Document:

<PAGE>

                                                                    Exhibit 10.3

                                                                  EXECUTION COPY

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                         CARMAX AUTO SUPERSTORES, INC.,
                                   as Seller,

                                       and

                        POOLED AUTO SECURITIES SHELF LLC,
                                  as Purchaser

                                   ----------

                         RECEIVABLES PURCHASE AGREEMENT
                             Dated as of May 1, 2003

                                   ----------
================================================================================

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                                       TABLE OF CONTENTS

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                                         ARTICLE ONE

                                         DEFINITIONS
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Section 1.01.  Definitions................................................................      1
Section 1.02.  Other Definitional Provisions..............................................      4

                                         ARTICLE TWO

                                  CONVEYANCE OF RECEIVABLES

Section 2.01.  Sale and Conveyance of Receivables.........................................      5
Section 2.02.  Receivables Purchase Price; Payments on the Receivables....................      6
Section 2.03.  Transfer of Receivables....................................................      6
Section 2.04.  Examination of Receivable Files............................................      6
Section 2.05.  Expenses...................................................................      6

                                        ARTICLE THREE

                                REPRESENTATIONS AND WARRANTIES

Section 3.01.  Representations and Warranties of the Purchaser............................      8
Section 3.02.  Representations and Warranties of CarMax...................................      8

                                         ARTICLE FOUR

                                          CONDITIONS

Section 4.01.  Conditions to Obligation of the Purchaser..................................     10
Section 4.02.  Conditions to Obligation of the Seller.....................................     12

                                        ARTICLE FIVE

                                    COVENANTS OF THE SELLER

Section 5.01.  Protection of Right, Title and Interest in, to and Under the Receivables...     13
Section 5.02.  Security Interests.........................................................     14
Section 5.03.  Delivery of Payments.......................................................     14
Section 5.04.  No Impairment..............................................................     14
Section 5.05.  Costs and Expenses.........................................................     14
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Section 5.06.  Hold Harmless..............................................................     15

                                         ARTICLE SIX

                                       INDEMNIFICATION

Section 6.01.  Indemnification............................................................     16

                                        ARTICLE SEVEN

                                    MISCELLANEOUS PROVISIONS

Section 7.01.  Amendment..................................................................     19
Section 7.02.  Termination................................................................     19
Section 7.03.  Governing Law..............................................................     19
Section 7.04.  Notices....................................................................     19
Section 7.05.  Severability of Provisions.................................................     19
Section 7.06.  Further Assurances.........................................................     20
Section 7.07.  No Waiver; Cumulative Remedies.............................................     20
Section 7.08.  Counterparts...............................................................     20
Section 7.09.  Third-Party Beneficiaries..................................................     20
Section 7.10.  Headings and Table of Contents.............................................     20
Section 7.11.  Representations, Warranties and Agreements to Survive......................     20
Section 7.12.  No Proceedings.............................................................     20
Section 7.13.  Accountant's Letters.......................................................     21
Section 7.14.  Obligations of Purchaser...................................................     21

                                          SCHEDULES

Schedule A - Receivables Schedule.........................................................   SA-1

                                           EXHIBITS

Exhibit A - Bill of Sale and Assignment...................................................    A-1
Exhibit B - Secretary's Certificate of the Seller.........................................    B-1
Exhibit C - Opinions of Counsel for the Seller............................................    C-1
Exhibit D - Representations and Warranties of Seller......................................    D-1
Exhibit E - Form of Retail Installment Sale Contract......................................    E-1
</TABLE>

                                       ii

<PAGE>

                         RECEIVABLES PURCHASE AGREEMENT

     This Receivables Purchase Agreement, dated as of May 1, 2003, is between
CarMax Auto Superstores, Inc., a Virginia corporation ("CarMax"), as seller (the
"Seller"), and Pooled Auto Securities Shelf LLC, a Delaware limited liability
company ("PASS"), as purchaser.

     WHEREAS, in the regular course of business, the Seller and certain
affiliates of the Seller originate motor vehicle retail installment sale
contracts secured by new and used motor vehicles;

     WHEREAS, the Seller intends to convey all of its right, title and interest
in and to contracts having an aggregate outstanding principal balance of
$506,963,081.52 as of the close of business on April 30, 2003 (the
"Receivables") to the Purchaser and, concurrently with its purchase of the
Receivables, the Purchaser shall convey all of its right, title and interest in
and to the Receivables to CarMax Auto Owner Trust 2003-1, as issuer (the
"Issuer") pursuant to a Sale and Servicing Agreement, dated as of May 1, 2003
(the "Sale and Servicing Agreement"), among the Issuer, PASS, as depositor, and
CarMax, as seller and servicer; and

     WHEREAS, the Seller and the Purchaser wish to set forth the terms pursuant
to which the Receivables are to be sold by the Seller to the Purchaser.

     NOW, THEREFORE, in consideration of the mutual terms and covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                                   ARTICLE ONE

                                   DEFINITIONS

     Section 1.01. Definitions. Whenever used in this Agreement, the following
words and phrases shall have the following meanings:

     "Agreement" means this Receivables Purchase Agreement and all amendments
hereof and supplements hereto.

     "Base Prospectus" means the prospectus, dated May 9, 2003, of the Purchaser
relating to the public offering by the Purchaser of the Notes.

     "Basic Documents" means this Agreement, the Sale and Servicing Agreement,
the Administration Agreement, the Indenture, the Trust Agreement and any other
documents or certificates delivered in connection herewith or therewith as the
same may be amended, supplemented or otherwise modified and in effect.

     "Bill of Sale" means the Bill of Sale and Assignment, substantially in the
form attached hereto as Exhibit A.

<PAGE>

     "CarMax" means CarMax Auto Superstores, Inc., a Virginia corporation, and
its successors.

     "Class A Notes" means the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes issued pursuant to the Indenture.

     "Class A and Class B Underwriters" means the underwriters named in Schedule
A to the Class A and Class B Underwriting Agreement.

     "Class A and Class B Underwriting Agreement" means the Class A and Class B
Underwriting Agreement, dated May 20, 2003, between PASS and the Representative,
relating to the purchase of the Class A Notes and Class B Notes by the Class A
and Class B Underwriters from PASS.

     "Class B Notes" means the Class B Notes issued pursuant to the Indenture.

     "Class C Notes" means the Class C Notes issued pursuant to the Indenture.

     "Class C Underwriters" means the underwriters named in Schedule A to the
Class C Underwriting Agreement.

     "Class C Underwriting Agreement" means the Class C Underwriting Agreement,
dated May 13, 2003, between PASS and the Representative, relating to the
purchase of the Class C Notes by the Class C Underwriters from PASS.

     "Closing Date" means May 29, 2003.

     "Cutoff Date" means April 30, 2003.

     "Delaware Trustee" means The Bank of New York (Delaware), as Delaware
Trustee under the Trust Agreement, and its successors in such capacity.

     "Depositor" means Pooled Auto Securities Shelf LLC, a Delaware limited
liability company, as Depositor under the Trust Agreement, and its successors in
such capacity.

     "DTC" means The Depository Trust Company, and its successors.

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

     "Indenture" means the Indenture, dated as of May 1, 2003, between the
Issuer and the Indenture Trustee, as amended or supplemented from time to time.

     "Indenture Trustee" means Wells Fargo Bank Minnesota, National Association,
as indenture trustee under the Indenture, and its successors in such capacity.

     "Initial Reserve Account Deposit" means $2,534,815.41.

     "Issuer" means CarMax Auto Owner Trust 2003-1, a Delaware statutory trust,
and its successors.

                                        2

<PAGE>

     "Noteholders" means the Noteholders.

     "Notes" means the Class A Notes, the Class B Notes and the Class C Notes
issued pursuant to the Indenture.

     "Owner Trustee" means The Bank of New York, as owner trustee under the
Trust Agreement, and its successors in such capacity.

     "PASS" means Pooled Auto Securities Shelf LLC, a Delaware limited liability
company, and its successors.

     "Preliminary Prospectus Supplement" means the preliminary prospectus
supplement, dated May 9, 2003, and the prospectus, dated May 9, 2003, of the
Purchaser relating to the public offering by the Purchaser of the Notes.

     "Prospectus Supplement" means the final prospectus supplement, dated May
20, 2003, of the Purchaser relating to the public offering by the Purchaser of
the Notes.

     "Prospectus" means the Prospectus Supplement and the Base Prospectus of the
Purchaser relating to the public offering by the Purchaser of the Notes.

     "Purchaser" means PASS, in its capacity as purchaser of the Receivables
under this Agreement, and its successors in such capacity.

     "Receivables" means the motor vehicle retail installment sale contracts
sold by the Seller to the Purchaser pursuant to this Agreement and identified on
the Receivables Schedule.

     "Receivables Purchase Price" means $503,276,251.24.

     "Receivables Schedule" means the schedule of receivables attached as
Schedule A hereto, as amended, supplemented or otherwise modified and in effect
from time to time.

     "Representation Date" means each of the date of the Preliminary Prospectus
Supplement, the Prospectus and the Closing Date.

     "Representative" means Wachovia Securities, Inc., as representative of the
Underwriters.

     "Sale and Servicing Agreement" has the meaning given in the recitals.

     "SEC" means the Securities and Exchange Commission, and its successors.

     "Securities" means the Notes and the Certificates.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Seller" means CarMax, in its capacity as seller of the Receivables under
this Agreement, and its successors in such capacity.

                                        3

<PAGE>

     "Seller Information" means the information in the Preliminary Prospectus
Supplement and the Prospectus Supplement (other than the information under the
headings "Summary - Tax Status", "Summary - ERISA Considerations", "The
Depositor", "Material Federal Income Tax Consequences", "ERISA Considerations",
"Underwriting" and "Annex I - Global Clearance, Settlement and Tax Documentation
Procedures"), and the information in the Base Prospectus under the heading
"Material Legal Issues Relating to the Receivables".

     "State" means any of the 50 states of the United States of America or the
District of Columbia.

     "Trust Agreement" means the trust agreement, dated as of April 4, 2003,
among PASS, the Delaware Trustee and the Owner Trustee and as amended and
restated by the Amended and Restated Trust Agreement, dated as of May 1, 2003
among PASS, the Delaware Trustee and the Owner Trustee.

     "Trustee" means either the Owner Trustee or the Indenture Trustee, as the
context requires.

     "UCC" means Uniform Commercial Code as in effect in the respective
jurisdiction.

     "Underwriters" means the Class A and Class B Underwriters and the Class C
Underwriters.

     "Underwriting Agreements" means the Class A and Class B Underwriting
Agreement and the Class C Underwriting Agreement.

     Section 1.02. Other Definitional Provisions.

     (a) Capitalized terms used herein that are not otherwise defined shall have
the meanings ascribed thereto in the Sale and Servicing Agreement.

     (b) The words "hereof", "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement; Section, subsection, Schedule
and Exhibit references contained in this Agreement are references to Sections,
subsections, Schedules and Exhibits in or to this Agreement unless otherwise
specified; the term "proceeds" shall have the meaning set forth in the
applicable UCC; and the word "including" means including without limitation.

                                        4

<PAGE>

                                   ARTICLE TWO

                            CONVEYANCE OF RECEIVABLES

     Section 2.01. Sale and Conveyance of Receivables.

     (a) The Seller hereby sells, transfers, assigns, sets over and otherwise
conveys to the Purchaser, and the Purchaser hereby purchases from the Seller,
without recourse (subject to the Seller's obligations hereunder), all of the
right, title and interest of the Seller in, to and under the following:

          (i) the Receivables;

          (ii) all amounts received on or in respect of the Receivables
     (including proceeds of the repurchase of Receivables by the Seller pursuant
     to Section 3.02(g)) after the Cutoff Date;

          (iii) the security interests in the Financed Vehicles granted by the
     Obligors pursuant to the Receivables;

          (iv) all proceeds from claims on or refunds of premiums of any
     physical damage or theft insurance policies covering the Financed Vehicles
     and any proceeds or refunds of premiums of any credit life or credit
     disability insurance policies relating to the Financed Vehicles or the
     Obligors;

          (v) the Receivable Files;

          (vi) the right to realize upon any property (including the right to
     receive future Liquidation Proceeds) that shall have secured a Receivable
     and have been repossessed by or on behalf of the Issuer; and

          (vii) all present and future claims, demands, causes of action and
     choses in action in respect of any or all of the foregoing and all payments
     on or under and all proceeds of every kind and nature whatsoever in respect
     of any or all of the foregoing, including all proceeds of the conversion
     thereof, voluntary or involuntary, into cash or other liquid property, all
     cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
     chattel paper, checks, deposit accounts, insurance proceeds, condemnation
     awards, rights to payment of any and every kind and other forms of
     obligations and receivables, instruments and other property which at any
     time constitute all or part of or are included in the proceeds of any of
     the foregoing.

     (b) The parties hereto intend that the conveyance of the Receivables and
related property hereunder be a sale and not a loan. In the event that the
conveyance hereunder is not for any reason considered a sale, the Seller hereby
grants to the Purchaser a first priority perfected security interest in all of
the Seller's right, title and interest in, to and under the Receivables, and all
other property conveyed hereunder and listed in this Section and all proceeds of
any of the foregoing. The parties intend that this Agreement constitute a
security agreement under applicable law. Such grant is made to secure the
payment of all amounts payable hereunder,

                                        5

<PAGE>

including the Receivables Purchase Price. If such conveyance is for any reason
considered to be a loan and not a sale, the Seller consents to the Purchaser
transferring such security interest in favor of the Indenture Trustee and
transferring the obligation secured thereby to the Indenture Trustee.

     (c) The Seller agrees to treat the transfer of the Receivables and the
related property contemplated by Section 2.01(a) for all purposes (including tax
and financial accounting purposes) as an absolute transfer on all relevant
books, records, tax returns, financial statements and other applicable
documents.

     Section 2.02. Receivables Purchase Price; Payments on the Receivables.

     (a) On the Closing Date, in exchange for the Receivables and other assets
described in Section 2.01(a), the Purchaser shall pay the Seller, in immediately
available funds, the Receivables Purchase Price. The Purchaser shall deposit,
from funds it receives from the issuance of the Notes, an amount equal to the
Initial Reserve Account Deposit into the Reserve Account, which amount shall be
an asset of the Trust. The Seller, upon consummation of the transactions
contemplated by the Basic Documents, shall be the holder of the Certificates.

     (b) The Purchaser shall be entitled to, and shall convey such right to the
Owner Trustee pursuant to the Sale and Servicing Agreement, all payments of
principal and interest on or in respect of the Receivables received after the
Cutoff Date.

