nicollet Mall
                                          Minneapolis, Minnesota 55402
                                          Attn: Kathleen M. Connor
                                          FAX: (612) 303-2253
                                          TEL: (612) 303-3581

or at such other addresses or to such individual's or department's attention as
the Company or the Agent may have furnished the other party in writing. Any
communication so addressed and mailed shall be deemed to be given when so
mailed, except that requests for loans, Confirmations and other communications
related thereto shall not be effective until actually received by Agent or the
Company, as the case may be; and any notice so sent by rapid transmission shall
be deemed to be given when receipt of such transmission is acknowledged, and any
communication so delivered in person shall be deemed to be given when receipted
for by, or actually received by, an authorized officer of the Company or Agent,
as the case may be. Each Co-Borrower hereby authorizes the Agent and the Lenders
to send all notices under this Agreement and the Loan Documents to the Company,
on behalf of such Co-Borrower, and the Company undertakes to provide such
notices to the applicable Co-Borrower(s).

         Section 10.02 Amendments, etc. No amendment or waiver of any provision
of this Agreement, the Security Instruments, the Notes, or any other Loan
Document, nor consent to any departure by any Borrower or any Restricted
Subsidiary from the terms thereof, shall in any event be effective unless the
same shall be in writing and signed by (i) if such party is a Borrower, by the
Company, (ii) if such party is Agent, by Agent and (iii) if such party is a
Lender, by such Lender or by Agent on behalf of Lenders with the written consent
of Majority Lenders (or without further consent than that already provided
herein in the circumstances provided in Section 10.16). In the case of an
amendment other than the first and second amendment and other than annual
renewals or temporary extensions related to annual renewals, the Agent, on
behalf of each Lender executing such amendment (but excluding any Lender that
does not agree to increase its Commitment Amount under Section 10.11 (d) for any
amendment containing such an increase in Commitment Amounts), shall receive
within 5 Business Days after billing therefore, an amendment fee from the
Company in the amount of one thousand five

                                      48
<PAGE>

hundred dollars ($1,500) for each Lender executing such amendment.
Notwithstanding the foregoing or anything to the contrary herein, Agent shall
not, without the prior consent of each individual Lender, execute and deliver on
behalf of such Lender any waiver or amendment which would: (i) waive any of the
conditions specified in Article III (provided that Agent may in its discretion
withdraw any request it has made under Section 3.02(g)), (ii) increase the
Percentage Share of the Commitment of such Lender or subject such Lender to any
additional obligations, (iii) reduce any fees hereunder, or the principal of, or
interest on, such Lender's Note, (iv) amend the definition herein of "Majority
Lenders" or otherwise change the aggregate amount of Percentage Shares which is
required for Agent, Lenders or any of them to take any particular action under
the Loan Documents, (v) release any Borrower from its obligation to pay such
Lender's Note, (vi) amend the definitions of "Collateral Value," "Drawdown
Termination Date," and "Mortgage Collateral," (vii) release any Collateral
except in accordance with and pursuant to the Loan Documents, or (viii) change
the date on which any payments of principal, interest or fees are due hereunder.

         Section 10.03 Invalidity. In the event that any one or more of the
provisions contained in the Notes, this Agreement or any other Loan Document
shall, for any reason, be held invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision of such document.

         Section 10.04 Survival of Agreements. All covenants and agreements
herein and in any other Loan Document not fully performed before the date hereof
or the date thereof, and all representations and warranties herein or therein,
shall survive until payment in full of the Obligations and termination of the
Commitments.

         Section 10.05 Renewal, Extension or Rearrangement. All provisions of
this Agreement and of the other Loan Documents shall apply with equal force and
effect to each and all promissory notes hereafter executed which, in whole or in
part, represent a renewal, extension for any period, increase or rearrangement
of any part of the Obligations originally represented by the Notes or of any
part of such other Obligations.

         Section 10.06. Waivers. No course of dealing on the part of Agent or
any Lender, or any of its employees, consultants or agents, nor any failure or
delay by Agent or such Lender with respect to exercising any right, power or
privilege of Agent or any Lender under the Notes, this Agreement or any other
Loan Document shall operate as a waiver thereof, except as otherwise provided in
Section 10.02 hereof.

         Section 10.07 Cumulative Rights. The rights and remedies of Agent and
each Lender under the Notes, this Agreement, and any other Loan Document shall
be cumulative, and the exercise or partial exercise of any such right or remedy
shall not preclude the exercise of any other right or remedy.

         Section 10.08 Construction. THE VALIDITY, CONSTRUCTION AND
ENFORCEABILITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO
CONFLICT OF LAWS PRINCIPLES THEREOF, BUT

                                      49
<PAGE>

GIVING EFFECT TO FEDERAL LAWS OF THE UNITED STATES APPLICABLE TO NATIONAL BANKS
AND OTHER BANKS.

         Section 10.09 Limitation on Interest. Agent, Lenders, the Company, each
Restricted Subsidiary and any other parties to the Loan Documents intend to
contract in strict compliance with applicable usury law from time to time in
effect. In furtherance thereof such Persons stipulate and agree that none of the
terms and provisions contained in the Loan Documents shall ever be construed to
create a contract to pay, for the use, forbearance or detention of money,
interest in excess of the maximum amount of interest permitted to be charged by
applicable law from time to time in effect. None of the Borrowers, any
Restricted Subsidiary, any present or future guarantors, endorsers, or other
Persons hereafter becoming liable for payment of any Obligation shall ever be
liable for unearned interest thereon or shall ever be required to pay interest
thereon in excess of the maximum amount that may be lawfully charged under
applicable law from time to time in effect, and the provisions of this section
shall control over all other provisions of the Loan Documents which may be in
conflict or apparent conflict herewith. Agent and Lenders expressly disavow any
intention to charge or collect excessive unearned interest or finance charges in
the event the maturity of any Obligation is accelerated, if (a) the maturity of
any Obligation is accelerated for any reason, (b) any Obligation is prepaid and
as a result any amounts held to constitute interest are determined to be in
excess of the legal maximum, or (c) Agent or any Lender or any other holder of
any or all of the Obligations shall otherwise collect moneys which are
determined to constitute interest which would otherwise increase the interest on
any or all of the Obligations to an amount in excess of that permitted to be
charged by applicable law then in effect, then all such sums determined to
constitute interest in excess of such legal limit shall, without penalty, be
promptly applied to reduce the then outstanding principal of the related
Obligations or, at Agent's or such Lender's or such holder's option, promptly
returned to the Company and each Restricted Subsidiary or the other payor
thereof upon such determination. In determining whether or not the interest paid
or payable, under any specific circumstance, exceeds the maximum amount
permitted under applicable law, Agent, Lenders and the Company and Restricted
Subsidiaries (and any other payors thereof) shall to the greatest extent
permitted under applicable law, (i) characterize any non-principal payment as an
expense, fee or premium rather than as interest, (ii) exclude voluntary
prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and
spread the total amount of interest throughout the entire contemplated term of
the instruments evidencing the Obligations in accordance with the amounts
outstanding from time to time thereunder and the legal rate of interest from
time to time in effect under applicable law in order to lawfully charge the
maximum amount of interest permitted under applicable law. In the event
applicable law provides for an interest ceiling under Section 303 of the Texas
Finance Code, that ceiling shall be the weekly rate ceiling.

         Section 10.10 Bank Accounts; Offset. To secure the repayment of the
Obligations each Borrower hereby grants to Agent, each Lender and to each
financial institution which hereafter acquires a participation or other interest
in the Loans or Notes (in this section called a "Participant") a security
interest, a lien, and a right of offset, each of which shall be in addition to
all other interest, liens, and rights of Agent, any Lender or Participant at
common law, under the Loan Documents, or otherwise, and each of which shall be
upon and against (a) any and all moneys, securities or other property (and the
proceeds therefrom) of the Borrower now or hereafter held or received by or in
transit to Agent, any Lender or Participant from or for the

                                      50
<PAGE>

account the Borrower, whether for safekeeping, custody pledge, transmission,
collection or otherwise, (b) any and all deposits (general or special, time or
demand, provisional or final) of the Borrower (other than escrow or trust funds
belonging to a third party) with Agent, any Lender or Participant, and (c) any
other credits and claims of the Borrower at any time existing against Agent, any
Lender or Participant, including claims under certificates of deposit. Upon the
occurrence of any Event of Default, each of Agent, Lenders and Participants is
hereby authorized to foreclose upon, offset, appropriate, and apply, at any time
and from time to time, without notice to the Borrowers, any and all items
hereinabove referred to against the Obligations then due and payable.

         Section 10.11 Assignments, Participations, Commitment Amount Increases
and New Lenders.

         (a) Assignments. Each Lender shall have the right to sell, assign or
transfer all or any part of such Lender's Note, Loans and rights and the
associated rights and obligations under all Loan Documents to one or more
financial institutions, pension plans, investment funds, or similar purchasers;
provided, that each such sale, assignment, or transfer shall be with the consent
of Agent, and the assignee, transferee or recipient shall have, to the extent of
such sale, assignment, or transfer, the same rights, benefits and obligations as
it would if it were such Lender and a holder of such Note, including, without
limitation, the right to vote on decisions requiring consent or approval of all
Lenders or Majority Lenders and the obligation to fund its Percentage Share of
any Loan directly to Agent; provided further, that (i) each Lender in making
each such sale, assignment, or transfer must dispose of a pro rata portion of
each Loan made by such Lender, (ii) each such sale, assignment, or transfer
shall be in a principal amount not less than $15,000,000, (iii) each Lender
shall at all times maintain Loans then outstanding in an aggregate amount at
least equal to $15,000,000, (iv) each Lender may not offer to sell its Note and
Loan or Interests therein in violation of any securities laws, and (v) no such
assignments shall become effective until (1) the assigning Lender delivers to
Agent copies of all written assignments and other documents evidencing any such
assignment or related thereto and (2) the assignee Lender becomes a party to
this Agreement. Notwithstanding the provisions of clauses (ii) and (iii) above,
a Lender may make a sale, assignment or transfer, or maintain Loans then
outstanding, in an amount which is less than that required above provided that
the Borrowers and such Lender have agreed to modify such requirements and have
delivered to Agent prior written evidence of their agreement to make such
modification, An assignment fee in the amount of $3,500 for each such assignment
will be payable to Agent by assignor or assignee. Within five (5) Business Days
after its receipt of notice that Agent has received copies of any assignment and
the other documents relating thereto, the assignee shall notify the Borrowers of
the outstanding principal balance of the Notes payable to such Lender and shall
execute and deliver to Agent (for delivery to the relevant assignee) new Notes
evidencing such assignee's assigned Loans and, if the assignor Lender has
retained a portion of its Loans, replacement Notes in the principal amount of
the Loans retained by the assignor Lender (such Notes to be in exchange for, but
not in payment of, the Notes held by such Lender).

         (b) Participants. Each Lender shall have the right to grant
participations in all or any part of such Lender's Note, Loans and the
associated rights and obligations under all Loan Documents to one or more
pension plans, investment funds, financial institutions or similar purchasers;
provided that (i) each Lender granting a participation shall retain the right to
vote

                                      51
<PAGE>

hereunder, and no participant shall be entitled to vote hereunder on decisions
requiring consent or approval of Majority Lenders (except as set forth in (iii)
below), (ii) each Lender and the Borrowers shall be entitled to deal with the
Lender granting a participation in the same manner as if no participation had
been granted, and (iii) no participant shall ever have any right by reason of
its participation to exercise any of the rights of Lenders hereunder, except
that any Lender may agree with any participant that such Lender will not,
without the consent of such participant, consent to any amendment or waiver
described in Section 10.02 requiring approval of 100% of Lenders.

         (c) Distribution of Information. It is understood and agreed that any
Lender may provide to assignees and participants and prospective assignees and
participants financial information and reports and data concerning the
Borrowers' properties and operations which was provided to such Lender pursuant
to this Agreement.

         (d) Commitment Amount Increases; New Lenders. From time to time, the
Borrowers may agree, with the prior written consent of Agent, to (i) permit a
Lender to increase its Commitment Amount, or (ii) add a bank chartered under the
laws of the United States or any State thereof, an insurance company, another
lender or a mutual fund (a "New Lender") as a "Lender" under this Agreement with
a Commitment, for the purpose of increasing the Aggregate Commitment Amounts;
provided that upon giving effect to any such new Commitment, the Commitment
Amount of the New Bank shall not be less than $15,000,000; and provided,
further, that the Aggregate Commitment Amounts, after giving effect to any such
increase, shall not exceed $350,000,000. The Borrowers and each Lender
increasing its Commitment Amount or New Lender shall agree on the date as of
which the increased Commitment Amount or New Lender's Commitment Amount shall
become effective, and each New Lender shall execute and deliver an instrument in
the form prescribed by Agent to evidence its agreement to be bound by this
Agreement and the other Loan Documents. Upon the effective date of an increase
in any Lender's Commitment Amount or inclusion of a New Lender as a Lender under
this Agreement, Agent shall deliver to the Borrowers and each Lender a revised
Schedule 5 reflecting the revised Aggregate Commitment Amounts and the Borrowers
shall execute and deliver to such Lender or such New Bank a Note increasing its
Commitment Amount.

         Section 10.12 Exiting Lenders. On the applicable Exit Date, the
aggregate unpaid principal amount of the Loans made by each Exiting Lender under
the Prior Credit Agreement and related Note issued to such Exiting Lender
thereunder or, in the case of a Lender exiting after the Closing Date, under
this Agreement and the Note issued hereunder to such Exiting Lender, together
with all interest, fees provided for by the applicable sections of the Existing
Credit Agreement or the applicable provisions hereof, as applicable, and other
amounts, if any, payable to such Exiting Lender thereunder or hereunder as of
the Exit Date (as to any Exiting Lender, its "Payoff Amount"), shall be repaid
in full from the proceeds of Loans made by the Lenders and other funds provided
by the Borrowers, and the commitments of the Exiting Lenders under the Existing
Credit Agreement or hereunder, as the case may be, shall terminate. The
Borrowers shall give the Agent notice pursuant to Section 2.03(a) with respect
to such Loans. The Agent shall distribute to each Exiting Lender by not later
than 3:00 P.M. (Minneapolis time) on the Exit Date out of the proceeds of the
Loans made for such purpose and from the other funds provided by the Borrowers,
the amount required to pay such Exiting Lender's Payoff Amount in full,
whereupon: (a) such Exiting Lender shall no longer be a party

                                      52
<PAGE>

to the Existing Credit Agreement or this Agreement, as the case may be (except
to the extent provided in Section 10.16 thereof with respect to the survival of
certain provisions, which shall remain in effect as to the Exiting Lenders); and
(b) such Exiting Lenders shall not be deemed to be a "Lender" for any purpose
hereunder.

         Section 10.13 Exhibits The exhibits attached to this Agreement are
incorporated herein and shall be considered a part of this Agreement for the
purposes stated herein, except that in the event of any conflict between any of
the provisions of such exhibits and the provisions of this Agreement, the
provisions of this Agreement shall prevail.

         Section 10.14 Titles of Articles, Sections and Subsections. All titles
or headings to articles, have any effect or meaning with respect to the other
content of such articles, sections, subsections or other divisions, such other
content being controlling as to the agreement between the parties hereto.

         Section 10.15 Counterparts. This Agreement may be executed in
counterparts, and it shall not be necessary that the signatures of both of the
Parties hereto be contained on any one counterpart hereof; each counterpart
shall be deemed an original, but all counterparts together shall constitute one
and the same instrument.

         Section 10.16 ENTIRE AGREEMENT. THE NOTES, THIS AGREEMENT, AND THE
OTHER LOAN DOCUMENTS EXECUTED AND DELIVERED AS OF EVEN DATE HEREWITH REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND THERETO AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

         Section 10.17 Termination; Limited Survival. In its sole and absolute
discretion the Borrowers may at any time that no Obligations are owing elect in
a notice delivered to Agent to terminate this Agreement. Upon receipt by Agent
of such a notice, if no Obligations are then owing, this Agreement and all other
Loan Documents shall thereupon be terminated and the parties thereto released
from all prospective obligations thereunder. Notwithstanding the foregoing or
anything herein to the contrary, any waivers or admissions made by any Person in
any Loan Documents, any Obligations, and any obligations which any Person may
have to indemnify or compensate Agent and any Lender shall survive any
termination of this Agreement or any other Loan Document. At the request and
expense of the Borrowers, Agent shall prepare and execute all necessary
instruments to reflect and effect such termination of the Loan Documents. Agent
is hereby authorized to execute all such instruments on behalf of all Lenders,
without the joinder of or further action by any Lender.

         Section 10.18 Confidentiality of Information. The Agent and Lenders
shall use reasonable efforts to assure that information about the Borrowers and
their operations, affairs and financial condition and about the borrowers under
the Mortgage Loans and their financial condition, not generally disclosed to the
public or to trade and other creditors, which is furnished to the Agent and any
Lender pursuant to the provisions hereof is used only for the purposes of this
Agreement and any other relationship between the Agent or any Lender and the
Borrowers and shall not be divulged to any Person other than the Agent and the
Lenders, their Affiliates and

                                      53
<PAGE>

their respective officers, directors, employees and agents, except: (a) to their
attorneys and accountants, (b) in connection with the enforcement of the rights
of the Agent and the Lenders hereunder and under the Notes and the Security
Agreement or otherwise in connection with applicable litigation, (c) in
connection with assignments and participations and the solicitation of
prospective assignees and participants referred to in the immediately preceding
section or to a proposed or actual contractual counterparty (or its advisors) to
any swap, hedge, securitization or derivative transaction, and (d) as may
otherwise be required or requested by any regulatory authority having
jurisdiction over the Agent or any Lender or by any applicable law, rule,
regulation or judicial process, the opinion of the Agent's or any Lender's
counsel concerning the making of such disclosure to be binding on the parties
hereto. Neither the Agent nor any Lender shall incur any liability to the
Borrowers by reason of any disclosure permitted by this Section 10.18.

         SECTION 10.19 JURY WAIVER. BORROWER, AGENT AND EACH LENDER HEREBY
VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE
A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT
OR OTHERWISE) BETWEEN OR AMONG THE BORROWERS, AGENT OR ANY LENDER ARISING OUT OF
OR IN ANY WAY RELATED TO THIS DOCUMENT, ANY OTHER RELATED DOCUMENT, OR ANY
RELATIONSHIP BETWEEN AGENT OR ANY LENDER AND BORROWER. THIS PROVISION IS A
MATERIAL INDUCEMENT TO AGENT AND LENDERS TO PROVIDE THE FINANCING DESCRIBED
HEREIN OR IN THE OTHER LOAN DOCUMENTS.

         Section 10.20 Relationship Among Borrowers.

