Document:

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EXHIBIT 4.28

________________________________________________________________________________

                               SALE AND SERVICING

                                    AGREEMENT

                                      AMONG

                      CPS AUTO RECEIVABLES TRUST 2008-A, AS

                                     ISSUER,

                             CPS RECEIVABLES LLC, AS

                                     SELLER,

                       CONSUMER PORTFOLIO SERVICES, INC.,

                          INDIVIDUALLY AND AS SERVICER

                                       AND

                   WELLS FARGO BANK, NATIONAL ASSOCIATION, AS

                           BACKUP SERVICER AND TRUSTEE

                            DATED AS OF MARCH 1, 2008

________________________________________________________________________________

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         SALE AND SERVICING AGREEMENT dated as of March 1, 2008, among CPS AUTO
RECEIVABLES TRUST 2008-A, a Delaware statutory trust, as Issuer, CPS RECEIVABLES
LLC, a Delaware limited liability company, as Seller, CONSUMER PORTFOLIO
SERVICES, INC., a California corporation, individually and as Servicer, WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Backup
Servicer and Trustee.

         WHEREAS the Issuer desires to purchase a portfolio of receivables
arising in connection with motor vehicle retail installment sale contracts and
promissory notes and security agreements acquired by Consumer Portfolio
Services, Inc. through motor vehicle dealers and independent finance companies;

         WHEREAS the Seller has purchased such receivables from Consumer
Portfolio Services, Inc. and is willing to sell such receivables to the Issuer;
and

         WHEREAS the Servicer is willing to service all such receivables.

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

                                   ARTICLE I
                                   ---------

                                   DEFINITIONS

       SECTION 1.1 DEFINITIONS. (a) Whenever used in this Agreement, the
following words and phrases shall have the following meanings:

         "Accountants' Report" means the report of a firm of nationally
recognized independent accountants described in Section 4.11.

         "Additional Servicing Compensation" shall mean, with respect to a
Receivable, any late fees, prepayment charges and other administrative fees or
similar charges allowed by applicable law with respect to the Receivables
collected (from whatever source) on the Receivables.

         "Affiliate" of any Person means any Person who directly or indirectly
controls, is controlled by, or is under direct or indirect common control with
such Person. For purposes of this definition, the term "control" when used with
respect to any Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling," "controlled
by" and "under common control with" have meanings correlative to the foregoing.

         "Aggregate Extension Percentage Limitation" has the meaning assigned to
such term in Section 4.2.

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         "Aggregate Note Balance" means, as of any date of determination, the
sum of the Class A-1 Note Balance, the Class A-2 Note Balance, the Class A-3
Note Balance and the Class A-4 Note Balance.

         "Aggregate Principal Balance" means, with respect to any date of
determination, the sum of the Principal Balances for all Receivables (other than
(i) any Receivable that became a Liquidated Receivable prior to the end of the
related Collection Period and (ii) any Receivable that became a Purchased
Receivable prior to the end of the related Collection Period) as of the date of
determination.

         "Agreement" means this Sale and Servicing Agreement, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
the terms hereof.

         "Amount Financed" means, with respect to a Receivable, the aggregate
amount advanced under such Receivable toward the purchase price of the Financed
Vehicle and any related costs, including amounts advanced in respect of
accessories, insurance premiums, service and warranty contracts, other items
customarily financed as part of retail automobile installment sale contracts or
promissory notes, and related costs.

         "Annual Percentage Rate" or "APR" of a Receivable means the annual
percentage rate of finance charges or service charges, as stated in the related
Contract.

         "Assumption Date" has the meaning specified in Section 10.3(a).

         "Backup Servicer" means Wells Fargo Bank, National Association, in its
capacity as Backup Servicer under this Agreement.

         "Backup Servicing Fee" means the fee payable to the Backup Servicer so
long as CPS is the Servicer, on each Payment Date in an amount equal to the
greater of (a) $2,000 or (b) one-twelfth of 0.02% of the aggregate Pool Balance
as of the first day of the related Collection Period; provided, however, that on
the first Payment Date the Backup Servicer will be entitled to receive an amount
equal to the greater of (a) $2,000 or (b) the product of (i) the percentage
equivalent of a fraction the numerator of which is the number days from the
Closing Date to but excluding the first Payment Date and the denominator of
which is 360, (ii) 0.03% and (iii) the Original Aggregate Note Balance.

         "Basic Documents" means this Agreement, the Certificate of Trust, the
Trust Agreement, the Indenture, the Receivables Purchase Agreement, the Master
Spread Account Agreement, the Spread Account Supplement, the Insurance
Agreement, the Indemnification Agreement, the Lockbox Agreement, the Placement
Agency Agreement, the Notes, the Residual Pass-through Certificates, any trust
agreement, indenture or other agreement to which the Seller, CPS or the Trust or
any of their respective Affiliates is a party entered into in connection with a
transfer of any interest in the Residual Pass-through Certificates, any
securities representing direct or indirect interests in the Residual
Pass-through Certificates and other documents and certificates delivered in
connection with the foregoing.

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         "Business Day" means any day other than a Saturday, a Sunday or a day
on which banking institutions in the City of New York, the State of Minnesota,
the State in which the executive offices of the Servicer are located and the
State in which the principal place of business of the Note Insurer is located
shall be authorized or obligated by law, executive order, or governmental decree
to be closed.

         "Casualty" means, with respect to a Financed Vehicle, the total loss or
destruction of such Financed Vehicle.

         "Cayman Indenture" means the Indenture dated April 10, 2008, between
the Cayman Trustee, in its capacity as trustee of the Cayman Trust, as issuer,
and Wells Fargo Bank, National Association, as trustee, as the same may be
amended or supplemented from time to time in accordance with the terms thereof.

         "Cayman Indenture Trustee" means the Person acting as trustee under the
Cayman Indenture, its successors in interest and any successor trustee under the
Cayman Indenture.

         "Cayman Trust" means Cayman Residual Trust 2008-A, a trust organized
under the laws of the Cayman Islands.

         "Cayman Trust Agreement" means the trust agreement between the Seller
and Wilmington Trust (Cayman), Ltd. pursuant to which the Cayman Trust is
created, as the same may be amended, amended and restated or otherwise modified
in accordance with its terms from time to time.

         "Cayman Trustee" means the Person acting as trustee of the Cayman
Trust, its successors in interest and any successor trustee under the Cayman
Trust Agreement.

         "Cayman Trustee Fees" means, for any Collection Period, the sum of (A)
one-twelfth of the fee set forth on EXHIBIT H-2 payable to Wells Fargo Bank,
National Association as Cayman Indenture Trustee and backup administrator; (B)
the fees payable to the Cayman Trust pursuant to Article VIII of the Cayman
Trust Agreement; (C) reasonable out-of-pocket expenses (including reasonable
counsel fees and expenses) of the Cayman Trustee and the Cayman Indenture
Trustee; and (D) any such unpaid fees and expenses for prior Collection Periods.

         "Certificate Register" has the meaning assigned to such term in the
Trust Agreement.

         "Certificate Registrar" has the meaning assigned to such term in the
Trust Agreement.

         "Class" means the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes or the Class A-4 Notes as the context requires.

         "Class A-1 Final Scheduled Payment Date" means the Payment Date
occurring in April 15, 2009.

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         "Class A-1 Interest Rate" means 3.4695% per annum.

         "Class A-1 Note Balance" on the Closing Date will equal the Original
Class A-1 Note Balance and on any date thereafter will equal the Original Class
A-1 Note Balance reduced by all distributions of principal previously made in
respect of the Class A-1 Notes.

         "Class A-1 Notes" has the meaning assigned to such term in the
Indenture.

         "Class A-2 Final Scheduled Payment Date" means the Payment Date
occurring in November 15, 2011.

         "Class A-2 Interest Rate" means 4.95% per annum.

         "Class A-2 Note Balance" on the Closing Date will equal the Original
Class A-2 Note Balance and on any date thereafter will equal the Original Class
A-2 Note Balance reduced by all distributions of principal previously made in
respect of the Class A-2 Notes.

         "Class A-2 Notes" has the meaning assigned to such term in the
Indenture.

         "Class A-3 Final Scheduled Payment Date" means the Payment Date
occurring in July 15, 2013.

         "Class A-3 Interest Rate" means 6.48% per annum.

         "Class A-3 Note Balance" on the Closing Date will equal the Original
Class A-3 Note Balance and on any date thereafter will equal the Original Class
A-3 Note Balance reduced by all distributions of principal previously made in
respect of the Class A-3 Notes.

         "Class A-3 Notes" has the meaning assigned to such term in the
Indenture.

         "Class A-4 Final Scheduled Payment Date" means the Payment Date
occurring in October 15, 2014.

         "Class A-4 Interest Rate" means 7.13% per annum.

         "Class A-4 Note Balance" on the Closing Date will equal the Original
Class A-4 Note Balance and on any date thereafter will equal the Original Class
A-4 Note Balance reduced by all distributions of principal previously made in
respect of the Class A-4 Notes.

         "Class A-4 Notes" has the meaning assigned to such term in the
Indenture.

         "Clean-up Call Receivables" means Receivables acquired by CPS pursuant
to the exercise of optional purchase rights under the CPS Auto Receivables Trust
2003-B securitization transaction.

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         "Closing Date" means April 10, 2008.

         "Code" has the meaning specified in Section 3.2.

         "Collateral" has the meaning assigned to such term in the Indenture.

         "Collateral Agent" means Wells Fargo Bank, National Association, in its
capacity as Collateral Agent under the Master Spread Account Agreement.

         "Collection Account" means the account designated as such, established
and maintained pursuant to Section 5.1.

         "Collection Period" means, with respect to each Payment Date, the
calendar month preceding the calendar month in which such Payment Date occurs.
Any amount stated "as of the close of business on the last day of a Collection
Period" shall give effect to the following calculations as determined as of the
end of the day on such last day: (i) all applications of collections, and (ii)
all distributions.

         "Consumer Lender" means a Person that is licensed under applicable law
to originate loans to natural persons resident in one or more of the United
States of America and authorized by CPS to participate in its direct lending
program, but shall not include CPS or any of its Affiliates.

         "Contract" means a motor vehicle retail installment sale contract or an
installment promissory note and security agreement, in each case relating to the
sale or refinancing of new or used automobiles, light duty trucks, vans or
minivans, and any other documents related thereto from time to time.

         "Controlling Party" shall be determined in accordance with the
provisions of Section 13.15(a).

         "Corporate Trust Office" means (i) with respect to the Owner Trustee,
the principal corporate trust office of the Owner Trustee, which at the time of
execution of this agreement is Rodney Square North, 1100 N. Market Street,
Wilmington, Delaware 19890-0001, and (ii) with respect to the Trustee and
Collateral Agent, the principal corporate trust office of the Trustee, which at
the time of execution of this agreement is Sixth Street and Marquette Avenue,
MAC N9311-161, Minneapolis, Minnesota, 55479, Attention: Corporate Trust
Services/Asset Backed Administration - CPS 2008-A.

         "CPS" means Consumer Portfolio Services, Inc., a California corporation
and its successors.

         "CPS Receivables Funding Trust" means CPS Receivables Funding Trust, a
Delaware statutory trust, and its successors.

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         "Cram Down Loss" means, with respect to a Receivable (other than a
Liquidated Receivable), if a court of appropriate jurisdiction in an insolvency
proceeding issues a ruling that reduces the amount owed on a Receivable or
otherwise modifies or restructures the Scheduled Receivable Payments to be made
thereon, an amount equal to the sum of (a) the Principal Balance of the
Receivable immediately prior to such order minus the Principal Balance of such
Receivable as so reduced, modified or restructured, plus (b) if such court shall
have issued an order reducing the effective rate of interest on such Receivable,
an amount equal to the excess of (i) the net present value (using as a discount
rate a rate equal to the adjusted APR on such Receivable) of the Scheduled
Receivable Payments as so modified or restructured over (ii) the net present
value (using as a discount rate a rate equal to the original APR on such
Receivable) of the Scheduled Receivable Payments as so modified or restructured.
A Cram Down Loss will be deemed to have occurred on the date of issuance of such
order.

         "Cumulative Net Loss Rate" has the meaning assigned thereto in the
Master Spread Account Agreement.

         "Cutoff Date" means the close of business on February 29, 2008.

         "Dealer" means, with respect to a Receivable, the seller of the related
Financed Vehicle, who originated and assigned such Receivable to CPS, who in
turn sold such Receivable to the Seller.

         "Defaulted Texas Receivables" means Receivables the related Obligors of
which reside in the State of Texas or the related Financed Vehicles of which are
located in the State of Texas and as to which more than 10% of a Scheduled
Receivable Payment of more than ten dollars shall have become 90 or more days
delinquent as of the end of a Collection Period, and which are subject to
purchase pursuant to Section 4.16.

         "Deficiency Claim Amount" has the meaning set forth in Section 5.5(a).

         "Deficiency Claim Date" means, with respect to any Payment Date, the
fourth Business Day immediately preceding such Payment Date.

         "Deficiency Notice" has the meaning set forth in Section 5.5(a).

         "Delinquency Ratio" has the meaning assigned such term in the Master
Spread Account Agreement.

         "Delivery" means, when used with respect to Trust Account Property:
(terms used in the following provisions that are not otherwise defined are used
as defined in Articles 8 and 9 of the UCC):

                  (i) in the case of such Trust Account Property consisting of
         security entitlements not covered by the following paragraphs in this
         definition of Delivery, by (1) causing the Trustee or related
         securities intermediary to indicate by book-entry that a financial
         asset related to such securities entitlement has been credited to the
         related Trust Account and (2) causing the Trustee or related securities
         intermediary to indicate that the Trustee is the sole entitlement
         holder of each such securities entitlement and causing the Trustee or
         related securities intermediary to agree that it will comply with
         entitlement orders originated by the Trustee with respect to each such
         security entitlement without further consent by the Issuer;

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                  (ii) in the case of each certificated security (other than a
         clearing corporation security (as defined below)) or instrument by: (1)
         the delivery of such certificated security or instrument to the Trustee
         or related securities intermediary registered in the name of the
         Trustee or related securities intermediary or its respective affiliated
         nominee or endorsed to the Trustee or related securities intermediary
         in blank; (2) causing the Trustee or related securities intermediary to
         continuously indicate by book-entry that such certificated security or
         instrument is credited to the related Trust Account; and (3) the
         Trustee or related securities intermediary maintaining continuous
         possession of such certificated security or instrument;

                  (iii) in the case of each uncertificated security (other than
         a clearing corporation security (as defined below)), by causing: (1)
         such uncertificated security to be continuously registered in the books
         of the issuer thereof to the Trustee or related securities
         intermediary; and (2) the Trustee or related securities intermediary to
         continuously indicate by book-entry that such uncertificated security
         is credited to the related Trust Account;

                  (iv) in the case of each security in the custody of or
         maintained on the books of a clearing corporation (a "clearing
         corporation security"), by causing: (1) the relevant clearing
         corporation to credit such clearing corporation security to the
         securities account of the Trustee or related securities intermediary at
         such clearing corporation; and (2) the Trustee or related securities
         intermediary to continuously indicate by book-entry that such clearing
         corporation security is credited to the related Trust Account;

                  (v) in the case of each security issued or guaranteed by the
         United States of America or agency or instrumentality thereof (other
         than a security issued by the Government National Mortgage Association)
         representing a full faith and credit obligation of the United States of
         America and that is maintained in book-entry records of the Federal
         Reserve Bank of New York ("FRBNY") (each such security, a "government
         security"), by causing: (1) the creation of a security entitlement to
         such government security by the credit of such government security to
         the securities account of the Trustee or related securities
         intermediary at the FRBNY; and (2) the Trustee or related securities
         intermediary to continuously indicate by book-entry that such
         government security is credited to the related Trust Account.

                  (vi) in each case of delivery contemplated pursuant to clauses
         (ii) through (v) hereof, the Trustee shall make appropriate notations
         on its records, and shall cause the same to be made on the records of
         its nominees, indicating that such Trust Property which constitutes a
         security is held in trust pursuant to and as provided in this
         Agreement.

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         "Determination Date" means the earlier of (i) the seventh Business Day
of each calendar month and (ii) the fifth Business Day preceding the related
Payment Date.

         "Draw Date" means with respect to any Payment Date, the third Business
Day immediately preceding such Payment Date.