     Section 2.03. Transfer of Receivables. Pursuant to the Sale and Servicing
Agreement, the Purchaser will assign all of its right, title and interest in, to
and under the Receivables and other assets described in Section 2.01(a) to the
Issuer. The parties hereto acknowledge that the Issuer will pledge its rights
in, to and under the Receivables and other assets described in Section 2.01(a)
to the Indenture Trustee pursuant to the Indenture. The Purchaser has the right
to assign its interest under this Agreement as may be required to effect the
purposes of the Sale and Servicing Agreement, without the consent of the Seller,
and the Owner Trustee as assignee shall succeed to the rights and obligations
hereunder of the Purchaser.

     Section 2.04. Examination of Receivable Files. The Seller will make the
Receivable Files available to the Purchaser or its agent for examination during
normal business hours at the Seller's offices or such other location as
otherwise shall be agreed upon by the Purchaser and the Seller.

     Section 2.05. Expenses. The Seller will reimburse the Purchaser for certain
of the expenses of the Purchaser in connection with the sale of the Notes,
including (i) expenses incident to the printing, reproducing and distributing of
the Preliminary Prospectus and the Prospectus, (ii) any fees charged by Moody's
and Standard & Poor's in connection with the rating of the Notes, (iii) the fees
of DTC in connection with the book-entry registration of the Notes, (iv) the
reasonable expenses incurred by the Purchaser in connection with the initial
qualification of the Notes for sale under the laws of such jurisdictions in the
United States as the Purchaser may designate, including fees of counsel and
disbursements incurred by such counsel in connection therewith and (v) the fees,
which shall not exceed the amount previously agreed upon between the Purchaser
and the Seller, and disbursements of Sidley Austin Brown & Wood

                                        6

<PAGE>

LLP, counsel to the Purchaser and to the Underwriters, in connection with the
purchase of the Receivables hereunder and the issuance and sale of the Notes.

                                        7

<PAGE>

                                  ARTICLE THREE

                         REPRESENTATIONS AND WARRANTIES

     Section 3.01. Representations and Warranties of the Purchaser. The
Purchaser hereby represents and warrants to the Seller as of the date of this
Agreement and as of the Closing Date that:

          (a) Organization and Good Standing. The Purchaser is a limited
     liability company duly organized, validly existing and in good standing
     under the laws of the State of Delaware, and has power and authority to own
     its properties and to conduct its business as such properties are currently
     owned and such business is presently conducted, and had at all relevant
     times, and shall have, power, authority and legal right to acquire, own and
     sell the Receivables.

          (b) Power and Authority. The Purchaser has the power and authority to
     execute and deliver this Agreement and to carry out its terms; and the
     execution, delivery and performance of this Agreement has been duly
     authorized by the Purchaser by all necessary action.

          (c) No Violation. The consummation of the transactions contemplated by
     this Agreement and the fulfillment of the terms hereof shall not conflict
     with, result in any breach of any of the terms and provisions of, nor
     constitute (with or without notice or lapse of time) a default under, the
     limited liability company agreement or certificate of formation of the
     Purchaser, or conflict with or breach any of the material terms or
     provisions of, or constitute (with or without notice or lapse of time) a
     default under, any indenture, agreement or other instrument to which the
     Purchaser is a party or by which it may be bound.

     Section 3.02. Representations and Warranties of CarMax.

     (a) The Seller makes the representations and warranties contained in
Exhibit D attached hereto and incorporated herein by reference on which the
Purchaser relies in accepting the Receivables. The representations and
warranties of CarMax contained in Section 7.1 of the Sale and Servicing
Agreement are incorporated herein as if set forth herein and as if made to the
Purchaser on the date hereof.

     (b) As of each Representation Date, the Seller Information is true and
accurate in all material respects and did not or does not contain any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

     (c) It is understood and agreed that the representations and warranties
incorporated by reference in Section 3.02(a) or set forth in Section 3.02(b)
shall remain operative and in full force and effect, shall survive the transfer
and conveyance of the Receivables and other assets described in Section 2.01(a)
by the Seller to the Purchaser and by the Purchaser to the Issuer and shall
inure to the benefit of the Purchaser, the Trustees and the Noteholders.

                                        8

<PAGE>

     (d) The Seller shall indemnify the Purchaser and hold the Purchaser
harmless against any losses, penalties, fines, forfeitures, legal fees and
related costs, judgments and other costs and expenses resulting from any third
party claim, demand, defense or assertion based on or grounded upon, or
resulting from, a breach of the Seller's representations and warranties
incorporated by reference in Section 3.02(a) or set forth in Section 3.02(b).
The Trustees shall also have the remedies provided in the Sale and Servicing
Agreement.

     (e) Any cause of action against the Seller relating to or arising out of
the breach of any of its representations and warranties made or incorporated by
reference in this Section shall accrue as to any Receivable upon (i) discovery
of such breach by the Purchaser or either Trustee or notice thereof by the
Seller to the Purchaser, (ii) failure by the Seller to cure such breach and
(iii) demand upon the Seller by the Purchaser for all amounts payable in respect
of such Receivable under this Agreement.

     (f) The Purchaser or the Seller, as the case may be, shall inform the other
parties promptly, in writing, upon discovery of any breach of the Seller's
representations and warranties pursuant to this Section which materially and
adversely affects the interests of the Noteholders in any Receivable.

     (g) If a breach of any representation or warranty incorporated by reference
in Section 3.02(a) which materially and adversely affects the interests of the
Purchaser, the Trust or the Noteholders in any Receivable shall not have been
cured by the close of business on the last day of the Collection Period which
includes the thirtieth day after the date on which the Seller becomes aware of,
or receives written notice from the Servicer, the Purchaser or the Owner Trustee
of such breach or failure, the Seller shall repurchase such Receivable from the
Trust on the related Distribution Date. In consideration for the repurchase of
any such Receivable, the Seller shall remit the Purchase Amount of such
Receivable to the Trust. Upon any such repurchase, the Purchaser shall, without
further action, be deemed to transfer, assign, set-over and otherwise convey to
the Seller, without recourse, representation or warranty, all the right, title
and interest of the Purchaser in, to and under such repurchased Receivable and
all other related assets described in Section 2.01(a). The Purchaser, the
Issuer, the Owner Trustee or the Indenture Trustee, as applicable, shall execute
such documents and instruments of transfer or assignment and take such other
actions as shall reasonably be requested by the Seller to effect the conveyance
of such Receivable pursuant to this Section. The sole remedy of the Purchaser,
the Issuer, the Trustees or the Noteholders with respect to a breach of the
Seller's representations and warranties pursuant to Section 3.02(a) or with
respect to the existence of any such Liens or claims shall be to require the
Seller to repurchase the related Receivables pursuant to this Section.

                                        9

<PAGE>

                                  ARTICLE FOUR

                                   CONDITIONS

     Section 4.01. Conditions to Obligation of the Purchaser. The obligation of
the Purchaser to purchase the Receivables from the Seller on the Closing Date is
subject to the satisfaction of the following conditions:

          (a) Representations and Warranties True. The representations and
     warranties of CarMax contained herein and in the other Basic Documents
     shall be true and correct on the Closing Date with the same effect as if
     made on the Closing Date, and each of the Seller and the Servicer shall
     have performed all obligations to be performed by it hereunder and under
     the other Basic Documents on or before the Closing Date.

          (b) Computer Files Marked. The Seller shall, at its own expense, on or
     before the Closing Date, indicate in its computer files that the
     Receivables have been sold to the Purchaser pursuant to this Agreement and
     deliver to the Purchaser the Receivables Schedule, certified by an officer
     of the Seller to be true, correct and complete.

          (c) Release of Lenders. The Seller shall obtain executed release
     agreements and UCC partial releases with respect to the Receivables from
     Bank of America, N.A. (and certain other parties) and CarMax Funding, LLC,
     in each case in form and substance satisfactory to the Purchaser.

          (d) Documents to be Delivered. The Purchaser shall have received the
     following, all of which shall be dated as of the Closing Date or such other
     date as specified:

               (i) the Receivables Schedule;

               (ii) an Officer's Certificate of the Seller, substantially in the
          form of Exhibit B hereto;

               (iii) an opinion or opinions of counsel for the Seller, in the
          aggregate substantially in the form of Exhibit C hereto, addressed to
          the Purchaser and the Underwriters;

               (iv) a letter, dated May 20, 2003, from KPMG LLP as to certain
          financial and statistical information in the Prospectus Supplement,
          which letter shall be acceptable in form and substance to the
          Purchaser;

               (v) copies of resolutions of the board of directors of the Seller
          approving the execution, delivery and performance of the Basic
          Documents to which the Seller is a party, and the performance of the
          transactions contemplated hereunder and thereunder, certified by the
          Secretary or an Assistant Secretary of the Seller;

                                       10

<PAGE>

               (vi) copies of the articles of incorporation of the Seller,
          together with all amendments, revisions and supplements thereto,
          certified by the Virginia State Corporation Commission as of a recent
          date, and a certificate of fact from the Virginia State Corporation
          Commission, dated as of a recent date, to the effect that the Seller
          has been duly incorporated, is in good standing and has a legal
          corporate existence;

               (vii) UCC search reports from the appropriate offices in Virginia
          as to the Seller;

               (viii) reliance letters to each opinion of counsel to the Seller
          or the Servicer delivered to Standard & Poor's or Moody's in
          connection with the purchase of the Receivables hereunder or the
          issuance of the Securities or sale of the Notes;

               (ix) a financing statement to be filed with the Virginia State
          Corporation Commission, naming the Seller, as seller or debtor, the
          Purchaser, as purchaser or secured party, and the Trust, as assignee,
          naming the Receivables and the related property described in Section
          2.01(a) as collateral and meeting the requirements of the laws of each
          such jurisdiction and in such manner as is necessary to perfect the
          sale, transfer, assignment and conveyance of the Receivables to the
          Purchaser;

               (x) the Bill of Sale; and

               (xi) such other documents, certificates and opinions as may be
          reasonably requested by the Purchaser or its counsel.

          (e) Execution of Basic Documents. The Basic Documents shall have been
     executed and delivered by the parties thereto.

          (f) Rating of the Notes. Moody's and Standard & Poor's, respectively,
     shall have assigned ratings of (i) "Prime-1" and "A-1+" to the Class A-1
     Notes, (ii) "Aaa" and "AAA" to the Class A-2 Notes, the Class A-3 Notes and
     the Class A-4 Notes, (iii) "Aa3" and "A" to the Class B Notes and (iv)
     "Baa3" and "BBB" to the Class C Notes.

          (g) No Unsolicited Ratings. There shall not have been issued an
     unsolicited rating of any Class of Notes by any nationally recognized
     statistical rating agency at a level that is lower than the ratings for
     such Class of Notes from Moody's or Standard & Poor's specified in Section
     4.01(f).

          (h) Other Transactions. The transactions contemplated by the Basic
     Documents shall be consummated on the Closing Date.

          (i) No Termination of the Underwriting Agreements. The Purchaser may
     terminate this Agreement at any time at or prior to the Closing Date (i) if
     there has been, since the respective dates as of which information is given
     in the Prospectus, any material adverse change in the condition, financial
     or otherwise, or in the earnings, business

                                       11

<PAGE>

     affairs or business prospects of the Purchaser or CarMax, whether or not
     arising in the ordinary course of business, (ii) if there has occurred any
     material adverse change in the financial markets in the United States, any
     outbreak of hostilities or escalation thereof or other calamity or crisis
     or any change or development involving a prospective change in national or
     international political, financial or economic conditions, in each case the
     effect of which is such as to make it, in the judgment of the
     Representative, impracticable or inadvisable to market the Notes or to
     enforce contracts for the sale of the Notes, (iii) if trading in any
     securities of the Purchaser, CarMax or any of their Affiliates has been
     suspended or materially limited by the SEC or if trading generally on the
     American Stock Exchange, the New York Stock Exchange or in the Nasdaq
     National Market has been suspended or materially limited, or minimum or
     maximum prices for trading have been fixed, or maximum ranges for prices
     have been required, by any of said exchanges or by such system or by order
     of the SEC, the National Association of Securities Dealers, Inc. or any
     other governmental authority, (iv) a material disruption has occurred in
     commercial banking or securities settlement or clearing services in the
     United States or (v) if a banking moratorium has been declared by either
     Federal, Virginia, North Carolina or New York authorities.

     Section 4.02. Conditions to Obligation of the Seller. The obligation of the
Seller to sell the Receivables to the Purchaser on the Closing Date is subject
to the satisfaction of the following conditions:

          (a) Representations and Warranties True. The representations and
     warranties of the Purchaser contained herein and in the other Basic
     Documents shall be true and correct on the Closing Date with the same
     effect as if then made, and the Purchaser shall have performed all
     obligations to be performed by it hereunder and under the other Basic
     Documents on or before the Closing Date.

          (b) Payment of Receivables Purchase Price. In consideration of the
     sale of the Receivables from the Seller to the Purchaser as provided in
     Section 2.01, on the Closing Date the Purchaser shall have paid the Seller
     an amount equal to the Receivables Purchase Price and the Certificates
     shall have been registered in the name of and delivered to the Seller.

          (c) Opinions of Purchaser. An opinion or opinions of counsel for the
     Purchaser addressed to the Seller and the Underwriters shall have been
     delivered.

                                       12

<PAGE>

                                  ARTICLE FIVE

                             COVENANTS OF THE SELLER

     Section 5.01. Protection of Right, Title and Interest in, to and Under the
Receivables.

     (a) The Seller, at its expense, shall cause all financing statements and
continuation statements and any other necessary documents covering the
Purchaser's right, title and interest in, to and under the Receivables and other
property conveyed by the Seller to the Purchaser hereunder to be promptly
authorized, recorded, registered and filed, and at all times to be kept
recorded, registered and filed, all in such manner and in such places as may be
required by law fully to preserve and protect the right, title and interest of
the Purchaser hereunder to the Receivables and such other property. The Seller
shall deliver to the Purchaser file-stamped copies of, or filing receipts for,
any document recorded, registered or filed as provided above, as soon as
available following such recording, registration or filing. The Purchaser shall
cooperate fully with the Seller in connection with the obligations set forth
above and will execute any and all documents reasonably required to fulfill the
intent of this subsection.

     (b) Within five days after the Seller makes any change in its name,
identity or organizational structure which would make any financing statement or
continuation statement filed in accordance with Section 4.01(d) seriously
misleading within the meaning of the UCC as in effect in the applicable state,
the Seller shall give the Purchaser notice of any such change and, within 30
days after such change, shall authorize and file such financing statements or
amendments as may be necessary to continue the perfection of the Purchaser's
security interest in the Receivables and the proceeds thereof.

     (c) The Seller shall give the Purchaser written notice within five days of
any relocation of the state of organization of the Seller or any office in which
the Seller keeps records concerning the Receivables and whether, as a result of
such relocation, the applicable provisions of the UCC would require the filing
of any amendment of any previously filed financing or continuation statement or
of any new financing statement and, within 30 days after such relocation, shall
authorize and file such financing statements or amendments as may be necessary
to continue the perfection of the interest of the Purchaser in the Receivables
and the proceeds thereof. The Seller shall at all times maintain its state of
organization, its principal place of business and its chief executive office and
the location of the office where the Receivables Files and any accounts and
records relating to the Receivables are kept within the United States of
America.