                  (a) JOINT AND SEVERAL LIABILITY. THE COMPANY AGREES THAT IT IS
         LIABLE FOR THE PAYMENT OF ALL OBLIGATIONS OF THE BORROWERS UNDER THIS
         AGREEMENT, AND THAT THE LENDERS AND THE AGENT CAN ENFORCE SUCH
         OBLIGATIONS AGAINST THE COMPANY, IN THE LENDERS' OR THE AGENT'S SOLE
         AND UNLIMITED DISCRETION. EACH CO-BORROWER AGREES THAT IT IS LIABLE
         ONLY FOR THE PAYMENT OF LOANS AND SWINGLINE LOANS MADE TO ENABLE IT TO
         ORIGINATE OR ACQUIRE MORTGAGE LOANS, INTEREST ON SUCH LOANS AND
         SWINGLINE LOANS, AND FEES, COSTS AND EXPENSES RELATED TO SUCH LOANS AND
         SWINGLINE LOANS AND SUCH CO-BORROWER'S PERFORMANCE OR NON-PERFORMANCE
         OF ITS OBLIGATIONS HEREUNDER. THE COMPANY AGREES THAT IT IS JOINTLY AND
         SEVERALLY LIABLE WITH EACH CO-BORROWER FOR SUCH CO-BORROWER'S
         OBLIGATIONS, AS DESCRIBED IN THE PRECEDING SENTENCE.

                  (b) Waivers of Defenses. The Obligations of the Borrowers
         hereunder shall not be released, in whole or in part, by any action or
         thing which might, but for this provision of this Agreement, be deemed
         a legal or equitable discharge of a surety or guarantor, other than
         irrevocable payment and performance in full of the Obligations (except
         for contingent indemnity and other contingent Obligations not yet due
         and payable) at a time after any obligation of the Lenders hereunder to
         make Loans shall have expired or been terminated. The purpose and
         intent of this Agreement is that the Obligations constitute

                                      54
<PAGE>

         the direct and primary obligations of the Company and, to the extent
         provided in Section 10.20(a), each Co-Borrower, and that the covenants,
         agreements and all obligations of each Borrower hereunder be absolute,
         unconditional and irrevocable. Each Borrower shall be and remain liable
         for any deficiency remaining after foreclosure of any mortgage, deed of
         trust or security agreement securing all or any part of the Obligations
         for which it is liable, whether or not the liability of any other
         Person for such deficiency is discharged pursuant to statute, judicial
         decision or otherwise.

                  (c) Other Transactions. The Lenders and the Agent are
         expressly authorized to exchange, surrender or release with or without
         consideration any or all collateral and security which may at any time
         be placed with it by any Borrower or by any other Person on behalf of
         the Borrowers, or to forward or deliver any or all such collateral and
         security directly to the Company or the applicable Co-Borrower for
         collection and remittance or for credit. No invalidity, irregularity or
         unenforceability of any security for the Obligations or other recourse
         with respect thereto shall affect, impair or be a defense to the
         Borrowers' obligations under this Agreement. The liabilities of each
         Borrower hereunder shall not be affected or impaired by any failure,
         delay, neglect or omission on the part of any Lender or the Agent to
         realize upon any of the Obligations of any other Borrower to the
         Lenders or the Agent, or upon any collateral or security for any or all
         of the Obligations, nor by the taking by any Lender or the Agent of (or
         the failure to take) any guaranty or guaranties to secure the
         Obligations, nor by the taking by any Lender or the Agent of (or the
         failure to take or the failure to perfect its security interest in or
         other lien on) collateral or security of any kind. No act or omission
         of any Lender or the Agent, whether or not such action or failure to
         act varies or increases the risk of, or affects the rights or remedies
         of a Borrower, shall affect or impair the obligations of the Borrowers
         hereunder.

                  (d) Actions Not Required. Each Borrower, to the extent
         permitted by applicable law, hereby waives any and all right to cause a
         marshaling of the assets of any other Borrower or any other action by
         any court or other governmental body with respect thereto or to cause
         any Lender or the Agent to proceed against any security for the
         Obligations or any other recourse which any Lender or the Agent may
         have with respect thereto and further waives any and all requirements
         that any Lender or the Agent institute any action or proceeding at law
         or in equity, or obtain any judgment, against any other Borrower or any
         other Person, or with respect to any collateral security for the
         Obligations, as a condition precedent to making demand on or bringing
         an action or obtaining and/or enforcing a judgment against, such
         Borrower under this Agreement.

                  (e) Subrogation. Notwithstanding any payment or payments made
         by any Borrower hereunder or any setoff or application of funds of any
         Borrower by any Lender or the Agent, such Borrower shall not be
         entitled to be subrogated to any of the rights of any Lender or the
         Agent against any other Borrower or any other guarantor or any
         collateral security or guaranty or right of offset held by any Lender
         or the Agent for the payment of the Obligations, nor shall such
         Borrower seek or be entitled to seek any contribution or reimbursement
         from any other Borrower or any other guarantor in respect of payments
         made by such Borrower hereunder, until all amounts owing to the Lenders
         and the Agent by the Borrowers on account of the Obligations are
         irrevocably paid in

                                      55
<PAGE>

         full; provided, however, that the Company may seek reimbursement from a
         Borrower for payments made by the Company on behalf of such Borrower if
         (i) all Obligations owing to the Lenders and the Agent by that Borrower
         are irrevocably paid in full and (ii) the Lenders have no further
         obligation to make Loans to enable such Borrower to originate Mortgage
         Loans. If any amount shall be paid to a Borrower on account of such
         subrogation rights at any time when all of the Obligations shall not
         have been irrevocably paid in full, such amount shall be held by that
         Borrower in trust for the Lenders and the Agent, segregated from other
         funds of that Borrower, and shall, forthwith upon receipt by the
         Borrower, be turned over to the Agent in the exact form received by the
         Borrower (duly indorsed by the Borrower to the Agent, if required), to
         be applied against the Obligations, whether matured or unmatured, in
         such order as the Agent may determine. From and after the irrevocable
         payment in full of all amounts owing to the Lenders and the Agent by
         the Borrowers on account of the Obligations, each Co-Borrower shall be
         liable to the Company for any amount paid by the Company to the Agent
         or the Lenders (and not previously paid to the Company by such
         Co-Borrower) as principal of and interest on the Loans and Swingline
         Loans made to enable such Co-Borrowers to originate or acquire Mortgage
         Loans, fees, costs and expenses relating to such Loans and Swingline
         Loans, and such Co-Borrower's performance or non-performance of its
         Obligations hereunder.

                  (f) Application of Payments. Any and all payments upon the
         Obligations made by any Borrower, and/or the proceeds of any or all
         collateral or security for any of the Obligations provided by any
         Borrower, may be applied by the Lenders on such items of the
         Obligations for which such Borrower is liable as the Lenders may elect.

                  (g) Recovery of Payment. If any payment received by the
         Lenders or the Agent and applied to the Obligations is subsequently set
         aside, recovered, rescinded or required to be returned for any reason
         (including, without limitation, the bankruptcy, insolvency or
         reorganization of a Borrower or any other obligor), the Obligations to
         which such payment was applied shall, to the extent permitted by
         applicable law, be deemed to have continued in existence,
         notwithstanding such application, and each Borrower liable on such
         Obligations shall be jointly and severally liable for such Obligations
         as fully as if such application had never been made. References in this
         Agreement to amounts "irrevocably paid" or to "irrevocable payment"
         refer to payments that cannot be set aside, recovered, rescinded or
         required to be returned for any reason.

                  (h) Borrowers' Financial Condition. The Company is familiar
         with the financial condition of each Co-Borrower, each Co-Borrower is
         familiar with the financial condition of the Company and each Borrower
         has executed and delivered this Agreement based on that Borrower's own
         judgment and not in reliance upon any statement or representation of
         the Agent or any Lender. The Lenders and the Agent shall have no
         obligation to provide any Borrower with any advice whatsoever or to
         inform any Borrower at any time of the Lenders' actions, evaluations or
         conclusions on the financial condition or any other matter concerning
         the Borrowers.

                  (i) Bankruptcy of the Borrowers. Each Borrower expressly
         agrees that, to the extent permitted by applicable law, the liabilities
         and obligations of that Borrower under

                                      56
<PAGE>

         this Agreement shall not in any way be impaired or otherwise affected
         by the institution by or against any other Borrower or any other Person
         of any bankruptcy, reorganization, arrangement, insolvency or
         liquidation proceedings, or any other similar proceedings for relief
         under any bankruptcy law or similar law for the relief of debtors and
         that any discharge of any of the Obligations pursuant to any such
         bankruptcy or similar law or other law shall not diminish, discharge or
         otherwise affect in any way the Obligations of that Borrower under this
         Agreement, and that upon the institution of any of the above actions,
         such Obligations shall be enforceable against that Borrower.

                  (j) Limitation; Insolvency Laws. As used in this Section
         10.17(j): (a) the term "Applicable Insolvency Laws" means the laws of
         the United States of America or of any State, province, nation or other
         governmental unit relating to bankruptcy, reorganization, arrangement,
         adjustment of debts, relief of debtors, dissolution, insolvency,
         fraudulent transfers or conveyances or other similar laws (including,
         without limitation, 11 U. S. C. 547, 548, 550 and other "avoidance"
         provisions of Title 11 of the United Stated Code) as applicable in any
         proceeding in which the validity and/or enforceability of this
         Agreement against any Borrower, or any Specified Lien is in issue; and
         (b) "Specified Lien" means any security interest, mortgage, lien or
         encumbrance granted by any Borrower securing the Obligations, in whole
         or in part. Notwithstanding any other provision of this Agreement, if,
         in any proceeding, a court of competent jurisdiction determines that
         with respect to any Borrower, this Agreement or any Specified Lien
         would, but for the operation of this Section, be subject to avoidance
         and/or recovery or be unenforceable by reason of Applicable Insolvency
         Laws, this Agreement and each such Specified Lien shall be valid and
         enforceable against such Borrower, only to the maximum extent that
         would not cause this Agreement or such Specified Lien to be subject to
         avoidance, recovery or unenforceability. To the extent that any payment
         to, or realization by, the Lenders or the Agent on the Obligations
         exceeds the limitations of this Section and is otherwise subject to
         avoidance and recovery in any such proceeding, the amount subject to
         avoidance shall in all events be limited to the amount by which such
         actual payment or realization exceeds such limitation, and this
         Agreement as limited shall in all events remain in full force and
         effect and be fully enforceable against such Borrower. This Section is
         intended solely to reserve the rights of the Lenders and the Agent
         hereunder against each Borrower, in such proceeding to the maximum
         extent permitted by Applicable Insolvency Laws and neither the
         Borrowers, any guarantor of the Obligations nor any other Person shall
         have any right, claim or defense under this Section that would not
         otherwise be available under Applicable Insolvency Laws in such
         proceeding.

         Section 10.21 USA Patriot Act Notice. Each Lender and the Agent (on
behalf of itself as Agent and a Lender but not on behalf of the other Lenders)
hereby notify the Borrowers that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law on October 26, 2001)) (the
"Act"), it is required to obtain, verify and record information that identifies
each Borrower, which information includes the name and address of each Borrower
and other information that will allow such Lender or the Agent, as applicable,
to identify the Borrowers in accordance with the Act.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      57
<PAGE>

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

                                           DHI MORTGAGE COMPANY, LTD.,
                                           (FORMERLY KNOWN AS CH
                                           MORTGAGE COMPANY I, LTD.)

                                           By: DHI Mortgage Company GP, Inc.,
                                           (formerly known as CH Mortgage
                                           Company GP, Inc.),its General Partner

                                           By: /s/ Mark C. Winter
                                                     Mark C. Winter
                                                     Chief Financial Officer and
                                                     Vice President

STATE OF TEXAS

COUNTY OF TRAVIS

On this the 8th day of April , 2004, personally appeared Mark C. Winter, as
CFO/Vice President of DHI Mortgage Company, GP, Inc., a Delaware corporation, as
general partner of DHI Mortgage Company , Ltd., a Texas limited partnership (the
"Company"), and before me executed this Amended and Restated Credit Agreement,
on behalf of the Company.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

                                      Signature of Notary Public, State of Texas

                                      /s/ Amy L. Moreno
                                      ------------------------------------------
                                      (Print, Type or Stamp Commissioned Name of
                                      Notary Public)
                                      Personally known x ; OR Produced
                                      Identification____________________________
                                      Type of ID produced_______________________

                                                     (NOTARIAL SEAL)

                                      58
<PAGE>

                                              U.S. BANK NATIONAL ASSOCIATION, as
                                              Agent and Lender

                                              By: /s/ Kathleen M. Connor
                                                  ------------------------------
                                                         Kathleen M. Connor
                                                         Vice President

                                              COMERICA BANK

                                              By: /s/ Robert W. Marr
                                                  ------------------------------
                                                         Robert W. Marr
                                                         Vice President

                                              NATIONAL CITY BANK OF KENTUCKY

                                              By: /s/ Jerry W. Johnson
                                                  ------------------------------
                                              Title: Senior Vice President

                                              COLONIAL BANK, N.A.

                                              By: /s/ Amy Nunneley
                                                  ------------------------------
                                                       Amy Nunneley
                                                         Senior Vice President

                                              BANK OF AMERICA, N.A.

                                              By: /s/ Elizabeth Kurilecz
                                                  ------------------------------
                                                         Elizabeth Kurilecz
                                                         Managing Director

                                      59
<PAGE>

                                                      BNP PARIBAS

                                                      By: /s/ Jeff Tebeaux
                                                          ----------------------
                                                            Jeff Tebeaux
                                                            Vice President

                                                      By: /s/ Henry Setina
                                                          ----------------------
                                                      Henry Setina
                                                      Director

                                                      WASHINGTON MUTUAL BANK, FA

                                                      By: /s/ Michael J. Arnold
                                                          ---------------------
                                                      Michael J. Arnold
                                                      Vice President

                                              BANK ONE, NA

                                              By: /s/ Kenneth S. Nelson
                                                  ------------------------------
                                                          Kenneth S. Nelson
                                                          Director

                                              JPMORGAN CHASE BANK

                                              By: /s/ Cynthia E. Crites
                                                  ------------------------------
                                                          Cynthia E. Crites
                                                          Vice President

                                       60
<PAGE>

                                                                      SCHEDULE 1

                             ELIGIBLE MORTGAGE LOAN

         "Eligible Mortgage Loan" means a Mortgage Loan with respect to which
each of the following statements is accurate and complete (and the Borrowers by
including such Mortgage Loan in any computation of the Borrowing Base shall be
deemed to so represent to Agent and Lenders at and as of the date of such
computation):

                  (i) Such Mortgage Loan is a binding and valid obligation of
         the Obligor thereon, in full force and effect and enforceable in
         accordance with its terms, except as enforceability may be limited by
         bankruptcy, insolvency, reorganization or other similar terms affecting
         creditor's rights in general and by general principles of equity;

                  (ii) Such Mortgage Loan is genuine in all respects as
         appearing on its face and as represented in the books and records of
         the Borrowers, and all information set forth therein is true and
         correct;

                  (iii) To the best knowledge of the Borrowers, such Mortgage
         Loan is free of any default (other than as permitted by subparagraph
         (iv) below) of any party thereto (including the Borrowers),
         counterclaims, offsets and defenses, including the defense of usury,
         and from any rescission, cancellation or avoidance, and all right
         thereof, whether by operation of law or otherwise;

                  (iv) No payment under such Mortgage Loan is more than thirty
         (30) days past due the payment due date set forth in the underlying
         Mortgage Note and Mortgage;

                  (v) Such Mortgage Loan contains the entire agreement of the
         parties thereto with respect to the subject matter thereof, has not
         been modified or amended in any respect not expressed in writing
         therein and is free of concessions or understandings with the Obligor
         thereon of any kind not expressed in writing therein;

                  (vi) Such Mortgage Loan is in all respects in accordance with
         all Requirements of Law applicable thereto, including, without
         limitation, the federal Consumer Credit Protection Act and the
         regulations promulgated thereunder and all applicable usury laws and
         restrictions, and all notices, disclosures and other statements or
         information required by law or regulation to be given, and any other
         act required by law or regulation to be performed, in connection with
         such Mortgage Loan have been given and performed as required;

                  (vii) All advance payments and other deposits on such Mortgage
         Loan have been paid in cash, and no part of said sums has been loaned,
         directly or indirectly, by the Borrowers to the Obligor, and, other
         than as disclosed to Agent in writing, there have been no prepayments;

                                      E-61
<PAGE>

                  (viii) Such Mortgage Loan was originated, purchased by the
         Borrowers or converted from a variable rate Mortgage Loan to a fixed
         rate Mortgage Loan, whichever is latest not more than ninety (90) days
         prior to the inclusion of such Mortgage Loan in any computation of the
         Borrowing Base and matures within 30 years after such date of
         origination;

                  (ix) At all times such Mortgage Loan will be free and clear of
         all Liens, except in favor of Agent for the benefit of Lenders and any
         other Lien which has been disclosed to Agent in writing and is
         permitted hereunder;

                  (x) The Property covered by such Mortgage Loan is insured
         against loss or damage by fire and all other hazards normally included
         within standard extended coverage in accordance with the provisions of
         such Mortgage Loan with the Borrowers named as a loss payee thereon;

                  (xi) The Required Mortgage Documents have been delivered to
         Agent prior to the inclusion of such Mortgage Loan in any computation
         of the Borrowing Base or, if such items have not been delivered to
         Agent on or prior to the date such Mortgage Loan is first included in
         any computation of the Borrowing Base, (1) the Borrower has agreed to
         pledge and deliver all Required Mortgage Documents pursuant to an
         Agreement to Pledge delivered to Agent prior to such inclusion, and (2)
         the Collateral Value of such Mortgage Loan when added to the Collateral
         Value of all other Mortgage Loans for which Agent has not received the
         Required Mortgage Documents does not exceed the Wet Warehousing
         Sublimit, provided that, all Required Documents with respect to such
         Mortgage Loan shall be delivered to Agent within seven (7) Business
         Days after the date of the borrowing request with respect thereto and
         all other documents requested by Agent pursuant to Section 4.02 of the
         Security Agreement shall be delivered to Agent within five Business
         Days after such request.

                  (xii) If such Mortgage Loan is included in the Borrowing Base
         and has been withdrawn from the possession of Agent on terms and
         subject to conditions set forth in the Security Agreement:

                           (1) If such Mortgage Loan was withdrawn by the
                  Borrowers for purposes of correcting clerical or other
                  non-substantive documentation problems, the promissory note
                  and other documents relating to such Mortgage Loan are
                  returned to Agent within twenty (20) calendar days from the
                  date of withdrawal; and the Collateral Value of such Mortgage
                  Loan when added to the Collateral Value of other Mortgage
                  Loans which have been similarly released to the Borrowers and
                  have not been returned does not exceed $2,500,000;

                           (2) If such Mortgage Loan was shipped by Agent
                  directly to a permanent investor for purchase or to a
                  custodian for the formation of a pool, the full purchase price
                  therefor has been received by Agent (or such Mortgage Loan has
                  been returned to Agent) within forty-five (45) days
                  (seventy-five (75) days in

                                      E-62
<PAGE>

                  the case if such Mortgage Loan is included in a housing bond
                  program) from the date of shipment by Agent.

                  (xiii) If such Mortgage Loan is a Jumbo Mortgage Loan, the
         Collateral Value of such Mortgage Loan when added to the Collateral
         Value of all other Jumbo Mortgage Loans does not exceed the Jumbo
         Sublimit.