         "Eligible Account" means (i) a segregated trust account that is
maintained with a depository institution acceptable to the Controlling Party, or
(ii) a segregated direct deposit account maintained with a depository
institution or trust company organized under the laws of the United States of
America, or any of the States thereof, or the District of Columbia, having a
certificate of deposit, short-term deposit or commercial paper rating of at
least "A-1+" by Standard & Poor's and "Prime-1" by Moody's and acceptable to the
Controlling Party; provided that the Controlling Party shall not be required to
give its prior written consent with respect to such an account maintained with
Wells Fargo Bank, National Association

         "Eligible Investments" mean book-entry securities, negotiable
instruments or securities represented by instruments in registered form which
evidence:

                  (i) direct obligations of, and obligations fully guaranteed as
         to the full and timely payment by, the United States of America;

                  (ii) demand deposits, time deposits or certificates of deposit
         of any depository institution or trust company incorporated under the
         laws of the United States of America or any State thereof (or any
         domestic branch of a foreign bank) and subject to supervision and
         examination by Federal or State banking or depository institution
         authorities; provided, however, that at the time of the investment or
         contractual commitment to invest therein, the commercial paper or other
         short-term unsecured debt obligations (other than such obligations the
         rating of which is based on the credit of a Person other than such
         depository institution or trust company) thereof shall be rated "A-1+"
         by Standard & Poor's and "Prime-1" by Moody's;

                  (iii) commercial paper that, at the time of the investment or
         contractual commitment to invest therein, is rated "A-1+" by Standard &
         Poor's and "Prime-1" by Moody's;

                  (iv) bankers' acceptances issued by any depository institution
         or trust company referred to in clause (ii) above;

                  (v) repurchase obligations with respect to any security that
         is a direct obligation of, or fully guaranteed as to the full and
         timely payment by, the United States of America or any agency or
         instrumentality thereof the obligations of which are backed by the full
         faith and credit of the United States of America, in either case
         entered into with (a) a depository institution or trust company (acting
         as principal) described in clause (ii) or (b) a depository institution
         or trust company whose commercial paper or other short term unsecured
         debt obligations are rated "A-1+" by Standard & Poor's and "Prime-1" by
         Moody's and long term unsecured debt obligations are rated "AAA" by
         Standard & Poor's and "Aaa" by Moody's;

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                  (vi) with the prior written consent of the Controlling Party
         money market mutual funds registered under the Investment Company Act
         of 1940, as amended, having a rating, at the time of such investment,
         from each of the Rating Agencies in the highest investment category
         granted thereby; PROVIDED that the Controlling Party shall not be
         required to give its prior written consent for Wells Fargo Money Market
         Funds; and

                  (vii) any other investment as may be acceptable to the Note
         Insurer, as evidenced by a writing to that effect, as may from time to
         time be confirmed in writing to the Trustee by the Note Insurer and as
         to which the Rating Agency Condition is satisfied;

         provided that, in all cases the amounts paid with respect to such
instruments or securities not constituting principal must constitute either (i)
portfolio interest, as defined in Code Section 871(h)(2), (ii) interest on
deposits from a bank, within the meaning of Code Section 871(i)(2) or (iii)
payments of interest or dividends by a Person who is not a United States Person
and which interest or dividends is described in Code Section 862(a)(1) or (2);
provided, further, that an Eligible Investment must have a fixed principal
amount due at maturity and, if rated by S&P, must not have an "r" suffix
attached to the rating.

         Any of the foregoing Eligible Investments may be purchased by or
through the Owner Trustee or the Trustee or any of their respective Affiliates.

         "Eligible Servicer" means a Person approved to act as "Servicer" under
this Agreement by a Note Majority.

         "ERISA" has the meaning specified in Section 3.2.

         "Event of Default" has the meaning specified in the Indenture.

         "FDIC" means the Federal Deposit Insurance Corporation.

         "Final Scheduled Payment Date" means with respect to the Class A-1
Notes, the Class A-1 Final Scheduled Payment Date, with respect to the Class A-2
Notes, the Class A-2 Final Scheduled Payment Date, with respect to the Class A-3
Notes, the Class A-3 Final Scheduled Payment Date and with respect to the Class
A-4 Notes, the Class A-4 Final Scheduled Payment Date.

         "Financed Vehicle" means a new or used automobile, light truck, van or
minivan, together with all accessions thereto, securing an Obligor's
indebtedness under a Receivable.

         "Holder" means either a Noteholder or a Residual Certificateholder as
the context requires.

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         "Indemnification Agreement" means the Indemnification Agreement among
the Note Insurer, the Seller and the Placement Agents, dated as of April 10,
2008, as such agreement may be amended, supplemented or otherwise modified from
time to time in accordance with the terms thereof.

         "Indenture" means the Indenture dated as of March 1, 2008, between the
Issuer and Wells Fargo Bank, National Association, as trustee, as the same may
be amended, supplemented or otherwise modified from time to time in accordance
with the terms thereof.

         "Insolvency Event" means, with respect to a specified Person, (a) the
institution of a proceeding or the filing of a petition against such Person
seeking the entry of a decree or order for relief by a court having jurisdiction
in the premises in respect of such Person or any substantial part of its
property in an involuntary case under any applicable Federal or State
bankruptcy, insolvency or other similar law now or hereafter in effect, or the
appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its property, or ordering the winding-up or liquidation or such Person's
affairs, and such petition, decree or order shall remain unstayed and in effect
for a period of 60 consecutive days; or (b) the commencement by such Person of a
voluntary case under any applicable Federal or State bankruptcy, insolvency or
other similar law now or hereafter in effect, or the consent by such Person to
the entry of an order for relief in an involuntary case under any such law, or
the consent by such Person to the appointment of or taking possession by, a
receiver, liquidator, assignee, custodian, trustee, sequestrator, or similar
official for such Person or for any substantial part of its property, or the
making by such Person of any general assignment for the benefit of creditors, or
the failure by such Person generally to pay its debts as such debts become due,
or the taking of action by such Person in furtherance of any of the foregoing.

         "Insurance Agreement" means the Insurance and Indemnity Agreement among
the Trust, CPS, the Seller, CPS Receivables Funding Trust and the Note Insurer
dated as of April 10, 2008, as such agreement may be amended, supplemented or
otherwise modified from time to time in accordance with the terms thereof.

         "Insurance Agreement Event of Default" means an "Event of Default" as
defined in the Insurance Agreement.

         "Insurance Policy" means, with respect to a Receivable, any insurance
policy (including the insurance policies described in Section 4.4 hereof)
benefiting the holder of the Receivable providing loss or physical damage,
credit life, credit disability, theft, mechanical breakdown or similar coverage
with respect to the Financed Vehicle or the Obligor.

         "Insurer Default" shall mean any one of the following events shall have
occurred and be continuing:

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                  (i) the Note Insurer fails to make a payment required under
         the Note Policy in accordance with its terms;

                  (ii) the Note Insurer (A) files any petition or commences any
         case or proceeding under any provision or chapter of the United States
         Bankruptcy Code, the New York Department of Insurance Code or similar
         Federal or State law relating to insolvency, bankruptcy,
         rehabilitation, liquidation or reorganization, (B) makes a general
         assignment for the benefit of its creditors or (C) has an order for
         relief entered against it under the United States Bankruptcy Code or
         any other similar Federal or State law relating to insolvency,
         bankruptcy, rehabilitation, liquidation or reorganization which is
         final and nonappealable; or

                  (iii) a court of competent jurisdiction or the New York
         Department of Insurance or any other competent regulatory authority
         enters a final and nonappealable order, judgment or decree (A)
         appointing a custodian, trustee, agent or receiver for the Note Insurer
         or for all or any material portion of its property or (B) authorizing
         the taking of possession by a custodian, trustee, agent or receiver of
         the Note Insurer (or the taking of possession of all or any material
         portion of the property of the Note Insurer).

         "Interest Accrual Period" means, with respect to the Class A-1 Notes
and any Payment Date other than the first Payment Date, the period commencing on
the immediately preceding Payment Date and ending on the day prior to the day of
the month on which such Payment Date occurs.

         "Interest Rate" means the Class A-1 Interest Rate, the Class A-2
Interest Rate, the Class A-3 Interest Rate, the Class A-4 Interest Rate or the
Residual Certificate Interest Rate, as applicable.

         "Investment Earnings" means, with respect to any Payment Date and any
Trust Account, the investment earnings on amounts on deposit in such Trust
Account during the related Collection Period and deposited into the Collection
Account on such Payment Date pursuant to Section 5.1(b).

         "Issuer" means CPS Auto Receivables Trust 2008-A.

         "Lien" means a security interest, lien, charge, pledge, equity, or
encumbrance of any kind, other than tax liens, mechanics' liens and any liens
that attach to the respective Receivable by operation of law.

         "Lien Certificate" means, with respect to a Financed Vehicle, an
original certificate of title, certificate of lien or other notification issued
by the Registrar of Titles of the applicable state to a secured party which
indicates that the lien of the secured party on the Financed Vehicle is recorded
on the original certificate of title. In any jurisdiction in which the original
certificate of title is required to be given to the obligor, the term "Lien
Certificate" shall mean only a certificate or notification issued to a secured
party.

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         "Liquidated Receivable" means any Receivable (i) which has been
liquidated by the Servicer through the sale of the Financed Vehicle or (ii) for
which the related Financed Vehicle has been repossessed and 90 days have elapsed
since the date of such repossession or (iii) as to which more than 10% of a
Scheduled Receivable Payment of more than ten dollars shall have become 120 (or,
if the related Financed Vehicle has been repossessed, 210) or more days
delinquent as of the end of a Collection Period or (iv) with respect to which
proceeds have been received which, in the Servicer's judgment, constitute the
final amounts recoverable in respect of such Receivable. For purposes of this
definition, a Receivable shall be deemed a "Liquidated Receivable" upon the
first to occur of the events specified in items (i) through (iv) of the previous
sentence.

         "Lockbox Account" means an account maintained on behalf of the Trustee
by the Lockbox Bank pursuant to Section 4.2(b).

         "Lockbox Agreement" means the Multiparty Agreement Relating to Lockbox
Services and Blocked Account, dated as of April 10, 2008, by and among the
Lockbox Processor, the Lockbox Bank, the Servicer, the Trust and the Trustee, as
such agreement may be amended, supplemented or otherwise modified from time to
time, unless the Trustee shall cease to be a party thereunder, or such agreement
shall be terminated in accordance with its terms, in which event "Lockbox
Agreement" shall mean such other agreement, in form and substance acceptable to
the Controlling Party, among the Servicer, the Trustee, the Lockbox Bank and the
Lockbox Processor.

         "Lockbox Bank" means, as of any date, Wells Fargo Bank, National
Association or another depository institution named by the Servicer and
acceptable to the Controlling Party at which the Lockbox Account is established
and maintained as of such date.

         "Lockbox Processor" means Wells Fargo Bank, National Association and
its successors and assigns.

         "Majority Certificateholders" has the meaning assigned to such term in
the Trust Agreement.

         "Master Spread Account Agreement" means the Master Spread Account
Agreement amended and restated as of December 1, 1998 among the Note Insurer,
CPS Receivables Funding Trust, as assignee of the Seller and Wells Fargo Bank,
National Association, as amended as of September 1, 1999, as further amended as
of September 7, 2001, as further amended as of November 16, 2001, as further
amended as of March 1, 2002, as further amended as of June 30, 2003, as further
amended as of July 25, 2003, as further amended as of December 16, 2003, as
further amended as of September 30, 2004, as supplemented by the Spread Account
Supplement, and as the same may be further amended, supplemented or otherwise
modified in accordance with the terms thereof.

         "MFN" means MFN Financial Corporation, a Delaware Corporation.

         "Moody's" means Moody's Investors Service, Inc., or its successor.

                                       13
<PAGE>

         "Net Liquidation Proceeds" means, with respect to a Liquidated
Receivable, all amounts realized with respect to such Receivable during the
Collection Period in which such Receivable became a Liquidated Receivable, net
of (i) reasonable expenses incurred by the Servicer in connection with the
collection of such Receivable and the repossession and disposition of the
Financed Vehicle and (ii) amounts that are required to be refunded to the
Obligor on such Receivable; provided, however, that the Net Liquidation Proceeds
with respect to any Receivable shall in no event be less than zero.

         "Non-Certificated Title States" means the States of Arizona, Kansas,
Kentucky, Maine, Maryland, Michigan, Minnesota, Montana, New York, Oklahoma,
Wisconsin and such other States in which the applicable Department of Motor
Vehicles or similar authority issues evidence of title to a Financed Vehicle in
a non-certificated form.

         "Non-United States Investor" has the meaning assigned to such term in
the Trust Agreement.

         "Note" has the meaning assigned to such term in the Indenture.

         "Note Balance" means, with respect to the Class A-1 Notes, the Class
A-1 Note Balance, with respect to the Class A-2 Notes, the Class A-2 Note
Balance, with respect to the Class A-3 Notes, the Class A-3 Note Balance and
with respect to the Class A-4 Notes, the Class A-4 Note Balance.

         "Note Distribution Account" means the account designated as such,
established and maintained pursuant to Section 5.1.

         "Note Insurer" means Financial Security Assurance Inc., a stock
insurance company organized and created under the laws of the State of New York,
or its successors in interest.

         "Note Majority" means the Holders collectively evidencing more than 50%
of the aggregate outstanding Note Balance for each Class of Notes.

         "Note Policy" means the Financial Guaranty Insurance Policy issued by
the Note Insurer for the benefit of the Holders of the Notes issued under the
Indenture, including any endorsements thereto.

         "Note Policy Claim Amount" with respect to any Payment Date, has the
meaning specified in Section 6.1.

         "Note Register" has the meaning assigned to such term in the Indenture.

         "Note Registrar" has the meaning assigned to such term in the
Indenture.

         "Noteholder" has the meaning assigned to such term in the Indenture.

                                       14
<PAGE>

         "Noteholders' Interest Carryover Shortfall" means, with respect to any
Payment Date, for each Class of Notes, the excess of the Noteholders' Interest
Distributable Amount for such Class of Notes for the preceding Payment Date over
the amount that was actually deposited in the Note Distribution Account on such
preceding Payment Date on account of the Noteholders' Interest Distributable
Amount for such Class of Notes.

         "Noteholders' Interest Distributable Amount" means, with respect to any
Payment Date, the sum of (i) the aggregate Noteholders' Monthly Interest
Distributable Amount for all Classes of Notes for such Payment Date, (ii) the
aggregate Noteholders' Interest Carryover Shortfall for all Classes of Notes for
such Payment Date and (iii) interest on such aggregate Noteholders' Interest
Carryover Shortfall, to the extent permitted by law, at the applicable Interest
Rate from and including the preceding Payment Date to but excluding the current
Payment Date.

         "Noteholders' Monthly Interest Distributable Amount" means:

         (a) for the Class A-1 Notes (i) for the first Payment Date, an amount
equal to the product of (1) the Class A-1 Interest Rate, (2) the Original Class
A-1 Note Balance, and (3) a fraction, the numerator of which is the number of
days from and including the Closing Date to and including April 14, 2008, and
the denominator of which is 360; and (ii) for any Payment Date after the first
Payment Date, an amount equal to the product of (1) the Class A-1 Interest Rate,
(2) the Class A-1 Note Balance as of the close of the preceding Payment Date
(after giving effect to all distributions on account of principal on such
preceding Payment Date) and (3) a fraction, the numerator of which is the number
of days for the related Interest Accrual Period and the denominator of which is
360; and

         (b) for all other Classes of Notes (i) for the first Payment Date, an
amount equal to the product of (1) the Interest Rate for such Class of Notes,
(2) the Original Class Note Balance for such Class of Notes, and (3) a fraction,
the numerator of which is the number of days from and including the Closing Date
to and including April 14, 2008, and the denominator of which is 360; and (ii)
for any Payment Date after the first Payment Date, an amount equal to the
product of (1) one-twelfth of the Interest Rate for such Class of Notes and (2)
the Note Balance for such Class of Notes as of the close of the preceding
Payment Date (after giving effect to all distributions on account of principal
on such preceding Payment Date).

         "Noteholders' Parity Deficit Amount" means, with respect to any Payment
Date, the excess, if any, of (x) the Aggregate Note Balance on such Payment
Date, after giving effect to the distribution of the Noteholders' Principal
Distributable Amount on such Payment Date, but excluding any amounts in respect
thereof withdrawn from the Series 2008-A Spread Account or paid under the Note
Policy over (y) the Pool Balance at the end of the related Collection Period.

         "Noteholders' Principal Distributable Amount" means (i) with respect to
any Payment Date (other than the Final Scheduled Payment Date for any Class of
Notes), the lesser of (a) the Principal Distributable Amount and (b) the excess
of (I) the Aggregate Note Balance as of the close of business on the preceding
Payment Date over (II) the Requisite Percentage and (ii) on the Final Scheduled
Payment Date for any Class of Notes, the greater of (I) the Note Balance of such
Class of Notes and (II) the amount calculated pursuant to clause (i) above. On
any Payment Date after the acceleration of the Notes pursuant to Section 5.2 of
the Indenture, the Noteholders' Principal Distributable Amount shall be the Note
Balance of each Class of Notes.

                                       15
<PAGE>

         "Notes" means the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes, collectively.

         "Obligor" on a Receivable means the purchaser or co-purchasers of the
Financed Vehicle and any other Person who owes payments under the Receivable.

         "Officer's Certificate" means a certificate signed by the chairman of
the board, the president, any vice chairman of the board, any vice president,
the treasurer, the controller or assistant treasurer or any assistant
controller, secretary or assistant secretary of CPS, the Seller or the Servicer,
as appropriate.

         "Opinion of Counsel" means a written opinion of counsel who may but
need not be counsel to the Seller or the Servicer, which counsel shall be
reasonably acceptable to the Trustee and the Note Insurer and which opinion
shall be acceptable in form and substance to the Trustee and, if such opinion or
a copy thereof is required by the provisions of this Agreement to be delivered
to the Note Insurer, to the Note Insurer.

         "Original Aggregate Note Balance" means $244,409,000.

         "Original Class A-1 Note Balance" means $39,130,000.

         "Original Class A-2 Note Balance" means $95,059,000.

         "Original Class A-3 Note Balance" means $88,220,000.

         "Original Class A-4 Note Balance" means $22,000,000.