     (d) The Seller shall maintain accounts and records as to each Receivable
accurately and in sufficient detail to permit (i) the reader thereof to know at
any time the status of such Receivable, including payments and recoveries made
and payments owing (and the nature of each) and (ii) reconciliation between
payments or recoveries on (or with respect to) each Receivable.

     (e) The Seller shall maintain its computer systems so that, from and after
the time of the transfer of the Receivables to the Purchaser pursuant to this
Agreement, the Seller's master computer records (including any back-up archives)
that refer to a Receivable shall indicate

                                       13

<PAGE>

clearly and unambiguously that such Receivable is owned by the Purchaser (or,
upon transfer of the Receivables to the Issuer, by the Issuer). Indication of
the Purchaser's ownership of a Receivable shall be deleted from or modified on
the Seller's computer systems when, and only when, such Receivable shall have
been paid in full or repurchased by the Seller.

     (f) If at any time the Seller shall propose to sell, grant a security
interest in or otherwise transfer any interest in any motor vehicle retail
installment sale contract to any prospective purchaser, lender or other
transferee, the Seller shall give to such prospective purchaser, lender or other
transferee computer tapes, compact disks, records or print-outs (including any
restored from back-up archives) that, if they shall refer in any manner
whatsoever to any Receivable, shall indicate clearly and unambiguously that such
Receivable has been sold and is owned by the Purchaser (or, upon transfer of the
Receivables to the Issuer, the Issuer), unless such Receivable has been paid in
full or repurchased by the Seller.

     (g) The Seller shall permit the Purchaser and its agents at any time during
normal business hours to inspect, audit and make copies of and abstracts from
the Seller's records regarding any Receivable.

     (h) If the Seller has repurchased one or more Receivables from the
Purchaser or the Issuer pursuant to Section 3.02(g), the Seller shall, upon
request, furnish to the Purchaser, within ten days, a list of all Receivables
(by receivable number and name of Obligor) then owned by the Purchaser, together
with a reconciliation of such list to the Receivables Schedule.

     Section 5.02. Security Interests. Except for the conveyances hereunder, the
Seller covenants that it will not sell, pledge, assign or transfer to any other
Person, or grant, create, incur, assume or suffer to exist any Lien on any
Receivable, whether now existing or hereafter created, or any interest therein;
the Seller will immediately notify the Purchaser of the existence of any Lien on
any Receivable and, in the event that the interests of the Noteholders in such
Receivable are materially and adversely affected, such Receivable shall be
repurchased from the Purchaser by the Seller in the manner and with the effect
specified in Section 3.02(g), and the Seller shall defend the right, title and
interest of the Purchaser in, to and under the Receivables, whether now existing
or hereafter created, against all claims of third parties claiming through or
under the Seller.

     Section 5.03. Delivery of Payments. The Seller covenants and agrees to
deliver in kind upon receipt to the Servicer under the Sale and Servicing
Agreement all payments received by the Seller in respect of the Receivables as
soon as practicable after receipt thereof by the Seller.

     Section 5.04. No Impairment. The Seller covenants that it shall take no
action, nor omit to take any action, which would impair the rights of the
Purchaser in any Receivable, nor shall it, except as otherwise provided in this
Agreement or the Sale and Servicing Agreement, reschedule, revise or defer
payments due on any Receivable.

     Section 5.05. Costs and Expenses. The Seller shall pay all reasonable costs
and expenses incurred in connection with the perfection of the Purchaser's
right, title and interest in, to and under the Receivables.

                                       14

<PAGE>

     Section 5.06. Hold Harmless. The Seller shall protect, defend, indemnify
and hold the Purchaser and the Issuer and their respective assigns and their
attorneys, accountants, employees, officers and directors harmless from and
against all losses, costs, liabilities, claims, damages and expenses of every
kind and character, as incurred, resulting from or relating to or arising out of
(i) the inaccuracy, nonfulfillment or breach of any representation, warranty,
covenant or agreement made by CarMax in this Agreement, (ii) any legal action,
including any counterclaim, that has either been settled by the litigants (which
settlement, if the Seller is not a party thereto shall be with the consent of
the Seller) or has proceeded to judgment by a court of competent jurisdiction,
in either case to the extent it is based upon alleged facts that, if true, would
constitute a breach of any representation, warranty, covenant or agreement made
by the Seller in this Agreement, (iii) any actions or omissions of the Seller or
any employee or agent of the Seller occurring prior to the Closing Date with
respect to any Receivable or Financed Vehicle or (iv) any failure of a
Receivable to be originated in compliance with all requirements of law. These
indemnity obligations shall be in addition to any obligation that the Seller may
otherwise have.

                                       15

<PAGE>

                                   ARTICLE SIX

                                 INDEMNIFICATION

     Section 6.01. Indemnification.

     (a) The Seller agrees to indemnify and hold harmless the Purchaser, each
Underwriter and each person, if any, who controls the Purchaser or any
Underwriter within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act as follows:

          (i) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, arising out of any untrue statement or alleged
     untrue statement of a material fact included in the Seller Information or
     any similar information contained in the Preliminary Prospectus or the
     Prospectus or any amendment or supplement thereto, or the omission or
     alleged omission from the Seller Information or such similar information of
     a material fact necessary in order to make the statements therein, in the
     light of the circumstances under which they were made, not misleading;

          (ii) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, to the extent of the aggregate amount paid in
     settlement of any litigation, or any investigation or proceeding by any
     governmental agency or body, commenced or threatened, or of any claim
     whatsoever, based upon any such untrue statement or omission, or any such
     alleged untrue statement or omission; provided that (subject to Section
     6.01(c)) any such settlement is effected with the written consent of the
     Seller; and

          (iii) against any and all expense whatsoever, as incurred (including
     the fees and disbursements of counsel chosen by the Purchaser or the
     Representative), reasonably incurred in investigating, preparing or
     defending against any litigation, or any investigation or proceeding by any
     governmental agency or body, commenced or threatened, or any claim
     whatsoever, based upon any such untrue statement or omission, or any such
     alleged untrue statement or omission, to the extent that any such expense
     is not paid under clause (i) or (ii) above.

     (b) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an
indemnifying party shall not relieve such indemnifying party from any liability
hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. Counsel to the indemnified parties
shall be selected by the Purchaser or the Representative, subject to the consent
of the indemnifying party (which consent shall not be unreasonably withheld). An
indemnifying party may participate at its own expense in the defense of any such
action; provided, however, that counsel to the indemnifying party shall not
(except with the consent of the indemnified party) also be counsel to the
indemnified party. In no event shall the indemnifying parties be liable for fees
and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or

                                       16

<PAGE>

circumstances. No indemnifying party shall, without the prior written consent of
the indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding by
any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which indemnification or contribution could be sought
under this Section (whether or not the indemnified parties are actual or
potential parties thereto), unless such settlement, compromise or consent (i)
includes an unconditional release of each indemnified party from all liability
arising out of such litigation, investigation, proceeding or claim and (ii) does
not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any indemnified party.

     (c) If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 6.01(a)(ii) effected without
its written consent if (i) such settlement is entered into more than 45 days
after receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement; provided,
however, that such indemnifying party shall not be liable for such settlement if
it has notified the indemnified party in writing that it objects to the terms of
such settlement within 30 days after receipt of the notice described in clause
(ii) above or that it objects to the requested fees and expenses within 45 days
after receipt of such request.

     (d) If recovery is not available under the provisions of this Section for
any reason other than as specified herein, the indemnified parties shall be
entitled to contribution to liabilities and expenses, except to the extent that
contribution is not permitted under Section 11(f) of the Securities Act. In
determining the amount of contribution to which the indemnified parties are
entitled, there shall be considered the relative benefits received by each
party, the parties' relative knowledge and access to information concerning the
matter with respect to which the claim was asserted, the opportunity to correct
and prevent any statement or omission, and any other equitable considerations
appropriate under the circumstances. The parties hereto agree that it would not
be equitable if the amount of such contribution were determined by pro rata or
per capita allocation or by any other method of allocation which does not take
account of the equitable considerations referred to above in this Section. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever, based upon any such untrue or alleged
untrue statement or omission or alleged omission.

     Notwithstanding the other provisions of this Section, the relative benefits
received by the Underwriters shall be deemed to be in the same proportion as the
total underwriting discounts and commissions received by the Underwriters, bear
to the Receivables Purchase Price.

                                       17

<PAGE>

     No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

                                       18

<PAGE>

                                  ARTICLE SEVEN

                            MISCELLANEOUS PROVISIONS

     Section 7.01. Amendment.

     (a) This Agreement may be amended from time to time by a written amendment
duly executed and delivered by the Purchaser and the Seller, without the consent
of any Noteholder, to cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein or to add any
other provision with respect to matters or questions arising under this
Agreement which shall not be inconsistent with the provisions of this Agreement
or the Sale and Servicing Agreement; provided, however, that any such amendment
shall not, as evidenced by an Opinion of Counsel to the Seller delivered to the
Indenture Trustee, adversely affect in any material respect the interests of the
Noteholders.

     (b) This Agreement may also be amended from time to time for any other
purpose by a written amendment duly executed and delivered by the Seller and by
the Purchaser; provided, however, that any such amendment that materially
adversely affects the interests of the Noteholders under the Indenture, the Sale
and Servicing Agreement or the Trust Agreement must be consented to by the
Holders of Notes evidencing not less than 51% of the Note Balance of the
Controlling Class.

     (c) Promptly after the execution of any amendment to this Agreement, the
Seller shall furnish written notification of the substance of such amendment to
the Owner Trustee, the Indenture Trustee and the Rating Agencies.

     Section 7.02. Termination. The respective obligations and responsibilities
of the Seller and the Purchaser created hereby shall terminate, except for the
indemnity obligations of the Seller as provided herein, upon the termination of
the Issuer as provided in the Trust Agreement.

     Section 7.03. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 7.04. Notices. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or sent by telecopier, overnight courier or mailed by registered
mail, return receipt requested, in the case of (i) the Purchaser, to Pooled Auto
Securities Shelf LLC, One Wachovia Center, 301 South College Street, Charlotte,
North Carolina 28288, Attention: General Counsel and (ii) the Seller, to CarMax
Auto Superstores, Inc., 4900 Cox Road, Glen Allen, Virginia 23060, Attention:
Treasury Department; or, as to either of such Persons, at such other address as
shall be designated by such Person in a written notice to the other Persons.

     Section 7.05. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall for any
reason whatsoever be held invalid,

                                       19

<PAGE>

then such covenants, agreements, provisions or terms shall be deemed severable
from the remaining covenants, agreements, provisions and terms of this Agreement
and shall in no way affect the validity or enforceability of the other
covenants, agreements, provisions and terms of this Agreement or any amendment
or supplement hereto.

     Section 7.06. Further Assurances. The Seller and the Purchaser agree to do
and perform, from time to time, any and all acts and to execute any and all
further instruments required or reasonably requested by the other party hereto
or by the Issuer or the Indenture Trustee more fully to effect the purposes of
this Agreement, including the execution of any financing statements, amendments,
continuation statements or releases relating to the Receivables for filing under
the provisions of the UCC or other law of any applicable jurisdiction.

     Section 7.07. No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Purchaser, the Issuer or the Seller, any
right, remedy, power or privilege hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein provided are cumulative and not exhaustive of any
rights, remedies, powers and privileges provided by law.

     Section 7.08. Counterparts. This Agreement may be executed in two or more
counterparts (and by different parties on separate counterparts), each of which
shall be an original, but all of which together shall constitute one and the
same instrument.

     Section 7.09. Third-Party Beneficiaries. This Agreement will inure to the
benefit of and be binding upon the parties hereto, the Underwriters, the Issuer
and the Indenture Trustee for the benefit of the Noteholders, who shall be
considered to be third-party beneficiaries hereof. Except as otherwise provided
in this Agreement, no other Person will have any right or obligation hereunder.

     Section 7.10. Headings and Table of Contents. The Table of Contents and
headings herein are for purposes of reference only and shall not otherwise
affect the meaning or interpretation of any provision hereof.

     Section 7.11. Representations, Warranties and Agreements to Survive. The
respective agreements, representations, warranties and other statements by the
Seller and by the Purchaser set forth in or made pursuant to this Agreement
shall remain in full force and effect and will survive the closing hereunder of
the transfers and assignments by the Seller to the Purchaser and by the
Purchaser to the Issuer and shall inure to the benefit of the Purchaser, the
Trustees and the Noteholders.

     Section 7.12. No Proceedings. The Seller covenants and agrees that so long
as this Agreement is in effect, and for one year plus one day following its
termination, it will not file any involuntary petition or otherwise institute
any bankruptcy, reorganization arrangement, insolvency or liquidation proceeding
or other proceedings under any federal or state bankruptcy law or similar law
against the Issuer or the Owner Trustee.

                                       20

<PAGE>

     Section 7.13. Accountant's Letters.

     (a) The Seller shall cause a firm of independent certified public
accountants (who may also render other services to the Seller) to perform
certain procedures regarding the characteristics of the Receivables described in
the Receivables Schedule and to compare those characteristics to the information
with respect to the Receivables contained in the Prospectus. The Seller shall
cooperate with the Purchaser and such accountants in making available all
information and taking all steps reasonably necessary to permit such accountants
to complete such procedures and to deliver the letters required of them under
the Underwriting Agreement.

     (b) The Seller shall cause a firm of independent certified public
accountants (who may also render other services to the Seller) to deliver to the
Purchaser a letter, dated May 20, 2003, in the form previously agreed to by the
Seller and the Purchaser, with respect to the financial and statistical
information contained in the Prospectus under the caption "The
Seller--Delinquency, Credit Loss and Recovery Information" and with respect to
such other information as may be agreed in the forms of such letters.

     Section 7.14. Obligations of Purchaser. The obligations of the Purchaser
under this Agreement shall not be affected by reason of any invalidity,
illegality or irregularity of any Receivable.

                                       21

<PAGE>

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

                                               CARMAX AUTO SUPERSTORES, INC.,
                                                  as Seller

                                               By: /s/ Keith D. Browning
                                                   -----------------------------
                                                   Keith D. Browning
                                                   Chief Financial Officer

                                               POOLED AUTO SECURITIES SHELF LLC,
                                                  as Purchaser

                                               By: /s/ Curtis A. Sidden, Jr.
                                                   -----------------------------
                                                   Curtis A. Sidden, Jr.
                                                   Vice President

                                                  Receivables Purchase Agreement

<PAGE>

                                                                      SCHEDULE A

                              RECEIVABLES SCHEDULE

                    [Original on file at Servicer's office.]