                  (xiv) If such Mortgage Loan is a Nonconforming Mortgage Loan,
         the Collateral Value of such Mortgage Loan when added to the Collateral
         Value of all the Nonconforming Mortgage Loans does not exceed the
         Nonconforming Sublimit;

                  (xv) If such Mortgage Loan is a HELOC Mortgage Loan, the
         Collateral Value of such Mortgage Loan when added to the Collateral
         Value of all other HELOC Mortgage Loans does not exceed the HELOC
         Mortgage Loan Sublimit.

                  (xvi) Such Mortgage Loan has not been included in the
         Borrowing Base for more than (A) ninety (90) days, if such Mortgage
         Loan is a Nonconforming Mortgage Loan or a HELOC Mortgage Loan, (B) one
         hundred twenty (120) days, if such Mortgage Loan is a Jumbo Mortgage
         Loan, (C) one hundred twenty (120) days, if such Mortgage Loan is a
         Conforming Mortgage Loan or (D) one hundred eighty (180) days, if such
         Mortgage Loan is included in a housing bond program;

                  (xvii) Such Mortgage Loan is covered by a Take-Out Commitment
         which is in full force and effect, and the Borrowers and such Mortgage
         Loan are in full compliance therewith;

                  (xviii) Such Mortgage Loan is secured by a first or second
         Mortgage on Property consisting of a completed one-to-four unit single
         family residence which is not used for commercial purposes and which is
         not a construction loan; and

                  (xix) The face amount of the Mortgage Note underlying such
         Mortgage Loan does not exceed $1,000,000.

         Agent may, in its discretion, waive one or more of the foregoing
eligibility requirements with respect to any Mortgage Loan, provided that the
aggregate Collateral Value of all Mortgage Loans with respect to which such
eligibility requirements have been waived shall not at any time exceed
$3,000,000.

                                      E-63
<PAGE>

                                                                      SCHEDULE 2

                       CORRESPONDENT INVESTOR CONTACT LIST

<TABLE>
<CAPTION>
    INVESTOR                            ADDRESS                                 REP.
    --------                            -------                                 ----
<S>                                     <C>                                     <C>
ARGENT MORTGAGE
COMPANY LLC

BAYVIEW FINANCIAL
TRADING GROUP

CALIFORNIA HOUSING
FINANCE AGENCY

CHARTER BANK

CHASE MANHATTAN
MORTGAGE CORPORATION

CHASE MANHATTAN
MORTGAGE CORPORATION

CITIMORTGAGE, INC.
(FKA FIRST NATIONWIDE
MORTGAGE CORPORATION)

COLORADO HOUSING AND
FINANCE AUTHORITY

COUNTRYWIDE HOME
LOANS, INC.

COUNTRYWIDE HOME
LOANS, INC.

CREDIT-BASED ASSET
SERVICING AND
SECURITIZATION
</TABLE>

                                      E-64
<PAGE>

<TABLE>
<S>                         <C>                                           <C>

EMC MORTGAGE
CORPORATION

EMPIRE MORTGAGE, INC.

ENCORE CREDIT
CORPORATION

FIRST HORIZON HOME
LOAN CORPORATION

FIRST NATIONAL BANK OF
ARIZONA

GEORGIA DEPARTMENT OF
COMMUNITY AFFAIRS

GREENPOINT MORTGAGE

INDYMAC BANK, F.S.B.

THE LEADER MORTGAGE
COMPANY

MARSH ASSOCIATES, INC.

MATRIX FINANCIAL
SERVICES CORPORATION

MIDWEST FIRST FINANCIAL

NATIONAL CITY MORTGAGE
COMPANY
</TABLE>
                                      E-65
<PAGE>

<TABLE>
<S>                            <C>                                            <C>
NORTH CAROLINA HOUSING
FINANCE AGENCY

NOVASTAR MORTGAGE, INC.

OPTION ONE MORTGAGE

PRINCIPAL RESIDENTIAL
MORTGAGE, INC.

RBMG, INC.

SECURITY NATIONAL

SOUTH CAROLINA STATE
HOUSING FINANCE AND
DEVELOPMENT AUTHORITY

STONEHENGE FINANCIAL
SERVICES

UNION PLANTERS
MORTGAGE, INC.

WASHINGTON MUTUAL
BANK, FA

WASHINGTON STATE
HOUSING FINANCE
COMMISSION

WELLS FARGO BANK, N.A.

WELLS FARGO HOME
MORTGAGE, INC.

</TABLE>

                                      E-66
<PAGE>

                                                                      SCHEDULE 3

                                  SUBSIDIARIES

         D.R. Horton, Inc. - Los Angeles, a Delaware corporation (100% interest
held by the Company)

         CH Funding, LLC, a Delaware limited liability company (100% interest
held by the Company)

                                      E-67
<PAGE>

                                                                      SCHEDULE 4

                                 PERMITTED LIENS

                                      NONE

                                      E-68
<PAGE>

                                                                      SCHEDULE 5

                    COMMITMENT AMOUNTS AND PERCENTAGE SHARES

<TABLE>
<CAPTION>
                                                      Commitment   Percentage
                                                        Amount       Share%
                                                      ----------   ----------
<S>                                                  <C>           <C>
U.S. Bank National Association                       $*
Comerica Bank                                        $*
National City Bank of Kentucky                       $*
Colonial Bank, N.A.                                  $*
Bank of America, N.A.                                $*
BNP Paribas                                          $*
Washington Mutual Bank, FA                           $*
Bank One, NA                                         $*
JPMorgan Chase Bank                                  $*
                                                     ------------
                                                     $300,000,000     100%
</TABLE>

                                      E-69
<PAGE>

                                                                    EXHIBIT A TO
                                                                CREDIT AGREEMENT

                                  FORM OF NOTE

                                 PROMISSORY NOTE

$____________                                             Minneapolis, Minnesota

                                                                  ________, 2004

         ________ FOR VALUE RECEIVED, DHI MORTGAGE COMPANY, LTD., (formerly
known as CH MORTGAGE COMPANY I, LTD.), a Texas limited partnership (the "the
Company"), hereby promises to pay to the order of __________(the "Lender") at
the main office of the Agent (as such term and each other capitalized term used
herein are defined in the Credit Agreement hereinafter referred to) in
Minneapolis, Minnesota, in lawful money of the United States of America in
Immediately Available Funds, the principal sum of ________MILLION AND NO/100
DOLLARS ($ _________) or the aggregate unpaid principal amount of all Loans [and
Swingline Loans]* made by the Lender pursuant to the Credit Agreement described
below, whichever is less, and to pay interest in like funds from the date hereof
on the unpaid balance thereof at the rates per annum and at such times as are
specified in the Credit Agreement. Interest (computed on the basis of actual
days elapsed and a year of 360 days) shall be payable at said office at the
times specified in the Credit Agreement.

         Principal hereof shall be payable in the amounts and at the times set
forth in the Credit Agreement.

         This note is one of the Notes referred to in the Credit Agreement dated
as of April __, 2004, between the Company, the Lender, the other lenders party
thereto and U.S. Bank National Association, as Agent (as the same may be
amended, modified or restated from time to time, the "Credit Agreement"). Unless
otherwise defined herein, capitalized terms used herein shall have the meanings
given to such terms in the Credit Agreement. This note is subject to certain
mandatory and voluntary prepayments and its maturity is subject to acceleration,
in each case upon the terms provided in the Credit Agreement. The Notes are
issued in substitution and replacement, but not in payment, of notes issued
under the Prior Credit Agreement (as defined in the Credit Agreement).

         The Company hereby waives diligence, presentment, demand, protest, and
notice (except such notice as is required under the Loan Documents) of any kind
whatsoever. The nonexercise by the Lender of any of its rights hereunder or
under the other Loan Documents in any particular instance shall not constitute a
waiver thereof in any subsequent instance.

         The Company reserves the right to prepay the outstanding principal
balance of this Note, in whole or in part at any time and from time to time
without premium or penalty in accordance with the terms of the Credit Agreement.

                                      E-70
<PAGE>

         This note is entitled to the benefit of the Security Agreement and the
other Loan Documents.

         THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF
MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF BUT
GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. In the event of
default hereunder, the undersigned agrees to pay all costs and expenses of
collection, including but not limited to reasonable attorneys' fees.

         [Notwithstanding the foregoing paragraphs and all other provisions of
this note and the Credit Agreement, none of the terms and provisions of this
note or the Credit Agreement shall ever be construed to create a contract to pay
to the Lender, for the use, forbearance or detention of money, interest in
excess of the maximum amount of interest permitted to be charged by the Lender
to the undersigned under applicable state or federal law from time to time in
effect, and the undersigned shall never be required to pay interest in excess of
such maximum amount. If, for any reason, interest is paid hereon in excess of
such maximum amount (whether as a result of the payment of this note prior to
its maturity or otherwise), then promptly upon any determination that such
excess has been paid the Lender will, at its option, either refund such excess
to the undersigned or apply such excess to the principal owing hereunder. All
interest paid shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full period of the Company's
credit relationship with the Lender until payment in full of the principal
(including the period of any renewal or extension) so that the interest for such
full period shall not exceed the maximum rate of interest permitted by
applicable law.]**

                                                    DHI MORTGAGE COMPANY, LTD.,
                                                    (FORMERLY KNOWN AS CH
                                                    MORTGAGE COMPANY I, LTD.)

                                                    By: DHI Mortgage Company GP,
                                                    Inc., (formerly known as CH
                                                    Mortgage Company GP, Inc.),
                                                    its General Partner

                                                    By__________________________
                                                      Its_______________________

* Include in Note payable to U.S. Bank.

** Include in Notes payable to Lenders headquartered in the State of Texas.

                                      E-71
<PAGE>

                                                                    EXHIBIT B TO
                                                                CREDIT AGREEMENT

                             FORM OF CONFIRMATION OF
                          BORROWING/PAYDOWN/CONVERSION

                          [On the Company's Letterhead]

                                     [Date]

U.S. Bank National Association, as Agent
800 Nicollet Mall
Minneapolis, Minnesota  55402
Attention: Mortgage Banking Services Division BC-MN-HO3B

         Re: Confirmation of Borrowing/Paydown/Conversion

Ladies and Gentlemen:

                  Reference is made to the Credit Agreement dated as of April 9,
2004 (as said Agreement may be amended, supplemented or restated from time to
time, the "Credit Agreement"), between DHI Mortgage Company, Ltd. (the
"Company"), the Lenders party thereto and U.S. Bank National Association ("U.S.
Bank") as Agent for the Lenders (in such capacity, the "Agent"). Each
capitalized term used herein shall have the meaning ascribed to such term in the
Credit Agreement.

                  The Company and the undersigned hereby confirm and certify to
the Agent as follows:

                  1. The undersigned is authorized to submit this Confirmation
of Borrowing/Paydown/Conversion on behalf of the Company.

                  2. On _________, ______, the Company (a) requested the Lenders
to make Loans in the aggregate principal amount of $ _________, (b) requested
U.S. Bank to make a Swingline Loan in the aggregate principal amount of $
_________, (c) made principal payments on outstanding Loans in the aggregate
amount of $ _______, or(d) converted outstanding Advances to outstanding
Advances of another type,* as follows:

----------
*    For purposes of this Certificate, Advances being converted shall be
     described as principal payments, and the new Advances into which such
     Advances are being converted shall be described as new Advances.

                                      E-72
<PAGE>

<TABLE>
<CAPTION>
                                                                      Balance
                  Prime Rate              LIBOR Rate                Funded Rate
                  ----------              ----------                -----------
<S>               <C>                     <C>                       <C>
Advance           $_________              $_________                $_________
Payment           $_________              $_________                $_________
Net Amount
Outstanding       $_________              $_________                $_________
Interest Rate      _________%              _________%                _________%
</TABLE>

                  3. In connection with any requested Loans or Swingline Loans,
please disburse $_______________as follows [include wire instructions]:

                  4. In connection with any requested Loans or Swingline Loans:
(a) no Event of Default or Unmatured Event of Default has occurred or will exist
upon the making of any such Loans or Swingline Loans; (b) the representations
and warranties contained in Article IV of the Credit Agreement and in Section 5
of the Security Agreement are true and correct in all material respects with the
same force and effect as if made on and as of the date hereof; and (c) after
giving effect to the Loans or Swingline Loans requested herein, the sum of the
outstanding principal balance under the Notes shall not exceed the Borrowing
Base or the Aggregate Commitment Amounts.

                                                     Very truly yours,

                                                     DHI MORTGAGE COMPANY, LTD.

                                                     By_________________________
                                                       Its______________________

                                      E-73
<PAGE>

                                                                    EXHIBIT C TO
                                                                CREDIT AGREEMENT

                                     FORM OF
                           BORROWING BASE CERTIFICATE

                          [On the Company's Letterhead]

U.S. Bank National Association, as Agent
800 Nicollet Mall
Minneapolis, Minnesota 55402
Attention:  Mortgage Banking Services Division BC-MN-HO3B

Ladies and Gentlemen:

We submit this certificate to you in accordance with the terms of the Amended
and Restated Credit Agreement dated as of April 9, 2004 (as the same may be
amended, supplemented or restated from time to time, the "Credit Agreement")
between DHI Mortgage Company , Ltd., the lenders party thereto (the "Lenders")
and U.S. Bank National Association, as Agent for the Lenders (in such capacity,
the "Agent"). Each capitalized term used herein and not defined herein has the
same meaning ascribed to such term in the Credit Agreement or the Security
Agreement.

The undersigned hereby certifies the following as of the close of business on
_____________, ______, the Borrowing Base was calculated as follows:

                                Collateral Value

(a) Pledged Mortgage Loans                                          $___________

              Conforming Mortgage Loans            $___________

              Nonconforming Mortgage Loans         $___________

              Jumbo Mortgage Loans                 $___________

              HELOC Mortgage Loans                 $___________

Less:

(b) Pledged Mortgage Loans with No
    Collateral Value (i.e., not
    Eligible Mortgage Loans)                                        $___________
      Conforming Mortgage Loans and Jumbo
      Mortgage Loans - 120 days or more since
      origination or acquisition;

                                      E-74
<PAGE>

         Nonconforming Mortgage Loans
         90 days or more since origination or
         acquisition; and bond program

         loans - 180 days or more since
         origination or acquisition $___________

         Jumbo Mortgage Loans - 120 days
         or more since origination or
         acquisition                $___________

         Nonconforming Mortgage Loans - 90 days or
         more since origination or acquisition $___________

       Pledged more than 90 days                                    $___________

       Promissory Note and/or Collateral Documents
         not returned or purchased by an Investor

       (45 days/75 days for bond program loans)                     $___________

       Collateral Document not returned (21 days)                   $___________

       In default (one full reporting period)                       $___________
         Requested documents not delivered
         (5 Business Days) $___________

         Promissory Note and/or Collateral Documents
         not delivered (wet funding
         loans; 7 Business Days) $___________

       Wet funding loans in excess of sublimit                      $___________

       Wet funding loans not closed                                 $___________

         Jumbo Mortgage Loans in excess
         of applicable sublimit $___________

         Nonconforming Mortgage Loans in excess
         of applicable sublimit $___________

         HELOC Mortgage Loans in excess of
         applicable sublimit $________

       Not marketable                                               $___________

                                      E-75
<PAGE>

       Agent does not have perfected, first
       priority security interest                                   $___________

       Other ineligible                                             $___________

(c)    Eligible Mortgage Loans ((a) - (b))                          $___________

(d)    2% of (c)                                                    $___________

(e)    Total Collateral Value (Borrowing Base)
       ((c) minus (d))                                              $___________

              Attached hereto is a schedule of the "Pledged Mortgage Loans" (as
defined in the Security Agreement) that have no Collateral Value at the date
hereof.

Dated:  ___________, 20__

                                                     DHI MORTGAGE COMPANY, LTD.

                                                     By ________________________
                                                     Its _______________________

                                      E-76
<PAGE>

                                                                    EXHIBIT D TO
                                                                CREDIT AGREEMENT

                                     FORM OF
                             COMPLIANCE CERTIFICATE

                          [On the Company's Letterhead]

U.S. Bank National Association, as Agent
800 Nicollet Mall
Minneapolis, Minnesota 55402
Attention: Mortgage Banking Services
Division BC-MN-HO3B

Ladies and Gentlemen:

                  We submit this certificate to you in accordance with the terms
of the Amended and Restated Credit Agreement dated as of April 9, 2004 (as the
same may be amended, supplemented or restated from time to time, the "Credit
Agreement") between DHI Mortgage Company, Ltd., the lenders party thereto (the
"Lenders") and U.S. Bank National Association, as Agent for the Lenders (in such
capacity, the "Agent"). Each capitalized term used herein and not defined herein
has the same meaning ascribed to such term in the Credit Agreement.

                  The undersigned hereby certifies the following as of the close
of business on___________ , __________, the Company's compliance and/or
noncompliance with Sections 6.12, 6.13, 6.14 and 6.15 of the Credit Agreement
was as follows:

<TABLE>
<CAPTION>
                                                                   Actual (or in
Financial Covenants                    Required Compliance
-------------------                    -------------------
<S>                                    <C>                         <C>
1)       Distributions                 not more than
         (6.12)                        profit (rolling
                                       four quarters)              $________

2)       Tangible Net
         Worth (6.13)                  $45,000,000                 $________

3)       Tangible Net
         Worth Ratio (6.14)
         not more than 12.0 to 1.0                                 ____ to 1.0

4)       Net Income (6.15)             not less than $1.00         $________
</TABLE>

The undersigned further certifies as follows:

                                      E-77
<PAGE>

(a)      The undersigned is the duly elected President, Chief Financial Officer
         or Controller of the General Partner of the Company.

(b)      The undersigned has reviewed the terms of the Credit Agreement and has
         made, or has caused to be made under the supervision of the
         undersigned, a detailed review of the transactions and conditions of
         the Company during the accounting period covered by this Certificate;
         and

(c)      These examinations did not disclose, and the undersigned has no
         knowledge, whether arising out of such examinations or otherwise, of
         the existence of any condition or event that constitutes an Event of
         Default or a Default during or at the end of the accounting period
         covered by this Certificate, except as described in a separate
         attachment to this Certificate, the exceptions listing, in detail, the
         nature of the condition or event, the period during which it has
         existed and the action that the Company has taken, is taking, or
         proposes to take with respect to each such condition or event.

Dated:  ________, _____

                                                     DHI MORTGAGE COMPANY, LTD.

                                                     By_________________________
                                                     Its _______________________

                                      E-78
<PAGE>

                                                                    EXHIBIT E TO
                                           AMENDED AND RESTATED CREDIT AGREEMENT

                                     FORM OF
                                JOINDER AGREEMENT

         This Joinder Agreement dated as of ______________ is made by
_______________ (the "New Co-Borrower"), a _____________ corporation, in favor
of the Agent and the Lenders party to that certain Amended and Restated Credit
Agreement dated as of April 9, 2004, as amended (the "Credit Agreement"), by and
between DHI MORTGAGE COMPANY, LTD., a Texas limited partnership (the "Company"),
the "Co-Borrowers" (as defined therein), if any, party thereto, the lenders
which are parties thereto (individually, a "Lender" and, collectively, the
"Lenders") and U.S. BANK NATIONAL ASSOCIATION, a national banking association,
one of the Lenders, as agent for the Lenders (in such capacity, the "Agent"),
and that certain Amended and Restated Pledge and Security Agreement dated as of
April 9, 2004, as amended (the "Pledge and Security Agreement"), by and between
the Company and the Co-Borrowers, if any, and the Agent. Capitalized terms used
in this Joinder Agreement, but not otherwise defined, shall have the meanings
ascribed to them in the Credit Agreement and the Pledge and Security Agreement,
as applicable.