         "Original Pool Balance" means $310,360,409.34 which is the Pool Balance
as of the Cutoff Date.

         "Original Residual Certificate Notional Balance" means $65,951,409.34.

         "Other Conveyed Property" means all property conveyed by the Seller to
the Trust pursuant to Sections 2.1(b) through (k) of this Agreement.

         "Owner Trust Estate" has the meaning assigned to such term in the Trust
Agreement.

         "Owner Trustee" means Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee under the Trust Agreement, its successors
in interest or any successor Owner Trustee under the Trust Agreement.

                                       16
<PAGE>

         "Payment Date" means, with respect to each Collection Period, the 15th
day of the following calendar month, or if such day is not a Business Day, the
immediately following Business Day, commencing on April 15, 2008.

         "Pending Litigation" means the litigation matters that are described
under "CPS - Recent Developments" in the Confidential Private Placement
Memorandum dated as of April 8, 2008.

         "Percentage Interests" has the meaning assigned to such term in the
Trust Agreement.

         "Person" means any individual, corporation, estate, partnership,
limited liability company, joint venture, association, joint stock company,
trust (including any beneficiary thereof), unincorporated organization or
government or any agency or political subdivision thereof.

         "Placement Agency Agreement" means the Placement Agency Agreement
relating to the Notes dated April 8, 2008, among the Placement Agents, CPS and
the Seller.

         "Placement Agent" means each of Bear, Stearns & Co. Inc., J.P. Morgan
Securities Inc. and UBS Securities LLC.

         "Pool Balance" means, as of any date of determination, the aggregate
Principal Balance of the Receivables (excluding Purchased Receivables and
Liquidated Receivables).

         "Post Office Box" means the separate post office box in the name of the
Trust established and maintained pursuant to Section 4.2.

         "Preference Claim" has the meaning specified in Section 6.2(b).

         "Principal Balance" of a Receivable, as of the close of business on the
last day of a Collection Period means the Amount Financed minus the sum of the
following amounts without duplication: (i) that portion of all Scheduled
Receivable Payments actually received on or prior to such day allocable to
principal using the Simple Interest Method; (ii) any payment of the Purchase
Amount with respect to the Receivable allocable to principal; (iii) any Cram
Down Loss in respect of such Receivable; and (iv) any prepayment in full or any
partial prepayment applied to reduce the principal balance of the Receivable;
provided, however that the Principal Balance of a Receivable that has become a
Liquidated Receivable shall equal zero.

         "Principal Distributable Amount" means, with respect to any Payment
Date, the sum of (i) collections on Receivables (other than Liquidated
Receivables) allocable to principal including full and partial prepayments
received during the related Collection Period; (ii) the portion of the Purchase
Amount allocable to principal of each Receivable that became a Purchased
Receivable as of the last day of the related Collection Period and, at the
option of the Note Insurer, the Principal Balance of each Receivable that was
required to be but was not so purchased or repurchased (without duplication of
amounts referred to in clause (i) above); (iii) the Principal Balance of each
Receivable that first became a Liquidated Receivable during the related
Collection Period (without duplication of the amounts included in clauses (i)
and (ii) above); and (iv) the aggregate amount of Cram Down Losses with respect
to the Receivables that have occurred during the related Collection Period
(without duplication of amounts referred to in clauses (i) through (iii) above).

                                       17
<PAGE>

         "Program" has the meaning specified in Section 4.11.

         "Purchase Amount" means, with respect to a Receivable, the amount, as
of the close of business on the last day of a Collection Period, required to
prepay in full such Receivable under the terms thereof, as reduced by the amount
of any Cram Down Loss, plus all accrued and unpaid interest thereon to the end
of the month of such purchase.

         "Purchased Receivable" means a Receivable purchased as of the close of
business on the last day of a Collection Period by the Servicer or CPS pursuant
to Section 4.7 or Section 4.16 or repurchased by the Seller or CPS pursuant to
Section 3.2, Section 3.4 or Section 11.1(a).

         "Rating Agency" means each of Moody's and Standard & Poor's, and any
successors thereof. If no such organization or successor maintains a rating on
the Notes, "Rating Agency" shall be a nationally recognized statistical rating
organization or other comparable Person designated by the Controlling Party,
notice of which designation shall be given to the Trustee, the Owner Trustee and
the Servicer.

         "Rating Agency Condition" means, with respect to any action, that each
Rating Agency shall have been given 10 days' (or such shorter period as shall be
acceptable to each Rating Agency) prior notice thereof and that each of the
Rating Agencies shall have notified the Seller, the Servicer, the Note Insurer,
the Owner Trustee and the Trustee in writing that (a) such action will not
result in a reduction or withdrawal of the then current rating of the Notes
(including the ratings on the Notes without giving effect to the Note Policy) or
(b) if the Notes and all amounts owing to the Note Insurer under the Basic
Documents have been paid in full, such action will not result in a reduction or
withdrawal of the then current rating of the Residual Certificates, if the
Residual Certificates are then rated; or if the Residual Certificates are not
then rated, the Rating Agency Condition with respect to the Residual
Certificates will be satisfied if such action does not materially and adversely
affect the holders of the Residual Certificates.

         "Realized Losses" means, with respect to any Receivable that becomes a
Liquidated Receivable, the excess of the Principal Balance of such Liquidated
Receivable over Net Liquidation Proceeds allocable to principal.

         "Receivable" means each Contract related to a Financed Vehicle
transferred to the Issuer pursuant to Section 2.1, which, as of the Closing
Date, is listed on Schedule A (which Schedule A may be in the form of
microfiche), and all rights and obligations thereunder, except for Receivables
that shall have become Purchased Receivables.

                                       18
<PAGE>

         "Receivable Files" means the documents specified in Section 3.3(a).

         "Receivables Purchase Agreement" means the Receivables Purchase
Agreement dated as of April 10, 2008, by and between the Seller and CPS, as such
agreement may be amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof, relating to the purchase of the
Receivables by the Seller from CPS.

         "Record Date" means, with respect to the first Payment Date, the
Closing Date and with respect to any subsequent Payment Date, the last day of
calendar month preceding the calendar month in which such Payment Date occurs.

         "Recoveries" means with respect to a Liquidated Receivable, the monies
collected from whatever source, during any Collection Period following the
Collection Period in which such Receivable became a Liquidated Receivable, net
of the reasonable costs of liquidation plus any amounts required by law to be
remitted to the Obligor (without duplication of amounts netted against the
amounts realized in calculating the Net Liquidation Proceeds).

         "Registrar of Titles" means, with respect to any State, the
governmental agency or body responsible for the registration of, and the
issuance of certificates of title relating to, motor vehicles and liens thereon.

         "Requisite Percentage" means 75.25% of the Pool Balance as of the end
of the related Collection Period.

         "Residual Certificate Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess of the Residual Certificate Interest
Distributable Amount for the preceding Payment Date over the amount that was
actually distributed to the Residual Certificateholders on such preceding
Payment Date on account of the Residual Certificate Interest Distributable
Amount.

         "Residual Certificate Interest Distributable Amount" means, with
respect to any Payment Date, the sum of (i) the Residual Certificate Monthly
Interest Distributable Amount for such Payment Date, (ii) the Residual
Certificate Interest Carryover Shortfall for such Payment Date and (iii)
interest on such Residual Certificate Interest Carryover Shortfall, to the
extent permitted by law, at the Residual Certificate Interest Rate from and
including the preceding Payment Date to but excluding the current Payment Date;
provided however, that the amount which may be distributed pursuant to Section
5.7(a)(vi) may not exceed the product of (a) one-twelfth of the Residual
Certificate Interest Rate and (b) the excess of (I) the Pool Balance at the
beginning of the related Collection Period over (II) the Aggregate Note Balance
as of the close of business on the preceding Payment Date.

         "Residual Certificate Interest Rate" means 10.00% per annum.

                                       19
<PAGE>

         "Residual Certificate Monthly Interest Distributable Amount" means (a)
for the first Payment Date, an amount equal to the product of (i) the Residual
Certificate Interest Rate, (ii) the Original Residual Certificate Notional
Balance and (iii) a fraction, the numerator of which the number of days from and
including the Closing Date to and including April 14, 2008, and the denominator
of which is 360, and (b) for any Payment Date after the first Payment Date, an
amount equal to the product of (i) one-twelfth of the Residual Certificate
Interest Rate and (ii) the Residual Certificate Notional Balance as of the close
of the preceding Payment Date after giving effect to all distributions in
reduction thereof on such preceding Payment Date.

         "Residual Certificate Notional Balance" means, as of any Payment Date,
an amount equal to the Original Residual Certificate Notional Balance, less all
amounts distributed to the Residual Certificateholders pursuant to Section
5.7(a)(xiv).

         "Residual Certificate Principal Distributable Amount" means, as of any
Payment Date, the lesser of (i) the amount of the Total Distribution Amount
remaining after the distributions pursuant to clauses (i) through (xiii) of
Section 5.7(a) have been made and (ii) the excess of (a) the Residual
Certificate Notional Balance as of the close of business on the preceding
Payment Date over (b) 21.25% of the Pool Balance at the end of the related
Collection Period. The Residual Certificate Principal Distributable Amount for
each Payment Date occurring on and after the Payment Date on which the Class A-4
Note Balance has been reduced to zero will equal the lesser of (i) the Residual
Certificate Notional Balance and (ii) the amount of the Total Distribution
Amount remaining after the distributions pursuant to clauses (i) through (xiii)
of Section 5.7(a) have been made.

         "Residual Certificateholder" means each person in whose name a Residual
Pass-through Certificate is registered on the Certificate Register.

         "Residual Pass-through Certificate" has the meaning assigned to such
term in the Trust Agreement.

         "Responsible Officer" has the meaning specified in the Trust Agreement.

         "Schedule of Receivables" means the schedule of Receivables attached
hereto as Schedule A, as such schedule may be amended or supplemented from time
to time in accordance with the terms hereof.

         "Scheduled Receivable Payment" means, with respect to any Collection
Period for any Receivable, the amount set forth in such Receivable as required
to be paid by the Obligor in such Collection Period. If after the Closing Date,
the Obligor's obligation under a Receivable with respect to a Collection Period
has been modified so as to differ from the amount specified in such Receivable
(i) as a result of the order of a court in an insolvency proceeding involving
the Obligor, (ii) pursuant to the Servicemembers Civil Relief Act, or (iii) as a
result of modifications or extensions of the Receivable permitted by Section
4.2(a), the Scheduled Receivable Payment with respect to such Collection Period
shall refer to the Obligor's payment obligation with respect to such Collection
Period as so modified.

         "SeaWest" means SeaWest Financial Corporation, a California
corporation.

                                       20
<PAGE>

         "Section 341 Meeting" means a meeting held pursuant to Section 341(a)
of the United States Bankruptcy Code (as the same may be amended from time to
time).

         "Section 341 Receivable" means a Receivable, the Obligor of which has
completed a Section 341 Meeting as of the Cutoff Date.

         "Securities" means the Notes and the Residual Pass-through
Certificates, collectively.

         "Securityholders" means the Noteholders and the Residual
Certificateholders, collectively.

         "Seller" means CPS Receivables LLC, a Delaware limited liability
company, and its successors in interest to the extent permitted hereunder.

         "Seller's Contract Purchase Guidelines" means the set of criteria that
the Seller has established for purchasing Contracts on a state-by-state basis as
reflected in rate cards and the approval authority summary, as the same may be
amended from time to time.

         "Series 2008-A Spread Account" means the account designated as such,
established and maintained pursuant to the Master Spread Account Agreement.

         "Servicer" means CPS, as the servicer of the Receivables, and each
successor Servicer pursuant to Section 10.3.

         "Servicer Termination Event" means an event specified in Section 10.1.

         "Servicer's Certificate" means a certificate completed and executed by
a Servicing Officer and delivered pursuant to Section 4.9, substantially in the
form of Exhibit B.

         "Servicing Assumption Agreement" means the Servicing Assumption
Agreement, dated as of April 10, 2008, among CPS, the Backup Servicer and the
Trustee, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with the terms thereof.

         "Servicing Fee" has the meaning specified in Section 4.8.

         "Servicing Officer" means any Person whose name appears on a list of
Servicing Officers delivered to the Trustee and the Note Insurer, as the same
may be amended from time to time.

         "Simple Interest Method" means the method of allocating a fixed level
payment between principal and interest, pursuant to which the portion of such
payment that is allocated to interest is equal to the product of the APR
multiplied by the unpaid balance multiplied by the period of time (expressed as
a fraction of a year, based on the actual number of days in the calendar month
and the actual number of days in the calendar year) elapsed since the preceding
payment of interest was made and the remainder of such payment is allocable to
principal.

                                       21
<PAGE>

         "Simple Interest Receivable" means a Receivable under which the portion
of the payment allocable to interest and the portion allocable to principal is
determined in accordance with the Simple Interest Method.

         "Skip Receivable" means a Receivable (i) which is delinquent as of the
Closing Date; and (ii) where CPS (a) has concluded that the address or telephone
number of the related Obligor maintained by CPS as of the Closing Date is
incorrect and CPS has not been able to obtain revised contact information for
such Obligor and (b) has designated the status of the Receivable as "A07" or
"F07" in accordance with its servicing procedures.

         "Specified Affiliates" means CPS Receivables Two LLC, CPS Receivables
Three LLC, CPS Receivables Funding Trust, Page Funding LLC, Page Three Funding
LLC and their respective successors and assigns.

         "Specified Spread Account Requisite Amount" has the meaning specified
in the Spread Account Supplement; provided upon the payment in full of the Class
A Notes and all amounts owed to the Note Insurer under the Basic Documents, the
Specified Spread Account Requisite Amount shall equal $0.

         "Spread Account Supplement" means the Series 2008-A Supplement to the
Master Spread Account Agreement dated as of April 10, 2008, among the Note
Insurer, the Seller and the Collateral Agent, as the same may be modified,
supplemented or otherwise amended in accordance with the terms thereof.

         "Standard & Poor's" means Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc. or its successor.

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

         "Successor Servicing Fee Schedule" means that certain Schedule of
Successor Servicing Fees, Expenses and Distributions attached hereto as EXHIBIT
G.

         "Successor Servicing Fee" has the meaning specified in Section 4.8.

         "Supplemental Residual Certificate Distribution" means for any Payment
Date, the sum of (i) the Cayman Trustee Fees on such Payment Date, if any, and
(ii) the product of (a) the Cayman Trustee Fees, (b) 1.0000227445347 and (c)
..0022744017%.

         "Targeted Principal Distributable Amount" means, with respect to any
Payment Date, the lesser of (i) the amount of the Total Distribution Amount
remaining after the distributions pursuant to priorities (i) through (x) under
Section 5.7(a) have been made and (ii) the excess of (a) the Aggregate Note
Balance (after giving effect to the Noteholders' Principal Distributable Amount
and the Noteholders' Parity Deficit Amount paid on such Payment Date) over (b)
the Requisite Percentage.

                                       22
<PAGE>

         "Texas Franchise Tax" means any tax imposed by the State of Texas
pursuant to Tex. Tax Code Ann. ss. 171.001 (Vernon 2005), as amended by Tex.
H.B. 3, 79th Leg., 3d C.S. (2006).

         "TFC" means The Finance Company, a Virginia corporation.

         "Three-Month Rolling Average Delinquency Ratio" means, for any date of
determination, the average of the Delinquency Ratios for each of the three
immediately preceding Collection Periods.

         "Three-Month Rolling Average Extension Ratio" means, for any date of
determination, a rolling three month average of the ratio for each of the three
immediately preceding Collection Periods, expressed as a percentage, of (i) the
aggregate Principal Balance of the Receivables whose payments are extended
during the related Collection Period to (ii) the Pool Balance as of the first
day of the related Collection Period prior to giving effect to any payment
activity on such date.

         "Total Distribution Amount" means, for each Payment Date, the sum of
the following amounts with respect to the related Collection Period: (i) all
collections on the Receivables; (ii) Net Liquidation Proceeds received during
the Collection Period with respect to Liquidated Receivables; (iii) all proceeds
from Recoveries with respect to Liquidated Receivables; (iv) all proceeds
received during the Collection Period from Insurance Policies (other than funds
used for the repair of the related Financed Vehicle or otherwise released by CPS
to the related Obligor in accordance with normal servicing procedures); (v)
Investment Earnings for the related Payment Date; (vi) all Purchase Amounts
deposited in the Collection Account during the related Collection Period, plus
the amount of any payments made by CPS to the Trust pursuant to its
indemnification obligations under the Basic Documents; (vii) following the
acceleration of the Notes pursuant to Section 5.2 of the Indenture, the amount
of money or property collected pursuant to Section 5.3 of the Indenture since
the preceding Payment Date by the Trustee or Controlling Party for distribution
pursuant to Section 5.7 hereof; (viii) any amounts released from the Series
2008-A Spread Account in accordance with the terms of the Master Spread Account
Agreement for payment pursuant to priorities (xi) through (xv) of Section 5.7(a)
hereof; and (ix) the proceeds of any purchase or sale of the assets of the Trust
described in Sections 4.16 or 11.1 hereof.

         "Transferred Property" has the meaning assigned thereto in the
Receivables Purchase Agreement.

         "Trigger Event" has the meaning assigned thereto in the Spread Account
Supplement.

         "Trust" means the Issuer.