                                      SA-1

<PAGE>

                                                                       EXHIBIT A

                           BILL OF SALE AND ASSIGNMENT

     For value received, in accordance with the receivables purchase agreement,
dated as of May 1, 2003 (the "Receivables Purchase Agreement"), between the
undersigned and Pooled Auto Securities Shelf LLC (the "Purchaser"), the
undersigned does hereby sell, assign, transfer and otherwise convey unto the
Purchaser, without recourse, all right, title and interest of the undersigned in
and to (i) the Receivables listed on Schedule A hereto (the "Receivables"); (ii)
all amounts received on or in respect of the Receivables (including proceeds of
the repurchase of Receivables by the Seller pursuant to the Receivables Purchase
Agreement) after the Cutoff Date; (iii) the security interests in the Financed
Vehicles granted by the Obligors pursuant to the Receivables; (iv) all proceeds
from claims on or refunds of premiums of any physical damage or theft insurance
policies covering the Financed Vehicles and any proceeds or refunds of premiums
of any credit life or credit disability insurance policies relating to the
Financed Vehicles or the Obligors; (v) the Receivable Files; (vi) the right to
realize upon any property (including the right to receive future Liquidation
Proceeds) that shall have secured a Receivable and have been repossessed by or
on behalf of the Issuer; and (vii) all present and future claims, demands,
causes of action and choses in action in respect of any or all of the foregoing
and all payments on or under and all proceeds of every kind and nature
whatsoever in respect of any or all of the foregoing, including all proceeds of
the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing.

     This Bill of Sale and Assignment is made pursuant to and upon the
representations, warranties and agreements on the part of the undersigned
contained in the Receivables Purchase Agreement and is to be governed by the
Receivables Purchase Agreement.

     Capitalized terms used and not otherwise defined herein shall have the
meaning assigned to them in the Receivables Purchase Agreement.

     IN WITNESS WHEREOF, the undersigned has caused this Bill of Sale and
Assignment to be duly executed as of May 1, 2003.

                                                   CARMAX AUTO SUPERSTORES, INC.

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

                                       A-1

<PAGE>

                                                                       EXHIBIT B

                      SECRETARY'S CERTIFICATE OF THE SELLER

                                       B-1

<PAGE>

                                                                       EXHIBIT C

                       OPINIONS OF COUNSEL FOR THE SELLER

                                       C-1

<PAGE>

                                                                       EXHIBIT D

                    REPRESENTATIONS AND WARRANTIES OF SELLER

     CarMax Auto Superstores, Inc., a Virginia corporation (the "Seller"), makes
the following representations and warranties in the Receivables Purchase
Agreement, dated as of May 1, 2003 (the "Receivables Purchase Agreement"),
between the Seller and Pooled Auto Securities Shelf LLC, a Delaware limited
liability company (the "Depositor"). All capitalized terms used in such
representations and warranties have the respective meanings assigned to them in
the Receivables Purchase Agreement.

     (a) Characteristics of Receivables. Each Receivable (i) has been originated
by the Seller or an Affiliate of the Seller in the ordinary course of business
in connection with the sale of a new or used motor vehicle and has been fully
and properly executed by the parties thereto, (ii) contains customary and
enforceable provisions such that the rights and remedies of the holder thereof
are adequate for realization against the collateral of the benefits of the
security, (iii) provides for level monthly payments that fully amortize the
Amount Financed by maturity (except that the period between the date of such
Receivable and the date of the first Scheduled Payment may be less than or
greater than one month and the amount of the first and last Scheduled Payments
may be less than or greater than the level payments) and yield interest at the
related APR, (iv) provides for, in the event that such Receivable is prepaid, a
prepayment that fully pays the Principal Balance of such Receivable with
interest at the related APR through the date of payment, (v) is a retail
installment sale contract substantially in the form of Exhibit E to the
Receivables Purchase Agreement, (vi) is secured by a new or used motor vehicle
that had not been repossessed as of the Cutoff Date, (vii) is a Simple Interest
Receivable, (viii) relates to an Obligor who has made at least one payment under
such Receivable as of the Cutoff Date and (ix) relates to an Obligor whose
mailing address is located in any State.

     (b) Receivable Schedule. The information set forth in the Receivable
Schedule was true and correct in all material respects as of the opening of
business on the Cutoff Date, and no selection procedures believed to be adverse
to the Depositor and/or the Noteholders were utilized in selecting the
Receivables from those retail installment sale contracts which met the criteria
contained in the Receivables Purchase Agreement. The information set forth in
the compact disk or other listing regarding the Receivables made available to
the Depositor and its assigns (which compact disk or other listing is required
to be delivered as specified herein) is true and correct in all material
respects.

     (c) Compliance with Law. Each Receivable and the sale of the related
Financed Vehicle complied, at the time such Receivable was originated and
complies, as of the Closing Date, in all material respects with all requirements
of applicable federal, state and local laws, and regulations thereunder,
including usury laws, the Federal Truth-in-Lending Act, the Equal Credit
Opportunity Act, the Fair Credit Reporting Act, the Fair Credit Billing Act, the
Fair Debt Collection Practices Act, the Federal Trade Commission Act, the
Magnuson-Moss Warranty Act, the Federal Reserve Board's Regulations B, M and Z,
the Soldiers' and Sailors' Civil Relief Act of 1940 and state adaptations of the
National Consumer Act and the Uniform Consumer Credit Code.

                                      D-1

<PAGE>

     (d) Binding Obligation. Each Receivable represents the genuine, legal,
valid and binding payment obligation in writing of the related Obligor,
enforceable by the holder thereof in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation or other similar laws affecting the enforcement of creditors' rights
generally and by general principles of equity.

     (e) No Government Obligor. No Receivable is due from the United States of
America or any State or from any agency, department or instrumentality of the
United States of America or any State.

     (f) Security Interest in Financed Vehicles. Immediately prior to the
transfer of the Receivables by the Seller to the Depositor, each Receivable was
secured by a valid, binding and enforceable first priority perfected security
interest in favor of the Seller in the related Financed Vehicle, which security
interest has been validly assigned by the Seller to the Depositor. The Servicer
has received, or will receive within 180 days after the Closing Date, the
original certificate of title for each Financed Vehicle (other than any Financed
Vehicle that is subject to a certificate of title statute or motor vehicle
registration law that does not require that the original certificate of title
for such Financed Vehicle be delivered to the Seller).

     (g) Receivables in Force. No Receivable has been satisfied, subordinated or
rescinded, nor has any Financed Vehicle been released in whole or in part from
the Lien granted by the related Receivable.

     (h) No Waiver. No provision of any Receivable has been waived in such a
manner that such Receivable fails to meet all of the representations and
warranties made by the Seller in this Exhibit D with respect thereto.

     (i) No Defenses. No Receivable is subject to any right of rescission,
setoff, counterclaim or defense, including the defense of usury, and the
operation of any of the terms of any Receivable, or the exercise of any right
thereunder, will not render such Receivable unenforceable in whole or in part or
subject to any right of rescission, setoff, counterclaim or defense, including
the defense of usury, and the Seller has not received written notice of the
assertion with respect to any Receivable of any such right of rescission,
setoff, counterclaim or defense.

     (j) No Liens. To the best of the Seller's knowledge, no liens or claims
have been filed for work, labor or materials or for unpaid state or federal
taxes relating to any Financed Vehicle that are prior to, or equal or coordinate
with, the security interest in such Financed Vehicle created by the related
Receivable.

     (k) No Default; Repossession. To the best of the Seller's knowledge, no
default, breach, violation or event permitting acceleration under the terms of
any Receivable has occurred and no continuing condition that with notice or the
lapse of time or both would constitute a default, breach, violation or event
permitting acceleration under the terms of any Receivable has arisen and the
Seller has not waived any such event or condition.

     (l) Title. The Seller intends that the transfer of the Receivables
contemplated by Section 2.01(a) of the Receivables Purchase Agreement constitute
a sale of the Receivables from

                                      D-2

<PAGE>

the Seller to the Depositor and that the beneficial interest in, and title to,
the Receivables not be part of the Seller's estate in the event of the filing of
a bankruptcy petition by or against the Seller under any bankruptcy law. The
Seller has not sold, transferred, assigned or pledged any Receivable to any
Person other than the Depositor. Immediately prior to the transfer of the
Receivables contemplated by Section 2.01(a) of the Receivables Purchase
Agreement, the Seller had good and marketable title to the Receivables free and
clear of any Lien, claim or encumbrance of any Person and, immediately upon such
transfer, the Depositor shall have good and marketable title to the Receivables
free and clear of any Lien, claim or encumbrance of any Person.

     (m) Security Interest Matters. The Receivables Purchase Agreement creates a
valid and continuing "security interest" (as defined in the Relevant UCC) in the
Receivables in favor of the Depositor, which security interest is prior to all
other Liens and is enforceable as such as against creditors of and purchasers
from the Seller. With respect to each Receivable, the Seller has taken all steps
necessary to perfect its security interest against the related Obligor in the
related Financed Vehicle. The Receivables constitute "tangible chattel paper"
(as defined in the Relevant UCC). The Seller has caused or will cause prior to
the Closing Date the filing of all appropriate financing statements in the
proper filing offices in the appropriate jurisdictions under applicable law
necessary to perfect the security interest in the Receivables granted to the
Depositor under the Receivables Purchase Agreement. Other than the security
interest granted to the Depositor under the Receivables Purchase Agreement, the
Seller has not pledged, assigned, sold, granted a security interest in or
otherwise conveyed any of the Receivables. The Seller has not authorized the
filing of and is not aware of any financing statements against the Seller that
include a description of collateral covering the Receivables other than any
financing statement relating to the security interest granted to the Depositor
under the Sale and Servicing Agreement or that has been terminated. The motor
vehicle retail installment sale contracts that constitute or evidence the
Receivables do not have any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Depositor,
the Trust or the Indenture Trustee. The Seller is not aware of any judgment or
tax lien filings against the Seller.

     (n) Financing Statements. All financing statements filed or to be filed
against the Seller in favor of the Trust (as assignee of the Depositor) contain
a statement substantially to the following effect: "A purchase of or security
interest in any collateral described in this financing statement will violate
the rights of the Trust." All financing statements filed or to be filed against
the Seller in favor of the Indenture Trustee (as assignee of the Trust) contain
a statement substantially to the following effect: "A purchase of or security
interest in any collateral described in this financing statement will violate
the rights of the Indenture Trustee."

     (o) Valid Assignment. No Receivable has been originated in, or is subject
to the laws of, any jurisdiction under which the sale, transfer, assignment and
conveyance of such Receivable under the Receivables Purchase Agreement or the
Sale and Servicing Agreement or the pledge of such Receivable under the
Indenture is unlawful, void or voidable or under which such Receivable would be
rendered void or voidable as a result of any such sale, transfer, assignment,
conveyance or pledge. The Seller has not entered into any agreement with any
account debtor that prohibits, restricts or conditions the assignment of the
Receivables.

     (p) One Original. There is only one original executed copy of each
Receivable.

                                      D-3

<PAGE>

     (q) Principal Balance. Each Receivable had an original Principal Balance of
not more than $60,000 and a remaining Principal Balance as of the Cutoff Date of
not less than $500.

     (r) No Bankrupt Obligors. As of the Cutoff Date, no Receivable was due from
an Obligor that was the subject of a proceeding under the Bankruptcy Code of the
United States or was bankrupt.

     (s) New and Used Vehicles. As of the Cutoff Date, approximately 3.92% of
the Pool Balance related to Receivables secured by new Financed Vehicles and
approximately 96.08% of the Pool Balance related to Receivables secured by used
Financed Vehicles.

     (t) Origination. Each Receivable was originated after August 6, 1996.

     (u) Original Term to Maturity. Each Receivable had an original term to
maturity of not more than 72 months and not less than 12 months and a remaining
term to maturity as of the Cutoff Date of not more than 71 months and not less
than three months.

     (v) Weighted Average Remaining Term to Maturity. As of the Cutoff Date, the
weighted average remaining term to maturity of the Receivables was approximately
54 months.

     (w) Annual Percentage Rate. Each Receivable has an APR of at least 5.00%
and not more than 25.00%.

     (x) Location of Receivable Files. The Receivable Files are maintained at
the location listed in Schedule 2 to the Sale and Servicing Agreement.

     (y) Simple Interest Method. All payments with respect to the Receivables
have been allocated consistently in accordance with the Simple Interest Method.

     (z) No Delinquent Receivables. As of the Cutoff Date, no payment due under
any Receivable was more than 30 days past due.

     (aa) Prospectus Data. The tabular and numerical data contained in the
Prospectus relating to the characteristics of the Receivables is true and
correct in all material respects.

     (bb) Insurance. Each Obligor has obtained or agreed to obtain physical
damage insurance (which insurance shall not be force placed insurance) covering
the related Financed Vehicle in accordance with the Seller's normal
requirements.

     (cc) Fair Market Value. The Receivables Purchase Price and the value of the
Certificates represent the fair market value of the Receivables.

     (dd) Custodial Agreements. Immediately prior to the transfer of the
Receivables by the Seller to the Depositor, the Seller or an Affiliate of the
Seller had possession of the Receivable Files and there were no, and there will
not be any, custodial agreements in effect materially adversely affecting the
right or ability of the Seller to make, or cause to be made, any delivery
required under the Receivables Purchase Agreement.

                                      D-4

<PAGE>

     (ee) Bulk Transfer Laws. The transfer of the Receivables and the Receivable
Files by the Seller to the Depositor pursuant to the Receivables Purchase
Agreement is not subject to the bulk transfer laws or any similar statutory
provisions in effect in any applicable jurisdiction.

                                      D-5

<PAGE>

                                                                       EXHIBIT E

                    FORM OF RETAIL INSTALLMENT SALE CONTRACT

                                      E-1<PAGE>

[LETTERHEAD OF DEPARTMENT OF HEALTH SERVICES]

                                                                   EXHIBIT 10.16

AUG 8-2002

Mr. George Goldstein
President/CEO
Molina Healthcare of California
dba: Molina
One Golden Shore Dr.
Long Beach, CA 90802

Dear Mr. Goldstein

In accordance with Article V, Section 5.5 of your Contract, the enclosed Change
Order No.11 transmits (Molina Healthcare of California dba: Molina) adjusted
capitation rates to incorporate Fee-For-Service out-patient hospital rate
increases for the rate periods of July 1, 2001 through September 30, 2001, and
October 1, 2001 through September 30, 2002.

The rates from this Change Order will be reflected in your August 2002
capitation payment. Payments for the retroactive portion of these rates will be
processed in approximately four to six weeks.

If you have any questions, please contact your contract manager.