         WHEREAS, pursuant to the Credit Agreement, the Company desires that New
Co-Borrower become a "Co-Borrower" under the Credit Agreement and the Pledge and
Security Agreement, to borrow up to $__________ at any time outstanding to
finance Mortgage Loans to be originated or acquired by New Co-Borrower, and to
execute and deliver to the Agent such Loan Documents as the Agent may require,
including without limitation such financing statements and other instruments,
agreements and documents as may be necessary to create in favor of the Agent a
valid and perfected first priority security interest in the Collateral described
in the Pledge and Security Agreement; and

         WHEREAS, as a Co-Borrower, the New Co-Borrower will have all the rights
and obligations of a Co-Borrower under the Credit Agreement and under the Pledge
and Security Agreement.

         NOW THEREFORE, for and in consideration of the mutual covenants,
conditions, stipulations and agreements set forth in the Credit Agreement and
the Pledge and Security Agreement, and other valuable consideration, the receipt
of which is hereby acknowledged, the undersigned hereby consents and agrees as
follows:

         1. Assumptions. The New Co-Borrower hereby assumes and agrees to
perform all of the terms, restrictions, obligations and conditions of a
Co-Borrower under the Credit Agreement and the Pledge and Security Agreement. By
execution of this Joinder Agreement, the New Co-Borrower is hereby designated a
"Co-Borrower" for purposes of, and agrees to be

                                      E-79
<PAGE>

bound by, each and all terms of the Credit Agreement, the Pledge and Security
Agreement, the Notes and the other Loan Documents.

         2. Security. As collateral security for the due and punctual payment of
the Obligations, the New Co-Borrower does hereby pledge, hypothecate, assign,
transfer and convey to the Agent, for the benefit of the Lenders, and grants to
the Agent, for the benefit of the Lenders, a security interest in and to the
following described property (the "Collateral"):

                  (a) all right, title and interest of the New Co-Borrower in
         and to the Pledged Mortgage Loans and Related Mortgage-backed
         Securities and all promissory notes, participation agreements,
         participation certificates, or other instruments or agreements which
         evidence the Pledged Mortgage Loans and Related Mortgage-backed
         Securities;

                  (b) all right, title and interest of the New Co-Borrower in
         and to all Mortgage Notes, Mortgages and other notes, real estate
         mortgages, deeds of trust, security agreements, chattel mortgages,
         assignments of rent and other security instruments whether now or
         hereafter owned, acquired or held by the New Co-Borrower which evidence
         or secure (or constitute collateral for any note, instrument or
         agreement securing) any of the Pledged Mortgage Loans;

                  (c) all right, title and interest of the New Co-Borrower under
         all agreements between the New Co-Borrower and Persons other than the
         New Co-Borrower pursuant to which the New Co-Borrower undertakes to
         service Mortgage Loans which are related to Mortgage Notes described in
         paragraph (b) above, including without limitation the rights of the New
         Co-Borrower to income and reimbursement thereunder.

                  (d) all right, title and interest of the New Co-Borrower in
         and to all financing statements perfecting the security interest of any
         of the Pledged Mortgage Loans or property securing any Pledged Mortgage
         Loan;

                  (e) all right, title and interest of the New Co-Borrower in
         and to all guaranties and other instruments by which the persons or
         entities executing the same guarantee, among other things, the payment
         or performance of the Pledged Mortgage Loans;

                  (f) all right, title and interest of the New Co-Borrower in
         and to all title insurance policies, title insurance binders,
         commitments or reports insuring or relating to any Pledged Mortgage
         Loan or property securing any Pledged Mortgage Loan;

                  (g) all right, title and interest of the New Co-Borrower in
         and to all surveys, bonds, hazard and liability insurance policies,
         participation agreements and any other agreement, instrument or
         document pertaining to, affecting, obtained by the Borrower in
         connection with, or arising out of, the Pledged Mortgage Loans;

                                      E-80
<PAGE>

                  (h) all right, title and interest of the New Co-Borrower in
         and to all Take-Out Commitments and other agreements to purchase any
         Pledged Mortgage Loans or Related Mortgage-backed Securities;

                  (i) all right, title and interest of the New Co-Borrower in
         and to all collections on, and proceeds of or from, any and all of the
         foregoing (hereinafter collectively called "Collections");

                  (j) all right, title and interest of the Borrower in and to
         any other asset of the New Co-Borrower which has been or hereafter at
         any time is delivered to the Agent hereunder;

                  (k) all files, surveys, certificates, correspondence,
         appraisals, computer programs, tapes, discs, cards, accounting records,
         and other records, information, and data of the New Co-Borrower
         relating to the Pledged Mortgage Loans and Related Mortgage-backed
         Securities (including all information, data, programs, tapes, discs and
         cards necessary to administer and service the Pledged Mortgage Loans
         and Related Mortgage-backed Securities);

                  (l) all private mortgage insurance, FHA insurance and VA
         guaranties relating to any Pledged Mortgage Loans and the proceeds of
         any such insurance and guaranties; and

                  (m) any and all balances, credits, deposits, accounts or
         moneys of, or in the name of, the New Co-Borrower representing or
         evidencing the foregoing or any proceeds thereof, and any and all
         proceeds of any of the foregoing.

         3. Representations and Warranties. The New Co-Borrower represents to
the Agent and the Lenders that as of the date hereof all of the representations
and warranties set forth in the Credit Agreement applicable to the Co-Borrowers
are true with respect to the New Co-Borrower.

         4. Authorization. The New Co-Borrower hereby authorizes the Company, on
its behalf, to execute and deliver subsequent Joinder Agreements, Notes and
amendments to the Loan Documents on its behalf, as and to the extent provided in
the Credit Agreement.

         5. Company Fee. As consideration for the Company's execution and
delivery of this Joinder Agreement and the credit to be extended to the New
Co-Borrower pursuant to the Credit Agreement, the New Co-Borrower hereby agrees
to pay to the Company, on or before the date the same becomes due to the Agent
under the Credit Agreement, all principal and interest due on Loans and
Swingline Loans made to enable the New Co-Borrower to originate or acquire
Mortgage Loans, all fees, costs and expenses relating to such Loans and
Swingline Loans and the New Co-Borrower's performance or non-performance of its
Obligations under the Credit Agreement, and a fee (the "Credit Fee") in an
amount equal to ___% per annum on the average outstanding principal amount of
such Loans and Swingline Loans during each month. The Credit Fee is payable with
interest on such Loans and Swingline Loans for each month.

                                      E-81
<PAGE>

         6. Notices. The New Co-Borrower hereby acknowledges and confirms that
neither the Agent nor any Lender shall be obligated to provide the New
Co-Borrrower with any notices under the Loan Documents. Any notice or request
required or permitted to be given to the New Co-Borrower under or in connection
with the Credit Agreement, the Notes or the other Loan Documents shall be
provided as set forth in Section 10.01 of the Credit Agreement to the following
address:

                  ______________________________
                  ______________________________
                  ______________________________
                  Attention:  __________________
                  Telephone: (___) ____-________
                  Telecopier: (___) ____-_______

or at such other addresses or to such individual's or department's attention as
the New Co-Borrower may have furnished to the Agent and the Company in writing.

         7. Governing Law and Construction. THE VALIDITY, CONSTRUCTION AND
ENFORCEABILITY OF THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES
THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS OF THE UNITED STATES APPLICABLE TO
NATIONAL BANKS. Whenever possible, each provision of this Agreement and any
other statement, instrument or transaction contemplated hereby or thereby or
relating hereto or thereto shall be interpreted in such manner as to be
effective and valid under such applicable law, but, if any provision of this
Agreement or any other statement, instrument or transaction contemplated hereby
or thereby or relating hereto or thereto shall be held to be prohibited or
invalid under such applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Agreement or any other
statement, instrument or transaction contemplated hereby or thereby or relating
hereto or thereto.

         8. Waiver of Jury Trial. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT.

         9. Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

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

                                      E-82
<PAGE>

NEW CO-BORROWER:                               [                           ]

                                               By:__________________________
                                                  Its: ___________________

COMPANY:                                       DHI MORTGAGE COMPANY, LTD.
                                               By: DHI Mortgage Company GP,
                                               Inc., its General Partner

                                               By___________________________
                                                  Its:  ___________________

AGENT:                                         U.S. BANK NATIONAL ASSOCIATION,
                                               as Agent

                                               By:__________________________
                                                  Its: ____________________

                                      E-83
<PAGE>

               EXHIBIT F TO AMENDED AND RESTATED CREDIT AGREEMENT

               AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

         This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT ("Agreement"),
dated as of April 9, 2004, by and between DHI MORTGAGE COMPANY, LTD., a Texas
limited partnership (formerly known as CH Mortgage Company I, Ltd) (the
"Company" and also a "Borrower"), and U. S. BANK NATIONAL ASSOCIATION, a
national banking association, as agent for the "Lenders" (as defined below)
(together with any successor agent under the Credit Agreement referred to below,
the "Agent").

                                    RECITALS:

         A. The Company, the lenders party thereto (together with any lender
that subsequently becomes a party to the Credit Agreement, the "Lenders"), and
the Agent have entered into an Amended and Restated Credit Agreement dated as of
April 9, 2004 (as the same may be amended or modified from time to time, the
"Credit Agreement"), pursuant to which the Lenders have agreed to provide
certain credit facilities to the Borrower.

         B. It is a condition precedent to the effectiveness of the Credit
Agreement and the Lenders' obligations to extend the various credit
accommodations thereunder that this Agreement be executed and delivered by the
Borrower, which condition precedent the Lenders have not waived and will not
waive.

         C. The Borrower finds it advantageous, desirable and in the Borrower's
best interest to comply with the requirement that it execute and deliver this
Agreement.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein contained and in order to induce the Lenders to become parties
to, and to extend credit under, the Credit Agreement, the parties hereto agree
as follows:

         Section 1. DEFINITIONS

                  Each capitalized term used herein which is not otherwise
defined herein shall have the meaning ascribed to such term in the Credit
Agreement, including Exhibits C and E thereto. In addition, the following terms
shall have the following respective meanings:

                  "Agreement to Pledge": an agreement to pledge substantially in
         the form of Attachment 1 hereto.

                  "Bailee Letter": a letter substantially in the form of
         Attachment 2 hereto.

                  "Borrower": the Company and each Person that becomes a
         Co-Borrower under the Credit Agreement. When used herein the term
         Borrower shall mean the Borrowers, each Borrower or the applicable
         Borrower, as the context may require.

                                      E-84
<PAGE>

                  "Closing Agent": with respect to any Mortgage Loan, the title
         company or other Person performing the functions of a title company in
         connection with the closing of such Mortgage Loan.

                  "Collateral": as defined in Section 2 hereof.

                  "Collections": as defined in Section 2(h) hereof.

                  "Electronic Tracking Agreement" means that certain Electronic
         Tracking Agreement dated as of July 24, 2003, among the Company, the
         Agent, MERS, and MERSCORP and as the same may be amended or modified
         from time to time.

                  "Fannie Mae Security": a Mortgage-backed Security guaranteed
         or issued by Fannie Mae.

                  "FIRREA Qualifying Appraisal": with respect to any Pledged
         Mortgage Loan, an appraisal of the real estate securing such Pledged
         Mortgage Loan which meets the requirements of the applicable appraisal
         regulations under Title XI of the Financial Institutions Reform,
         Recovery and Enforcement Act of 1989, including, without limitation,
         the appraisal regulations applicable to mortgage warehousing loans (but
         if said regulations do not require an appraisal with respect to a
         Pledged Mortgage Loan, then no appraisal shall be required with respect
         thereto hereunder).

                  "Freddie Mac Security": a Mortgage-backed Security guaranteed
         or issued by Freddie Mac.

                  "Ginnie Mae Security": a Mortgage-backed Security guaranteed
         by Ginnie Mae.

                  "Good Funds Wire Clearing Account": as defined in the Credit
         Agreement.

                  "Loan Detail Listing": a loan detail listing substantially in
         the form of Attachment 3(b) hereto or the fields of information set
         forth in Attachment 3(a) hereto as electronically transmitted to the
         Agent and reproduced by the Agent from such transmission.

                  "MERS": Mortgage Electronic Registration Systems, Inc.

                  "MERS Agreements": The Electronic Tracking Agreement and any
         other agreement, document or instrument setting forth the terms of or
         otherwise affecting the MERS System and the Company's membership in
         MERSCORP.

                  "MERSCORP": MERSCORP, Inc.

                                      E-85
<PAGE>

                  "MERS System": shall mean MERSCORP's mortgage electronic
         registry system, as more particularly described in the MERS Procedures
         Manual in the form attached to the Electronic Tracking Agreement, as
         amended from time to time.

                  "Obligor": a person or other entity who now or hereafter is or
         becomes liable to the Borrower with respect to any of the Collateral.

                  "Pledged Mortgage Loans": Mortgage Loans deemed to have been
         delivered to the Agent as provided in Section 4.01 hereof and Mortgage
         Loans delivered to the Agent as provided in Section 4.02 hereof.

                  "Related Mortgage-backed Security": a Mortgage-backed Security
         that represents an interest in, or is secured by, any Mortgage Loans
         that were Pledged Mortgage Loans at the time of formation of the
         related pool, whether certificated or uncertificated.

                  "Transmittal Letter": a transmittal letter substantially in
         the form of Attachment 4 hereto.

                  "Trust Receipt": a trust receipt substantially in the form of
         Attachment 5 hereto.

                                      E-86
<PAGE>

         Section 2. PLEDGE

                  As collateral security for the due and punctual payment of the
Obligations, the Borrower does hereby pledge, hypothecate, assign, transfer and
convey to the Agent, for the benefit of the Lenders, and grants to the Agent,
for the benefit of the Lenders, a security interest in and to the following
described property (the "Collateral"):

                  (a) all right, title and interest of the Borrower in and to
         the Pledged Mortgage Loans and Related Mortgage-backed Securities and
         all promissory notes, participation agreements, participation
         certificates, or other instruments or agreements which evidence the
         Pledged Mortgage Loans and Related Mortgage-backed Securities;

                  (b) all right, title and interest of the Borrower in and to
         all Mortgage Notes, Mortgages and other notes, real estate mortgages,
         deeds of trust, security agreements, chattel mortgages, assignments of
         rent and other security instruments whether now or hereafter owned,
         acquired or held by the Borrower which evidence or secure (or
         constitute collateral for any note, instrument or agreement securing)
         any of the Pledged Mortgage Loans;

                  (c) all right, title and interest of the Borrower under all
         agreements between the Borrower and Persons other than the Borrower
         pursuant to which the Borrower undertakes to service Mortgage Loans
         which are related to Mortgage Notes described in paragraph (b) above,
         including without limitation the rights of the Borrower to income and
         reimbursement thereunder.

                  (d) all right, title and interest of the Borrower in and to
         all financing statements perfecting the security interest of any of the
         Pledged Mortgage Loans or property securing any Pledged Mortgage Loan;

                  (e) all right, title and interest of the Borrower in and to
         all guaranties and other instruments by which the persons or entities
         executing the same guarantee, among other things, the payment or
         performance of the Pledged Mortgage Loans;

                  (f) all right, title and interest of the Borrower in and to
         all title insurance policies, title insurance binders, commitments or
         reports insuring or relating to any Pledged Mortgage Loan or property
         securing any Pledged Mortgage Loan;

                  (g) all right, title and interest of the Borrower in and to
         all surveys, bonds, hazard and liability insurance policies,
         participation agreements and any other agreement, instrument or
         document pertaining to, affecting, obtained by the Borrower in
         connection with, or arising out of, the Pledged Mortgage Loans;

                  (h) all right, title and interest of the Borrower in and to
         all Take-Out Commitments and other agreements to purchase any Pledged
         Mortgage Loans or Related Mortgage-backed Securities;

                                      E-87
<PAGE>

                  (i) all right, title and interest of the Borrower in and to
         all collections on, and proceeds of or from, any and all of the
         foregoing (hereinafter collectively called "Collections");

                  (j) all right, title and interest of each Borrower in and to
         any other asset of the Borrower which has been or hereafter at any time
         is delivered to the Agent hereunder;

                  (k) all files, surveys, certificates, correspondence,
         appraisals, computer programs, tapes, discs, cards, accounting records,
         and other records, information, and data of each Borrower relating to
         the Pledged Mortgage Loans and Related Mortgage-backed Securities
         (including all information, data, programs, tapes, discs and cards
         necessary to administer and service the Pledged Mortgage Loans and
         Related Mortgage-backed Securities);

                  (l) all balances, credits and deposits of each Borrower
         contained in the Funding and Settlement Account;

                  (m) all private mortgage insurance, FHA insurance and VA
         guaranties relating to any Pledged Mortgage Loans and the proceeds of
         any such insurance and guaranties; and

                  (n) any and all balances, credits, deposits, accounts or
         moneys of, or in the name of, each Borrower representing or evidencing
         the foregoing or any proceeds thereof, and any and all proceeds of any
         of the foregoing.

         Section 3. REPORTS CONCERNING EXISTING COLLATERAL AND HEREAFTER
ACQUIRED COLLATERAL; ELECTRONIC REPORTING. From time to time hereafter as
reasonably requested by the Agent, the Company will promptly give a written
report to the Agent describing and listing each document, instrument or other
paper which evidences, secures, guarantees, insures or pertains to any item of
the Collateral whether now or hereafter owned, acquired or held by the
Borrowers. Such written report shall contain sufficient information to enable
the Agent to identify each such document, instrument or other paper. The Company
(a) upon the request of the Agent, shall promptly provide additional information
concerning, or a more complete description of, each such document, instrument or
other paper and (b) at the request of the Agent, shall promptly deliver the same
to the Agent. The Co-Borrowers shall, at the request of the Company, cooperate
with the Company in complying with the requirements of this Section 3. The
Company may execute and deliver to the Agent the U.S. Bank Mortgage Banking
Services Division WEB Authorization Form including the Terms of the U.S. Bank
Mortgage Banking Services Division Internet Based Services as incorporated
therein (the "WEB Authorization Form") and thus use U.S. Bank Mortgage Banking
Services Division internet based services for reporting and transmitting
information and documents to the Agent in conformance with the terms of the WEB
Authorization Form. Notwithstanding the provisions of this Agreement that
require a specific form for submission of reports or transmission of information
or documents to the Agent, the Company may submit such reports and transmit such
information or

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documents electronically as allowed under the WEB Authorization Form and such
reports so submitted and information and documents so transmitted shall satisfy
the applicable requirements of this Agreement.