                                       23
<PAGE>

         "Trust Account Property" means the Trust Accounts, all amounts and
investments held from time to time in any Trust Account (whether in the form of
deposit accounts, physical property, book-entry securities, uncertificated
securities or otherwise), and all proceeds of the foregoing.

         "Trust Accounts" has the meaning assigned thereto in Section 5.1.

         "Trust Agreement" means the Trust Agreement dated as of November 15,
2007, by and between CPS Receivables Corp., as depositor, and the Owner Trustee,
as amended and restated by the Amended and Restated Trust Agreement dated as of
January 14, 2008, by and between the Seller (as successor by merger to CPS
Receivables Corp.) as depositor, and the Owner Trustee, and as further amended
and restated by the Second Amended and Restated Trust Agreement dated as of
April 10, 2008, as the same may be further amended or supplemented from time to
time in accordance with the terms thereof.

         "Trust Officer" means, (i) in the case of the Trustee, any vice
president, any assistant vice president, any assistant secretary, any assistant
treasurer, any trust officer, or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject, and (ii) in the case of the Owner
Trustee, any officer in the Corporate Trust Office of the Owner Trustee or any
agent of the Owner Trustee under a power of attorney with direct responsibility
for the administration of this Agreement or any of the Basic Documents on behalf
of the Owner Trustee.

         "Trust Property" means the property and proceeds conveyed pursuant to
Section 2.1, together with all monies received with respect to the Receivables
after the Cutoff Date, the Insurance Policies, the Collection Account (including
all Eligible Investments therein and all proceeds therefrom), the Lockbox
Account and certain other rights under this Agreement. Although the Seller has
pledged the Series 2008-A Spread Account to the Collateral Agent pursuant to the
Spread Account Supplement, the Series 2008-A Spread Account shall not under any
circumstances be deemed to be a part of or otherwise includable in the Trust or
the Trust Property.

         "Trustee" means the Person acting as trustee under the Indenture, its
successors in interest and any successor trustee under the Indenture.

         "Trustee Fee Schedule" means the schedule attached hereto as EXHIBIT
H-1.

         "Trustee Fees" means the sum of (A) the fee payable to the Trustee on
each Payment Date in an amount equal to the greater of (a) $2,500 and (b)
one-twelfth of 0.04% of the Aggregate Note Balance as of the close of the
preceding Payment Date; provided, however, that on the first Payment Date the
Trustee will be entitled to receive an amount equal to the greater of (a) $2,500
and (b) the product of (i) the percentage equivalent of a fraction the numerator
of which is the number days from the Closing Date to but excluding the first
Payment Date and the denominator of which is 360, (ii) 0.04% and (iii) the
Original Aggregate Note Balance; (B) any amounts payable to the Trustee in its
capacity as custodian of the Receivable Files pursuant to the Trustee Fee
Schedule; and (C) any amounts payable to the Owner Trustee pursuant to Article
VIII of the Trust Agreement or to the Trustee pursuant to this Agreement.

                                       24
<PAGE>

         "UCC" means the Uniform Commercial Code as in effect in the relevant
jurisdiction on the date of the Agreement.

             (b) Capitalized terms used herein and not otherwise defined herein
have the meanings assigned to them in the Indenture or, if not defined therein,
in the Trust Agreement.

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

             (d) Accounting terms used but not defined or partly defined in this
Agreement, in any instrument governed hereby or in any certificate or other
document made or delivered pursuant hereto, to the extent not defined, shall
have the respective meanings given to them under generally accepted accounting
principles as in effect on the date of this Agreement or any such instrument,
certificate or other document, as applicable. To the extent that the definitions
of accounting terms in this Agreement or in any such instrument, certificate or
other document are inconsistent with the meanings of such terms under generally
accepted accounting principles, the definitions contained in this Agreement or
in any such instrument, certificate or other document shall control.

             (e) (i) The words "hereof," "herein," "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement and (ii) the word
"or" is not exclusive.

             (f) Section, Schedule and Exhibit references contained in this
Agreement are references to Sections, Schedules and Exhibits in or to this
Agreement unless otherwise specified; and the term "including" shall mean
"including without limitation."

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

             (h) Any agreement, instrument or statute defined or referred to
herein or in any instrument or certificate delivered in connection herewith
means such agreement, instrument or statute as the same may from time to time be
amended, modified or supplemented and includes (in the case of agreements or
instruments) references to all attachments and instruments associated therewith;
all references to a Person include its permitted successors and assigns.

                                       25
<PAGE>

         Whenever a determination is to be made under this Agreement as to
whether a given event action, course of conduct or set of facts or circumstances
could or would have a material adverse effect on the Issuer or Noteholders (or
any similar or analogous determination), such determination shall be made
without taking into account the insurance provided by the Note Policy. Whenever
a determination is to be made under this Agreement whether a breach of a
representation, warranty or covenant has or could have a material adverse effect
on a Receivable or the interest therein of the Issuer, the Noteholders or the
Note Insurer (or any similar or analogous determination), such determination
shall be made by the Controlling Party in its sole discretion.

                                   ARTICLE II
                                   ----------

                            CONVEYANCE OF RECEIVABLES

         SECTION 2.1 CONVEYANCE OF RECEIVABLES. In consideration of the Issuer's
delivery to or upon the order of the Seller on the Closing Date of the
Securities, the Seller does hereby sell, transfer, assign, set over and
otherwise convey to the Issuer, without recourse (subject to the obligations set
forth herein) all right, title and interest of the Seller, whether now existing
or hereafter arising, in, to and under:

             (a) the Receivables listed in Schedule A hereto and all monies
received thereunder (other than the Additional Servicing Compensation) after the
Cutoff Date and all Net Liquidation Proceeds and Recoveries received with
respect to such Receivables after the Cutoff Date;

             (b) the security interests in the Financed Vehicles granted by
Obligors pursuant to the Receivables and any other interest of the Seller in
such Financed Vehicles, including, without limitation, the certificates of title
or, with respect to such Financed Vehicles in the Non-Certificated Title States,
all other evidence of ownership with respect to such Financed Vehicles issued by
the applicable Department of Motor Vehicles or similar authority;

             (c) any proceeds from claims on any physical damage, credit life
and credit accident and health insurance policies or certificates relating to
the Financed Vehicles securing the Receivables or the Obligors thereunder;

             (d) all proceeds from recourse against Dealers or Consumer Lenders
with respect to the Receivables;

             (e) all of the Seller's rights, title and interest in its rights
and benefits, but none of its obligations or burdens under the Receivables
Purchase Agreement, including a direct right to cause CPS to purchase
Receivables from the Issuer and to indemnify the Issuer pursuant to the
Receivables Purchase Agreement under the circumstances specified therein;

             (f) refunds for the costs of extended service contracts with
respect to Financed Vehicles securing the Receivables, refunds of unearned
premiums with respect to credit life and credit accident and health insurance
policies or certificates covering an Obligor or Financed Vehicle under a
Receivable or his or her obligations with respect to a Financed Vehicle and any
recourse to Dealers or Consumer Lenders for any of the foregoing;

                                       26
<PAGE>

             (g) the Receivable File related to each Receivable;

             (h) all amounts and property from time to time held in or credited
to the Collection Account, the Lockbox Account and the Note Distribution
Account;

             (i) all property (including the right to receive future Net
Liquidation Proceeds) that secures a Receivable that has been acquired by or on
behalf of CPS or the Seller, pursuant to a liquidation of such Receivable;

             (j) the proceeds of any and all of the foregoing; and

             (k) all present and future claims, demands, causes 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, 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.

         SECTION 2.2 [RESERVED].

         SECTION 2.3 TRANSFER INTENDED AS A SALE. It is the intention of the
Seller that the transfer and assignment contemplated by Section 2.1 of this
Agreement shall constitute a sale of the Trust Property from the Seller to the
Issuer and the beneficial interest in and title to the Trust Property shall 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. In the event that,
notwithstanding the intent of the Seller as set forth in this Section 2.3 and in
Section 13.17, the transfer and assignment contemplated hereby is held not to be
a sale, this Agreement shall constitute a grant of (and the Seller does hereby
grant) a security interest in all of the Seller's right, title and interest in,
to and under the Trust Property to the Trust for the benefit of the
Securityholders and the Note Insurer and this Agreement shall constitute a
security agreement under New York law. The Seller shall take such actions as are
necessary from time to time in order to maintain the perfection and priority of
the Issuer's security interest in the Trust Property.

         SECTION 2.4 FURTHER ENCUMBRANCE OF TRUST PROPERTY.

             (a) Immediately upon the conveyance to the Trust by the Seller of
any item of the Trust Property pursuant to Section 2.1, all right, title and
interest of the Seller in and to such item of Trust Property shall terminate,
and all such right, title and interest shall vest in the Trust, in accordance
with the Trust Agreement and Sections 3802 and 3805 of the Statutory Trust
Statute (as defined in the Trust Agreement).

                                       27
<PAGE>

             (b) Immediately upon the vesting of the Trust Property in the
Trust, the Trust shall have the sole right to pledge or otherwise encumber, such
Trust Property. Pursuant to the Indenture, the Trust shall grant a security
interest in the Trust Property to secure the repayment of the Notes. The
Residual Pass-through Certificates shall represent beneficial ownership
interests in the Trust Property, and the Residual Certificateholders shall be
entitled to receive distributions with respect thereto as set forth herein and
in the Master Spread Account Agreement.

             (c) Following the payment in full of the Notes and the release and
discharge of the Indenture, all covenants of the Issuer under Article III of the
Indenture shall, until all amounts due in respect of the Residual Pass-through
Certificates have been paid in full, remain as covenants of the Issuer for the
benefit of the Residual Certificateholders, enforceable by the Residual
Certificateholders to the same extent as such covenants were enforceable by the
Noteholders prior to the discharge of the Indenture. Any rights of the Trustee
under Article III of the Indenture, following the discharge of the Indenture,
shall vest in the Residual Certificateholders.

             (d) The Trustee shall, at such time as there are no Notes
outstanding and all sums due to the Trustee and the Note Insurer pursuant to the
Basic Documents, have been paid, release any remaining portion of the Trust
Property to the Residual Certificateholders.

         SECTION 2.5 CONVEYANCE OF ADDITIONAL SERVICING COMPENSATION. As of the
Closing Date, the Seller does hereby sell, transfer, assign, set over and
otherwise convey to the Servicer, without recourse (subject to the obligations
set forth herein) all right, title and interest of the Seller, whether now
existing or hereafter arising, in, to and under all Additional Servicing
Compensation.

                                  ARTICLE III
                                  -----------

                                 THE RECEIVABLES

         SECTION 3.1 REPRESENTATIONS AND WARRANTIES OF SELLER. The Seller makes
the following representations and warranties as to the Receivables to the Note
Insurer, the Issuer and to the Trustee for the benefit of the Securityholders on
which the Issuer relies in acquiring the Receivables, and on which the Trustee
is deemed to have relied in executing and performing pursuant to this Agreement,
the Indenture and the other Basic Documents to which it is a party and on which
the Note Insurer relies in issuing the Note Policy. Such representations and
warranties speak as of the execution and delivery of this Agreement and as of
the Closing Date, but shall survive the sale, transfer and assignment of the
Receivables to the Issuer and the pledge thereof to the Trustee pursuant to the
Indenture.

                                       28
<PAGE>

                  (i) CHARACTERISTICS OF RECEIVABLES. (A) Each Receivable (1)
         has been originated in the United States of America by a Dealer or
         Consumer Lender for the retail sale of a Financed Vehicle in the
         ordinary course of such Dealer's or Consumer Lender's business, such
         Dealer or Consumer Lender had all necessary licenses and permits to
         originate such Receivable in the State where such Dealer or Consumer
         Lender was located, has been fully and properly executed by the parties
         thereto, has been purchased by CPS in connection with the related
         Obligor's purchase of the related Financed Vehicle and has been validly
         assigned by such Dealer or Consumer Lender to CPS and by CPS to the
         Seller, (2) has created a valid, subsisting, and enforceable first
         priority perfected security interest in favor of CPS in the Financed
         Vehicle, which security interest has been assigned by CPS to the
         Seller, which in turn has assigned such security interest to the Trust
         which in turn has pledged such security interest to the Trustee, (3)
         contains customary and enforceable provisions such that the rights and
         remedies of the holder or assignee thereof shall be adequate for
         realization against the collateral of the benefits of the security
         including, without limitation, a right of repossession following a
         default, (4) provides for level monthly scheduled payments that fully
         amortize the Amount Financed over the original term (except for the
         last scheduled payment, which may be different from the level monthly
         payment) and yield interest at the Annual Percentage Rate, (5) has an
         Annual Percentage Rate of not less than 7.50%, (6) is a Simple Interest
         Receivable, (7) was originated by a Dealer or Consumer Lender and was
         sold by such Dealer or Consumer Lender without any fraud or
         misrepresentation on the part of such Dealer or Consumer Lender, (8) is
         denominated in U.S. dollars and (9) provides, in the case of a
         prepayment, for the full payment of the Principal Balance thereof plus
         accrued interest through the date of prepayment based on the Annual
         Percentage Rate of the Receivable. (B) Approximately 84.94% of the
         aggregate Principal Balance of the Receivables as of the Cutoff Date
         represents financing of used automobiles, light trucks, vans or
         minivans; the remainder of the Receivables represent financing of new
         vehicles; approximately 4.41% of the aggregate Principal Balance of the
         Receivables as of the Cutoff Date were originated under the CPS
         Preferred Program; approximately 42.88% of the aggregate Principal
         Balance of the Receivables as of the Cutoff Date were originated under
         the CPS Alpha Program; approximately 9.39% of the aggregate Principal
         Balance of the Receivables as of the Cutoff Date were originated under
         the CPS Delta Program; approximately 6.80% of the Receivables as of the
         Cutoff Date were originated under the CPS First-Time Buyer Program;
         approximately 7.67% of the aggregate Principal Balance of the
         Receivables as of the Cutoff Date were originated under the CPS
         Standard Program; approximately 12.35% of the aggregate Principal
         Balance of the Receivables as of the Cutoff Date were originated under
         the CPS Super Alpha Program; approximately 16.50% of the aggregate
         Principal Balance of the Receivables as of the Cutoff Date were
         originated under the CPS Alpha Plus Program; approximately 1.09% of the
         aggregate Principal Balance of the Receivables as of the Cut-off Date,
         were Section 341 Receivables; approximately 0.55% of the aggregated
         Principal Balance of the Receivables as of the Cutoff Date are Clean-up
         Call Receivables; all of the Receivables were acquired by CPS; no
         Receivable has a payment that is more than 30 days contractually
         delinquent as of the Cutoff Date; each Receivable has a final scheduled
         payment due no later than February 28, 2014; and each Receivable was
         originated on or before the Cutoff Date.

                                       29
<PAGE>

                  (ii) ADDITIONAL RECEIVABLES CHARACTERISTICS. As of the Closing
         Date:

                           (A) no Receivable is more than 60 days past due with
                  respect to more than 10% of any Scheduled Receivable Payment;
                  and

                           (B) no Receivable is a Skip Receivable.

                  (iii) SCHEDULE OF RECEIVABLES; SELECTION PROCEDURES. The
         information with respect to the Receivables set forth in Schedule A to
         this Agreement is true and correct in all material respects as of the
         close of business on the Cutoff Date; no selection procedures adverse
         to the Securityholders or the Note Insurer have been utilized in
         selecting the Receivables.

                  (iv) COMPLIANCE WITH LAW. Each Receivable, the sale of the
         Financed Vehicle and the sale of any physical damage, credit life and
         credit accident and health insurance and any extended warranties or
         service contracts (A) complied at the time the related Receivable was
         originated or made and at the execution of this Agreement complies in
         all material respects with all requirements of applicable Federal,
         State, and local laws, and regulations thereunder including, without
         limitation, usury laws, the Federal Truth-in-Lending Act, the Equal
         Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt
         Collection Practices Act, the Federal Trade Commission Act, the
         Magnuson-Moss Warranty Act, the Federal Reserve Board's Regulations B
         and Z, the Servicemembers Civil Relief Act, the Military Reservist
         Relief Act, the Texas Consumer Credit Code, the California Automobile
         Sales Finance Act and State adaptations of the National Consumer Act
         and of the Uniform Consumer Credit Code, and all other applicable
         consumer credit laws and equal credit opportunity and disclosure laws,
         and (B) without limiting the generality of the foregoing, is not
         subject to liabilities or is not rendered unenforceable based on
         general theories of contract limitation or relief including, without
         limitation, theories based on unconscionable, deceptive, unfair, or
         predatory sales or financing practices.

                  (v) NO GOVERNMENT OBLIGOR. None of the Receivables are 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.

                  (vi) SECURITY INTEREST IN FINANCED VEHICLE. Immediately
         subsequent to the sale, assignment and transfer thereof to the Trust,
         each Receivable shall be secured by a validly perfected first priority
         security interest in the Financed Vehicle in favor of CPS as secured
         party which security interest has been validly assigned by CPS to the
         Seller, validly assigned by the Seller to the Trust, and validly
         pledged by the Trust to the Trustee, and such assigned security
         interest is prior to all other liens upon and security interests in
         such Financed Vehicle which now exist or may hereafter arise or be
         created, except, as to priority, for any tax liens or mechanics' liens
         which may arise after the Closing Date.