Sincerely,

/s/ Cheri Rice

Cheri Rice, Chief
Medi-Cal Managed Care Division

Enclosure

<PAGE>

[LETTERHEAD OF DEPARTMENT OF HEALTH SERVICES]

CHANGE ORDER NUMBER C11 TO CONTRACT NUMBER 95-23673: ADJUSTING THE CAPITATION
RATES TO INCORPORATE FEE-FOR-SERVICE OUT-PATIENT HOSPITAL RATE INCREASES FOR THE
PERIODS OF JULY 1, 2001 THROUGH SEPTEMBER 30, 2001, AND OCTOBER 1, 2001 THROUGH
SEPTEMBER 30, 2002, BY CHANGING CONTRACT SECTION 5.3 CAPITATION RATES; AND, 5.4
CAPITATION RATES CONSTITUTE PAYMENT IN FULL. This Change order is effective July
1, 2001.

1.   5.3 CAPITATION RATES

     FOR THE PERIOD 10/01/01 - 9/30/02                                 RIVERSIDE
     ---------------------------------------------------------------------------
     Groups                Aid Codes                                   Rate
     ---------------------------------------------------------------------------
              Family       01, 0A, 02, 08, 30, 32, 33,
                           34, 35, 38, 39, 40, 42, 47,
                           54, 59, 72, 3A, 3C, 3E, 3G,
                           3H, 3L, 3M, 3N, 3P, 3R, 3U,
                           4F, 4G, 4M, 5X, 7X, 8P                      $   88.56

             Disabled      20, 24, 26, 28, 36, 60, 64,
                           66, 68, 6A, 6C, 6H, 6N, 6P,
                           6R, 6V                                      $  237.62

               Aged        1H, 10, 14, 16, 18                          $  172.56

              Child        03, 04, 4A, 4C, 4K, 5K, 45,
                           82, 7A, 7J, 8R                              $   99.56

              Adult        86                                          $  856.66

               Aids                                                    $  894.05
           Beneficiary

<PAGE>

     FOR THE PERIOD 7/01/01 - 9/30/01                                  RIVERSIDE
     ---------------------------------------------------------------------------
     Groups                Aid Codes                                   Rate
     ---------------------------------------------------------------------------
            Family         01, 0A, 02, 08, 30, 32, 33,
                           34, 35, 38, 39, 40, 42, 47,
                           54, 59, 72, 3A, 3C, 3E, 3G,
                           3H, 3L, 3M, 3N, 3P, 3R, 3U,
                           4F, 4G, 4M, 5X, 7X, 8P                      $   87.83

           Disabled        20, 24, 26, 28, 36, 60, 64,
                           66, 68, 6A, 6C, 6H, 6N, 6P,
                           6R, 6V                                      $  227.39

             Aged          1H, 10, 14, 16, 18                          $  162.29

            Child          03, 04, 4A, 4C, 4K, 5K, 45,
                           82, 7A, 7J, 8R                              $   90.89

            Adult          86                                          $  855.50

       Aids Beneficiary                                                $  863.77

     FOR THE PERIOD 10/01/01 - 9/30/02                            SAN BERNARDINO
     ---------------------------------------------------------------------------
     Groups                Aid Codes                                   Rate
     ---------------------------------------------------------------------------
            Family       01, 0A, 02, 08, 30, 32, 33,
                         34, 35, 38, 39, 40, 42, 47,
                         54, 59, 72, 3A, 3C, 3E, 3G,
                         3H, 3L, 3M, 3N, 3P, 3R, 3U,
                         4F, 4G, 4M, 5X, 7X, 8P                        $   89.50

           Disabled      20, 24, 26, 28, 36, 60, 64,
                         66, 68, 6A, 6C, 6H, 6N, 6P,
                         6R, 6V                                        $  239.21

             Aged        1H, 10, 14, 16, 18                            $  174.39

            Child        03, 04, 4A, 4C, 4K, 5K, 45,
                         82, 7A, 7J, 8R                                $  106.65

            Adult        86                                            $  937.88

      Aids Beneficiary                                                 $  938.00

                                        2

<PAGE>

     FOR THE PERIOD 7/01/01 - 9/30/01                            SAN BERNARDINO
     --------------------------------------------------------------------------
     Groups                Aid Codes                                   Rate
     --------------------------------------------------------------------------
              Family       01, 0A, 02, 08, 30, 32, 33,
                           34, 35, 38, 39, 40, 42, 47,
                           54, 59, 72, 3A, 3C, 3E, 3G,
                           3H, 3L, 3M, 3N, 3P, 3R, 3U,
                           4F, 4G, 4M, 5X, 7X, 8P                      $   84.14

             Disabled      20, 24, 26, 28, 36, 60, 64,
                           66, 68, 6A, 6C, 6H, 6N, 6P,
                           6R, 6V                                      $  227.01

               Aged        1H, 10, 14, 16, 18                          $  153.35

              Child        03, 04, 4A, 4C, 4K, 5K, 45,
                           82, 7A, 7J, 8R                              $   95.25

              Adult        86                                          $  934.96

        Aids Beneficiary                                               $  906.96

     If DHS creates a new aid code that is split or derived from an existing aid
     code covered under this Contract, and the aid code has a neutral revenue
     effect for the Contractor, then the split aid code will automatically be
     included in the same aid code category as is the original aid code covered
     services to the Members at the monthly capitation rate specified for the
     original aid code. DHS shall confirm all aid code splits, and the rates of
     payment for such new aid codes, in writing to Contractor as soon as
     practicable after such aid code splits occur.

2.   5.4  CAPITATION RATES CONSTITUTE PAYMENT IN FULL

          Capitation rates for each rate period, as calculated by DHS, are
          prospective rates and constitute payment in full, subject to any stop
          loss reinsurance provision, on behalf of a Member for all Covered
          Services required by such Member and for all administrative Costs
          incurred by the Contractor in providing or arranging for such
          services, and subject to adjustment for federally qualified health
          centers in accordance with Section 14087.325 of the W&I Code but do
          not include payment for recoupment of current or previous losses
          incurred by Contractor. The actuarial basis for the determination of
          the capitation payment rates is outlined in Attachment 1 (consisting
          of 24 pages).

                                        3

<PAGE>

Plan Name:         Molina Medical Center   Plan #:    355        Date: 23-Jul-02
County:            Riverside               Plan Type: Commercial Plan
Aid Code Grouping: Family

The Rate Period is October 1, 2001         Capitation Payments at the
to September 30, 2002                      End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
Lenses for eyewear                                 N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screens                            N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $   66.25    $  23.82    $  864.71    $    20.37    $  229.41    $   8.79
2. Units per Eligible/year                5.957       3.361        0.304         2.609        0.009       6.410
   Cost per Elig. per Mo.             $   32.89    $   6.67    $   21.91    $     4.43    $    0.17    $   4.70    $  70.77
3. Adjustments
   a. Age/Sex                             0.939       0.949        0.911         0.942        1.000       0.966
   b. Area                                0.915       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.975       0.992        0.968         0.956        0.995       0.868
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $   27.55    $   6.28    $   19.32    $     3.99    $    0.17    $   3.94    $ 61.25
4. Legislative Adjustments                1.221       0.869        1.029         1.433        1.436       1.079
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.262        1.040         1.000        1.000       1.000
   b. Units per Eligible                  1.000       1.180        1.066         1.000        1.000       1.148
Projected Cost per Eligible           $   33.64    $   8.13    $   22.04    $     5.72    $    0.24    $   4.88    $  74.65
6. CHDP                                                                                                                4.88
7. Adjustment to Pool                                                                                      12.1%       9.03
Capitation Rate                                                                                                    $  88.56
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 1 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:         Molina Medical Center   Plan #:    355        Date: 23-Jul-02
County:            Riverside               Plan Type: Commercial Plan
Aid Code Grouping: Disabled

The Rate Period is October 1, 2001         Capitation Payments at the
to September 30, 2002                      End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
Lenses for eyewear                                 N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screens                            N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $   20.15    $  50.42    $  485.15    $    18.26    $  184.85    $   7.07
2. Units per Eligible/year               13.720      21.892        1.011         6.029        0.452      63.930
   Cost per Elig. per Mo.             $   23.04    $  91.98    $   40.87    $     9.17    $    6.96    $  37.67    $ 209.69
3. Adjustments
   a. Age/Sex                             0.981       0.869        0.938         1.074        0.949       1.077
   b. Area                                0.915       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.900       0.875        0.920         0.973        0.995       0.877
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $   18.61    $  69.94    $   35.27    $     9.58    $    6.57    $  35.58    $ 175.55
4. Legislative Adjustments                1.099       0.888        0.965         1.425        1.442       0.987
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.262        1.194         1.000        1.000       1.000
   b. Units per Eligible                  1.073       1.180        0.863         0.929        1.000       1.148
Projected Cost per Eligible           $   21.95    $  92.49    $   35.07    $    12.68    $    9.47    $  40.31    $ 211.97
6. CHDP                                                                                                                0.00
7. Adjustment to Pool                                                                                      12.1%      25.65
Capitation Rate                                                                                                    $ 237.62
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 2 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:         Molina Medical Center   Plan #:    355        Date: 23-Jul-02
County:            Riverside               Plan Type: Commercial Plan
Aid Code Grouping: Aged

The Rate Period is October 1, 2001         Capitation Payments at the
to September 30, 2002                      End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
Lenses for eyewear                                 N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screens                            N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $   16.06    $  38.28    $  287.24    $    11.67    $  177.26    $   6.49
2. Units per Eligible/year               11.563      16.963        0.819         3.904        1.049      42.784
   Cost per Elig. per Mo.             $   15.48    $  54.11    $   19.60    $     3.80    $   15.50    $  23.14    $ 131.63
3. Adjustments
   a. Age/Sex                             0.998       1.008        1.012         0.993        1.029       1.007
   b. Area                                0.915       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.981       0.996        0.997         0.986        0.997       0.781
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $   13.87    $  54.32    $   19.78    $     3.72    $   15.90    $  18.20    $ 125.79
4. Legislative Adjustments                0.984       0.879        0.969         1.423        1.433       0.963
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.262        1.194         1.000        1.000       1.000
   b. Units per Eligible                  1.073       1.180        0.929         1.066        0.929       1.148
Projected Cost per Eligible           $   14.64    $  71.10    $   21.26    $     5.64    $   21.17    $  20.12    $ 153.93
6. CHDP                                                                                                                0.00
7. Adjustment to Pool                                                                                      12.1%      18.63
Capitation Rate                                                                                                    $ 172.56
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 3 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:         Molina Medical Center   Plan #:    355        Date: 23-Jul-02
County:            Riverside               Plan Type: Commercial Plan
Aid Code Grouping: Child

The Rate Period is October 1, 2001         Capitation Payments at the
to September 30, 2002                      End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
Lenses for eyewear                                 N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screens                            N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $   58.40    $  17.50    $  889.41    $    18.79    $  140.26    $   6.45
2. Units per Eligible/year                5.196       3.068        0.436         2.787        0.019      10.564
   Cost per Elig. per Mo.             $   25.29    $   4.47    $   32.32    $     4.36    $    0.22    $   5.68    $  72.34
3. Adjustments
   a. Age/Sex                             1.090       1.071        1.089         1.100        1.000       0.994
   b. Area                                0.915       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.974       0.984        0.952         0.973        0.996       0.882
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $   24.57    $   4.71    $   33.51    $     4.67    $    0.22    $   4.98    $  72.66
4. Legislative Adjustments                1.116       0.875        1.035         1.427        1.424       1.082
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.262        1.040         1.000        1.000       1.000
   b. Units per Eligible                  1.000       1.180        1.066         1.000        1.000       1.148
Projected Cost per Eligible           $   27.42    $   6.14    $   38.45    $     6.66    $    0.31    $   6.19    $  85.17
6. CHDP                                                                                                                4.08
7. Adjustment to Pool                                                                                      12.1%      10.31
Capitation Rate                                                                                                    $  99.56
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 4 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:          Molina Medical Center Plan #:    355        Date: 23-Jul-02
County:             Riverside             Plan Type: Commercial Plan
Aid Code Grouping:  Adult

The Rate Period is October 1, 2001         Capitation Payments at the
to September 30, 2002                      End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
Lenses for eyewear                                 N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screens                            N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $  164.23    $  19.84    $  964.66    $    19.73    $    0.00    $  30.86
2. Units per Eligible/year               22.157       4.314        4.387        17.657        0.000       8.468
   Cost per Elig. per Mo.             $  303.24    $   7.13    $  352.66    $    29.03    $    0.00    $  21.78    $ 713.84
3. Adjustments
   a. Age/Sex                             1.000       1.000        1.000         1.000        1.000       1.000
   b. Area                                0.915       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.999       0.999        0.999         0.989        1.000       0.887
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $  277.19    $   7.12    $  352.31    $    28.71    $    0.00    $  19.32    $ 684.65
4. Legislative Adjustments                1.060       0.872        1.016         1.432        1.242       1.045
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.262        1.040         1.000        1.000       1.000
   b. Units per Eligible                  1.000       1.180        1.066         1.000        1.000       1.148
Projected Cost per Eligible           $  293.82    $   9.25    $  396.83    $    41.11    $    0.00    $  23.18    $ 764.19
6. CHDP                                                                                                                0.00
7. Adjustment to Pool                                                                                      12.1%      92.47
Capitation Rate                                                                                                    $ 856.66
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 5 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:         Molina Medical Center   Plan #:    355        Date: 23-Jul-02
County:            Riverside               Plan Type: Commercial Plan
Aid Code Grouping: AIDS

The Rate Period is October 1, 2001         Capitation Payments at the
to September 30, 2002                      End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
Lenses for eyewear                                 N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screens                            N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $   25.87    $ 141.75    $  485.15    $    17.75    $  228.06    $  14.00
2. Units per Eligible/year               29.254      46.897        3.823        28.506        0.450      78.563
   Cost per Elig. per Mo.             $   63.07    $ 553.97    $  154.56    $    42.17    $    8.55    $  91.66    $ 913.98
3. Adjustments
   a. Age/Sex                             1.000       1.000        1.000         1.000        1.000       1.000
   b. Area                                0.915       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.918       0.663        0.957         0.992        0.998       0.642
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $   52.98    $ 367.28    $  147.91    $    41.83    $    8.53    $  58.85    $ 677.38
4. Legislative Adjustments                1.070       0.826        0.989         1.378        1.529       1.001
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.262        1.194         1.000        1.000       1.000
   b. Units per Eligible                  1.073       1.180        0.863         0.929        1.000       1.148
Projected Cost per Eligible           $   60.83    $ 451.77    $  150.73    $    53.55    $   13.04    $  67.63    $ 797.55
6. CHDP                                                                                                                0.00
7. Adjustment to Pool                                                                                      12.1%      96.50
Capitation Rate                                                                                                    $ 894.05
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 6 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Aid Code Grouping:         Family

The Rate Period is July 1, 2001      Capitation Payments at the End of the Month
to September 30, 2001