         Section 4. DELIVERY OF COLLATERAL DOCUMENTS

                         4.01 Delivery of Mortgage Loans. A Mortgage Loan shall
         be deemed to have been delivered and pledged to the Agent, for the
         benefit of the Lenders, under this Pledge and Security Agreement when:

                         (a) the Agent has received, with respect to such
                  Mortgage Loan, (i) an Agreement to Pledge, duly completed and
                  executed by the Borrower, and (ii) a Loan Detail Listing, duly
                  completed; and

                         (b) either

                                    (i) a wire transfer of funds from the Good
                         Funds Wire Clearing Account has been initiated for the
                         purpose of funding the origination or purchase of such
                         Mortgage Loan or funds have been deposited by the Agent
                         into the Operating Account upon confirmation of
                         delivery of wire to title company, closing agent or
                         loan seller;

                                    (ii) a draft drawn upon the Agent for the
                         purpose of funding the origination or purchase of such
                         Mortgage Loan has been received by the Agent and has
                         cleared the Agent's payment process; or

                                    (iii) a check or draft drawn upon the Agent
                         for the purpose of funding the origination or purchase
                         of such Mortgage Loan has been accepted by the Agent,
                         or the Agent has otherwise assured payment thereof.

         The documents referred to in clause (a) of the preceding sentence shall
         be transmitted to the Agent by telecopier or electronic data
         transmission not later than (A) 1:00 P.M. (Minneapolis time) on the
         applicable Borrowing Date if such Mortgage Loan is to be financed from
         proceeds of Loans and (B) 3:00 P.M. (Minneapolis time) on the
         applicable Borrowing Date if such Mortgage Loan is to be financed from
         proceeds of a Swingline Loan, and the originally executed copies of
         such documents shall be delivered to the Agent by courier on the
         following Business Day.

                         4.02 Delivery of Pledged Mortgage Loan Documentation.
         The Borrower shall deliver to the Agent, for the benefit of the
         Lenders, with respect to each Pledged Mortgage Loan, the following
         described instruments and documents within seven Business Days after
         the Borrowing Date on which the applicable

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         Loans or Swingline Loans were made for the purpose of funding such
         Mortgage Loan:

                         (a) the original Mortgage Note evidencing such Pledged
                  Mortgage Loan, duly endorsed in blank as follows:

                                             "Pay to the order of,

                                             _________________________________,
                                             without recourse

                                             DHI MORTGAGE COMPANY, LTD.
                                             (or as listed on Attachment 6)

                                             By: DHI MORTGAGE COMPANY GP, INC.
                                                    Its General Partner

                                             By________________________________
                                             Name______________________________
                                             Title_____________________________"

                         (b) a copy of the Mortgage securing such Pledged
                  Mortgage Loan, certified by the Closing Agent or the Borrower
                  to be a true and exact copy of the original Mortgage as
                  submitted for recording;

                         (c) a duly executed appropriate assignment of said
                  Pledged Mortgage Loan (other than any Pledged Mortgage Loan
                  (i) which is registered on the MERS System under the
                  Electronic Tracking Agreement and (ii) for which the Borrower
                  has not withdrawn or re-registered such Pledged Mortgage Loan
                  on the MERS System as set forth in the Electronic Tracking
                  Agreement) in blank and in recordable form.

                         (d) if there are any intermediate assignments of said
                  Mortgage, two copies of each such assignment, certified by the
                  Closing Agent or the Borrower to be a true and exact copy of
                  the original thereof as submitted for recording;

                         (e) if any of the foregoing documents was executed on
                  behalf of a party thereto by another Person under a power of
                  attorney, a copy of the original executed copy of such power
                  of attorney, certified by the Closing Agent to be a true and
                  exact copy of the original thereof; and

                         (f) a Transmittal Letter listing all documents being
                  delivered to the Agent.

                         The Agent's responsibility for reviewing the documents
         delivered to it pursuant to this Section 4.02 is limited to the
         following steps:

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                                    (i) determining that all submitted
                           documents, including the Transmittal Letter and the
                           Loan Detail Listing, appear to be consistent as to
                           borrower name, loan face amount, loan type (FHA, VA,
                           or conventional; fixed rate or adjustable rate) and
                           the Borrower's loan number;

                                    (ii) determining that the Mortgage Note and
                           Mortgage each bears an original signature or
                           signatures which appear to be those of the person or
                           persons named as the Obligor(s), or, in the case of a
                           certified copy of the Mortgage (which certification
                           shall be by either the closing agent or the
                           Borrower), such copy bears what appears to be a
                           reproduction of such signature or signatures;

                                    (iii) except for (a) the endorsement to the
                           Borrower of the Mortgage Note in the event such
                           Mortgage Loan was purchased by the Borrower and (b)
                           the endorsement in blank of the Mortgage Note by the
                           Borrower, determining that neither the Mortgage Note,
                           the Mortgage, nor the assignment(s) of the Mortgage
                           contain any irregular writings which appear on their
                           face to affect the validity of any such endorsement
                           or to restrict the enforceability of the document on
                           which they appear;

                                    (iv) determining that the Mortgage Note is
                           endorsed in blank, without recourse, and such
                           endorsement appears to bear an original signature of
                           an authorized officer of the Borrower, based on the
                           current list of such officers supplied by the
                           Borrower; and

                                    (v) determining that the assignment of the
                           Mortgage (if such assignment is required under
                           Section 4.02(c) hereof), which shall be in blank,
                           appears to bear an original signature of an
                           authorized officer of the applicable Borrower, acting
                           either for a Borrower or for MERS, based on the
                           current list of such officers supplied by the
                           Borrower.

                  4.03 Delivery of Additional Mortgage Loan Documents Upon
Request. Within five Business Days after receiving a written request from the
Agent to deliver the same with respect to any Pledged Mortgage Loan, the
Borrower shall deliver to the Agent the following:

                  (a) All original guaranties, assignments of rents and other
         instruments and documents relating to security for and payment of such
         Pledged Mortgage Loan, together with duly executed assignments thereof;

                  (b) A mortgagee's title insurance policy (or commitment
         therefor) in the form of an American Land Title Association standard
         policy (revised coverage, most recent form) from a substantial and
         reputable title insurance company acceptable to Fannie Mae and Freddie
         Mac in favor of the Borrower insuring the

                                      E-91
<PAGE>

         lien of the Mortgage securing such Pledged Mortgage Loan (subject only
         to such liens and encumbrances as are generally acceptable to reputable
         lending institutions, mortgage investors and securities dealers) or, if
         such a mortgagee's title policy (or commitment therefor) is generally
         not available in the state in which the real property subject to such
         Mortgage is located, an opinion of an attorney reasonably acceptable to
         the Agent to the effect that the Mortgage securing such Pledged
         Mortgage Loan is a valid first lien free and clear of all other liens,
         encumbrances and restrictions except such as are generally acceptable
         to reputable lending institutions, mortgage investors and securities
         dealers;

                  (c) Evidence satisfactory to the Agent that the premises
         covered by the Mortgage securing such Pledged Mortgage Loan is insured
         against fire and perils of extended coverage for an amount at least
         equal to the lesser of (i) the greater of 80% of the full insurable
         value of such premises and the outstanding principal balance of such
         Pledged Mortgage Loan or (ii) the full replacement cost of such
         premises;

                  (d) With respect to each Pledged Mortgage Loan and each
         Related Mortgage-backed Security, copies of the applicable Take-Out
         Commitment and all documents and instruments called for thereunder,
         together with a certificate signed by an officer of the Borrower that,
         as of the date of delivery thereof, such Pledged Mortgage Loan or
         Related Mortgage-backed Security, as the case may be, and all
         documentation therefor satisfies all requirements and conditions of the
         applicable Take-Out Commitment;

                  (e) With respect to each Pledged Mortgage Loan secured by a
         Mortgage which is insured by the FHA or guaranteed by the VA, a
         certificate signed by an officer of the Borrower that, as of the date
         of delivery thereof, the Borrower either has possession of the
         applicable FHA insurance certificate or VA guarantee covering such
         Pledged Mortgage Loan, or has complied with all requirements and
         conditions for obtaining possession of such applicable FHA insurance
         certificate or VA guarantee;

                  (f) Originals, or photocopies, as the Agent may request, of
         surveys (or plat maps, if surveys are not available) and all other
         instruments, documents and other papers pertaining to each such Pledged
         Mortgage Loan which are in the possession or control of the Borrower or
         which the Borrower has the right to possess or control;

                  (g) The original of each Mortgage referred to in Section
         4.02(b) hereof, together with satisfactory evidence of its recordation,
         or, if the original recorded Mortgage has not been returned to the
         Borrower by the applicable recording officer, a copy of the original
         recorded Mortgage certified as a true and exact copy thereof by the
         applicable recording officer;

                  (h) Evidence satisfactory to the Agent that the Borrower has
         obtained and maintains in its files, as agent for the Agent and the
         Lenders, a FIRREA

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<PAGE>

         Qualifying Appraisal with respect to such Pledged Mortgage Loan, which
         evidence may include, but is not limited to, a copy of such FIRREA
         Qualifying Appraisal certified by the Borrower to be a true and exact
         copy of the original thereof as maintained in the Borrower's files; and

                  (i) copies of all truth-in-lending disclosures as required by
         Regulation Z of the Board of Governors of the Federal Reserve System
         and copies of all disclosures under the Real Estate Settlement
         Procedures Act of 1974, as amended.

                  4.04 Form of Assignments. All assignments executed and
delivered by the Borrower pursuant to this Section 4 shall be in form
satisfactory for recording in the real estate records of the applicable
jurisdiction and in form and substance acceptable to and approved by the Agent.

                  4.05 Effect of Transmittal Letters. Any Transmittal Letter
delivered to the Agent hereunder, together with the documents accompanying such
Transmittal Letter, shall conclusively be presumed to have been delivered to the
Agent on behalf of the Borrower by a person who has been authorized in writing
to do so by the Borrower through its Board of Directors or otherwise.

                  4.06 Endorsement and Delivery of Checks, Etc. The Borrower
will from time to time whenever an Event of Default exists, upon the request of
the Agent, endorse and deliver to the Agent any draft, check, note or other
writing which evidences a right to the payment of money which constitutes
Collateral.

                  4.07 Defects in Collateral Documentation; Loss of Collateral
Value. A Pledged Mortgage Loan which has been delivered to the Agent under this
Pledge and Security Agreement in accordance with Section 4.01 or Section 4.02
hereof shall be and remain Collateral which is subject to the lien and security
interest granted to the Agent under Section 2 hereof until such Pledged Mortgage
Loan is sold to an Investor in accordance with Sections 10.02 and 10.03 hereof
(in which case the proceeds thereof, including, without limitation, any Related
Mortgage-backed Security, shall constitute Collateral) or released pursuant to
Section 10.04 hereof or until this Pledge and Security Agreement terminates in
accordance with Section 19 hereof, notwithstanding (a) any defect in any
document delivered to the Agent pursuant to Section 4.01, 4.02, or 4.03 hereof,
(b) the failure of such Pledged Mortgage Loan to have or continue to have
Collateral Value, as applicable, (c) the failure of the Borrower to make timely
delivery of any document required to be delivered to the Agent under Section
4.02 hereof, (d) the failure of the Borrower to make timely delivery of any
document required to be delivered to the Agent under Section 4.03 hereof, or (e)
any other fact, circumstance, condition or event whatsoever. For purposes of the
preceding sentence, the funding of the origination or purchase of a Pledged
Mortgage Loan from the proceeds of Loans or Swing-Line Loans and/or the
assignment of Collateral Value to such Pledged Mortgage Loan by the Agent shall
be deemed to be conclusive evidence of the delivery of such Pledged Mortgage
Loan under Section 4.01 hereof, notwithstanding any subsequent determination by
the Agent that the documentation delivered for such Pledged Mortgage Loan was
incomplete or defective in any respect or that such Pledged Mortgage Loan should
not

                                      E-93
<PAGE>

have been assigned Collateral Value; provided that, in the exercise of its
reasonable discretion, the Agent may reduce the Collateral Value to zero for any
Pledged Mortgage Loan due to any material defect in any deed, power of attorney
or assignment of mortgage related to such Pledged Mortgage Loan as to which the
Agent has given notice to the Borrower of such material defect, if such material
defect is not corrected within 3 Business Days after such notice from the Agent.

         Section 5. REPRESENTATIONS AND WARRANTIES

                  The Borrower hereby represents and warrants that:

                  (a) all of the representations and warranties set forth in the
         Credit Agreement are true and correct;

                  (b) the Borrower is or will be the legal and equitable owner
         of the Collateral and its interests therein are or will be free and
         clear of all liens, security interests, charges and encumbrances of
         every kind and nature (other than as created hereunder or under
         Take-Out Commitments or under assignments to purchasers under such
         Take-Out Commitments);

                  (c) no financing statement or other evidence of lien covering
         any of the Collateral is or will be on file in any public office other
         than financing statements filed with respect to the Borrower as debtor
         and the Agent as secured party;

                  (d) the Borrower has good right, power and lawful authority to
         pledge, assign and deliver the Collateral in the manner hereby done or
         contemplated;

                  (e) no consent or approval of any governmental body,
         regulatory authority, person, trust, or entity is or will be (i)
         necessary to the validity or enforceability of the rights created
         hereunder or (ii) required prior to the assignment, transfer and
         delivery of any of the Collateral to the Agent;

                  (f) to the Borrower's knowledge, no material dispute, right of
         setoff, counterclaim or defense exists with respect to all or any part
         of the Collateral;

                  (g) this Pledge and Security Agreement constitutes the legal,
         valid and binding obligation of the Borrower enforceable against the
         Borrower and the Collateral in accordance with its terms (subject to
         limitations as to enforceability which might result from bankruptcy,
         reorganization, arrangement, insolvency or other similar laws affecting
         creditors' rights generally);

                  (h) in making and closing each Pledged Mortgage Loan, the
         Borrower has or will have fully complied in all material respects with,
         and all collateral documents delivered with respect to such Pledged
         Mortgage Loan comply or will comply in all material respects with, all
         applicable federal, state and local laws, regulations and rules,
         including, but not limited to, (i) usury laws, (ii) if applicable, the
         Real Estate Settlement Procedures Act of 1974, (iii) if applicable, the
         Equal Credit Opportunity Act, (iv) if applicable, the Federal Truth in
         Lending

                                      E-94
<PAGE>

         Act, (v) if applicable, Regulation Z of the Board of Governors of the
         Federal Reserve System and (vi) all other consumer protection and
         truth-in-lending laws which may apply, and in each case with the
         regulations promulgated in connection therewith, as the same may be
         amended from time to time; and the Borrower shall maintain sufficient
         documentary evidence in its files with respect to such Pledged Mortgage
         Loans to substantiate such compliance;

                  (i) the Borrower has obtained or will obtain prior to the
         delivery of any Mortgage Loan to the Agent in accordance with Section
         4.01 hereof, and will maintain in its files as agent for the Agent and
         the Lenders, a FIRREA Qualifying Appraisal with respect to such
         Mortgage Loan;

                  (j) immediately upon the last to occur of (i) the execution
         and delivery of the Credit Agreement, the Notes and the other Loan
         Documents, (ii) the acquisition by the Borrower of rights in a Mortgage
         Loan funded by a Loan, and (iii) the delivery of a Mortgage Loan to the
         Agent, for the benefit of the Lenders, pursuant to Section 4.01 or
         Section 4.02 hereof, the Agent, for the benefit of the Lenders, will
         have a valid and perfected first priority security interest in such
         Mortgage Loan and in the related Mortgage Note and Mortgage evidencing
         and securing such Mortgage Loan (even if the Agent has not taken
         possession of said Mortgage Note);

                  (k) immediately upon (i) the execution and delivery of the
         Credit Agreement, the Notes and the other Loan Documents, (ii) the
         acquisition by the Borrower of rights in such Collateral and (iii) the
         filing with the Secretary of State of Texas of a financing statement
         showing the Borrower as debtor and the Agent as secured party and
         describing the Collateral, the Agent, for the benefit of the Lenders,
         shall have a valid and perfected first priority security interest in
         the Collateral which is other than as described in clause (j) of this
         Section 5, to the extent that a security interest in such other
         Collateral can be perfected by filing a financing statement;

                  (l) each Pledged Mortgage Loan has been fully advanced and is
         a first or second lien on the premises described therein;

                  (m) each Pledged Mortgage Loan complies with all requirements
         of this Agreement and the Credit Agreement applicable thereto;

                  (n) except as described in the reports provided by the Company
         to the Lenders pursuant to Section 4.01 of the Credit Agreement, or as
         otherwise disclosed to the Agent, there is no monetary default existing
         under any Pledged Mortgage Loan that remains in effect on the date the
         Borrowing Base Certificate for the month in which such default occurred
         is required to be delivered to the Lenders pursuant to the Credit
         Agreement and, to the knowledge of the Company, there is no other
         default existing under any Pledged Mortgage Loan; and

                                      E-95
<PAGE>

                  (o) all Pledged Mortgage Loans secured by properties located
         in special flood hazard areas designated by the Secretary of Housing
         and Urban Development are and shall continue to be covered by flood
         insurance under the National Flood Insurance Program.

         Section 6. POSSESSION OF COLLATERAL; STANDARD OF CARE

                  The Agent shall exercise reasonable care in the custody and
preservation of the Collateral, shall keep the documents delivered to it in
connection with Pledged Mortgage Loans at a facility protected against fire and
shall keep the Collateral separate from similar collateral furnished by third
parties. The Agent shall be deemed to have exercised reasonable care in the
custody and preservation of any of the Collateral in its possession if it takes
such action for that purpose as Borrower requests in writing, but failure of the
Agent to comply with any such request shall not itself be deemed a failure to
exercise reasonable care, and no failure of the Agent to preserve or protect any
rights with respect to such Collateral not so requested by the Borrower shall be
deemed a failure to exercise reasonable care in the custody or preservation of
such Collateral. The Agent shall also be deemed to have exercised reasonable
care in the custody and preservation of any Collateral in its possession if such
Collateral is accorded treatment substantially equal to that which the Agent
accords its own property of like kind. The Agent agrees to maintain its status
as a "Member" of MERSCORP as defined in the MERS Agreements so long as this
Agreement is in effect.

         Section 7. COLLECTIONS ON COLLATERAL BY THE BORROWER; ACCOUNTING

                  Until the Agent gives notice to the Borrower pursuant to the
penultimate sentence of this Section 7 or exercises its rights under Sections 8
or 13, the Borrower shall be entitled to receive all Collections and use the
same in the normal course of business. Upon notice from the Agent to the
Borrower given after the occurrence and during the continuation of an Event of
Default or a Default, the Borrower shall furnish to the Agent not later than the
tenth Business Day after the end of each month a report on all Collections
received during the preceding month and provide the same accounting therefor as
the Borrower customarily furnishes the permanent investors therein, including
with respect to Collections on each Pledged Mortgage Loan: (a) the name of the
Obligor(s), (b) the Borrower's loan number for such Pledged Mortgage Loan, (c)
the current principal balance of such Pledged Mortgage Loan, (d) the current
escrow balance with respect to such Pledged Mortgage Loan, (e) the number and
amount of past due payments on such Pledged Mortgage Loan and (f) the amount of
the collections received during such month with respect to such Pledged Mortgage
Loan, itemized to show (i) principal portion, (ii) interest portion and (iii)
portion thereof representing amounts paid in escrow for real estate taxes and
insurance.