                                       30
<PAGE>

                  (vii) RECEIVABLES IN FORCE. No Receivable has been satisfied,
         subordinated or rescinded, nor has any Financed Vehicle been released
         from the lien granted by the related Receivable in whole or in part.

                  (viii) NO WAIVER. Except as permitted under Section 4.2 and
         clause (ix) below, no provision of a Receivable has been waived.

                  (ix) NO AMENDMENTS. Except as permitted under Section 4.2, no
         Receivable (other than Clean-up Call Receivables) has been amended,
         except as such Receivable may have been amended to grant extensions
         which shall not have numbered more than (a) one extension of one
         calendar month in any calendar year or (b) three such extensions in the
         aggregate.

                  (x) NO DEFENSES. No right of rescission, setoff, counterclaim
         or defense exists or has been asserted or threatened with respect to
         any Receivable. The operation of the terms of any Receivable or the
         exercise of any right thereunder will not render such Receivable
         unenforceable in whole or in part and such Receivable is not subject to
         any such right of rescission, setoff, counterclaim, or defense.

                  (xi) NO LIENS. As of the Cutoff Date, (a) there are no liens
         or claims existing or which have been filed for work, labor, storage or
         materials relating to a Financed Vehicle that shall be liens prior to,
         or equal or coordinate with, the security interest in the Financed
         Vehicle granted by the Receivable and (b) there is no lien against the
         related Financed Vehicle for delinquent taxes.

                  (xii) NO DEFAULT; REPOSSESSION. Except for payment
         delinquencies continuing for a period of not more than thirty days as
         of the Cutoff Date, 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 shall not waive and has not waived any of the foregoing (except
         in a manner consistent with Section 4.2); and no Financed Vehicle shall
         have been repossessed or assigned for repossession as of the Closing
         Date.

                  (xiii) INSURANCE; OTHER. (A) Each Obligor has obtained
         insurance covering the Financed Vehicle as of the execution of the
         Receivable insuring against loss and damage due to fire, theft,
         transportation, collision and other risks generally covered by
         comprehensive and collision coverage, and each Receivable requires the
         Obligor to obtain and maintain such insurance naming CPS and its
         successors and assigns as loss payee or an additional insured, (B) each
         Receivable that finances the cost of premiums for credit life and
         credit accident and health insurance is covered by an insurance policy
         or certificate of insurance naming CPS as policyholder (creditor) under
         each such insurance policy and certificate of insurance and (C) as to
         each Receivable that finances the cost of an extended service contract,
         the respective Financed Vehicle which secures the Receivable is covered
         by an extended service contract.

                                       31
<PAGE>

                  (xiv) TITLE. It is the intention of the Seller that the
         transfer and assignment herein contemplated constitute a sale of the
         Receivables and the Other Conveyed Property from the Seller to the
         Trust and that the beneficial interest in and title to such Receivables
         and the Other Conveyed Property 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. No Receivable or Other Conveyed
         Property has been sold, transferred, assigned, or pledged by the Seller
         to any Person other than the Trust. Immediately prior to the transfer
         and assignment herein contemplated, the Seller had good and marketable
         title to each Receivable and the Other Conveyed Property and was the
         sole owner thereof, free and clear of all liens, claims, encumbrances,
         security interests, and rights of others, and, immediately upon the
         transfer thereof, the Trust for the benefit of the Securityholders and
         the Note Insurer shall have good and marketable title to each such
         Receivable and will be the sole owner thereof, free and clear of all
         liens, encumbrances, security interests, and rights of others, and the
         transfer has been perfected under the UCC.

                  (xv) LAWFUL ASSIGNMENT. No Receivable has been originated in,
         or is subject to the laws of, any jurisdiction under which the sale,
         transfer, and assignment of such Receivable under this Agreement or
         pursuant to transfers of the Securities shall be unlawful, void, or
         voidable. The Seller has not entered into any agreement with any
         account debtor that prohibits, restricts or conditions the assignment
         of any portion of the Receivables.

                  (xvi) ALL FILINGS MADE. All filings (including, without
         limitation, UCC filings) necessary in any jurisdiction to give (i) the
         Seller a first priority perfected security interest in the Receivables
         and the other Transferred Property, (ii) the Issuer a first priority
         perfected security interest in the Receivables and the Other Conveyed
         Property, and (iii) the Trustee a first priority perfected security
         interest in the Collateral have been made, taken or performed.

                  (xvii) RECEIVABLE FILE; ONE ORIGINAL. CPS has delivered to the
         Trustee a complete Receivable File with respect to each Receivable.
         There is only one original executed copy of each Receivable.

                  (xviii) CHATTEL PAPER. Each Contract constitutes "tangible
         chattel paper" under the UCC.

                                       32
<PAGE>

                  (xix) TITLE DOCUMENTS. (A) If the Receivable was originated in
         a State in which notation of a security interest on the title document
         of the related Financed Vehicle is required or permitted to perfect
         such security interest, the title document of the related Financed
         Vehicle for such Receivable shows, or if a new or replacement title
         document is being applied for with respect to such Financed Vehicle the
         title document (or, with respect to Receivables originated in the
         Non-Certificated Title States, other evidence of title issued by the
         applicable Department of Motor Vehicles or similar authority) will be
         received within 180 days and will show, CPS named as the original
         secured party under the related Receivable as the holder of a first
         priority security interest in such Financed Vehicle, and (B) if the
         Receivable was originated in a State in which the filing of a financing
         statement under the UCC is required to perfect a security interest in
         motor vehicles, such filings or recordings have been duly made and show
         CPS, named as the original secured party under the related Receivable,
         and in either case, the Trust has the same rights as such secured party
         has or would have (if such secured party were still the owner of the
         Receivable) against all parties claiming an interest in such Financed
         Vehicle, and such rights have been validly pledged to the Trustee
         pursuant to the Indenture. With respect to each Receivable for which
         the title document has not yet been returned from the Registrar of
         Titles, CPS has received written evidence from the related Dealer or
         Consumer Lender that such title document showing CPS, as first
         lienholder has been applied for.

                  (xx) VALID AND BINDING OBLIGATION OF OBLIGOR. Each Receivable
         is the legal, valid and binding obligation in writing of the Obligor
         thereunder and is enforceable in accordance with its terms, except only
         as such enforcement may be limited by bankruptcy, insolvency or similar
         laws affecting the enforcement of creditors' rights generally, and all
         parties to such contract had full legal capacity to execute and deliver
         such contract and all other documents related thereto and to grant the
         security interest purported to be granted thereby.

                  (xxi) CHARACTERISTICS OF OBLIGORS. As of the date of each
         Obligor's application for financing of the vehicle purchase from which
         the related Receivable arises, such Obligor (a) did not have any
         material past due credit obligations or any personal or real property
         repossessed or wages garnished within one year prior to the date of
         such application, unless such amounts have been repaid or discharged
         through bankruptcy (other than any Obligor that was the subject of a
         Federal, State or other bankruptcy, insolvency or similar proceeding
         pending on the date of application that has completed a Section 341
         Meeting), (b) was not the subject of any Federal, State or other
         bankruptcy, insolvency or similar proceeding pending on the date of
         application that has not completed a Section 341 Meeting or been
         discharged, (c) had not been the subject of more than one Federal,
         State or other bankruptcy, insolvency or similar proceeding, and (d)
         was domiciled in the United States. During the period from the date of
         each Obligor's application for financing of the vehicle purchase from
         which the related Receivable arises to the Closing Date, no Obligor is
         or has been the subject of any Federal, State or other bankruptcy,
         insolvency or similar proceeding other than an Obligor related to a
         Section 341 Receivable.

                  (xxii) ORIGINATION DATE. Each Receivable other than the
         Clean-up Call Receivables has an origination date on or after May 1,
         2007.

                                       33
<PAGE>

                  (xxiii) MATURITY OF RECEIVABLES. Each Receivable has an
         original term to maturity of not more than 72 months; the weighted
         average original term to maturity of the Receivables was 64.29 months
         as of the Cutoff Date; the remaining term to maturity of each
         Receivable was 72 months or less as of the Cutoff Date; the weighted
         average remaining term to maturity of the Receivables was 60.35 months
         as of the Cutoff Date.

                  (xxiv) SCHEDULED RECEIVABLE PAYMENTS. Each Receivable has an
         original principal balance of not less than $4,000 nor more than
         $35,100.

                  (xxv) ORIGINATION OF RECEIVABLES. Based on the billing address
         of the Obligors and the Principal Balances as of the Cutoff Date,
         approximately 12.74%, 8.78%, 8.75%, 6.02%, 5.68% and 5.27% of the
         Receivables (by principal balance) had Obligors residing in the States
         of California, Texas, Florida, Pennsylvania, Ohio and New York,
         respectively.

                  (xxvi) POST OFFICE BOX. On or prior to the next billing period
         after the Cutoff Date, CPS will notify each Obligor to make payments
         with respect to its respective Receivables after the Cutoff Date
         directly to the Post Office Box, and will provide each Obligor with a
         monthly statement in order to enable such Obligors to make payments
         directly to the Post Office Box.

                  (xxvii) LOCATION OF RECEIVABLE FILES. A complete Receivable
         File with respect to each Receivable has been or prior to the Closing
         Date will be delivered to the Trustee at the location listed in
         Schedule B hereto.

                  (xxviii) CASUALTY AND IMPOUNDING. No Financed Vehicle has
         suffered a Casualty and CPS has not received notice that any Financed
         Vehicle has been impounded.

                  (xxix) PRINCIPAL BALANCE/NUMBER OF CONTRACTS. As of the Cutoff
         Date, the aggregate principal balance of the Receivables was
         $310,360,409.34. The Receivables are evidenced by 21,022 Contracts.

                  (xxx) FULL AMOUNT ADVANCED. The full amount of each Receivable
         has been advanced to each Obligor, and there are no requirements for
         future advances thereunder. The Obligor with respect to each Receivable
         does not have any option under the terms of the related Contract to
         borrow from any person additional funds secured by the Financed
         Vehicle.

                  (xxxi) NO IMPAIRMENT. Neither CPS nor the Seller has done
         anything to convey any right to any Person that would result in such
         Person having a right to payments due under any Receivables or
         otherwise to impair the rights of the Purchaser, the Issuer, the
         Securityholders or the Note Insurer in any Receivable or the proceeds
         hereof.

                                       34
<PAGE>

                  (xxxii) RECEIVABLES NOT ASSUMABLE. No Receivable is assumable
         by another Person in a manner which would release the Obligor thereof
         from such Obligor's obligations to CPS or the Seller with respect to
         such Receivable.

                  (xxxiii) SERVICING. The servicing of each Receivable and the
         collection practices relating thereto have been lawful and in
         accordance with the standards set forth in this Agreement; other than
         the Servicer and the Backup Servicer, no other Person has the right to
         service the Receivables.

                  (xxxiv) ILLINOIS RECEIVABLES. (a) The Seller does not own a
         substantial interest in the business of a Dealer within the meaning of
         Illinois Sales Finance Agency Act Rules and Regulations, Section
         160.230(1) and (b) with respect to each Receivable originated in the
         State of Illinois, (i) the printed or typed portion of the related Form
         of Receivable complies with the requirements of 815 ILCS 375/3(b) and
         (ii) the Seller has not, and for so long as such Receivable is
         outstanding shall not, place or cause to be placed on the related
         Financed Vehicle any collateral protection insurance in violation of
         815 ILCS 180/10.

                  (xxxv) CALIFORNIA RECEIVABLES. Each Receivable originated in
         the State of California has been, and at all times during the term of
         the Sale and Servicing Agreement will be, serviced by the Servicer in
         compliance with Cal. Civil Code ss. 2981, et seq.

                  (xxxvi) CREATION OF SECURITY INTEREST. This Agreement creates
         a valid and continuing security interest (as defined in the UCC) in the
         Trust Property in favor of the Issuer for the benefit of the
         Securityholders and the Note Insurer, which security interest is prior
         to all other Liens and is enforceable as such as against creditors of
         and purchasers from the Seller.

                  (xxxvii) PERFECTION OF SECURITY INTEREST IN FINANCED VEHICLES.
         CPS has taken all steps necessary to perfect its security interest
         against the Obligors in the Financed Vehicles securing the Contracts.

                  (xxxviii) PERFECTION OF SECURITY INTEREST IN TRUST PROPERTY.
         The Seller has caused, the filing of all appropriate financing
         statements in the proper filing office in the appropriate jurisdictions
         under applicable law in order to perfect the security interest in the
         Trust Property granted to the Issuer for the benefit of the
         Securityholders and the Note Insurer hereunder pursuant to Section 2.3.

                  (xxxix) NO OTHER SECURITY INTERESTS. Other than the security
         interest granted to the Issuer for the benefit of the Securityholders
         and the Note Insurer pursuant to Section 2.3, the Seller has not
         pledged, assigned, sold, granted a security interest in, or otherwise
         conveyed any of the Trust Property. The Seller has not authorized the
         filing of and is not aware of any financing statements filed against
         the Seller that include a description of collateral covering the Trust
         Property other than any financing statement relating to the security
         interest granted to the Issuer for the benefit of the Securityholders
         and the Note Insurer hereunder or that has been terminated. The Seller
         is not aware of any judgment or tax lien filings against the Seller.

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<PAGE>

                  (xl) NOTATIONS ON CONTRACTS; FINANCING STATEMENT DISCLOSURE.
         The Servicer has in its possession copies of all Contracts that
         constitute or evidence the Receivables. The 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 Issuer and/or the Trustee for the benefit
         of the Securityholders and the Note Insurer. All financing statements
         filed or to be filed against the Seller in favor of the Issuer in
         connection herewith describing the Trust Property contain a statement
         to the following effect: "A purchase of or security interest in any
         collateral described in this financing statement will violate the
         rights of the secured party."

                  (xli) TFC, MFN, SEAWEST RECEIVABLES. None of the Receivables
         were originated by TFC, MFN or SeaWest or any of their respective
         subsidiaries.

                  (xlii) CONSUMER LENDERS. Each Consumer Lender has obtained all
         necessary licenses and approvals in all jurisdictions in which the
         origination and purchase of installment promissory notes and security
         agreements and the sale thereof requires or shall require such licenses
         or approvals, except where the failure to obtain such licenses or
         approvals would not result in a material adverse effect on the value or
         marketability of any Receivable (including, without limitation, the
         enforceability or collectibility of any Receivable).

         The representations and warranties set forth above in paragraphs (xiv),
(xvi), (xviii) and paragraphs (xxxvi) through (xlii) shall survive the
termination of this Agreement and may not be waived in whole or in part.

         SECTION 3.2 REPURCHASE UPON BREACH.

             (a) The Seller, the Servicer, the Note Insurer, the Trustee or
(upon actual knowledge of a Responsible Officer thereof) the Owner Trustee, as
the case may be, shall inform the other parties to this Agreement promptly, in
writing, upon the discovery of any breach of the Seller's representations and
warranties made pursuant to Section 3.1 (without regard to any limitations
therein as to the Seller's knowledge). Unless the breach shall have been cured
by the last day of the second Collection Period following the discovery thereof
by CPS or receipt by CPS of notice of such breach, CPS (pursuant to the
Receivables Purchase Agreement) shall repurchase any Receivable if the value of
such Receivable is materially and adversely affected by the breach as of the
last day of such second Collection Period (or, at CPS's option, the last day of
the first Collection Period following the discovery) and, in the event that the
breach relates to a characteristic of the Receivables in the aggregate, and if
the interests of the Trust or the Securityholders are materially and adversely

                                       36
<PAGE>

affected by such breach, unless the breach shall have been cured by the last day
of such second Collection Period, CPS shall purchase such aggregate Principal
Balance of Receivables, such that following such purchase such representation
shall be true and correct with respect to the remainder of the Receivables in
the aggregate. In consideration of the purchase of any Receivable, CPS shall
remit the Purchase Amount, in the manner specified in Section 5.6. For purposes
of this Section, the Purchase Amount of a Receivable which is not consistent
with the warranty pursuant to Section 3.1(i)(A)(5) or (A)(6) shall include such
additional amount as shall be necessary to provide the full amount of interest
as contemplated therein. The sole remedy of the Issuer, the Owner Trustee, the
Trustee, the Securityholders or the Note Insurer with respect to a breach of
representations and warranties pursuant to Section 3.1 shall be to enforce CPS's
obligation to purchase such Receivables pursuant to the Receivables Purchase
Agreement; provided, however, that CPS shall indemnify the Trustee, the Owner
Trustee, the Backup Servicer, the Collateral Agent, the Note Insurer, the Trust
and the Securityholders against all costs, expenses, losses, damages, claims and
liabilities, including reasonable fees and expenses of counsel, which may be
asserted against or incurred by any of them as a result of third party claims
arising out of the events or facts giving rise to such breach. Upon receipt of
the Purchase Amount and written instructions from the Servicer, the Trustee
shall release to CPS or its designee the related Receivables File and shall
execute and deliver all reasonable instruments of transfer or assignment,
without recourse, as are prepared by the Seller and delivered to the Trustee and
necessary to vest in CPS or such designee title to the Receivable including a
Trustee's Certificate in the form of Exhibit F-1.