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
PIA Lenses                                         N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screening                          N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $   66.25    $  23.82    $  864.71    $    20.37    $  229.41    $   8.79
2. Units per Eligible                     5.957       3.361        0.304         2.609        0.009       6.410
   Cost per Elig. per Mo.             $   32.89    $   6.67    $   21.91    $     4.43    $    0.17    $   4.70    $  70.77
3. Adjustments
   a. Demographics                        0.933       0.927        0.903         0.933        1.000       0.938
   b. Area                                0.900       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.975       0.992        0.968         0.956        0.995       0.868
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $   26.93    $   6.13    $   19.15    $     3.95    $    0.17    $   3.83    $  60.16
4. Legislative Adjs.                      1.261       0.895        1.016         1.437        1.375       1.086
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.148        1.000         1.000        1.000       1.000
   b. Units per Eligible                  1.000       1.073        1.066         1.000        1.000       1.148
Projected Cost per Eligible           $   33.96    $   6.76    $   20.73    $     5.68    $    0.23    $   4.77    $  72.13
6. Adjustment to no loss                                                                                               0.00
7. CHDP                                                                                                                4.88
8. Adjustment to Fee-for-Service                                                                           15.0%      10.82
Capitation Rate                                                                                                    $  87.83
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 7 of 24

<PAGE>

Aid Code Grouping:         Disabled

The Rate Period is July 1, 2001      Capitation Payments at the End of the Month
to September 30, 2001

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
PIA Lenses                                         N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screening                          N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $   20.15    $  50.42    $  485.15    $    18.26    $  184.85    $   7.07
2. Units per Eligible                    13.720      21.892        1.011         6.029        0.452      63.930
   Cost per Elig. per Mo.             $   23.04    $  91.98    $   40.87    $     9.17    $    6.96    $  37.67    $ 209.69
3. Adjustments
   a. Demographics                        0.990       0.881        0.935         1.064        0.954       1.046
   b. Area                                0.900       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.900       0.875        0.920         0.973        0.995       0.877
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $   18.48    $  70.91    $   35.16    $     9.49    $    6.61    $  34.56    $ 175.21
4. Legislative Adjs.                      1.151       0.925        0.952         1.426        1.379       0.991
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.148        1.148         1.000        1.000       1.000
   b. Units per Eligible                  1.073       1.073        0.863         0.929        1.000       1.148
Projected Cost per Eligible           $   22.82    $  80.77    $   33.15    $    12.57    $    9.12    $  39.30    $ 197.73
6. Adjustment to no Loss                                                                                               0.00
7. CHDP                                                                                                                0.00
8. Adjustment to Fee-for-Service                                                                           15.0%      29.66
Capitation Rate                                                                                                    $ 227.39
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 8 of 24

<PAGE>

Aid Code Grouping:         Aged

The Rate Period is July 1, 2001      Capitation Payments at the End of the Month
to September 30, 2001

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
PIA Lenses                                         N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screening                          N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $   16.06    $  38.28    $  287.24    $    11.67    $  177.26    $   6.49
2. Units per Eligible                    11.563      16.963        0.819         3.904        1.049      42.784
   Cost per Elig. per Mo.             $   15.48    $  54.11    $   19.60    $     3.80    $   15.50    $  23.14     $ 131.63
3. Adjustments
   a. Demographics                        1.007       1.014        1.005         1.001        0.975       1.011
   b. Area                                0.900       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.981       0.996        0.997         0.986        0.997       0.781
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $   13.76    $  54.65    $   19.64    $     3.75    $   15.07    $  18.27     $ 125.14
4. Legislative Adjs.                      0.993       0.911        0.960         1.419        1.368       0.966
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.148        1.148         1.000        1.000       1.000
   b. Units per Eligible                  1.073       1.073        0.929         1.066        0.929       1.148
Projected Cost per Eligible           $   14.66    $  61.31    $   20.09    $     5.67    $   19.14    $  20.25    $ 141.12
6. Adjustment to no Loss                                                                                               0.00
7. CHDP                                                                                                                0.00
8. Adjustment to Fee-for-Service                                                                           15.0%      21.17
Capitation Rate                                                                                                    $ 162.29
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 9 of 24

7/23/2002 Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Aid Code Grouping:         Child

The Rate Period is July 1, 2001      Capitation Payments at the End of the Month
to September 30, 2001

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
PIA Lenses                                         N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screening                          N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital    Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $   58.40    $  17.50    $  889.41    $    18.79    $  140.26    $   6.45
2. Units per Eligible                     5.196       3.068        0.436         2.787        0.019      10.564
   Cost per Elig. per Mo.             $   25.29    $   4.47    $   32.32    $     4.36    $    0.22    $   5.68    $  72.34
3. Adjustments
   a. Demographics                        1.020       1.029        0.953         1.033        1.000       0.988
   b. Area                                0.900       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.974       0.984        0.952         0.973        0.996       0.882
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $   22.61    $   4.53    $   29.32    $     4.38    $    0.22    $   4.95    $  66.01
4. Legislative Adjs.                      1.144       0.907        1.019         1.423        1.359       1.089
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.148        1.000         1.000        1.000       1.000
   b. Units per Eligible                  1.000       1.073        1.066         1.000        1.000       1.148
Projected Cost per Eligible           $   25.87    $   5.06    $   31.84    $     6.23    $    0.30    $   6.19    $  75.49
6. Adjustment to no Loss                                                                                               0.00
7. CHDP                                                                                                                4.08
8. Adjustment to Fee-for-Service                                                                           15.0%      11.32
Capitation Rate                                                                                                    $  90.89
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 10 of 24

7/23/2002 Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Aid Code Grouping:         Adult

The Rate Period is July 1, 2001      Capitation Payments at the End of the Month
to September 30, 2001

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                               N
GHPP                                               N
Hemodialysis                                       C
Major Organ Transplants                            N
Out-of-State                                       C
Chiropractor                                       N
Local Education Authority                          N
Psychiatrist                                       N
Acupuncturist                                      N
Alphafeto Protein Testing                          N
Heroin Detoxification                              N
Direct Observed Therapy                            N
PIA Lenses                                         N
AIDS Waiver                                        N
In Home Waiver                                     N
Model NF Waiver                                    N
Adult Day Health Care                              N
Newborn Hearing Screening                          N
Psychiatric Drugs                                  N
AIDS Drugs                                         N
Injections                                         C
MH - Hospital Inpatient                            N
MH - Outpatient Services                           N
Long Term Care for month of entry plus one         C
Long Term Care after month of entry plus one       N
CHDP                                               C

<TABLE>
<CAPTION>
                                                                Hospital      Hospital   Long Term
Rate Calculation                      Physician    Pharmacy    Inpatient    Outpatient         Care       Other       Total
<S>                                   <C>          <C>         <C>          <C>           <C>          <C>         <C>
1. Average Cost Per Unit              $  164.23    $  19.84    $  964.66    $    19.73    $    0.00    $  30.86
2. Units per Eligible                    22.157       4.314        4.387        17.657        0.000       8.468
   Cost per Elig. per Mo.             $  303.24    $   7.13    $  352.66    $    29.03    $    0.00    $  21.78    $ 713.84
3. Adjustments
   a. Demographics                        1.000       1.000        1.000         1.000        1.000       1.000
   b. Area                                0.900       1.000        1.000         1.000        1.000       1.000
   c. Coverages                           0.999       0.999        0.999         0.989        1.000       0.887
   d. Interest                            1.000       1.000        1.000         1.000        1.000       1.000
Adjusted Base Cost                    $  272.64    $   7.12    $  352.31    $    28.71    $    0.00    $  19.32    $ 680.10
4. Legislative Adjs.                      1.075       0.900        1.008         1.433        1.213       1.053
5. Trend Adjustments
   a. Cost per Unit                       1.000       1.148        1.000         1.000        1.000       1.000
   b. Units per Eligible                  1.000       1.073        1.066         1.000        1.000       1.148
Projected Cost per Eligible           $  293.09    $   7.89    $  378.44    $    41.14    $    0.00    $  23.35    $ 743.91
6. Adjustment to no Loss                                                                                               0.00
7. CHDP                                                                                                                0.00
8. Adjustment to Fee-for-Service                                                                           15.0%     111.59
Capitation Rate                                                                                                    $ 855.50
</TABLE>

                                                   #95-23673 C11
                                                   Attachment
                                                   Page 11 of 24

7/23/2002 Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Aid Code Grouping:         AIDS

The Rate Period is July 1, 2001              Capitation Payments at the End
to September 30, 2001                        of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                             N
GHPP                                             N
Hemodialysis                                     C
Major Organ Transplants                          N
Out-of-State                                     C
Chiropractor                                     N
Local Education Authority                        N
Psychiatrist                                     N
Acupuncturist                                    N
Alphafeto Protein Testing                        N
Heroin Detoxification                            N
Direct Observed Therapy                          N
PIA Lenses                                       N
AIDS Waiver                                      N
In Home Waiver                                   N
Model NF Waiver                                  N
Adult Day Health Care                            N
Newborn Hearing Screening                        N
Psychiatric Drugs                                N
AIDS Drugs                                       N
Injections                                       C
MH - Hospital Inpatient                          N
MH - Outpatient Services                         N
Long Term Care for month of entry plus one       C
Long Term Care after month of entry plus one     N
CHDP                                             C

<TABLE>
<CAPTION>
                                                               Hospital    Hospital  Long Term
Rate Calculation                      Physician   Pharmacy    Inpatient  Outpatient       Care      Other       Total
<S>                                   <C>        <C>        <C>          <C>         <C>        <C>        <C>
1. Average Cost Per Unit              $   25.87  $  141.75  $    485.15  $    17.75  $  228.06  $   14.00
2. Units per Eligible                    29.254     46.897        3.823      28.506      0.450     78.563
   Cost per Elig. per Mo.             $   63.07  $  553.97  $    154.56  $    42.17  $    8.55  $   91.66  $   913.98
3. Adjustments
   a. Demographics                        1.000      1.000        1.000       1.000      1.000      1.000
   b. Area                                0.900      1.000        1.000       1.000      1.000      1.000
   c. Coverages                           0.918      0.663        0.957       0.992      0.998      0.970
   d. Interest                            1.000      1.000        1.000       1.000      1.000      1.000
Adjusted Base Cost                    $   52.11  $  367.28  $    147.91  $    41.83  $    8.53  $   88.91  $   706.57
4. Legislative Adjs.                      1.098      0.836        0.986       1.369      1.453      0.996
5. Trend Adjustments
   a. Cost per Unit                       1.000      1.148        1.148       1.000      1.000      1.000
   b. Units per Eligible                  1.073      1.073        0.863       0.929      1.000      1.148
Projected Cost per Eligible           $   61.39  $  378.09  $    144.43  $    53.18  $   12.39  $  101.62  $   751.10
6. Adjustment to no Loss                                                                                         0.00
7. CHDP                                                                                                          0.00
8. Adjustment to Fee-for-Service                                                                     15.0%     112.67
Capitation Rate                                                                                            $   863.77
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 12 of 24

<PAGE>

Plan Name:           Molina Medical Center   Plan #:    356      Date: 23-Jul-02
County:              San Bernardino          Plan Type: Commercial Plan
Aid Code Grouping:   Family

The Rate Period is October 1, 2001           Capitation Payments at the End
to September 30, 2002                        of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                             N
GHPP                                             N
Hemodialysis                                     C
Major Organ Transplants                          N
Out-of-State                                     C
Chiropractor                                     N
Local Education Authority                        N
Psychiatrist                                     N
Acupuncturist                                    N
Alphafeto Protein Testing                        N
Heroin Detoxification                            N
Direct Observed Therapy                          N
Lenses for eyewear                               N
AIDS Waiver                                      N
In Home Waiver                                   N
Model NF Waiver                                  N
Adult Day Health Care                            N
Newborn Hearing Screens                          N
Psychiatric Drugs                                N
AIDS Drugs                                       N
Injections                                       C
MH - Hospital Inpatient                          N
MH - Outpatient Services                         N
Long Term Care for month of entry plus one       C
Long Term Care after month of entry plus one     N
CHDP                                             C

<TABLE>
<CAPTION>
                                                               Hospital    Hospital  Long Term
Rate Calculation                      Physician   Pharmacy    Inpatient  Outpatient       Care      Other       Total
<S>                                   <C>        <C>        <C>          <C>         <C>        <C>        <C>
1. Average Cost Per Unit              $   66.25  $   23.82  $    978.02  $    20.37  $  229.41  $    8.79
2. Units per Eligible/year                5.957      3.361        0.304       2.609      0.009      6.410
   Cost per Elig. per Mo.             $   32.89  $    6.67  $     24.78  $     4.43  $    0.17  $    4.70  $    73.64
3. Adjustments
   a. Age/Sex                             0.916      0.943        0.875       0.919      1.000      0.955
   b. Area                                0.915      1.000        1.000       1.000      1.000      1.000
   c. Coverages                           0.975      0.992        0.968       0.956      0.995      0.868
   d. Interest                            1.000      1.000        1.000       1.000      1.000      1.000
Adjusted Base Cost                    $   26.88  $    6.24  $     20.99  $     3.89  $    0.17  $    3.90  $    62.07
4. Legislative Adjustments                1.221      0.869        1.029       1.433      1.436      1.079
5. Trend Adjustments
   a. Cost per Unit                       1.000      1.262        1.040       1.000      1.000      1.000
   b. Units per Eligible                  1.000      1.180        1.066       1.000      1.000      1.148
Projected Cost per Eligible           $   32.82  $    8.08  $     23.95  $     5.57  $    0.24  $    4.83  $    75.49
6. CHDP                                                                                                          4.88
7. Adjustment to Pool                                                                                12.1%       9.13
Capitation Rate                                                                                            $    89.50
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 13 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:           Molina Medical Center   Plan #:    356      Date: 23-Jul-02
County:              San Bernardino          Plan Type: Commercial Plan
Aid Code Grouping:   Disabled

The Rate Period is October 1, 2001           Capitation Payments at the End
to September 30, 2002                        of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                             N
GHPP                                             N
Hemodialysis                                     C
Major Organ Transplants                          N
Out-of-State                                     C
Chiropractor                                     N
Local Education Authority                        N
Psychiatrist                                     N
Acupuncturist                                    N
Alphafeto Protein Testing                        N
Heroin Detoxification                            N
Direct Observed Therapy                          N
Lenses for eyewear                               N
AIDS Waiver                                      N
In Home Waiver                                   N
Model NF Waiver                                  N
Adult Day Health Care                            N
Newborn Hearing Screens                          N
Psychiatric Drugs                                N
AIDS Drugs                                       N
Injections                                       C
MH - Hospital Inpatient                          N
MH - Outpatient Services                         N
Long Term Care for month of entry plus one       C
Long Term Care after month of entry plus one     N
CHDP                                             C