                  Upon notice from the Agent to the Borrower given after the
occurrence and during the continuation of an Event of Default or of a Default,
the Borrower shall hold all collections representing principal payments and
prepayments and escrows for real estate taxes and insurance in trust for the
Lenders and shall promptly remit the same

                                      E-96
<PAGE>

to the Agent. All amounts representing the principal payments and prepayments
delivered to the Agent pursuant to the preceding sentence shall be deposited in
the Funding and Settlement Account and all amounts representing real estate
taxes and insurance escrows delivered to the Agent pursuant to the preceding
sentence shall be deposited in an escrow account with any bank satisfactory to
the Borrower and the Agent.

         Section 8. COLLECTIONS ON COLLATERAL BY THE AGENT

                  Upon the occurrence and during the continuation of an Event of
Default or a Default, the Agent may (and shall, if so directed by the Majority
Lenders) at any time and from time to time, notify and direct any or all
Obligors with respect to any of the Collateral thereafter to make all payments
on such Collateral directly to the Agent, regardless of whether the Borrower was
previously making collections thereon. The Agent shall promptly account to the
Borrower for all such payments received by the Agent. Each Obligor making such
payment to the Agent shall be fully protected in relying on the written
statement of the Agent that the Agent then holds the security interests herein
granted and assigned, which entitle the Agent to receive such payment, and the
receipt of the Agent for such payment shall be full acquittance therefor to the
Obligor making such payment.

         Section 9. DEFAULTED LOANS; COLLECTION AND FORECLOSURE PROCEEDINGS

                  If the Borrower wishes to institute collection or foreclosure
proceedings with respect to a Pledged Mortgage Loan, it shall substitute other
Collateral or pay down the amount outstanding under such Pledged Mortgage Loan
so that it is entitled pursuant to the terms of the Credit Agreement and/or this
Agreement to a release of such Pledged Mortgage Loan. If the Borrower does not
own sufficient other Collateral to obtain a release of such Pledged Mortgage
Loan, then so long as an Event of Default or a Default has not occurred and is
continuing, the Agent, upon written request of the Borrower, will deliver, upon
such terms and conditions as the Agent in its sole discretion may establish, to
an attorney at law, as the agent of the Agent and the Lenders, to the extent
necessary for the purpose of enabling said attorney to institute, in the name of
the Borrower or the Agent, or in their names or in the names of their nominees,
as the Agent may determine, collection and/or foreclosure proceedings on any
Pledged Mortgage Loan in default the following: (a) the promissory note or other
instrument evidencing such Pledged Mortgage Loan in default and (b) the mortgage
or deed of trust, if any, that secures such promissory note, or other Collateral
needed by said attorney in connection with such collection and/or foreclosure
proceedings in such manner and in such form as the Agent deems necessary or
desirable to preserve its security interests in such Collateral, provided such
Collateral and all proceeds of any such collection and/or foreclosure efforts
shall remain subject to this Agreement and the security interests granted herein
and all such proceeds shall be delivered to the Agent as and when and in the
form received to the extent required by the terms of the Credit Agreement. The
Borrower hereby covenants and agrees that, without first obtaining the prior
written consent of the Agent, it will not request or accept any discount on, or
any conveyance, endorsement, transfer or assignment of any right, title or
interest in and to any of the real, personal or mixed

                                      E-97
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properties sold, pledged, mortgaged, hypothecated, assigned, transferred, set
over or conveyed to the Agent as security for, any of the promissory notes or
other instruments or agreements which evidence Pledged Mortgage Loans in lieu of
foreclosure proceedings if, after giving effect to any such proposed
transaction, the Borrowing Base would be less than the aggregate unpaid
principal amount of the outstanding Loans and Swing-Line Loans. At such time as
such delivery of the Collateral is no longer required in connection with said
collection and/or foreclosure efforts, to the extent such Collateral has not
been released pursuant to this Agreement, the same shall be reassigned and
redelivered to the Agent.

         Section 10. SALES AND RELEASES OF COLLATERAL

                  10.01 Redelivery of Collateral for Correction. If no Event of
Default or Default exists, the Agent may redeliver to the Borrower, for
correction, any instrument or document which constitutes or relates to any of
the Collateral; provided, that any such redelivery shall be made against a Trust
Receipt duly completed and executed by the Borrower requiring, within 20 days
after the redelivery thereof to the Borrower, the return to the Agent of each
such instrument and document. The Borrower shall deliver to the Agent each such
instrument and document as soon as it has completed the correction thereof and,
in any event, within 20 days after its receipt thereof.

                  10.02 Delivery for Sale of Pledged Mortgage Loans. If no Event
of Default or Default exists, the Borrower shall direct the Agent to, and the
Agent will, transmit on behalf of the Borrower Pledged Mortgage Loans,
accompanied by a duly completed and executed Bailee Letter, to an Investor who
has issued a Take-Out Commitment. All sale proceeds transferred to the Agent
pursuant to such Bailee Letter and all Mortgage Notes and other documents
returned to the Agent pursuant to such Bailee Letter shall remain a part of the
Collateral unless and until released pursuant to Section 10.04 of this Pledge
and Security Agreement. If required by the applicable Take-Out Commitment,
Pledged Mortgage Loans may be duly assigned of record to the issuer of such
Take-Out Commitment subject to reassignment if not purchased and with beneficial
title to any such assigned Pledged Mortgage Loans being subject to the
above-stated escrow condition. All Pledged Mortgage Loans which are so
transmitted or otherwise delivered but not paid for shall constitute Collateral
and shall, subject to the limits contained herein, be included in determining
the Borrowing Base. The Borrower further agrees that the initial certifications
and the settlements in connection with Fannie Mae, Freddie Mac and Ginnie Mae
pools are to be performed by the Agent or its designated agent. The proceeds
received by the Agent from the sale of any Pledged Mortgage Loans pursuant to
this Section 10.02 shall be deposited by the Agent in the Funding and Settlement
Account and shall be promptly applied to the payment of principal of the Notes;
provided, however, that if an Event of Default has occurred and is continuing,
such proceeds shall be applied in accordance with Section 17 hereof.

                  10.03 Formation of Pools. (a) With respect to each Pledged
Mortgage Loan which is intended for inclusion in a pool of Mortgage Loans
backing Ginnie Mae Securities, the Borrower shall enter into and conform with
such custody and related agreements and procedures as are reasonably required by
the Agent to permit the

                                      E-98
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creation, transmittal to, maintenance and sale of Ginnie Mae Securities in both
certificated and uncertificated book-entry form. The Agent may enter into such
agreements as may be necessary or appropriate in the sole discretion of the
Agent in order to effectuate the issuance, maintenance and transfer of such
Ginnie Mae Securities under any such book-entry system or program.

                  (b) With respect to each Pledged Mortgage Loan which is
intended for inclusion in a Fannie Mae or Freddie Mac Mortgage Loan pool to back
book-entry Fannie Mae Securities or Freddie Mac Securities, the Borrower agrees
that it will enter into and conform to such agreements and procedures as are
established by the Agent in its reasonable judgment from time to time for the
delivery of Pledged Mortgage Loans to a Freddie Mac or Fannie Mae pool custodian
(or directly to Freddie Mac or Fannie Mae, as the case may be) and the issuance,
maintenance and transfer of Freddie Mac Securities or Fannie Mae Securities
under such book-entry system or program. The Agent may enter into such
agreements as may be necessary or appropriate in the reasonable judgment of the
Agent in order to effectuate the issuance, maintenance and transfer of such
Fannie Mae Securities or Freddie Mac Securities under such book-entry system or
program.

                  (c) The Agent or its designated agent will use its best
efforts to complete documents in a timely manner and otherwise to cooperate with
the Borrower in the issuance of Mortgage-backed Securities and the formation of
pools of Mortgage Loans as contemplated by this Section 10.03, subject, however,
to the provisions of Sections 6 and 20 hereof, and will cause all Mortgage Loans
delivered to a pool custodian to be accompanied by a Bailee Letter. The Agent
and its designated agent shall be entitled to rely on the written instructions
of the Borrower and the written instructions and published guidelines of the
applicable Investor in this regard and shall have no obligation to act in the
absence of such written instructions or published guidelines.

                  10.04 Release of Particular Collateral. (a) If no Event of
Default or Default has occurred which is continuing, the Agent shall, at the
written request of the Company, release its security interest in any item of
Collateral specified by the Company in such written request, provided that,
after giving effect to such requested release, the Borrowing Base (including
therein the Collateral Value of any Collateral given in substitution for the
Collateral to be released) shall not be less than the aggregate principal amount
outstanding under the Notes. If the Company requests and is entitled to a
release of a Pledged Mortgage Loan pursuant to the preceding sentence, the Agent
shall promptly redeliver to the Company the Mortgage Note evidencing such
Pledged Mortgage Loan, with any previous endorsement or assignment, without
recourse upon or representation or warranty by the Agent or the Lenders, of any
part of the Collateral that secures such Mortgage Note.

                  (b) Whether or not the Borrower, by terms of this Section
10.04, is entitled to a release of the Agent's security interest in the
Collateral, the Agent shall release such security interest in any Pledged
Mortgage Loan to the extent necessary to permit the Borrower to execute any full
or partial release of any mortgage, deed of trust, security agreement, financing
statement or other security instrument or deed which the

                                      E-99
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Borrower is contractually obligated to release upon payment thereof, provided
the Borrower arranges to have such payment remitted directly by the Obligor or
closing agent to the Agent for application upon the unpaid principal amount
outstanding under the Notes, as provided in the Credit Agreement, unless an
Event of Default has occurred which is continuing, in which case such payment
shall be applied as provided in Section 17 hereof.

                  (c) Upon the Agent's receipt of the proceeds from the sale of
a Pledged Mortgage Loan delivered to an Investor pursuant to Section 10.02
hereof, the security interest of the Agent in such Pledged Mortgage Loan and in
the Mortgage Note and other documents related thereto shall terminate without
further action by the Agent, provided that (i) the Agent's security interest in
the proceeds of such Pledged Mortgage Loan, Mortgage Note and other documents
shall continue in full force and effect, and (ii) the Agent shall be authorized
to execute any release required in order to obtain such proceeds.

                  (d) Upon the Agent's receipt of the proceeds from the sale of
a Related Mortgage-backed Security representing an interest in, or which is
secured by, Pledged Mortgage Loans delivered pursuant to Section 10.03 hereof,
the security interest of the Agent in such Related Mortgage-backed Security and
in such Pledged Mortgage Loans shall terminate without further action by the
Agent, provided that (i) the Agent's security interest in the proceeds of such
Mortgage-backed Security shall continue in full force and effect, and (ii) the
Agent shall be authorized to execute any release required in order to obtain
such proceeds.

         Section 11. FURTHER ASSURANCES

                  The Borrower, upon the request of the Agent, will promptly
correct any patent defect, error or omission which may be discovered in the
contents of this Agreement or in the execution hereof and will do such further
acts and things, and execute, acknowledge, endorse and deliver such further
instruments, agreements, schedules and certificates, including, but not limited
to, notes, mortgages, deeds of trust, assignments, chattel mortgages, security
agreements and financing statements covering the title to any real, personal or
mixed property now owned or hereafter acquired by the Borrower and now or
hereafter constituting Collateral, schedules and certificates respecting all or
any of the Collateral at the time subject to the security interest hereunder,
the items or amounts received by the Borrower in full or partial payment, or
otherwise as proceeds of any of the Collateral and supplements to and amendments
of this Agreement, that the Agent may at any time and from time to time
reasonably request in connection with the administration or enforcement of this
Agreement or related to the Collateral or any part thereof or in order to assure
and confirm unto the Agent the rights, powers and remedies hereunder or to
subject all of the real, personal or mixed properties now owned or hereafter
acquired by the Borrower and now or hereafter constituting Collateral to, or to
confirm or clearly establish that all of said properties are subject to and
encumbered by, a lien to secure the due and punctual payment of the Obligations.
Any such instrument, agreement, schedule or certificate shall be executed by a
duly

                                     E-100
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authorized officer of the Borrower and shall be in such form and detail as the
Agent may reasonably specify.

                  The Borrower will do all acts and things, and will execute and
file or record all instruments (including mortgages, pledges, assignments,
security agreements, financing statements, amendments to financing statements,
continuation statements, etc.) required or reasonably requested by the Agent to
establish, perfect, maintain and continue the perfection and priority of the
security interest of the Agent, for the benefit of the Lenders, in the
Collateral and will pay the costs and expenses of: all filings and recordings,
including taxes thereon; all searches necessary or reasonably deemed necessary
by the Agent to establish and determine the validity and the priority of such
security interest of the Agent; and also to satisfy all other liens which in the
reasonable opinion of the Agent might prejudice, imperil or otherwise affect the
Collateral or the existence or priority of such security interest. A carbon,
photographic or other reproduction of this Agreement or of a financing statement
shall be sufficient as a financing statement and may be filed in lieu of the
original in any or all jurisdictions which accept such reproductions.

         Section 12. COVENANTS OF THE BORROWER

                  12.01 Covenants Generally. So long as this Agreement shall
remain in effect, the Borrower will (a) defend the right, title and interest of
the Agent, for the benefit of the Lenders, in the Collateral against the claims
and demands of all Persons; (b) not amend, modify, or waive any of the terms and
conditions of, or settle or compromise any claim in respect of, any Collateral
in a manner which would materially adversely affect the interests of the Agent,
for the benefit of the Lenders; (c) not sell, assign, transfer, or otherwise
dispose of, or grant any option with respect to, or pledge or otherwise
encumber, or release, any of the Collateral or any interest therein except in a
manner whereby the Agent alone would be entitled to receive the proceeds
therefrom; (d) notify the Agent monthly of any default that continues beyond any
applicable notice or grace period under any Pledged Mortgage Loan which has
Collateral Value; (e) maintain, or cause to be maintained, in its chief
executive office or in the offices of a computer service bureau approved by the
Agent, for the processing of Mortgage Notes and Mortgage-backed Securities,
originals, or copies if the original has been delivered to the Agent, of its
Mortgage Notes and all files, surveys, certificates, correspondence, appraisals,
computer programs, tapes, discs, cards, accounting records and other records,
information and data, relating to the Collateral, and give the Agent written
notice of the place where such records, information and data will be maintained;
and (f) maintain sufficient documentary evidence in its files with respect to
each Pledged Mortgage Loan to substantiate compliance with all applicable
federal, state and local laws, regulations and rules, including but not limited
to those specified in Section 5(h) hereof.

                  12.02 MERS Covenants. So long as this Agreement shall remain
in effect, the Borrower will (a) be a "Member" (as defined in the MERS
Agreements) of MERSCORP, (b) maintain the Electronic Tracking Agreement in full
force and effect and timely perform all of its obligations thereunder, (c)
provide the Agent with copies of any new MERS Agreement or any amendment,
supplement or other modification of any

                                     E-101
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MERS Agreement (other than the Electronic Tracking Agreement), (d) not amend,
terminate or revoke, or enter into any agreement that contradicts, the
Electronic Tracking Agreement, (e) identify to the Agent each Pledged Mortgage
Loan that is registered in the MERS System, at the earlier of the time it is so
registered or the time it is pledged or deemed pledged hereunder, as so
registered, (f) at any time at the request of the Agent, take such actions as
may be necessary to register the pledge of any Pledged Mortgage Loan to the
Agent on the MERS System, (g) at the request of the Agent, take such actions as
may be requested by the Agent to (i) transfer beneficial ownership of any
Pledged Mortgage Loan to the Agent on the MERS System, or (ii) de-register or
re-register any Pledged Mortgage Loan on, or withdraw any Pledged Mortgage Loan
from, the MERS System, (h) provide the Agent with copies of any or all of the
following reports with respect to the Pledged Mortgage Loans registered on the
MERS System, at the request of the Agent: (v) Co-existing Security Interest
Reports, (w) Release of Security Interest by Interim Funding Reports, (x) Paid
in Full Verification Reports, (y) Interim Funding Rejects Reports, and (z) such
other reports as the Agent may request to verify the status of any Pledged
Mortgage Loan on the MERS System, (i) notify the Agent of any withdrawal or
deemed withdrawal of the Borrower's membership in the MERS System or any
deregistration of any Pledged Mortgage Loan previously registered on the MERS
System, and (j) obtain the prior written consent of the Majority Lenders before
entering into an electronic tracking agreement (other than the Electronic
Tracking Agreement) with any other Person.

         Section 13. AGENT APPOINTED ATTORNEY-IN-FACT

                  Effective upon the occurrence and continuation of an Event of
Default or a Default, the Borrower hereby appoints the Agent the Borrower's
attorney-in-fact, with full power of substitution, to submit any Pledged
Mortgage Loan or Mortgage-backed Security which constitutes Collateral and
related documents to a purchaser under a Take-Out Commitment and for the purpose
of carrying out the provisions of this Agreement and taking any action and
executing in the name of the Borrower without recourse to the Agent or any
Lender any instrument, including, but not limited to, the instruments described
in Section 2 hereof, which the Agent may deem necessary or advisable to
accomplish the purpose hereof, which appointment is irrevocable and coupled with
an interest. Without limiting the generality of the foregoing, the Agent shall
have the right and power to receive, endorse and collect checks and other orders
for the payment of money made payable to the Borrower representing any payment
or reimbursement made under, or pursuant or with respect to, the Collateral or
any part thereof and to give full discharge for the same. Whether or not an
Event of Default or a Default shall have occurred or be continuing, the Borrower
hereby authorizes the Agent in its discretion at any time and from time to time
to (i) complete or cause to be completed any assignment of real estate mortgage
or deed of trust which heretofore was, or hereafter at any time may be, executed
and delivered by the Borrower to the Agent so that such assignment describes a
real estate mortgage or deed of trust which is security for any Pledged Mortgage
Loan now or hereafter at any time constituting Collateral and (ii) complete or
cause to be completed any other assignment or endorsement that was delivered in
blank hereunder.