             (b) If it is determined that consummation of the transactions
contemplated by this Agreement and the other transaction documents referenced in
this Agreement, the servicing and operation of the Trust pursuant to this
Agreement and such other documents, or the ownership of a Note or a Residual
Pass-through Certificate by a Holder constitutes a violation of the prohibited
transaction rules of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), or the Internal Revenue Code of 1986, as amended (the "Code")
or any successor statutes of similar impact, together with the regulations
thereunder, to which no statutory exception or administrative exemption applies,
such violation shall not be treated as a breach of the Seller's representations
and warranties made pursuant to Section 3.1 if not otherwise such a breach.

             (c) Pursuant to Sections 2.1 and 2.2 of this Agreement, the Seller
has conveyed to the Trust all of the Seller's right, title and interest in its
rights and benefits, but none of its obligations or burdens, under the
Receivables Purchase Agreement, including the Seller's rights under the
Receivables Purchase Agreement and the delivery requirements, representations
and warranties and the cure, repurchase and indemnity obligations of CPS under
the Receivables Purchase Agreement. The Seller hereby represents and warrants to
the Trust, the Note Insurer and the Trustee for the benefit of the
Securityholders that such assignment is valid, enforceable and effective to
permit the Trust to enforce such obligations of CPS under the Receivables
Purchase Agreement.

             (d) If the Insolvency Event related to a Section 341 Meeting has
not been discharged pursuant to Section 727 of the United States Bankruptcy Code
by the bankruptcy court presiding over such Insolvency Event within 120 days of
the conveyance of the related Receivable by the Seller to the Issuer pursuant to
Section 2.1(a), the Seller shall repurchase such Receivable as of the last day
of the next occurring Collection Period at the Purchase Amount.

                                       37
<PAGE>

         SECTION 3.3 CUSTODY OF RECEIVABLES FILES.

             (a) In connection with the sale, transfer and assignment of the
Receivables and the Other Conveyed Property to the Trust pursuant to this
Agreement the Trustee shall act as custodian of the following documents or
instruments in its possession which shall be delivered to the Trustee on or
before the Closing Date:

                  (i) The fully executed original of the Receivable (together
         with any agreements modifying the Receivable, including without
         limitation any extension agreements);

                  (ii) The original certificate of title in the name of CPS or
         such documents that CPS shall keep on file, in accordance with its
         customary procedures, evidencing the security interest of CPS in the
         Financed Vehicle or, if not yet received, a copy of the application
         therefor showing CPS as secured party, or a dealer guarantee of title.

             (b) Upon payment in full of any Receivable, the Servicer will
notify the Trustee pursuant to a certificate of an officer of the Servicer
(which certificate shall include a statement to the effect that all amounts
received in connection with such payments which are required to be deposited in
the Collection Account pursuant to Section 4.2 have been so deposited) and shall
request delivery of the Receivable and Receivable File to the Servicer.

         SECTION 3.4 ACCEPTANCE OF RECEIVABLE FILES BY TRUSTEE. The Trustee
acknowledges receipt of files which the Seller has represented are the
Receivable Files for the Receivables. The Trustee has reviewed such Receivable
Files and has determined that it has received a file for each Receivable
identified in Schedule A to this Agreement. The Trustee declares that it holds
and will continue to hold such files and any amendments, replacements or
supplements thereto and all other Trust Assets as Trustee in trust for the use
and benefit of all present and future Securityholders. The Trustee agrees to
review each file delivered to it prior to the Closing Date to determine whether
such Receivable Files contain the documents referred to in Sections 3.3(a)(i)
and (ii). If the Trustee has found or finds that a file for a Receivable has not
been received, or that a file is unrelated to the Receivables identified in
Schedule A to this Agreement or that any of the documents referred to in Section
3.3(a)(i) or (ii) are not contained in a Receivable File, the Trustee shall
inform CPS, the Seller, the Owner Trustee and the Note Insurer promptly, in
writing, of the failure to receive a file with respect to such Receivable (or of
the failure of any of the aforementioned documents to be included in the

                                       38
<PAGE>

Receivable File) or shall return to CPS as the Seller's designee any file
unrelated to a Receivable identified in Schedule A to this Agreement, it being
understood that the Trustee's obligation to review the contents of any
Receivable File shall be limited as set forth in the preceding sentence. Unless
such defect with respect to such Receivable File shall have been cured by the
last day of the second Collection Period following discovery thereof by the
Trustee, the Trustee (at the direction of the Controlling Party) shall cause CPS
to repurchase any such Receivable as of such last day pursuant to the
Receivables Purchase Agreement. In consideration of the purchase of the
Receivable, CPS shall remit the Purchase Amount, in the manner specified in
Section 5.6. The sole remedy of the Trustee, the Trust, or the Securityholders
with respect to a breach pursuant to this Section 3.4 shall be to require CPS to
purchase the applicable Receivables pursuant to this Section 3.4; provided,
however, that CPS shall indemnify the Trustee, the Owner Trustee, the Backup
Servicer, the Collateral Agent, the Note Insurer, the Trust and the
Securityholders against all costs, expenses, losses, damages, claims and
liabilities, including reasonable fees and expenses of counsel, which may be
asserted against or incurred by any of them as a result of third party claims
arising out of the events or facts giving rise to such breach. Upon receipt of
the Purchase Amount and written instructions from the Servicer, the Trustee
shall release to CPS or its designee the related Receivable File and shall
execute and deliver all reasonable instruments of transfer or assignment,
without recourse, as are prepared by CPS and delivered to the Trustee and are
necessary to vest in CPS or such designee title to the Receivable including a
Trustee's Certificate in the form of Exhibit F-1. The Trustee shall make a list
of Receivables for which an application for a certificate of title but not an
original certificate of title or, with respect to Receivables originated in the
Non-Certificated Title States, another evidence of title issued by the
applicable Department of Motor Vehicles or similar authority in such States, is
included in the Receivable File as of the date of its review of the Receivable
Files and deliver a copy of such list to the Servicer, the Owner Trustee and the
Note Insurer. On the date which is 180 days following the Closing Date or, if
such day is not a Business Day, the next succeeding Business Day, the Trustee
shall inform CPS and the other parties to this Agreement and the Note Insurer of
any Receivable for which the related Receivable File on such date does not
include an original certificate of title or, with respect to Financed Vehicles
in the Non-Certificated Title States, for which the related Receivable File on
such date does not include evidence of title issued by the applicable Department
of Motor Vehicles or similar authority, and CPS shall repurchase any such
Receivable as of the last day of the current Collection Period.

         SECTION 3.5 ACCESS TO RECEIVABLE FILES. The Trustee shall permit the
Servicer and the Note Insurer access to the Receivable Files at all reasonable
times during the Trustee's normal business hours. The Trustee shall, within two
Business Days of the request of the Servicer, the Owner Trustee or the Note
Insurer, execute such documents and instruments as are prepared by the Servicer,
the Owner Trustee or the Note Insurer and delivered to the Trustee, as the
Servicer, the Owner Trustee or the Note Insurer deems necessary to permit the
Servicer, in accordance with its customary servicing procedures, to enforce the
Receivable on behalf of the Trust and any related insurance policies covering
the Obligor, the Receivable or Financed Vehicle so long as such execution in the
Trustee's sole discretion does not conflict with this Agreement and will not
cause it undue risk or liability. The Trustee shall not be obligated to release
any document from any Receivable File unless it receives a release request
signed by a Servicing Officer in the form of EXHIBIT C hereto (the "RELEASE
Request"). Such Release Request shall obligate the Servicer to return such
document(s) to the Trustee when the need therefor no longer exists unless the
Receivable shall be liquidated, in which case, the Servicer shall certify in the
Release Request that all amounts required to be deposited in the Collection
Account with respect to such Receivable have been so deposited.

                                       39
<PAGE>

         SECTION 3.6 TRUSTEE TO DELIVER MONTHLY RECEIVABLE FILE REPORT. Within
three Business Days after the end of a month in which the Trustee releases any
Receivable Files to the Servicer or after any subsequent month in which such
Receivable Files remain outstanding pursuant to Section 3.5 hereof, the Trustee
shall deliver to the Note Insurer and the Servicer a monthly report which
identifies all Receivable Files released to the Servicer and not yet returned to
the Trustee.

         SECTION 3.7 TRUSTEE TO MAINTAIN SECURE FACILITIES. The Trustee shall
maintain or cause to be maintained continuous custody of the Receivable Files in
secure and fire resistant facilities in accordance with customary standards for
such custody.

                                   ARTICLE IV
                                   ----------

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

         SECTION 4.1 DUTIES OF THE SERVICER. The Servicer, as agent for the
Trust, the Securityholders and the Note Insurer (to the extent provided herein)
shall manage, service, administer and make collections on the Receivables with
reasonable care, using that degree of skill and attention customary and usual
for institutions which service motor vehicle retail installment contracts or
promissory notes and security agreements, in each case, similar to the
Receivables and, to the extent more exacting, that the Servicer exercises with
respect to all comparable automotive receivables that it services for itself or
others. The Servicer's duties shall include collection and posting of all
payments, responding to inquiries of Obligors on such Receivables, investigating
delinquencies, sending payment statements to Obligors, reporting tax information
to Obligors, accounting for collections, furnishing monthly and annual
statements to the Trustee, the Owner Trustee and the Note Insurer with respect
to distributions. Without limiting the generality of the foregoing, and subject
to the servicing standards set forth in this Agreement, the Servicer is
authorized and empowered by the Trust to execute and deliver, on behalf of
itself, the Trust or the Securityholders, any and all instruments of
satisfaction or cancellation, or partial or full release or discharge, and all
other comparable instruments, with respect to such Receivables or to the
Financed Vehicles securing such Receivables and/or the certificates of title or,
with respect to Financed Vehicles in the Non-Certificated Title States, other
evidence of ownership with respect to such Financed Vehicles issued by the
applicable Department of Motor Vehicles or similar authority. If the Servicer
shall commence a legal proceeding to enforce a Receivable, the Trust shall
thereupon be deemed to have automatically assigned, solely for the purpose of
collection, such Receivable to the Servicer. If in any enforcement suit or legal
proceeding it shall be held that the Servicer may not enforce a Receivable on
the ground that it shall not be a real party in interest or a holder entitled to
enforce such Receivable, the Trust shall, at the Servicer's expense and
direction, take steps to enforce such Receivable, including bringing suit in its
name or the name of the Securityholders. The Servicer shall prepare and furnish,
and the Trustee and the Owner Trustee shall execute, any powers of attorney and
other documents reasonably necessary or appropriate to enable the Servicer to
carry out its servicing and administrative duties hereunder.

                                       40
<PAGE>

         SECTION 4.2 COLLECTION OF RECEIVABLE PAYMENTS; MODIFICATIONS OF
RECEIVABLES; LOCKBOX AGREEMENTS.

             (a) Consistent with the standards, policies and procedures required
by this Agreement, the Servicer shall make reasonable efforts to collect all
payments called for under the terms and provisions of the Receivables as and
when the same shall become due and shall follow such collection procedures as it
follows with respect to all comparable automotive receivables that it services
for itself or others; provided, however, that promptly after the Closing Date
the Servicer shall notify each Obligor to make all payments with respect to the
Receivables to the Post Office Box. The Servicer will provide each Obligor with
a monthly statement in order to notify such Obligors to make payments directly
to the Post Office Box. The Servicer shall allocate collections between
principal and interest in accordance with the customary servicing procedures it
follows with respect to all comparable automotive receivables that it services
for itself or others and in accordance with the terms of this Agreement. Except
as provided below, the Servicer, for so long as CPS is the Servicer, may grant
extensions to the extent that the Three-Month Rolling Average Extension Ratio
does not exceed (i) 3.50%, if the most recent Collection Period tested was in
the period from March through September (inclusive), or (ii) 4.00%, if the most
recent Collection Period tested was in the period from October through February
(inclusive) (the "Aggregate Extension Percentage Limitation"); provided,
however, that the Servicer may not grant more than two extensions per calendar
year with respect to a Receivable or grant an extension with respect to a
Receivable for more than one calendar month or grant more than six extensions in
the aggregate with respect to a Receivable without the prior written consent of
the Note Insurer; provided, further, however, that if the Servicer extends the
date for final payment by the Obligor of any Receivable beyond the last day of
the penultimate Collection Period preceding the Class A-4 Final Scheduled
Payment Date, it shall promptly purchase the Receivable from the Trust in
accordance with the terms of Section 4.7 hereof (and for purposes thereof, the
Receivable shall be deemed to be materially and adversely affected by such
breach). No extension shall be granted by the Servicer unless the Servicer has a
hard copy or an image file of a request for or consent to such extension
executed by the affected Obligor in the Servicer's servicing file or electronic
archives; provided however that not more than 5% of the total number of
extensions granted at any time may be missing such Obligor request or consent so
long as there is a written explanation provided by the Servicer's collection
personnel (in archived collection notes or in a servicing file) explaining the
lack of such Obligor request or consent. In addition, if the Servicer grants
extensions with respect to any Receivables in excess of the Aggregate Extension
Percentage Limitation, the Servicer will promptly purchase such Receivables from
the Trust in accordance with the terms of Section 4.7 hereof (and for purposes
thereof, such Receivables shall be deemed to be materially and adversely
affected by such breach). If the Servicer is not CPS, the Servicer may not make
any extension on a Receivable without the prior written consent of the Note
Insurer. The Servicer may in its discretion waive any late payment charge or any
other fees that may be collected in the ordinary course of servicing a
Receivable. Notwithstanding anything to the contrary contained herein, the
Servicer shall not agree to any alteration of the interest rate on any
Receivable or of the amount of any Scheduled Receivable Payment on Receivables,
other than to the extent that such alteration is required by applicable law.

                                       41
<PAGE>

             (b) The Servicer shall establish the Lockbox Account in the name of
the Trust for the benefit of the Trustee for the further benefit of the
Securityholders and the Note Insurer. Pursuant to the Lockbox Agreement, the
Trustee has authorized the Servicer to direct dispositions of funds on deposit
in the Lockbox Account to the Collection Account (but not to any other account),
and no other Person, except the Lockbox Processor and the Trustee, has authority
to direct the disposition of funds on deposit in the Lockbox Account. The
Lockbox Agreement shall provide that Lockbox Banks will comply with the
instructions originated by the Trustee relating to the disposition of funds on
deposit in the Lockbox Account. The Trustee shall have no liability or
responsibility with respect to the Lockbox Processor's directions or activities
as set forth in the preceding sentence. The Lockbox Account shall be established
pursuant to and maintained in accordance with the Lockbox Agreement and shall be
a demand deposit account initially established and maintained with the Lockbox
Bank or, at the request of the Controlling Party, an Eligible Account satisfying
clause (i) of the definition thereof; provided, however, that the Trustee shall
give the Servicer prior written notice of any change made at the request of the
Note Insurer in the location of the Lockbox Account. The Trustee shall establish
and maintain the Post Office Box at a United States Post Office Branch in the
name of the Trust for the benefit of the Securityholders and the Note Insurer.

             (c) Notwithstanding any Lockbox Agreement, or any of the provisions
of this Agreement relating to the Lockbox Agreement, the Servicer shall remain
obligated and liable to the Trust, the Trustee and Securityholders for servicing
and administering the Receivables and the Other Conveyed Property in accordance
with the provisions of this Agreement without diminution of such obligation or
liability by virtue thereof.

             (d) In the event CPS shall for any reason no longer be acting as
the Servicer hereunder, the Backup Servicer or a successor Servicer shall
thereupon assume all of the rights and obligations of the outgoing Servicer
under the Lockbox Agreement arising from and after such assumption. In such
event, the successor Servicer shall be deemed to have assumed all of the
outgoing Servicer's interest therein and to have replaced the outgoing Servicer
as a party to the Lockbox Agreement to the same extent as if such Lockbox
Agreement had been assigned to the successor Servicer, except that the outgoing
Servicer shall not thereby be relieved of any liability or obligations on the
part of the outgoing Servicer to the Lockbox Bank under such Lockbox Agreement.
The outgoing Servicer shall, upon request of the Trustee, but at the expense of
the outgoing Servicer, deliver to the successor Servicer all documents and
records relating to the Lockbox Agreement and an accounting of amounts collected
and held by the Lockbox Bank and otherwise use its best efforts to effect the
orderly and efficient assignment of any Lockbox Agreement to the successor
Servicer. In the event that the Note Insurer (so long as an Insurer Default
shall not have occurred and be continuing) or a Note Majority (if an Insurer
Default shall have occurred and be continuing) or the Majority
Certificateholders (if the Note Balance has been reduced to zero, all amounts
due and owing to the Note Insurer have been paid in full and the Policy has
expired in accordance with its terms) shall elect to change the identity of the
Lockbox Bank, the Servicer, at its expense, shall cause the Lockbox Bank to
deliver, at the direction of the Controlling Party to the Trustee or a successor
Lockbox Bank, all documents and records relating to the Receivables and all
amounts held (or thereafter received) by the Lockbox Bank (together with an
accounting of such amounts) and shall otherwise use its best efforts to effect
the orderly and efficient transfer of the Lockbox arrangements. The outgoing
Servicer shall deliver prompt written notice to the Rating Agencies of any
change or transfer of the Lockbox arrangements.