<TABLE>
<CAPTION>
                                                               Hospital    Hospital  Long Term
Rate Calculation                      Physician   Pharmacy    Inpatient  Outpatient       Care      Other       Total
<S>                                   <C>        <C>        <C>          <C>         <C>        <C>        <C>
1. Average Cost Per Unit              $   20.15  $   50.42  $    611.26  $    18.26  $  184.85  $    7.07
2. Units per Eligible/year               13.720     21.892        1.011       6.029      0.452     63.930
   Cost per Elig. per Mo.             $   23.04  $   91.98  $     51.50  $     9.17  $    6.96  $   37.67  $   220.32
3. Adjustments
   a. Age/Sex                             0.929      0.838        0.895       1.038      0.977      1.048
   b. Area                                0.915      1.000        1.000       1.000      1.000      1.000
   c. Coverages                           0.900      0.875        0.920       0.973      0.995      0.877
   d. Interest                            1.000      1.000        1.000       1.000      1.000      1.000
Adjusted Base Cost                    $   17.63  $   67.44  $     42.41  $     9.26  $    6.77  $   34.62  $   178.13
4. Legislative Adjustments                1.099      0.888        0.965       1.425      1.442      0.987
5. Trend Adjustments
   a. Cost per Unit                       1.000      1.262        1.194       1.000      1.000      1.000
   b. Units per Eligible                  1.073      1.180        0.863       0.929      1.000      1.148
Projected Cost per Eligible           $   20.79  $   89.18  $     42.17  $    12.26  $    9.76  $   39.23  $   213.39
6. CHDP                                                                                                          0.00
7. Adjustment to Pool                                                                                12.1%      25.82
Capitation Rate                                                                                            $   239.21
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 14 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:           Molina Medical Center   Plan #:     356     Date: 23-Jul-02
County:              San Bernardino          Plan Type:  Commercial Plan
Aid Code Grouping:   Aged

The Rate Period is October 1, 2001           Capitation Payments at the End
to September 30, 2002                        of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                             N
GHPP                                             N
Hemodialysis                                     C
Major Organ Transplants                          N
Out-of-State                                     C
Chiropractor                                     N
Local Education Authority                        N
Psychiatrist                                     N
Acupuncturist                                    N
Alphafeto Protein Testing                        N
Heroin Detoxification                            N
Direct Observed Therapy                          N
Lenses for eyewear                               N
AIDS Waiver                                      N
In Home Waiver                                   N
Model NF Waiver                                  N
Adult Day Health Care                            N
Newborn Hearing Screens                          N
Psychiatric Drugs                                N
AIDS Drugs                                       N
Injections                                       C
MH - Hospital Inpatient                          N
MH - Outpatient Services                         N
Long Term Care for month of entry plus one       C
Long Term Care after month of entry plus one     N
CHDP                                             C

<TABLE>
<CAPTION>
                                                               Hospital    Hospital  Long Term
Rate Calculation                      Physician   Pharmacy    Inpatient  Outpatient       Care      Other       Total
<S>                                   <C>        <C>        <C>          <C>         <C>        <C>        <C>
1. Average Cost Per Unit              $   16.06  $   38.28  $    316.16  $    11.67  $  177.26  $    6.49
2. Units per Eligible/year               11.563     16.963        0.819       3.904      1.049     42.784
   Cost per Elig. per Mo.             $   15.48  $   54.11  $     21.58  $     3.80  $   15.50  $   23.14  $   133.61
3. Adjustments
   a. Age/Sex                             0.995      1.007        1.003       0.992      1.021      1.005
   b. Area                                0.915      1.000        1.000       1.000      1.000      1.000
   c. Coverages                           0.981      0.996        0.997       0.986      0.997      0.781
   d. Interest                            1.000      1.000        1.000       1.000      1.000      1.000
Adjusted Base Cost                    $   13.83  $   54.27  $     21.58  $     3.72  $   15.78  $   18.16  $   127.34
4. Legislative Adjustments                0.984      0.879        0.969       1.423      1.433      0.963
5. Trend Adjustments
   a. Cost per Unit                       1.000      1.262        1.194       1.000      1.000      1.000
   b. Units per Eligible                  1.073      1.180        0.929       1.066      0.929      1.148
Projected Cost per Eligible           $   14.60  $   71.04  $     23.20  $     5.64  $   21.01  $   20.08  $   155.57
6. CHDP                                                                                                          0.00
7. Adjustment to Pool                                                                                12.1%      18.82
Capitation Rate                                                                                            $   174.39
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 15 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:           Molina Medical Center   Plan #:     356     Date: 23-Jul-02
County:              San Bernardino          Plan Type:  Commercial Plan
Aid Code Grouping:   Child

The Rate Period is October 1, 2001           Capitation Payments at the End
to September 30, 2002                        of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                             N
GHPP                                             N
Hemodialysis                                     C
Major Organ Transplants                          N
Out-of-State                                     C
Chiropractor                                     N
Local Education Authority                        N
Psychiatrist                                     N
Acupuncturist                                    N
Alphafeto Protein Testing                        N
Heroin Detoxification                            N
Direct Observed Therapy                          N
Lenses for eyewear                               N
AIDS Waiver                                      N
In Home Waiver                                   N
Model NF Waiver                                  N
Adult Day Health Care                            N
Newborn Hearing Screens                          N
Psychiatric Drugs                                N
AIDS Drugs                                       N
Injections                                       C
MH - Hospital Inpatient                          N
MH - Outpatient Services                         N
Long Term Care for month of entry plus one       C
Long Term Care after month of entry plus one     N
CHDP                                             C

<TABLE>
<CAPTION>
                                                               Hospital    Hospital  Long Term
Rate Calculation                      Physician   Pharmacy    Inpatient  Outpatient       Care      Other       Total
<S>                                   <C>        <C>        <C>          <C>         <C>        <C>        <C>
1. Average Cost Per Unit              $   58.40  $   17.50  $  1,120.53  $    18.79  $  140.26  $    6.45
2. Units per Eligible/year                5.196      3.068        0.436       2.787      0.019     10.564
   Cost per Elig. per Mo.             $   25.29  $    4.47  $     40.71  $     4.36  $    0.22  $    5.68  $    80.73
3. Adjustments
   a. Age/Sex                             1.062      1.056        1.029       1.067      1.000      0.997
   b. Area                                0.915      1.000        1.000       1.000      1.000      1.000
   c. Coverages                           0.974      0.984        0.952       0.973      0.996      0.882
   d. Interest                            1.000      1.000        1.000       1.000      1.000      1.000
Adjusted Base Cost                    $   23.94  $    4.64  $     39.88  $     4.53  $    0.22  $    4.99  $    78.20
4. Legislative Adjustments                1.116      0.875        1.035       1.427      1.424      1.082
5. Trend Adjustments
   a. Cost per Unit                       1.000      1.262        1.040       1.000      1.000      1.000
   b. Units per Eligible                  1.000      1.180        1.066       1.000      1.000      1.148
Projected Cost per Eligible           $   26.72  $    6.05  $     45.76  $     6.46  $    0.31  $    6.20  $    91.50
6. CHDP                                                                                                          4.08
7. Adjustment to Pool                                                                                12.1%      11.07
Capitation Rate                                                                                            $   106.65
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 16 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:           Molina Medical Center   Plan #:     356     Date: 23-Jul-02
County:              San Bernardino          Plan Type:  Commercial Plan
Aid Code Grouping:   Adult

The Rate Period is October 1, 2001           Capitation Payments at the End
to September 30, 2002                        of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                             N
GHPP                                             N
Hemodialysis                                     C
Major Organ Transplants                          N
Out-of-State                                     C
Chiropractor                                     N
Local Education Authority                        N
Psychiatrist                                     N
Acupuncturist                                    N
Alphafeto Protein Testing                        N
Heroin Detoxification                            N
Direct Observed Therapy                          N
Lenses for eyewear                               N
AIDS Waiver                                      N
In Home Waiver                                   N
Model NF Waiver                                  N
Adult Day Health Care                            N
Newborn Hearing Screens                          N
Psychiatric Drugs                                N
AIDS Drugs                                       N
Injections                                       C
MH - Hospital Inpatient                          N
MH - Outpatient Services                         N
Long Term Care for month of entry plus one       C
Long Term Care after month of entry plus one     N
CHDP                                             C

<TABLE>
<CAPTION>
                                                               Hospital    Hospital  Long Term
Rate Calculation                      Physician   Pharmacy    Inpatient  Outpatient       Care      Other       Total
<S>                                   <C>        <C>        <C>          <C>         <C>        <C>        <C>
1. Average Cost Per Unit              $  164.23  $   19.84  $  1,140.81  $    19.73  $    0.00  $   30.86
2. Units per Eligible/year               22.157      4.314        4.387      17.657      0.000      8.468
   Cost per Elig. per Mo.             $  303.24  $    7.13  $    417.06  $    29.03  $    0.00  $   21.78  $   778.24
3. Adjustments
   a. Age/Sex                             1.000      1.000        1.000       1.000      1.000      1.000
   b. Area                                0.915      1.000        1.000       1.000      1.000      1.000
   c. Coverages                           0.999      0.999        0.999       0.989      1.000      0.887
   d. Interest                            1.000      1.000        1.000       1.000      1.000      1.000
Adjusted Base Cost                    $  277.19  $    7.12  $    416.64  $    28.71  $    0.00  $   19.32  $   748.98
4. Legislative Adjustments                1.060      0.872        1.016       1.432      1.242      1.045
5. Trend Adjustments
   a. Cost per Unit                       1.000      1.262        1.040       1.000      1.000      1.000
   b. Units per Eligible                  1.000      1.180        1.066       1.000      1.000      1.148
Projected Cost per Eligible           $  293.82  $    9.25  $    469.29  $    41.11  $    0.00  $   23.18  $   836.65
6. CHDP                                                                                                          0.00
7. Adjustment to Pool                                                                                12.1%     101.23
Capitation Rate                                                                                            $   937.88
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 17 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

Plan Name:           Molina Medical Center   Plan #:     356     Date: 23-Jul-02
County:              San Bernardino          Plan Type:  Commercial Plan
Aid Code Grouping:   AIDS

The Rate Period is October 1, 2001           Capitation Payments at the End
to September 30, 2002                        of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                             N
GHPP                                             N
Hemodialysis                                     C
Major Organ Transplants                          N
Out-of-State                                     C
Chiropractor                                     N
Local Education Authority                        N
Psychiatrist                                     N
Acupuncturist                                    N
Alphafeto Protein Testing                        N
Heroin Detoxification                            N
Direct Observed Therapy                          N
Lenses for eyewear                               N
AIDS Waiver                                      N
In Home Waiver                                   N
Model NF Waiver                                  N
Adult Day Health Care                            N
Newborn Hearing Screens                          N
Psychiatric Drugs                                N
AIDS Drugs                                       N
Injections                                       C
MH - Hospital Inpatient                          N
MH - Outpatient Services                         N
Long Term Care for month of entry plus one       C
Long Term Care after month of entry plus one     N
CHDP                                             C

<TABLE>
<CAPTION>
                                                               Hospital    Hospital  Long Term
Rate Calculation                      Physician   Pharmacy    Inpatient  Outpatient       Care      Other       Total
<S>                                   <C>        <C>        <C>          <C>         <C>        <C>        <C>
1. Average Cost Per Unit              $   25.87  $  141.75  $    611.26  $    17.75  $  228.06  $   14.00
2. Units per Eligible/year               29.254     46.897        3.823      28.506      0.450     78.563
   Cost per Elig. per Mo.             $   63.07  $  553.97  $    194.74  $    42.17  $    8.55  $   91.66  $   954.16
3. Adjustments
   a. Age/Sex                             1.000      1.000        1.000       1.000      1.000      1.000
   b. Area                                0.915      1.000        1.000       1.000      1.000      1.000
   c. Coverages                           0.918      0.663        0.957       0.992      0.998      0.642
   d. Interest                            1.000      1.000        1.000       1.000      1.000      1.000
Adjusted Base Cost                    $   52.98  $  367.28  $    186.37  $    41.83  $    8.53  $   58.85  $   715.84
4. Legislative Adjustments                1.070      0.826        0.989       1.378      1.529      1.001
5. Trend Adjustments
   a. Cost per Unit                       1.000      1.262        1.194       1.000      1.000      1.000
   b. Units per Eligible                  1.073      1.180        0.863       0.929      1.000      1.148
Projected Cost per Eligible           $   60.83  $  451.77  $    189.93  $    53.55  $   13.04  $   67.63  $   836.75
6. CHDP                                                                                                          0.00
7. Adjustment to Pool                                                                                12.1%     101.25
Capitation Rate                                                                                            $   938.00
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 18 of 24

Prepared by Department of Health Services, Rate Development Branch

<PAGE>

The Rate Period is July 1, 2001              Capitation Payments at the End
to September 30, 2001                        of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                             N
GHPP                                             N
Hemodialysis                                     C
Major Organ Transplants                          N
Out-of-State                                     C
Chiropractor                                     N
Local Education Authority                        N
Psychiatrist                                     N
Acupuncturist                                    N
Alphafeto Protein Testing                        N
Heroin Detoxification                            N
Direct Observed Therapy                          N
PIA Lenses                                       N
AIDS Waiver                                      N
In Home Waiver                                   N
Model NF Waiver                                  N
Adult Day Health Care                            N
Newborn Hearing Screening                        N
Psychiatric Drugs                                N
AIDS Drugs                                       N
Injections                                       C
MH - Hospital Inpatient                          N
MH - Outpatient Services                         N
Long Term Care for month of entry plus one       C
Long Term Care after month of entry plus one     N
CHDP                                             C

<TABLE>
<CAPTION>
                                                               Hospital    Hospital  Long Term
Rate Calculation                      Physician   Pharmacy    Inpatient  Outpatient       Care      Other       Total
<S>                                   <C>        <C>        <C>          <C>         <C>        <C>        <C>
1. Average Cost Per Unit              $   66.25  $   23.82  $    978.02  $    20.37  $  229.41  $    8.79
2. Units per Eligible                     5.957      3.361        0.304       2.609      0.009      6.410
   Cost per Elig. per Mo.             $   32.89  $    6.67  $     24.78  $     4.43  $    0.17  $    4.70  $    73.64
3. Adjustments
   a. Demographics                        0.870      0.911        0.786       0.871      1.000      0.918
   b. Area                                0.900      1.000        1.000       1.000      1.000      1.000
   c. Coverages                           0.975      0.992        0.968       0.956      0.995      0.868
   d. Interest                            1.000      1.000        1.000       1.000      1.000      1.000
Adjusted Base Cost                    $   25.11  $    6.03  $     18.85  $     3.69  $    0.17  $    3.75  $    57.60
4. Legislative Adjs.                      1.261      0.895        1.016       1.437      1.375      1.086
5. Trend Adjustments
   a. Cost per Unit                       1.000      1.148        1.000       1.000      1.000      1.000
   b. Units per Eligible                  1.000      1.073        1.066       1.000      1.000      1.148
Projected Cost per Eligible           $   31.66   $   6.65  $     20.41  $     5.30  $    0.23  $    4.67  $    68.92
6. Adjustment to no Loss                                                                                         0.00
7. CHDP                                                                                                          4.88
8. Adjustment to Fee-for-Service                                                                     15.0%      10.34
Capitation Rate                                                                                            $    84.14
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 19 of 24