                                     E-102
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         Section 14. EVENTS OF DEFAULT; REMEDIES

                  If one or more Events of Default shall occur and be
continuing, then the Agent, in addition to any and all other rights and remedies
which it may then have hereunder, under the Credit Agreement or any other Loan
Document, or under any other instrument, or which the Agent, the Lenders or the
Majority Lenders may have at law, in equity or otherwise, may, at its option,
(a) in the name of the Borrower, or otherwise, demand, collect, receive and
receipt for, compound, compromise, settle and give acquittance for, and
prosecute and discontinue any suits or proceedings in respect of any or all of
the Collateral; (b) take any action which the Agent may deem necessary or
desirable in order to realize on the Collateral, including, without limitation,
the power to perform any contract, endorse in the name of the Borrower without
recourse to the Borrower any checks, drafts, notes or other instruments or
documents received in payment of or on account of the Collateral; (c) enter upon
the premises where any of the Collateral not in the possession of the Agent is
located and take possession thereof and remove the same, with or without
judicial process; (d) at the direction of the Majority Lenders, reduce the
claims of the Agent and the Lenders to judgment or foreclosure or otherwise
enforce the security interests herein granted and assigned, in whole or in part,
by any available judicial procedure; (e) after notification, if any, provided
for herein (the Borrower agrees that, to the extent notice of sale shall be
required at law, at least ten days' prior notice to the Borrower of the time and
place of any public sale or the time after which any private sale is to be made
shall constitute reasonable notification), sell, lease, or otherwise dispose of,
at the office of the Agent, on the premises of the Borrower, or elsewhere, all
or any part of the Collateral, in its then condition or following any
commercially reasonable preparation or processing, and any such sale or other
disposition may be as a unit or in parcels, by public or private proceedings,
and by way of one or more contracts at any exchange, broker's board, or at any
of the Agent's offices or elsewhere, for cash, or credit, or for future
delivery, without assumption of any credit risk, and upon such other terms as
the Agent may deem commercially reasonable (it being agreed that the sale of any
part of Collateral shall not exhaust the power of sale granted hereby, but sales
may be made from time to time, and at any time, until all the Collateral has
been sold or until all Obligations have been fully paid and performed, and it
being further agreed that the Agent shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given, and that the Agent
may adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was adjourned), and at any such sale it
shall not be necessary to exhibit any of the Collateral; (f) at its discretion,
surrender any policies of insurance on the Collateral consisting of real or
personal property owned by the Borrower and receive the unearned premiums, and
in connection therewith the Borrower hereby appoints the Agent as the agent and
attorney-in-fact for the Borrower to collect such premiums; (g) at its
discretion, retain the Collateral in satisfaction of the Obligations whenever
the circumstances are such that the Agent and the Lenders are entitled to do so
under the Code or otherwise; (h) exercise any and all other rights, remedies and
privileges which the Agent may have under this Agreement, or any of the other
promissory notes, assignments, mortgages, deeds of trust, chattel mortgages,
security agreements, transfers of lien, and any other instruments, documents,
and agreements executed and delivered pursuant to the terms hereof or

                                     E-103
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pursuant to the terms of the Credit Agreement; and (i) exercise any other remedy
available to it as a secured party under the Uniform Commercial Code of the
State of Minnesota or of any other pertinent jurisdiction (the "Code"). The
Borrower acknowledges and agrees that (x) a private sale of the Collateral
pursuant to any Take-Out Commitment shall be deemed to be a sale of the
Collateral in a commercially reasonable manner and (y) the Collateral is
intended to be sold or refinanced and that none of the Collateral is a type or
kind intended by the Borrower to be held for investment or any purpose other
than for sale.

         Section 15. WAIVERS

                  The Borrower, for itself and all who may claim under the
Borrower, as far as the Borrower now or hereafter lawfully may, also waives all
right to have all or any portion of the Collateral marshalled upon any
foreclosure hereof and agrees that any court having jurisdiction over this
Agreement may order the sale of all or any portion of the Collateral as an
entirety. Any sale of, or the grant of options to purchase (for the option
period thereof or after exercise thereof), or any other realization upon, all or
any portion of the Collateral under clause (e) of Section 14 hereof shall
operate to divest all right, title, interest, claim and demand, either at law or
in equity, of the Borrower in and to the Collateral so sold, optioned or
realized upon, and shall be a perpetual bar both at law and in equity against
the Borrower and against any and all persons claiming or attempting to claim the
Collateral so sold, optioned or realized upon or any part thereof, from, through
and under the Borrower. No delay on the part of the Agent in exercising any
power of sale, lien, option or other right hereunder and no notice or demand
which may be given to or made upon the Borrower with respect to any power of
sale, lien, option or right hereunder shall constitute a waiver thereof, or
limit or impair the right of the Agent or any Lender to take any action or to
exercise any power of sale, lien, option or any other right under this Agreement
or the Credit Agreement, or otherwise, nor shall any single or partial exercise
thereof, or the exercise of any power, lien, option or other right under this
Agreement or otherwise, all without notice or demand (except as otherwise
provided by the terms of this Agreement), prejudice their rights against the
Borrower in any respect. Each and every remedy given the Agent or the Lenders
shall, to the extent permitted by law, be cumulative and shall be in addition to
any other remedy given hereunder or now or hereafter existing at law or in
equity or by statute.

         Section 16. NOTICES. Reasonable notification of the time and place of
any public sale of any Collateral, or reasonable notification of the time after
which any private sale or other intended disposition of any of the Collateral is
to be made shall be sent to the Company (with a copy to any applicable
Co-Borrower) and to any other person entitled under the Code to notice;
provided, that if any of the Collateral threatens to decline speedily in value,
or is of a type customarily sold on a recognized market, the Agent may sell or
otherwise dispose of the Collateral without notification, advertisement, or
other notice of any kind. The Borrowers acknowledge and agree that Mortgage
Loans are property of a type subject to widely distributed standard price
quotations and Mortgage-backed Securities are property of a type ordinarily sold
on a recognized market, and agrees that the Agent may purchase Mortgage Loans
and Mortgage-backed Securities at a private sale thereof and may sell
Mortgage-backed Securities without

                                     E-104
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providing prior notice thereof to the Borrower. It is agreed that notice sent or
given not less than ten (10) calendar days prior to the taking of the action to
which the notice relates is reasonable notification and notice of the purposes
of this Section 16. All notices and other communications provided for in this
Agreement shall be given to the parties at their respective addresses set forth
in the Credit Agreement or, as to each such party, at such other address as
shall be designated by such party in a written notice to the other parties in
accordance with the Credit Agreement. All such notices and other communications
shall be given by one or more of the means specified in Section 10.01 of the
Credit Agreement and, upon being so given, shall be deemed to have been given as
of the earliest time specified in said Section 10.01 for the means so used. Each
Co-Borrower hereby authorizes the Agent to send all notices of sale of any
Collateral to the Company, on behalf of such Co-Borrower, and the Company
undertakes to provide such notices to the applicable Co-Borrower(s).

         Section 17. APPLICATION OF PROCEEDS

                  Until all Obligations owed to the Agent and the Lenders have
been paid in full, any and all proceeds ever received by the Agent from any sale
or other disposition of the Collateral, or any part thereof, or the exercise of
any other remedy pursuant to Section 8 hereof or by virtue of Section 14 hereof,
shall be applied by the Agent as follows:

                  First: ratably to the payment of the Agent fees and the costs
                  and expenses of the Agent and the Lenders in connection with
                  the enforcement of this Agreement (including, without
                  limitation, the sale or other disposition of the Collateral)
                  and the reasonable fees and out-of-pocket expenses of counsel
                  employed in connection therewith, to the payment of all costs
                  and expenses incurred by the Agent in connection with the
                  administration of this Agreement and to the payment of all
                  advances made by the Agent and the Lenders for the account of
                  the Borrower hereunder, to the extent that such costs,
                  expenses and advances have not been reimbursed to the Agent or
                  the Lenders, as the case may be;

                  Second: to the payment in full of the principal of, accrued
                  interest on and Balances Deficiency Fees with respect to
                  Swingline Loans;

                  Third: to the payment in full of the principal of, accrued
                  interest on and Balances Deficiency Fees and facility fees
                  with respect to the Loans and Commitments;

                  Fourth: to the payment in full of the other Obligations; and

                  Fifth: the balance (if any) of such proceeds shall be paid to
                  the Borrowers, their successors or assigns, or as a court of
                  competent jurisdiction may direct, provided, that if such
                  proceeds are not sufficient to satisfy the Obligations in
                  full, the Company and, to the extent provided in Section 10.20
                  of the Credit Agreement, each Co-Borrower, shall remain liable
                  to the Agent and the Lenders for any deficiency.

                                     E-105
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         Section 18. INDEMNIFICATION AND COSTS AND EXPENSES

                  The Borrower will (a) pay all reasonable out-of-pocket
expenses, including, without limitation, any recording or filing fees, fees of
title insurance companies in connection with records or filings, costs of
mortgage insurance policies and endorsements thereof and mortgage registration
taxes (or any similar fees or taxes), incurred by the Agent and the Lenders in
connection with the enforcement and administration of this Agreement (whether or
not the transactions hereby contemplated shall be consummated), the Credit
Agreement and the other Loan Documents, the enforcement of the rights of the
Agent and the Lenders in connection with this Agreement, the Credit Agreement
and the other Loan Documents, including, without limitation, the reasonable fees
and disbursements of counsel for the Agent and the Lenders; (b) pay, and hold
the Agent and the Lenders harmless from and against, any and all present and
future stamp and other similar taxes with respect to the foregoing matters and
save the Agent and the Lenders harmless from and against any and all liabilities
with respect to or resulting from any delay in paying or omission to pay such
taxes; and (c) pay, and indemnify and hold harmless the Agent and the Lenders
from and against, any and all liabilities, obligations, losses, damages,
penalties, judgments, suits, costs, expenses and disbursements of any kind
whatsoever (the "Indemnified Liabilities") which may be imposed on, incurred by
or asserted against it in any way relating to or arising out of this Agreement,
the Credit Agreement, the other Loan Documents or any of the transactions
contemplated hereby or thereby, WHETHER OR NOT THE SAME ARE CAUSED BY THE SIMPLE
NEGLIGENCE OF THE AGENT OR ANY LENDER, unless the same are caused by the gross
negligence or willful misconduct of the Agent or any Lender, as the case may be.
The undertakings of the Borrower set forth in this Section 18 shall survive the
payment in full of the Obligations and the termination of this Agreement, the
Credit Agreement and the other Loan Documents.

         Section 19. TERMINATION

                  This Agreement shall terminate when all the Obligations have
been fully paid and performed and the Commitments have expired, at which time
the Agent shall reassign and redeliver, without recourse upon, or representation
or warranty by, the Agent or the Lenders and at the expense of the Borrower, to
the Borrower, or to such other person or persons as the Borrower shall
designate, against receipt, such of the Collateral (if any) as shall not have
been sold or otherwise disposed of by the Agent pursuant to the terms hereof, of
the Credit Agreement or of the other Loan Documents, and shall still be held by
the Agent, together with appropriate instruments of reassignment and release;
provided, however, that this Agreement shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the
Obligations is rescinded or must otherwise be returned by the Agent, the Lenders
or any other Person upon the insolvency, bankruptcy or reorganization of the
Borrower or otherwise, all as though such payment had not been made.

         Section 20. NON-ASSUMPTION OF LIABILITY; NO FIDUCIARY RESPONSIBILITY

                                     E-106
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                  Nothing herein contained shall relieve the Borrower from
performing any covenant, agreement or obligation on the part of the Borrower to
be performed under or in respect of any of the Collateral or from any liability
to any party or parties having an interest therein or impose any liability on
the Agent or the Lenders for the acts or omissions of the Borrower in connection
with any of the Collateral. The Agent and the Lenders shall not assume or become
liable for, nor shall any of them be deemed or construed to have assumed or
become liable for, any obligation of the Borrower with respect to any of the
Collateral, or otherwise, by reason of the grant to the Agent, for the benefit
of the Lenders, of security interests in the Collateral. While the Agent shall
use reasonable care in the custody and preservation of the Collateral as
provided in Section 6 hereof, the Agent shall not have any fiduciary
responsibility to the Borrower with respect to the holding, maintenance or
transmittal of the Collateral delivered hereunder.

         Section 21. WAIVERS, ETC.

                  No failure on the part of the Agent to exercise and no delay
in exercising, any power or right hereunder, shall operate as a waiver thereof;
nor shall any single or partial exercise of any power or right preclude any
other or further exercise thereof or the exercise of any other power or right.
The remedies herein provided are cumulative and not exclusive of any remedies
provided by law. This Agreement may not be amended or waived except in
accordance with Section 10.02 of the Credit Agreement.

         Section 22. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
TRIAL

                  THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAW, BUT NOT THE LAW OF
CONFLICTS, OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS
PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL
BANKS. THE BORROWER HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION
AND VENUE OF ANY MINNESOTA STATE OR FEDERAL COURT SITTING IN HENNEPIN OR RAMSEY
COUNTIES, STATE OF MINNESOTA, FOR ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS, AND THE
BORROWER HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH MINNESOTA STATE COURT OR, TO
THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. THE BORROWER HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE
OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING.
THE BORROWER HEREBY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS THAT SERVICE
OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT
REQUESTED, AT ITS ADDRESS SPECIFIED OR DETERMINED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 8.02 OF THE CREDIT AGREEMENT, AND SERVICE SO MADE SHALL

                                     E-107
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BE DEEMED COMPLETED ON THE THIRD BUSINESS DAY AFTER SUCH SERVICE IS DEPOSITED IN
THE MAIL. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE AGENT, ANY LENDER OR ANY
OTHER INDEMNIFIED PERSON TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.
THE BORROWER AND THE AGENT HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY
IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

         Section 23. MISCELLANEOUS

                  (a) Benefit of Agreement. This Agreement shall be binding upon
         and inure to the benefit of the Borrower and the Agent and their
         respective successors and assigns, and shall inure to the benefit of
         the Lenders and their respective successors and assigns, except that
         the Borrower may not assign or transfer any of its rights or
         obligations under this Agreement without the prior written consent of
         the Lenders.

                  (b) Survival of Representations, Warranties and Covenants. All
         representations, warranties and covenants made by the Borrower to the
         Agent or the Lenders in connection with this Agreement shall survive
         the execution and delivery of this Agreement. All statements contained
         in any certificate or other instrument delivered to the Agent or the
         Lenders pursuant to this Agreement shall be deemed representations,
         warranties and covenants hereunder of the Borrower.

                  (c) Headings. Section headings in this Agreement are for
         convenience of reference only, and shall not govern the interpretation
         of any of the provisions of this Agreement.

                  (d) Execution in Counterparts. This Agreement may be executed
         in any number of counterparts, all of which taken together shall
         constitute one and the same instrument and either of the parties hereto
         may execute this Agreement by signing any such counterpart.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                     E-108
<PAGE>

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

                                                   DHI MORTGAGE COMPANY, LTD.

                                                   By___________________________
                                                     Its________________________

                                                   U. S. BANK NATIONAL
                                                   ASSOCIATION,
                                                         as Agent

                                                   By___________________________
                                                     Its________________________

                                     E-109
<PAGE>

                                        ATTACHMENT 1 AMENDED AND RESTATED PLEDGE
                                                          AND SECURITY AGREEMENT

                               AGREEMENT TO PLEDGE
                       (SECURITY AGREEMENT AS PROVIDED FOR
                  BY THE UNIFORM COMMERCIAL CODE OF MINNESOTA)

                  For new value this day received, and as collateral security
for the payment of any and all indebtedness and liability of the undersigned
under that certain Amended and Restated Credit Agreement dated as of April 9,
2004 (as the same may be amended, restated, modified or supplemented and in
effect from time to time, the "Credit Agreement") between DHI Mortgage Company,
Ltd.(the "Company"), the "Co-Borrowers" (as defined in the Credit Agreement), if
any, party thereto, the "Lenders" (as defined in the Credit Agreement) party
thereto and U.S. Bank National Association, a national banking association, as
agent for the Lenders (together with any successor agent under the Pledge and
Security Agreement referred to below, the "Agent"), and consistent with the
terms of that certain Amended and Restated Pledge and Security Agreement dated
as of April 9, 2004 (as the same may be amended, restated, modified or
supplemented and in effect from time to time, the "Pledge and Security
Agreement") between the Company and the Agent and each Joinder Agreement between
the Agent, the Company and each Co-Borrower, the Borrower hereby pledges to the
Agent for the benefit of the Agent and the Lenders, creates and grants in favor
of the Agent, for the benefit of the Agent and the Lenders, a security interest
in and to the documents and Mortgage Loans described in the Loan Detail Listing
of even date herewith as electronically transmitted to the Agent and all
proceeds thereof. The Agent is authorized to reproduce the Loan Detail Listing
as electronically transmitted and attach the same hereto to identify the
documents subject to the pledge and security interest so granted. Each Loan
Detail Listing so transmitted and reproduced is made a part hereof.

                  Capitalized terms used herein which are defined in the Credit
Agreement or the Pledge and Security Agreement and not otherwise defined herein
shall have the meanings ascribed to such terms in the Credit Agreement or the
Pledge and Security Agreement.

                  The Borrower agrees to deliver the instruments and documents
described in Section 4.02 of the Pledge and Security Agreement to the Agent
within seven Business Days following the date hereof, as provided in said
Section 4.02. The Borrower further agrees to deliver the instruments and
documents described in Section 4.03 of the Pledge and Security Agreement to the
Agent within five Business Days after the Borrower's receipt of the Agent's
written request therefor.

                  The Borrower further agrees that the Agent does not assume any
duty or responsibility in respect of any of the documents described in each Loan
Detail Listing as electronically transmitted and made a part hereof, and that
the Agent does not waive any right of possession to any of such documents for
the failure to demand or receive such possession.

                                     E-110
<PAGE>

                  In connection with each such Mortgage Loan, the [COMPANY]
[CO-BORROWER] hereby certifies that the [COMPANY] [CO-BORROWER] has not pledged
or delivered, and will not, pledge or deliver, such Mortgage Loan, any
assignment thereof, or other instrument, document or paper related thereto to
any party other than the Agent, unless released to the [COMPANY] [CO-BORROWER]
and then only pursuant to the terms of such release.

                  The Borrower further agrees that this Agreement to Pledge
shall be binding upon and inure to the benefit of the legal representatives,
successors or assigns of the Borrower.

                  The Borrower further agrees that all rights, interests, duties
and liabilities arising hereunder shall be determined according to the laws of
the State of Minnesota, without giving effect to conflict of laws principles
thereof.

Dated as of ______________, ______.

                                                   [DHI MORTGAGE COMPANY, LTD.]
                                                   [CO-BORROWER]

                                                   By

                                                   Its

                                     E-111
<PAGE>

                                                                 ATTACHMENT 2 TO
                                           AMENDED AND RESTATED PLEDGE AGREEMENT

                              FORM OF BAILEE LETTER

                 [Letterhead of U.S. Bank National Association]

                                     [Date]

[NAME OF CUSTODIAN], AS CUSTODIAN                      {INCLUDE IF APPLICABLE
  FOR [NAME OF INVESTOR]
[ADDRESS OF CUSTODIAN]

[NAME AND ADDRESS OF INVESTOR]                         {INCLUDE IF NO CUSTODIAN

               Re:    Mortgage Loan No(s)._________
                      Seller: [DHI MORTGAGE COMPANY, LTD.] [NAME OF CO-BORROWER]

Ladies/Gentlemen:

         Pursuant to the terms and conditions set forth below, we hereby deliver
to [____________________________, AS CUSTODIAN (IN SUCH CAPACITY, THE
"CUSTODIAN") FOR] _______________________________ (the "Investor"), with this
letter, the original executed promissory note(s) (the "Note(s)") evidencing the
mortgage loan(s) described on the schedule attached hereto (the "Loan(s)"). U.S.
Bank National Association, as agent for certain lenders (in such capacity, the
"Agent") has a perfected first lien security interest in the Loan(s) for the
benefit of such lenders pursuant to an Amended and Restated Pledge and Security
Agreement between the Agent and the Seller [AND A JOINDER AGREEMENT BETWEEN DHI
MORTGAGE COMPANY, LTD., THE AGENT AND THE SELLER]. The Agent expressly retains
and reserves all of its rights in the Loan(s), the Note(s) and all related
security instruments, files, and documents (the "Loan Documents") until the
Investor has paid the Agent the Warehouse Purchase Amount (as hereinafter
defined) for the Loan(s) in accordance with this letter ("this Bailee Letter").