                                       42
<PAGE>

             (e) On each Business Day, pursuant to the Lockbox Agreement, the
Lockbox Processor will transfer any payments from Obligors received in the Post
Office Box to the Lockbox Account. Within two Business Days of receipt of funds
into the Lockbox Account, the Servicer shall cause the Lockbox Bank to transfer
funds from the Lockbox Account to the Collection Account. In addition, the
Servicer shall remit all payments by or on behalf of the Obligors received by
the Servicer with respect to the Receivables (other than Purchased Receivables),
and all Liquidation Proceeds no later than the Business Day following receipt
directly (without deposit into any intervening account) into the Lockbox Account
or the Collection Account. The Servicer shall not commingle its assets and funds
with those on deposit in the Lockbox Account.

         SECTION 4.3 REALIZATION UPON RECEIVABLES. On behalf of the Trust, the
Securityholders and the Note Insurer, the Servicer shall use its best efforts,
consistent with the servicing procedures set forth herein, to repossess or
otherwise convert the ownership of the Financed Vehicle securing any Receivable
as to which the Servicer shall have determined eventual payment in full is
unlikely. The Servicer shall commence efforts to repossess or otherwise convert
the ownership of a Financed Vehicle or sell the related Receivable to an
unaffiliated third-party on or prior to the date that an Obligor has failed to
make more than 90% of a Scheduled Receivable Payment thereon in excess of $10
for 120 days or more; provided, however, that the Servicer may elect not to
commence such efforts within such time period if in its good faith judgment it
determines either that it would be impracticable to do so or that the proceeds
ultimately recoverable with respect to such Receivable would be increased by
forbearance. The Servicer shall follow such customary and usual practices and
procedures as it shall deem necessary or advisable in its servicing of
automotive receivables, consistent with the standards of care set forth in
Section 4.2, which may include reasonable efforts to realize upon any recourse
to Dealers or Consumer Lenders and selling the Financed Vehicle at public or
private sale. The foregoing shall be subject to the provision that, in any case
in which the Financed Vehicle shall have suffered damage, the Servicer shall not
expend funds in connection with the repair or the repossession of such Financed
Vehicle unless it shall determine in its discretion that such repair and/or
repossession will increase the proceeds ultimately recoverable with respect to
such Receivable by an amount greater than the amount of such expenses.

         SECTION 4.4 INSURANCE.

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<PAGE>

             (a) The Servicer, in accordance with the servicing procedures and
standards set forth herein, shall require that (i) each Obligor shall have
obtained insurance covering the Financed Vehicle, as of the date of the
execution of the Receivable, insuring against loss and damage due to fire,
theft, transportation, collision and other risks generally covered by
comprehensive and collision coverage and each Receivable requires the Obligor to
maintain such physical loss and damage insurance naming CPS and its successors
and assigns as an additional insured, (ii) each Receivable that finances the
cost of premiums for credit life and credit accident and health insurance is
covered by an insurance policy or certificate naming CPS as policyholder
(creditor) and (iii) as to each Receivable that finances the cost of an extended
service contract, the respective Financed Vehicle which secures the Receivable
is covered by an extended service contract.

             (b) To the extent applicable, the Servicer shall not take any
action which would result in noncoverage under any of the insurance policies
referred to in Section 4.4(a) which, but for the actions of the Servicer, would
have been covered thereunder. The Servicer, on behalf of the Trust, shall take
such reasonable action as shall be necessary to permit recovery under any of the
foregoing insurance policies. Any amounts collected by the Servicer under any of
the foregoing insurance policies shall be deposited in the Collection Account.

         SECTION 4.5 MAINTENANCE OF SECURITY INTERESTS IN VEHICLES.

             (a) Consistent with the policies and procedures required by this
Agreement, the Servicer shall take such steps on behalf of the Trust as are
necessary to maintain perfection of the security interest created by each
Receivable in the related Financed Vehicle, including but not limited to
obtaining the authorization of the Obligors and the recording, registering,
filing, re-recording, re-registering and refiling of all security agreements,
financing statements and continuation statements or instruments as are necessary
to maintain the security interest granted by the Obligors under the respective
Receivables. The Trustee hereby authorizes the Servicer, and the Servicer
agrees, to take any and all steps necessary to re-perfect or continue the
perfection of such security interest on behalf of the Trust as necessary because
of the relocation of a Financed Vehicle or for any other reason. In the event
that the assignment of a Receivable to the Trust is insufficient, without a
notation on the related Financed Vehicle's certificate of title, or without
fulfilling any additional administrative requirements under the laws of the
State in which the Financed Vehicle is located, to perfect a security interest
in the related Financed Vehicle in favor of the Trust, the Servicer hereby
agrees that CPS's designation as the secured party on the certificate of title
is in its capacity as Servicer as agent of the Trust.

             (b) Upon the occurrence of an Insurance Agreement Event of Default,
the Note Insurer may (so long as it is the Controlling Party) instruct the
Trustee and the Servicer to take or cause to be taken or, if the Note Insurer is
not the Controlling Party, upon the occurrence of a Servicer Termination Event,
the Trustee and the Servicer shall take or cause to be taken, such action as
may, in the opinion of counsel to the Trustee, which opinion shall not be an
expense of the Trustee, be necessary to perfect or re-perfect the security
interests in the Financed Vehicles securing the Receivables in the name of the
Trust by amending the title documents of such Financed Vehicles or by such other
reasonable means as may, in the opinion of counsel to the Trustee, which opinion
shall not be an expense of the Trustee, be necessary or prudent. The Servicer

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<PAGE>

hereby agrees to pay all expenses related to such perfection or re-perfection
and to take all action necessary therefor. In addition, prior to the occurrence
of an Insurance Agreement Event of Default, the Controlling Party may instruct
the Trustee and the Servicer to take or cause to be taken such action as may, in
the opinion of counsel to the Controlling Party, be necessary to perfect or
re-perfect the security interest in the Financed Vehicles underlying the
Receivables in the name of the Trust, including by amending the title documents
of such Financed Vehicles or by such other reasonable means as may, in the
opinion of counsel to the Controlling Party, be necessary or prudent; provided,
however, that if the Controlling Party requests that the title documents be
amended prior to the occurrence of an Insurance Agreement Event of Default, the
out-of-pocket expenses of the Servicer or the Trustee in connection with such
action shall be reimbursed to the Servicer or the Trustee, as applicable, by the
Controlling Party.

         SECTION 4.6 ADDITIONAL COVENANTS OF SERVICER. The Servicer shall not
release the Financed Vehicle securing each Receivable from the security interest
granted by such Receivable in whole or in part except in the event of payment in
full by the Obligor thereunder or repossession, nor shall the Servicer impair
the rights of the Securityholders in such Receivables, nor shall the Servicer
amend a Receivable, except that extensions and waivers may be granted in
accordance with Section 4.2. The Servicer shall not create, incur or suffer to
exist any Lien or restriction on transferability of the Receivables nor, except
as contemplated by the Basic Documents, sign or file under the UCC of any
jurisdiction any financing statement that names CPS or the Servicer as debtor,
nor sign any security agreement authorizing any secured party thereunder to file
such financing statement, with respect to the Receivables. The Servicer shall
take such actions as are necessary from time to time in order to maintain the
perfection and priority of the Issuer's security interest in the Trust Property.

         SECTION 4.7 PURCHASE OF RECEIVABLES UPON BREACH OF COVENANT. Upon
discovery by any of the Servicer, the Note Insurer, the Owner Trustee or the
Trustee of a breach of any of the covenants set forth in Section 4.2(a), 4.4,
4.5 or 4.6, the party discovering such breach shall give prompt written notice
to the others; provided, however, that the failure to give any such notice shall
not affect any obligation of the Servicer under this Section 4.7. Unless the
breach shall have been cured by the last day of the second Collection Period
following such discovery (or, at the Servicer's election, the last day of the
first following Collection Period), the Servicer shall purchase any Receivable
with respect to which the Securityholders' or the Note Insurers' interest
therein or in the related Financed Vehicle is materially and adversely affected
by such breach. In consideration of the purchase of such Receivable, the
Servicer shall remit the Purchase Amount in the manner specified in Section 5.6.
The sole remedy of the Trustee, the Trust, the Owner Trustee, the Note Insurer
or the Securityholders with respect to a breach of Section 4.2(a), 4.4, 4.5 or
4.6 shall be to require the Servicer to repurchase Receivables pursuant to this
Section 4.7; provided, however, that the Servicer shall indemnify the Trustee,
the Backup Servicer, the Collateral Agent, the Note Insurer, the Owner Trustee,
the Trust and the Securityholders against all costs, expenses, losses, damages,
claims and liabilities, including reasonable fees and expenses of counsel, which
may be asserted against or incurred by any of them as a result of third party
claims arising out of the events or facts giving rise to such breach. If it is
determined that the management, administration and servicing of the Receivables
and operation of the Trust pursuant to this Agreement constitutes a violation of
the prohibited transaction rules of ERISA or the Code to which no statutory
exception or administrative exemption applies, such violation shall not be
treated as a breach of Section 4.2(a), 4.4, 4.5 or 4.6 if not otherwise such a
breach. Upon receipt of the Purchase Amount and written instructions from the
Servicer, the Trustee shall release to CPS or its designee the related
Receivables File and shall execute and deliver all reasonable instruments of
transfer or assignment, without recourse, as are prepared by the Seller and
delivered to the Trustee and necessary to vest in CPS or such designee title to
the Receivable including a Trustee's Certificate in the form of Exhibit F-2.

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<PAGE>

         SECTION 4.8 SERVICING FEE. The "Servicing Fee" for each Payment Date
shall be equal to the result of one twelfth times 2.50% of the Pool Balance as
of the first day of the related Collection Period; provided, however, that with
respect to the first Payment Date the Servicer will be entitled to receive a
Servicing Fee equal to the product of one-twelfth times 2.50% of the Original
Pool Balance. In addition the Servicing Fee shall also include the Additional
Servicing Compensation, which shall not be a part of the Owner Trust Estate. On
each Payment Date occurring after the date, if any, on which CPS resigns as
Servicer pursuant to Section 9.6 or is terminated as Servicer pursuant to
Section 10.2, the Person then acting as successor Servicer (including the Backup
Servicer, if acting in such capacity) shall be entitled to receive (i) the
Servicing Fee and (ii) a supplemental fee (the "Successor Servicing Fee") equal
to the positive difference, if any, between (A) the product of the number of
Receivables serviced by the successor Servicer during the related Collection
Period and $13 and (B) the Servicing Fee, each in accordance with the priorities
set forth in Section 5.7(a) hereof.

         SECTION 4.9 SERVICER'S CERTIFICATE. By 9:00 a.m., Minneapolis time, on
each Determination Date, the Servicer shall deliver to the Trustee, the Owner
Trustee, the Note Insurer, the Rating Agencies and the Seller a Servicer's
Certificate containing all information necessary to make the distributions
pursuant to Sections 5.7 and 5.8 (including, if required, withdrawals from the
Series 2008-A Spread Account) for the Collection Period preceding the date of
such Servicer's Certificate and all information necessary for the Trustee to
send statements to the Securityholders and the Note Insurer pursuant to Section
5.8(b) and all information necessary to enable the Backup Servicer to verify the
information specified in Section 4.13(b) and to complete the accounting required
by Section 5.9. Receivables to be purchased by the Servicer or to be purchased
by CPS shall be identified by the Servicer by account number with respect to
such Receivable (as specified in Schedule A).

         SECTION 4.10 ANNUAL STATEMENT AS TO COMPLIANCE, NOTICE OF SERVICER
TERMINATION EVENT.

             (a) The Servicer shall deliver to the Owner Trustee, the Trustee,
the Backup Servicer, the Note Insurer and each Rating Agency, on or before March
31 of each year beginning March 31, 2009, an Officer's Certificate, dated as of
December 31 of the preceding year, stating that (i) a review of the activities
of the Servicer during the preceding 12-month period (or, in the case of the

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<PAGE>

first such Officer's Certificate, from the Closing Date to December 31, 2008)
and of its performance under this Agreement has been made under such officer's
supervision and (ii) to the best of such officer's knowledge, based on such
review, the Servicer has fulfilled all its obligations under this Agreement
throughout such year (or, in the case of the first such Officer's Certificate,
from the Closing Date to December 31, 2008), or, if there has been a default in
the fulfillment of any such obligation, specifying each such default known to
such officer and the nature and status thereof. The Trustee shall forward a copy
of such certificate as well as the report referred to in Section 4.11 to each
Noteholder and the Owner Trustee shall forward a copy to each Residual
Certificateholder.

             (b) The Servicer shall deliver to the Owner Trustee, the Trustee,
the Backup Servicer, the Note Insurer, the Collateral Agent, and each Rating
Agency, promptly after having obtained knowledge thereof, but in no event later
than two (2) Business Days thereafter, written notice in an Officer's
Certificate of any event which with the giving of notice or lapse of time, or
both, would become a Servicer Termination Event under Section 10.1.

         SECTION 4.11 ANNUAL INDEPENDENT ACCOUNTANTS' REPORT. The Servicer shall
cause a firm of nationally recognized independent certified public accountants
(the "Independent Accountants"), who may also render other services to the
Servicer or to the Seller, to deliver to the Trustee, the Owner Trustee, the
Backup Servicer, the Note Insurer and each Rating Agency, on or before March 31
of each year beginning March 31, 2009, a report dated as of December 31 of the
previous year (the "Accountants' Report") and reviewing the Servicer's
activities during the preceding 12-month period, addressed to the Board of
Directors of the Servicer, to the Owner Trustee, the Trustee, the Backup
Servicer and to the Note Insurer, to the effect that such firm has examined the
financial statements of the Servicer and issued its report therefor and that
such examination (1) was made in accordance with generally accepted auditing
standards, and accordingly included such tests of the accounting records and
such other auditing procedures as such firm considered necessary in the
circumstances; (2) included tests relating to auto loans serviced for others in
accordance with the requirements of the Uniform Single Attestation Program for
Mortgage Bankers (the "Program"), to the extent the procedures in the Program
are applicable to the servicing obligations set forth in this Agreement; (3)
included an examination of the delinquency and loss statistics relating to the
Servicer's portfolio of automobile and light truck installment sales contracts;
and (4) except as described in the report, disclosed no exceptions or errors in
the records relating to automobile and light truck loans serviced for others
that, in the firm's opinion, paragraph four of the Program requires such firm to
report. The accountant's report shall further state that (A) a review in
accordance with agreed upon procedures was made of two randomly selected
Servicer Certificates; (B) except as disclosed in the report, no exceptions or
errors in the Servicer Certificates were found; and (C) the delinquency and loss
information relating to the Receivables and the stated amount of Liquidated
Receivables, if any, contained in the Servicer Certificates were found to be
accurate. In the event such firm requires the Trustee, the Owner Trustee and/or
the Backup Servicer to agree to the procedures performed by such firm, the
Servicer shall direct the Trustee, the Owner Trustee and/or the Backup Servicer,
as applicable, in writing to so agree; it being understood and agreed that the
Trustee, the Owner Trustee and/or the Backup Servicer will deliver such letter
of agreement in conclusive reliance upon the direction of the Servicer, and
neither the Trustee, the Owner Trustee nor the Backup Servicer makes any
independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures.

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<PAGE>

         The Report will also indicate that the firm is independent of the
Servicer within the meaning of the Code of Professional Ethics of the American
Institute of Certified Public Accountants.

         SECTION 4.12 ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
RECEIVABLES. The Servicer shall provide to representatives of the Trustee, the
Owner Trustee, the Backup Servicer, the Note Insurer and the Rating Agencies
reasonable access to the documentation regarding the Receivables. In each case,
such access shall be afforded without charge but only upon reasonable request
and during normal business hours. Nothing in this Section shall derogate from
the obligation of the Servicer to observe any applicable law prohibiting
disclosure of information regarding the Obligors, and the failure of the
Servicer to provide access as provided in this Section as a result of such
obligation shall not constitute a breach of this Section.

         SECTION 4.13 VERIFICATION OF SERVICER'S CERTIFICATE.

             (a) On or before the fifth calendar day of each month, the Servicer
will deliver to the Trustee and the Backup Servicer a computer diskette (or
other electronic transmission) in a format acceptable to the Trustee and the
Backup Servicer containing information with respect to the Receivables as of the
close of business on the last day of the related Collection Period which
information is necessary for preparation of the Servicer's Certificate. The
Backup Servicer shall use such computer diskette (or other electronic
transmission) to verify certain information specified in Section 4.13(b)
contained in the Servicer's Certificate delivered by the Servicer, and the
Backup Servicer shall notify the Servicer and the Note Insurer of any
discrepancies on or before the second Business Day following the Determination
Date. In the event that the Backup Servicer reports any discrepancies, the
Servicer and the Backup Servicer shall attempt to reconcile such discrepancies
prior to the second Business Day prior to the related Payment Date, but in the
absence of a reconciliation, the Servicer's Certificate shall control for the
purpose of calculations and distributions with respect to the related Payment
Date. In the event that the Backup Servicer and the Servicer are unable to
reconcile discrepancies with respect to a Servicer's Certificate by the related
Payment Date, the Servicer shall cause a firm of independent certified public
accountants, at the Servicer's expense, to audit the Servicer's Certificate and,
prior to the fifth calendar day of the following month, reconcile the
discrepancies. The effect, if any, of such reconciliation shall be reflected in
the Servicer's Certificate for such next succeeding Determination Date. Other
than the duties specifically set forth in this Agreement, the Backup Servicer
shall have no obligations hereunder, including, without limitation, to
supervise, verify, monitor or administer the performance of the Servicer. The
Backup Servicer shall have no liability for any actions taken or omitted by the
Servicer. The duties and obligations of the Backup Servicer shall be determined
solely by the express provisions of this Agreement and no implied covenants or
obligations shall be read into this Agreement against the Backup Servicer.
Notwithstanding the fact that the Backup Servicer shall receive the data
referenced in this Section 4.13(a) on a monthly basis, at the request of the
Note Insurer, the Backup Servicer agrees to receive and the Servicer agrees to
deliver any such data with respect to the Receivables from the Servicer on a
more frequent basis, up to and including daily or weekly transmissions.