7/23/2002 Prepared by Department of Health Services, Rate Development Branch

<PAGE>

The Rate Period is July 1, 2001                 Capitation Payments at the
to September 30, 2001                           End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                             N
GHPP                                             N
Hemodialysis                                     C
Major Organ Transplants                          N
Out-of-State                                     C
Chiropractor                                     N
Local Education Authority                        N
Psychiatrist                                     N
Acupuncturist                                    N
Alphafeto Protein Testing                        N
Heroin Detoxification                            N
Direct Observed Therapy                          N
PIA Lenses                                       N
AIDS Waiver                                      N
In Home Waiver                                   N
Model NF Waiver                                  N
Adult Day Health Care                            N
Newborn Hearing Screening                        N
Psychiatric Drugs                                N
AIDS Drugs                                       N
Injections                                       C
MH - Hospital Inpatient                          N
MH - Outpatient Services                         N
Long Term Care for month of entry plus one       C
Long Term Care after month of entry plus one     N
CHDP                                             C

<TABLE>
<CAPTION>
                                                                Hospital     Hospital   Long Term
Rate Calculation                        Physician   Pharmacy   Inpatient   Outpatient        Care      Other      Total
<S>                                      <C>        <C>         <C>           <C>        <C>        <C>        <C>
1. Average Cost Per Unit                 $  20.15   $  50.42    $ 611.26      $ 18.26    $ 184.85   $   7.07
2. Units per Eligible                      13.720     21.892       1.011        6.029       0.452     63.930
   Cost per Elig. per Mo.                $  23.04   $  91.98    $  51.50      $  9.17    $   6.96   $  37.67   $ 220.32
3. Adjustments
   a. Demographics                          0.927      0.841       0.865        1.023       0.991      1.031
   b. Area                                  0.900      1.000       1.000        1.000       1.000      1.000
   c. Coverages                             0.900      0.875       0.920        0.973       0.995      0.877
   d. Interest                              1.000      1.000       1.000        1.000       1.000      1.000
Adjusted Base Cost                       $  17.30   $  67.69    $  40.98      $  9.13    $   6.86   $  34.06   $ 176.02
4. Legislative Adjs.                        1.151      0.925       0.952        1.426       1.379      0.991
5. Trend Adjustments
   a. Cost per Unit                         1.000      1.148       1.148        1.000       1.000      1.000
   b. Units per Eligible                    1.073      1.073       0.863        0.929       1.000      1.148
Projected Cost per Eligible              $  21.37   $  77.10    $  38.64      $ 12.09    $   9.46   $  38.74   $ 197.40
6. Adjustment to no Loss                                                                                           0.00
7. CHDP                                                                                                            0.00
8. Adjustment to Fee-for-Service                                                                        15.0%     29.61
Capitation Rate                                                                                                $ 227.01
</TABLE>

                                                            #95-23673 C11
                                                            Attachment
                                                            Page 20 of 24

7/23/2002 Prepared by Department of Health Services, Rate Development Branch

<PAGE>

The Rate Period is July 1, 2001                 Capitation Payments at the
to September 30, 2001                           End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                            N
GHPP                                            N
Hemodialysis                                    C
Major Organ Transplants                         N
Out-of-State                                    C
Chiropractor                                    N
Local Education Authority                       N
Psychiatrist                                    N
Acupuncturist                                   N
Alphafeto Protein Testing                       N
Heroin Detoxification                           N
Direct Observed Therapy                         N
PIA Lenses                                      N
AIDS Waiver                                     N
In Home Waiver                                  N
Model NF Waiver                                 N
Adult Day Health Care                           N
Newborn Hearing Screening                       N
Psychiatric Drugs                               N
AIDS Drugs                                      N
Injections                                      C
MH - Hospital Inpatient                         N
MH - Outpatient Services                        N
Long Term Care for month of entry plus one      C
Long Term Care after month of entry plus one    N
CHDP                                            C

<TABLE>
<CAPTION>
                                                                     Hospital     Hospital     Long Term
Rate Calculation                        Physician      Pharmacy     Inpatient   Outpatient          Care         Other        Total
<S>                                      <C>           <C>           <C>           <C>          <C>           <C>          <C>
1. Average Cost Per Unit                 $  16.06      $  38.28      $ 316.16      $ 11.67      $ 177.26      $   6.49
2. Units per Eligible                      11.563        16.963         0.819        3.904         1.049        42.784
   Cost per Elig. per Mo.                $  15.48      $  54.11      $  21.58      $  3.80      $  15.50      $  23.14     $ 133.61
3. Adjustments
   a. Demographics                          1.014         1.009         0.894        1.039         0.650         0.962
   b. Area                                  0.900         1.000         1.000        1.000         1.000         1.000
   c. Coverages                             0.981         0.996         0.997        0.986         0.997         0.781
   d. Interest                              1.000         1.000         1.000        1.000         1.000         1.000
Adjusted Base Cost                       $  13.86      $  54.38      $  19.23      $  3.89      $  10.04      $  17.39     $ 118.79
4. Legislative Adjs.                        0.993         0.911         0.960        1.419         1.368         0.966
5. Trend Adjustments
   a. Cost per Unit                         1.000         1.148         1.148        1.000         1.000         1.000
   b. Units per Eligible                    1.073         1.073         0.929        1.066         0.929         1.148
Projected Cost per Eligible              $  14.77      $  61.00      $  19.67      $  5.88      $  12.75      $  19.28     $ 133.35
6. Adjustment to no Loss                                                                                                       0.00
7. CHDP                                                                                                                        0.00
8. Adjustment to Fee-for-Service                                                                                  15.0%       20.00
Capitation Rate                                                                                                            $ 153.35
</TABLE>

                                                            #95-23673 C11
                                                            Attachment
                                                            Page 21 of 24

7/23/2002 Prepared by Department of Health Services, Rate Development Branch

<PAGE>

The Rate Period is July 1, 2001                 Capitation Payments at the
to September 30, 2001                           End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

   CCS Indicated Claims                            N
   GHPP                                            N
   Hemodialysis                                    C
   Major Organ Transplants                         N
   Out-of-State                                    C
   Chiropractor                                    N
   Local Education Authority                       N
   Psychiatrist                                    N
   Acupuncturist                                   N
   Alphafeto Protein Testing                       N
   Heroin Detoxification                           N
   Direct Observed Therapy                         N
   PIA Lenses                                      N
   AIDS Waiver                                     N
   In Home Waiver                                  N
   Model NF Waiver                                 N
   Adult Day Health Care                           N
   Newborn Hearing Screening                       N
   Psychiatric Drugs                               N
   AIDS Drugs                                      N
   Injections                                      C
   MH - Hospital Inpatient                         N
   MH - Outpatient Services                        N
   Long Term Care for month of entry plus one      C
   Long Term Care after month of entry plus one    N
   CHDP                                            C

<TABLE>
<CAPTION>
                                                                 Hospital      Hospital     Long Term
Rate Calculation                     Physician      Pharmacy    Inpatient    Outpatient          Care         Other        Total
<S>                                   <C>            <C>       <C>              <C>          <C>           <C>           <C>
1. Average Cost Per Unit              $  58.40       $ 17.50   $ 1,120.53       $ 18.79      $ 140.26      $   6.45
2. Units per Eligible                    5.196         3.068        0.436         2.787         0.019        10.564
   Cost per Elig. per Mo.             $  25.29       $  4.47   $    40.71       $  4.36      $   0.22      $   5.68      $ 80.73
3. Adjustments
   a. Demographics                       0.986         1.016        0.877         0.987         1.000         0.976
   b. Area                               0.900         1.000        1.000         1.000         1.000         1.000
   c. Coverages                          0.974         0.984        0.952         0.973         0.996         0.882
   d. Interest                           1.000         1.000        1.000         1.000         1.000         1.000
Adjusted Base Cost                    $  21.86       $  4.47   $    33.99       $  4.19      $   0.22      $   4.89      $ 69.62
4. Legislative Adjs.                     1.144         0.907        1.019         1.423         1.359         1.089
5. Trend Adjustments
   a. Cost per Unit                      1.000         1.148        1.000         1.000         1.000         1.000
   b. Units per Eligible                 1.000         1.073        1.066         1.000         1.000         1.148
Projected Cost per Eligible           $  25.01       $  4.99   $    36.91       $  5.96      $   0.30      $   6.11      $ 79.28
6. Adjustment to no Loss                                                                                                    0.00
7. CHDP                                                                                                                     4.08
8. Adjustment to Fee-for-Service                                                                               15.0%       11.89
Capitation Rate                                                                                                          $ 95.25
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 22 of 24

7/23/2002 Prepared by Department of Health Services, Rate Development Branch

<PAGE>

The Rate Period is July 1, 2001                 Capitation Payments at the
to September 30, 2001                           End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

CCS Indicated Claims                            N
GHPP                                            N
Hemodialysis                                    C
Major Organ Transplants                         N
Out-of-State                                    C
Chiropractor                                    N
Local Education Authority                       N
Psychiatrist                                    N
Acupuncturist                                   N
Alphafeto Protein Testing                       N
Heroin Detoxification                           N
Direct Observed Therapy                         N
PIA Lenses                                      N
AIDS Waiver                                     N
In Home Waiver                                  N
Model NF Waiver                                 N
Adult Day Health Care                           N
Newborn Hearing Screening                       N
Psychiatric Drugs                               N
AIDS Drugs                                      N
Injections                                      C
MH - Hospital Inpatient                         N
MH - Outpatient Services                        N
Long Term Care for month of entry plus one      C
Long Term Care after month of entry plus one    N
CHDP                                            C

<TABLE>
<CAPTION>
                                                               Hospital       Hospital     Long Term
Rate Calculation                  Physician      Pharmacy     Inpatient     Outpatient          Care           Other        Total
<S>                               <C>           <C>         <C>             <C>             <C>            <C>          <C>
1. Average Cost Per Unit          $  164.23     $  19.84    $  1,140.81     $   19.73       $   0.00       $  30.86
2. Units per Eligible                22.157        4.314          4.387        17.657          0.000          8.468
   Cost per Elig. per Mo.         $  303.24     $   7.13    $    417.06     $   29.03       $   0.00       $  21.78     $  778.24
3. Adjustments
   a. Demographics                    1.000        1.000          1.000         1.000          1.000          1.000
   b. Area                            0.900        1.000          1.000         1.000          1.000          1.000
   c. Coverages                       0.999        0.999          0.999         0.989          1.000          0.887
   d. Interest                        1.000        1.000          1.000         1.000          1.000          1.000
Adjusted Base Cost                $  272.64     $   7.12    $    416.64     $   28.71       $   0.00       $  19.32     $  744.43
4. Legislative Adjs.                  1.075        0.900          1.008         1.433          1.213          1.053
5. Trend Adjustments
   a. Cost per Unit                   1.000        1.148          1.000         1.000          1.000          1.000
   b. Units per Eligible              1.000        1.073          1.066         1.000          1.000          1.148
Projected Cost per Eligible       $  293.09     $   7.89    $    447.54     $   41.14       $   0.00       $  23.35     $  813.01
6. Adjustment to no Loss                                                                                                     0.00
7. CHDP                                                                                                                      0.00
8. Adjustment to Fee-for-Service                                                                               15.0%       121.95
Capitation Rate                                                                                                         $  934.96
</TABLE>

                                                                   #95-23673 C11
                                                                   Attachment
                                                                   Page 23 of 24

7/23/2002 Prepared by Department of Health Services, Rate Development Branch

<PAGE>

The Rate Period is July 1, 2001                 Capitation Payments at the
to September 30, 2001                           End of the Month

Coverages ( C = Covered by Plan, N = NOT Covered by Plan )

   CCS Indicated Claims                            N
   GHPP                                            N
   Hemodialysis                                    C
   Major Organ Transplants                         N
   Out-of-State                                    C
   Chiropractor                                    N
   Local Education Authority                       N
   Psychiatrist                                    N
   Acupuncturist                                   N
   Alphafeto Protein Testing                       N
   Heroin Detoxification                           N
   Direct Observed Therapy                         N
   PIA Lenses                                      N
   AIDS Waiver                                     N
   In Home Waiver                                  N
   Model NF Waiver                                 N
   Adult Day Health Care                           N
   Newborn Hearing Screening                       N
   Psychiatric Drugs                               N
   AIDS Drugs                                      N
   Injections                                      C
   MH - Hospital Inpatient                         N
   MH - Outpatient Services                        N
   Long Term Care for month of entry plus one      C
   Long Term Care after month of entry plus one    N
   CHDP                                            C

<TABLE>
<CAPTION>
                                                                  Hospital      Hospital      Long Term
Rate Calculation                     Physician       Pharmacy    Inpatient    Outpatient           Care          Other         Total
<S>                                  <C>            <C>          <C>           <C>            <C>            <C>           <C>
1. Average Cost Per Unit             $   25.87      $  141.75    $  611.26     $   17.75      $  228.06      $   14.00
2. Units per Eligible                   29.254         46.897        3.823        28.506          0.450         78.563
   Cost per Elig. per Mo.            $   63.07      $  553.97    $  194.74     $   42.17      $    8.55      $   91.66     $  954.16
3. Adjustments
   a. Demographics                       1.000          1.000        1.000         1.000          1.000          1.000
   b. Area                               0.900          1.000        1.000         1.000          1.000          1.000
   c. Coverages                          0.918          0.663        0.957         0.992          0.998          0.970
   d. Interest                           1.000          1.000        1.000         1.000          1.000          1.000
Adjusted Base Cost                   $   52.11      $  367.28    $  186.37     $   41.83      $    8.53      $   88.91     $  745.03
4. Legislative Adjs.                     1.098          0.836        0.986         1.369          1.453          0.996
5. Trend Adjustments
   a. Cost per Unit                      1.000          1.148        1.148         1.000          1.000          1.000
   b. Units per Eligible                 1.073          1.073        0.863         0.929          1.000          1.148
Projected Cost per Eligible          $   61.39      $  378.09    $  181.99     $   53.18      $   12.39      $  101.62     $  788.66
6. Adjustment to no Loss                                                                                                        0.00
7. CHDP                                                                                                                         0.00
8. Adjustment to Fee-for-Service                                                                                  15.0%       118.30
Capitation Rate                                                                                                            $  906.96
</TABLE>

                                                             #95-23673 C11
                                                             Attachment
                                                             Page 24 of 24

7/23/2002 Prepared by Department of Health Services, Rate Development Branch

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