         By taking physical possession of this Bailee Letter, the Note(s) and
the other Loan Documents, [THE INVESTOR] [THE CUSTODIAN] hereby agrees:

                  (i) to hold in trust, as bailee for the Agent, the Note(s) and
         all other Loan Documents which it receives related to the Loan(s),
         until its status as bailee is terminated as set forth herein;

                  (ii) not to release or deliver, or authorize the release or
         delivery of, the Note(s) or any other Loan Document to the Seller or
         any other entity or person or take any other action with respect to the
         Note(s) or any other Loan Document which release, delivery or

                                     E-112
<PAGE>

         other action could cause the security interest of the Agent to become
         unperfected or which could otherwise jeopardize the perfected security
         interest of the Agent in the Loan(s);

                  (iii) in the case of any Note(s) that are endorsed in blank,
         not to complete such blank endorsements unless and until (A) the
         Loan(s) evidenced by such Note(s) have been accepted for purchase by
         the Investor and (B) the Warehouse Purchase Amount has been irrevocably
         paid to the Agent in accordance with the terms hereof;

                  (iv) to return the Note(s) and any related Loan Documents
         immediately to the Agent (A) upon receipt of a written request by the
         Agent or (B) in the event that the Note(s) require completion and/or
         correction;

                  (v) not to honor any requests or instructions from the Seller
         relating to any Note (other than for correction), or any other
         documents relating thereto (other than for correction or replacement
         thereof or to supplement such documents);

                  (vi) promptly upon the Investor's acceptance or rejection of
         the Loan(s) for purchase, and in any event within forty-five (45) days
         after the date of delivery of this Bailee Letter, to either (A) remit
         the Warehouse Purchase Amount to the Agent or (b) return the Notes and
         any related Loan Documents to the Agent;

                  (vii) to deliver, or to cause to be delivered, the Warehouse
         Purchase Amount or the Notes and related Loan Documents, as the case
         may be, only to the Agent pursuant to the terms set forth below and to
         honor a change in such terms only upon receipt of written instructions
         from the Agent; and

                  (viii) that any interest it may have in the Loan(s), the
         Note(s) and/or the Loan Documents, including without limitation any
         claim of setoff it may at any time have, is subject to and subordinate
         to the security interest of the Agent in the Loan(s), the Note(s) and
         the other Loan Document(s) and that it will not exercise any right with
         respect to the Loan(s), the Note(s) or the other Loan Documents without
         the prior written consent of the Agent.

         Please note that should the Investor remit the Warehouse Purchase
Amount to any other entity or person, the Agent will not consider the Warehouse
Purchase Amount to have been paid and will not release its security interest or
terminate the responsibilities of the [INVESTOR] [CUSTODIAN] as bailee for the
Agent until the Warehouse Purchase Amount has been properly remitted to the
Agent as set forth herein.

         The Agent agrees that its security interest in the Loan(s) shall be
fully released and the responsibilities of the [INVESTOR] [CUSTODIAN] as bailee
shall terminate upon the Investor's irrevocable payment to the Agent of an
amount (the "Warehouse Purchase Amount") equal to the greater of (1) the
purchase price for the Loan(s) agreed to by the Investor and the Seller and (2)
$________, which is the aggregate collateral value assigned by the Agent to the
Loan(s). All payments by the Investor shall be remitted via federal funds
pursuant to the following wire transfer instructions:

                                     E-113
<PAGE>

                  Receiving Bank:              U.S. Bank National Association
                  Address:                     Minneapolis, Minnesota
                  ABA Number:                  091000022
                  Account Name:                DHI Mortgage Company, Ltd.
                                               Funding and Settlement Account
                  Account Number:              104756234365

         Note(s) and other Loan Documents which are to be returned to the Agent
should be delivered, by overnight air courier, to:

                                  U.S. Bank National Association
                                  Mortgage Banking Services Division
                                  U.S. Bancorp Center - BC-MN-HO3B
                                  800 Nicollet Mall
                                  Minneapolis, Minnesota 55402

         If you have any questions, please address your inquiries to Jeannine L.
Coyne, Mortgage Banking Officer of the Agent, whose phone number is (612)
303-3958 or Kathleen M. Connor, Vice President, whose phone number is (612)
303-3581.

         We request that you acknowledge receipt of this Bailee Letter by
signing in the space provided at the foot of the enclosed counterpart hereof and
returning it to the Agent at the address set forth above (but your failure to do
so in no way nullifies your agreements resulting from your acceptance of the
enclosed Note(s), as set forth in this Bailee Letter).

         In the event of any inconsistency between the provisions of this Bailee
Letter and the provisions of any other instrument or document delivered by the
Agent to the Investor [OR THE CUSTODIAN] with this letter or in connection with
the Loan(s), including, without limitation, any "release" or similar document,
the provisions of this Bailee Letter shall control.

                                       U.S. BANK NATIONAL ASSOCIATION,
                                       as Agent

                                       By

                                       Its

                                     E-114
<PAGE>

Receipt acknowledged:

[__________________________,                    {include if no Custodian
AS INVESTOR

BY________________________

TITLE ______________________
DATE _____________

[__________________________,                    {include if applicable
AS CUSTODIAN

BY________________________
TITLE ______________________
DATE _____________
Enclosures

cc:  [NAME AND ADDRESS OF                       {INCLUDE IF  LETTER IS ADDRESSED
     INVESTOR]                                  TO CUSTODIAN

                                     E-115
<PAGE>

      ATTACHMENT 3(a) TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT
                          MORTGAGE LOAN DETAIL LISTING

                   (Transmission of the following data fields)

MORTGAGE LOAN INFORMATION

           Loan Number
           Borrower First and Last Name
           Property Address
           City
           State
           Zipcode
           Product Type                    FHA, VA, Conventional, HELOC
           Property Type                   Condo, Manufactured, Multifamily, PUD
           Amortization Type:              ARM, Balloon,
           Interest Rate
           Term
           Lien Position                   First or Second
           Note Date
           Note Amount
           Unpaid Principal Balance        Required for HELOCs
           FICO Score
           Investor Name
           Investor Commitment Price
           Mers Identification Number

WIRE TRANSFER INFORMATION

           Receiving Bank Name
           ABA Number
           Dollar Amount of Wire
           Crediting Account Name
           Crediting Account Number
           Reference Information

                                     E-116
<PAGE>

       Attachment 3(b) to Amended and Restated Pledge & Security Agreement

REQUEST TO WAREHOUSE LOANS

(date)

PLEASE TRANSFER FUNDS      $_________
TOTALING

From our Collateral Account (Acct#)

To our Operating Account (Acct#)

  Listed below are loans (with detail) that we
wired from

  our Operating Account and now should be
warehoused.

<TABLE>
<CAPTION>
                                                  BRANCH                   WAREHOUSE                            MORTAGAGE
INTEREST RATE  LOAN TYPE  LIEN TYPE  LOAN NUMBER  NUMBER  BORROWER'S NAME  AMOUNT **  LOAN AMOUNT  WIRE AMOUNT     DATE
-------------  ---------  ---------  -----------  ------  ---------------  ---------  -----------  -----------     ----
<S>            <C>        <C>        <C>          <C>     <C>              <C>        <C>          <C>          <C>
                                                             TOTALS
</TABLE>

** Please note that the Warehouse Amount is 98% of the Loan Amount or 98% of the
Investor Amount, whichever is less.

                                     E-117
<PAGE>

Thank you,

Clay Allen
Cash Manager
DHI Mortage Company

                                     E-118
<PAGE>

                                                                    ATTACHMENT 4

                               TRANSMITTAL LETTER

                          WAREHOUSE COLLATERAL PACKAGE

BORROWER'S NAME: _______________________________________________________________
LOAN #: ________________________________________________________________________
LOAN TYPE: _____________________________________________________________________
NOTE DATE: _____________________________________________________________________
PRINCIPAL AMOUNT: ______________________________________________________________
INTEREST RATE: _________________________________________________________________
TERM: __________________________________________________________________________

Assemble in the following order in a manila file folder. Print borrower last
name & loan # on the tab.

________ ORIGINAL NOTE - ENDORSED IN BLANK AND APPLICABLE ADDENDUMS

________ CERTIFIED COPY OF THE BORROWER'S POWER OF ATTORNEY (IF APPLICABLE)

________ CERTIFIED COPY OF THE DEED OF TRUST/MORTGAGE AND APPLICABLE RIDERS

________ ORIGINAL EXECUTED ASSIGNMENT (IN BLANK) IN RECORDABLE FORM, IF NOT MERS
REGISTERED

________ TWO CERTIFIED COPIES OF EACH INTERVENING ASSIGNMENT (IF APPLICABLE)

We hereby certify that this loan is pledged to U.S. Bank National Association,
as Agent, in accordance with the Pledge and Security Agreement between us and
U.S. Bank National Association. Capitalized terms used herein have the meanings
ascribed thereto in said Credit Agreement.

                                     E-119
<PAGE>

We also certify that this loan is subject to a Take-Out Commitment, and certify
that sufficient fire and extended insurance coverage is in effect and will be
maintained on the property. All other documents pertaining to this loan will be
held and maintained by us for U.S. Bank National Association, as Agent, for the
Lenders.

                                  DHI MORTGAGE COMPANY, LTD.
                         _____________________Regional Closing Center
                           Phone: (512) 502-0545 Fax: (512) 533-1569

Forward overnight to:

         U.S. Bank National Association
         Mortgage Banking Services

                         800 NICOLLET MALL - BC-MN-H03B

         Minneapolis, MN 55402-7020
         Attention:  Jennifer Jacobson

                         (612) 303-3545

Note: If any errors, U.S. Bank will fax a list daily to the Regional Closing
Center showing any loans where documents need to be corrected.

                                     E-120
<PAGE>

                                                                 ATTACHMENT 5 TO
                              AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

                                  TRUST RECEIPT

                         TEMPORARY RELEASE OF COLLATERAL

         The undersigned hereby acknowledges receipt this _____ day of
____________, _____, from U.S. Bank National Association(the "Agent") of the
following described property (hereinafter called "Collateral"):

         Loan # _________ Mortgagor Name: _______________________

         The undersigned represents, warrants and agrees that:

1. The undersigned has requested and obtained possession of the Collateral from
the Agent for one of the purposes set forth below and for no other purpose:

         Correction of:  __________________________________

2. The Collateral and the proceeds thereof are and will remain subject to the
security interest held by the Agent and the undersigned will keep the Collateral
and any such proceeds segregated and identifiable and free and clear of all
liens, charges and encumbrances.

3. The Collateral will be redelivered to the Agent or its designee as soon as
the purpose for which possession was taken has been accomplished, and in any
event within twenty (20) days from the date of taking possession.

4. In the event of any default in the performance of any term or condition of
this Trust Receipt, all or any part of the indebtedness secured by the
Collateral may be declared immediately due and payable without notice or demand.

5. Additional limitations, if any:

                                                   [DHI MORTGAGE COMPANY, LTD.]
                                                   [CO-BORROWER]

                                                   By
                                                   Its

                                     E-121
<PAGE>

Receipt acknowledged:

[_______________________,
AS INVESTOR

BY
TITLE
DATE                    ]

Enclosures

                                     E-122
<PAGE>

                                                                    Attachment 6
                                                 Official name in various states

<TABLE>
<CAPTION>
 STATE NAME        STATE ID                  CLOSING DOC NAME
<S>                <C>           <C>
Alabama              AL          DHI Mortgage Company, LTD.
Arizona              AZ          DHI Mortgage Company, LTD., Limited Partnership
California           CA          DHI Mortgage Company, LTD., L.P.
Colorado             CO          DHI Mortgage Company, LTD.
Florida              FL          DHI Mortgage Company, LTD.
Georgia              GA          Awaiting final name notification
Hawaii               HI          DHI Mortgage Company, LTD.
Illinois             IL          DHI Mortgage Company, Ltd.
Maryland             MD          DHI Mortgage Company, LTD.
Minnesota            MN          DHI Mortgage Company Limited Partnership
New Mexico           NM          DHI Mortgage Company, LTD.
North Carolina       NC          DHI Mortgage Company, Limited Partnership
Oregon               OR          DHI Mortgage Company, LTD., Limited Partnership
South Carolina       SC          DHI Mortgage Company, LTD.
Texas                TX          DHI Mortgage Company, LTD.
Virginia             VA          Awaiting final name notification
Wisconsin            WI          DHI Mortgage Company Limited Partnership
</TABLE>

                                     E-123
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                    Page
                                                                                                                    ----
<S>                                                                                                                 <C>
ARTICLE I                                                                                                             1

         Section 1.01 Certain Definitions                                                                             1
         Section 1.02 Other Definitional Provisions                                                                  15
         Section 1.03 Exhibits and Schedules                                                                         15
         Section 1.04 Calculations and Determinations                                                                15

ARTICLE II                                                                                                           15

         Section 2.01 Commitments and Discretionary Swingline Commitment                                             16
         Section 2.02 Promissory Notes                                                                               16
         Section 2.03 Obtaining Loans; Refinancing of Swingline Loans                                                16
         Section 2.04 Interest; Balances Deficiency Fees; Continuations and Conversions                              19
         Section 2.05 Fees                                                                                           21
         Section 2.06 Mandatory Repayments                                                                           21
         Section 2.07 Payments to Lenders                                                                            21
         Section 2.08 Increased Capital Requirements                                                                 22
         Section 2.09 Provisions Relating to LIBOR Rate Advances and Balance Funded Rate Advances                    23

ARTICLE III                                                                                                          24

         Section 3.01 Initial Borrowing                                                                              24
         Section 3.02 All Borrowings                                                                                 25

ARTICLE IV                                                                                                           28

         Section 4.01 Organization and Good Standing                                                                 28
         Section 4.02 Authorization and Power                                                                        28
         Section 4.03 No Conflicts or Consents                                                                       28
         Section 4.06 Financial Condition of the Borrowers                                                           29
         Section 4.07 Full Disclosure                                                                                29
         Section 4.08 No Default                                                                                     29
         Section 4.09 No Litigation                                                                                  29
         Section 4.10 Taxes                                                                                          30
         Section 4.11 Principal Office, etc                                                                          30
         Section 4.12 Compliance with ERISA                                                                          30
         Section 4.13 Subsidiaries                                                                                   30
         Section 4.14 Indebtedness                                                                                   30
</TABLE>

                                      E-72
<PAGE>

<TABLE>
<S>                                                                                                                  <C>
         Section 4.15 Permits                                                                                        30
         Section 4.16 Status Under Certain Federal Statutes                                                          30
         Section 4.17 No Approvals Required                                                                          31
         Section 4.18 Individual Mortgage Loans                                                                      31
         Section 4.19 Year 2000 Compliance                                                                           32

ARTICLE V                                                                                                            32

         Section 5.01 Financial Statement and Reports                                                                33
         Section 5.02 Taxes and Other Liens                                                                          34
         Section 5.03 Maintenance                                                                                    34
         Section 5.04 Further Assurances                                                                             34
         Section 5.05 Reimbursement of Expenses                                                                      34
         Section 5.06 Insurance                                                                                      35
         Section 5.07 Accounts and Records                                                                           35
         Section 5.08 Right of Inspection                                                                            35
         Section 5.09 Notice of Certain Events                                                                       36
         Section 5.10 Performance of Certain Obligations and Information Regarding Investors.                        36
         Section 5.11 Use of Proceeds; Margin Stock                                                                  36
         Section 5.12 Notice of Default                                                                              36
         Section 5.13 Compliance with Loan Documents                                                                 36
         Section 5.14 Operations and Properties                                                                      36
         Section 5.15 Year 2000 Compliance                                                                           37

ARTICLE VI                                                                                                           37

         Section 6.01 No Merger                                                                                      37
         Section 6.02 Limitation on GAAP Indebtedness and Contingent Indebtedness                                    37
         Section 6.03 Business                                                                                       37
         Section 6.04 Liquidations, Dispositions of Substantial Assets                                               38
         Section 6.05 Loans, Advances, and Investments                                                               38
         Section 6.06 Use of Proceeds.                                                                               38
         Section 6.07 Actions with Respect to Mortgage Collateral                                                    39
         Section 6.08 Transactions with Affiliates                                                                   39
         Section 6.09 Liens                                                                                          39
         Section 6.10 ERISA Plans                                                                                    39
         Section 6.11 Change of Principal Office; Fiscal Year                                                        39
         Section 6.12 Limitation on Distributions and Redemptions                                                    40
         Section 6.13 Tangible Net Worth                                                                             40
         Section 6.14 Tangible Net Worth Ratio                                                                       40
         Section 6.15 Net Income                                                                                     40
         Section 6.16 Custodian                                                                                      40

ARTICLE VII                                                                                                          40
</TABLE>

                                      E-73
<PAGE>

<TABLE>
<S>                                                                                                                  <C>
         Section 7.01 Nature of Event                                                                                40
         Section 7.02 Default Remedies                                                                               42

ARTICLE VIII                                                                                                         43

         Section 8.01 Indemnification                                                                                43
         Section 8.02 Limitation of Liability                                                                        43

ARTICLE IX                                                                                                           43

         Section 9.01 Appointment and Authorization                                                                  43
         Section 9.02 Note Holders                                                                                   44
         Section 9.03 Consultation With Counsel                                                                      44
         Section 9.04 Documents                                                                                      44
         Section 9.05 Agent and Affiliates                                                                           44
         Section 9.06 Action by Agent                                                                                44
         Section 9.07 Credit Analysis                                                                                45
         Section 9.08 Notices of Event of Default, etc                                                               45
         Section 9.09 Indemnification                                                                                45
         Section 9.10 Payments                                                                                       46
         Section 9.11 Sharing of Set-Offs and Other Payments                                                         46
         Section 9.12 Successor Agent                                                                                46
         Section 9.13  Notice of New Investors                                                                       47

ARTICLE X                                                                                                            47

         Section 10.01 Notices                                                                                       47
         Section 10.02 Amendments, Etc                                                                               48
         Section 10.03 Invalidity                                                                                    49
         Section 10.04 Survival of Agreements                                                                        49
         Section 10.05 Renewal, Extension or Rearrangement                                                           49
         Section 10.06.  Waivers                                                                                     49
         Section 10.07 Cumulative Rights                                                                             49
         Section 10.08 Construction                                                                                  49
         Section 10.09 Limitation on Interest                                                                        50
         Section 10.10 Bank Accounts; Offset                                                                         50
         Section 10.11 Assignments, Participations, Commitment Amount Increases and New Lenders                      51
         Section 10.12 Exhibits                                                                                      52
         Section 10.13 Titles of Articles, Sections and Subsections                                                  53
         Section 10.14 Counterparts                                                                                  53
         Section 10.15 ENTIRE AGREEMENT                                                                              53
         Section 10.16 Termination; Limited Survival                                                                 53
         Section 10.17 Confidentiality of Information                                                                53
         SECTION 10.18 JURY WAIVER                                                                                   53
</TABLE>

                                      E-74
<PAGE>

                                CREDIT AGREEMENT

                           DHI MORTGAGE COMPANY, LTD.
                                  the Company,

                         U.S. BANK NATIONAL ASSOCIATION
                              as Agent and a Lender

                                       and

                      the other Lenders referred to herein

                                  April 9, 2004

                                      E-75

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