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<PAGE>

             (b) The Backup Servicer shall review each Servicer's Certificate
delivered pursuant to Section 4.13(a) and shall:

                  (i) confirm that such Servicer's Certificate is complete on
         its face;

                  (ii) load the computer diskette (which shall be in a format
         acceptable to the Backup Servicer) received from the Servicer pursuant
         to Section 4.13(a) hereof, confirm that such computer diskette is in a
         readable form and calculate and confirm the Aggregate Principal Balance
         for the most recent Payment Date;

                  (iii) confirm, based solely on the information shown on the
         Servicer's Certificate, that the Total Distribution Amount, the
         Principal Distributable Amount, the Noteholders' Principal
         Distributable Amount, the Noteholders' Parity Deficit Amount, the
         Noteholders' Interest Distributable Amount for each Class of Notes, the
         Residual Certificate Interest Distributable Amount, the Residual
         Certificate Principal Distributable Amount, the Targeted Principal
         Distributable Amount, the Backup Servicing Fee, the Servicing Fee, the
         Trustee Fees, the Cayman Trustee Fees, the amount on deposit in the
         Series 2008-A Spread Account, the Three-Month Rolling Average Extension
         Ratio, the Three-Month Rolling Average Delinquency Ratio, the
         Cumulative Net Loss Rate and the Premium (as defined in the Insurance
         Agreement) in the Servicer's Certificate are accurate based solely on
         the recalculation of the Servicer's Certificate and without further
         investigation;

                  (iv) confirm the calculation of the Trigger Events based
         solely upon the information contained on the applicable computer
         diskette; and

                  (v) by the third Business Day following the Backup Servicer's
         receipt of the Servicer's Certificate and following the Backup
         Servicer's review of such Servicer's Certificate and the related
         monthly tape, the Backup Servicer shall provide the Note Insurer with a
         certificate (i) describing those activities it performed in its review
         of the monthly tape and the Servicer's Certificate, (ii) listing those
         parts of the Servicer's Certificate that it confirmed were correct,
         (iii) listing those parts of the Servicer's Certificate that it found
         to be incorrect, and (iv) describing any discrepancies,
         inconsistencies, incorrect information or incorrect calculations that
         were revealed by its review of the Servicer's Certificate and the
         related monthly tape.

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<PAGE>

             (c) On or prior to the Closing Date, the Backup Servicer will cause
an affiliate of the Back-up Servicer to data map to their servicing system all
servicing/loan file information, including all relevant borrower contact
information such as address and phone numbers as well as loan balance and
payment information, including comment histories and collection notes. On or
before the fifth calendar day of each month, the Servicer will provide to an
affiliate of the Backup Servicer an electronic transmission of all
servicing/loan information, including all relevant borrower contact information
such as address and phone numbers as well as loan balance and payment
information, including comment histories and collection notes, and the Backup
Servicer will cause such affiliate to review each file to ensure that it is in
readable form and verify that the data balances conform to the trial balance
reports received from the Servicer. Additionally, the Backup Servicer shall
cause such affiliate to store each such file.

         SECTION 4.14 RETENTION AND TERMINATION OF SERVICER. The Servicer hereby
covenants and agrees to act as such under this Agreement for an initial term
commencing on the Closing Date and ending on June 30, 2008, which term may be
extended by the Note Insurer for successive quarterly terms ending on each
successive September 30, December 31, March 31 and June 30 (or, at the
discretion of the Note Insurer exercised pursuant to revocable written standing
instructions from time to time to the Servicer and the Trustee, for any
specified number of terms greater than one), until such time as the Notes have
been paid in full, all amounts due to the Residual Certificateholders and the
Note Insurer have been paid and until the termination of the Trust. Each such
notice (including each notice pursuant to standing instructions, which shall be
deemed delivered at the end of successive terms for so long as such instructions
are in effect) (a "Servicer Extension Notice") shall be delivered by the Note
Insurer to the Trustee and the Servicer. The Servicer hereby agrees that, upon
its receipt of any such Servicer Extension Notice, the Servicer shall become
bound, for the duration of the term covered by such Servicer Extension Notice,
to continue as the Servicer subject to and in accordance with the other
provisions of this Agreement. If an Insurer Default has occurred and is
continuing, the term of the Servicer's appointment hereunder shall be deemed to
have been extended until such time, if any, as such Insurer Default has been
cured unless such appointment is terminated sooner in accordance with the terms
of this Agreement. Until such time as an Insurer Default shall have occurred and
be continuing, the Trustee agrees that if as of the fifteenth day prior to the
last day of any term of the Servicer, the Trustee shall not have received any
Servicer Extension Notice from the Note Insurer, the Trustee shall, within five
days thereafter, give written notice of such non-receipt to the Note Insurer.

         SECTION 4.15 FIDELITY BOND. The Servicer shall maintain a fidelity bond
in such form and amount as is customary for entities acting as custodian of
funds and documents in respect of consumer contracts on behalf of institutional
investors.

         SECTION 4.16 OPTIONAL PURCHASE OF CERTAIN RECEIVABLES

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<PAGE>

             (a) CPS shall have the right, but not the obligation, to acquire
Receivables on the last day of any Collection Period during the term of the
Trust at a price equal to at least the fair market value of such Receivables, so
long as the fair market value is not less than the related aggregate Purchase
Amount plus the costs and expenses of the Servicer, the Trust and the Note
Insurer (including any outstanding reimbursements) in connection with such
optional purchase. The aggregate Principal Balance of Receivables repurchased
under such option shall be limited to 1% of the Original Pool Balance. To
exercise such option, CPS shall (subject to the proviso below) deposit in the
Collection Account pursuant to Section 5.6 (or remit to the Servicer, if CPS is
not then Servicer) an amount equal to the related aggregate Purchase Amount for
such Receivables and thereafter shall succeed to all interests of the Trust in
and to such Receivables. Upon notice of receipt of the related aggregate
Purchase Amount for such Receivables and written instructions from the Servicer,
the Trustee shall release to CPS or its designee the related Receivables Files
and shall execute and deliver all reasonable instruments of transfer or
assignment, without recourse, as are prepared by CPS and delivered to the
Trustee and necessary to vest in CPS or such designee title to such Receivables
including a Trustee's Certificate in the form of EXHIBIT F-2.

             (b) CPS shall have the right, which right may be assigned by CPS to
an Affiliate, but not the obligation, to repurchase on the last day of any
Collection Period any Defaulted Texas Receivables at a price equal to at least
the fair market value of such Defaulted Texas Receivables, so long as the fair
market value is not less than the related aggregate Purchase Amount, plus the
costs and expenses of the Servicer, the Trust and the Note Insurer (including
any outstanding reimbursements) in connection with such optional purchase. To
exercise such option, CPS shall (subject to the proviso below) deposit in the
Collection Account pursuant to Section 5.6 (or remit to the Servicer, if CPS is
not then Servicer) an amount equal to the related aggregate Purchase Amount for
such Defaulted Texas Receivables and thereafter shall succeed to all interests
of the Trust in and to such Defaulted Texas Receivables. Upon notice of receipt
of the related aggregate Purchase Amount for such Defaulted Texas Receivables
and written instructions from the Servicer, the Trustee shall release to CPS or
its designee the related Receivables Files and shall execute and deliver all
reasonable instruments of transfer or assignment, without recourse, as are
prepared by the CPS and delivered to the Trustee and necessary to vest in CPS or
such designee title to such Defaulted Texas Receivables including a Trustee's
Certificate in the form of EXHIBIT F-2.

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<PAGE>

                                   ARTICLE V
                                   ---------

          TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO SECURITYHOLDERS

         SECTION 5.1 ESTABLISHMENT OF TRUST ACCOUNTS.

             (a) (i) The Trustee, on behalf of the Securityholders and the Note
Insurer, shall establish and maintain in its own name an Eligible Account (the
"Collection Account"), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Trustee on behalf of the
Securityholders and the Note Insurer. On the Closing Date, the Servicer will
deposit, on behalf of the Seller, in the Collection Account, an amount equal to
$11,090,921.74, such amount representing collections on the Receivables received
from and including the day after the Cutoff Date through the Business Day
immediately preceding the Closing Date, but not previously deposited into the
Collection Account.

         (ii) The Trustee, on behalf of the Noteholders, shall establish and
maintain in its own name an Eligible Account (the "Note Distribution Account"),
bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Trustee on behalf of the Noteholders and the Note
Insurer. The Note Distribution Account shall initially be established with the
Trustee.

         (iii) Funds on deposit in the Collection Account and the Note
Distribution Account (collectively, the "Trust Accounts") shall be invested by
the Trustee (or any custodian with respect to funds on deposit in any such
account) in Eligible Investments selected in writing by the Servicer (pursuant
to standing instructions or otherwise). All such Eligible Investments shall be
held by or on behalf of the Trustee for the benefit of the Securityholders and
the Note Insurer. Other than as permitted by the Rating Agencies and the Note
Insurer, funds on deposit in any Trust Account shall be invested in Eligible
Investments that will mature so that such funds will be available at the close
of business on the Business Day immediately preceding the following Payment
Date. Funds deposited in a Trust Account on the day immediately preceding a
Payment Date upon the maturity of any Eligible Investments are not required to
be invested overnight. All Eligible Investments will be held to maturity.

             (b) All investment earnings of moneys deposited in the Trust
Accounts shall be deposited (or caused to be deposited) by the Trustee in the
Collection Account for distribution pursuant to Section 5.7(a) and any loss
resulting from such investments shall be charged to such account. The Servicer
will not direct the Trustee to make any investment of any funds held in any of
the Trust Accounts unless the security interest granted and perfected in such
account will continue to be perfected in such investment, in either case without
any further action by any Person, and, in connection with any direction to the
Trustee to make any such investment, if requested by the Trustee, the Servicer
shall deliver to the Trustee an Opinion of Counsel, acceptable to the Trustee,
to such effect.

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<PAGE>

             (c) The Trustee shall not in any way be held liable by reason of
any insufficiency in any of the Trust Accounts resulting from any loss on any
Eligible Investment included therein except for losses attributable to the
Trustee's negligence or bad faith or its failure to make payments on such
Eligible Investments issued by the Trustee, in its commercial capacity as
principal obligor and not as trustee, in accordance with their terms.

             (d) If (i) the Servicer shall have failed to give investment
directions for any funds on deposit in the Trust Accounts to the Trustee by 1:00
p.m. Eastern Time (or such other time as may be agreed by the Issuer and
Trustee) on any Business Day; or (ii) an Event of Default shall have occurred
and be continuing but the Notes shall not have been declared due and payable,
or, if such Notes shall have been declared due and payable following an Event of
Default, amounts collected or receivable from the Trust Property are being
applied as if there had not been such a declaration; then the Trustee shall, to
the fullest extent practicable, invest and reinvest funds in the Trust Accounts
in one or more Eligible Investments described in clause (ii) of the definition
thereof.

             (e) The Trustee shall possess all right, title and interest in all
funds on deposit from time to time in the Trust Accounts and in all proceeds
thereof (including all Investment Earnings on the Trust Accounts) and all such
funds, investments, proceeds and income shall be part of the Trust Property.
Except as otherwise provided herein, the Trust Accounts shall be under the sole
dominion and control of the Trustee for the benefit of the Securityholders and
the Note Insurer. If at any time any of the Trust Accounts ceases to be an
Eligible Account, the Servicer with the consent of the Note Insurer shall within
five Business Days establish a new Trust Account as an Eligible Account and
shall transfer any cash and/or any investments to such new Trust Account. The
Servicer shall promptly notify the Rating Agencies and the Owner Trustee of any
change in the location of any of the aforementioned accounts. In connection with
the foregoing, the Servicer agrees that, in the event that any of the Trust
Accounts are not accounts with the Trustee, the Servicer shall notify the
Trustee in writing promptly upon any of such Trust Accounts ceasing to be an
Eligible Account.

             (f) Notwithstanding anything to the contrary herein or in any other
document relating to a Trust Account, the "securities intermediary's
jurisdiction" (within the meaning of Section 8-110 of the UCC) or the "bank's
jurisdiction" (with the meaning of 9-304 of the UCC), as applicable, with
respect to each Trust Account shall be the State of New York.

             (g) With respect to the Trust Account Property, the Trustee agrees
that:

                           (A) any Trust Account Property that is held in
                  deposit accounts shall be held solely in an Eligible Account;
                  and, each such Eligible Account shall be subject to the
                  exclusive custody and control of the Trustee and the Trustee
                  shall have sole signature authority with respect thereto; and

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<PAGE>

                           (B) any other Trust Account Property shall be
                  delivered to the Trustee in accordance with the definition of
                  "Delivery".

         SECTION 5.2 [RESERVED].

         SECTION 5.3 CERTAIN REIMBURSEMENTS TO THE SERVICER. The Servicer will
be entitled to be reimbursed from amounts on deposit in the Collection Account
with respect to a Collection Period for amounts previously deposited in the
Collection Account but later determined by the Servicer to have resulted from
mistaken deposits or postings or checks returned for insufficient funds. The
amount to be reimbursed hereunder shall be paid to the Servicer on the related
Payment Date pursuant to Section 5.7(a)(ii) upon certification by the Servicer
of such amounts and the provision of such information to the Trustee and the
Note Insurer as may be necessary in the opinion of the Note Insurer to verify
the accuracy of such certification; provided, however, that the Servicer must
provide such certification within three months of its becoming aware of such
mistaken deposit, posting or returned check. In the event that the Note Insurer
has not received evidence satisfactory to it of the Servicer's entitlement to
reimbursement pursuant to this Section, the Controlling Party shall give the
Trustee notice to such effect, following receipt of which the Trustee shall not
make a distribution to the Servicer in respect of such amount pursuant to
Section 5.7(a)(ii), or, if prior thereto the Servicer has been reimbursed
pursuant to Section 5.7(a)(ii), the Trustee shall withhold such amounts from
amounts otherwise distributable to the Servicer on the next succeeding Payment
Date.

         SECTION 5.4 APPLICATION OF COLLECTIONS. All collections for each
Collection Period shall be applied by the Servicer as follows:

         With respect to each Receivable (other than a Purchased Receivable),
payments by or on behalf of the Obligor shall be applied to interest and
principal in accordance with the Simple Interest Method.

         SECTION 5.5 WITHDRAWALS FROM SERIES 2008-A SPREAD ACCOUNT.

             (a) In the event that the Servicer's Certificate with respect to
any Determination Date shall state that the Total Distribution Amount with
respect to such Determination Date is insufficient to make the payments required
to be made on the related Payment Date pursuant to Sections 5.7(a)(i) through
(v) and (vii) through (ix), provided however, that with respect to Section
5.7(a)(vii), the amount which may be withdrawn from the Series 2008-A Spread
Account shall equal the Noteholders' Parity Deficit Amount, or, if such Payment
Date is the Final Scheduled Payment for any Class of Notes, the greater of (i)
the Noteholders' Parity Deficit Amount and (ii) the unpaid Note Balance of such
Class of Notes (such deficiency being a "DEFICIENCY CLAIM AMOUNT"), then on the
fourth Business Day immediately preceding the related Payment Date, the Trustee
shall deliver to the Collateral Agent, the Owner Trustee, the Note Insurer, and
the Servicer, by hand delivery, telex or facsimile transmission, a written
notice (a "DEFICIENCY NOTICE") specifying the Deficiency Claim Amount for such
Payment Date. Such Deficiency Notice shall direct the Collateral Agent to remit
such Deficiency Claim Amount (to the extent of the funds available to be
distributed pursuant to the Master Spread Account Agreement) to the Trustee for
deposit in the Collection Account and distribution pursuant to Sections
5.7(a)(i) through (v) and (vii) through (ix), as applicable.

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             (b) Any Deficiency Notice shall be delivered by 3:00 p.m., New York
City time, on the fourth Business Day preceding such Payment Date. The amounts
distributed by the Collateral Agent to the Trustee pursuant to a Deficiency
Notice shall be deposited by the Trustee into the Collection Account pursuant to
Section 5.7(a).

         SECTION 5.6 ADDITIONAL DEPOSITS. The Servicer or CPS, as the case may
be, shall deposit or cause to be deposited in the Collection Account the
aggregate Purchase Amount with respect to Purchased Receivables and all amounts
to be paid by CPS pursuant to its indemnification obligations under the Basic
Documents and the Servicer shall deposit or cause to be deposited therein all
amounts to be paid under Sections 4.16 and 11.1. All such deposits made pursuant
to Section 4.16 shall be made, in immediately available funds, on the Business
Day preceding the Determination Date. All such deposits made pursuant to Section
11.1 shall be made, in immediately available funds, on the Business Day
preceding the related Payment Date. On or before the third Business Day
preceding each Payment Date, the Trustee shall remit to the Collection Account
any amounts delivered to the Trustee by the Collateral Agent pursuant to Section
5.5.

         SECTION 5.7 DISTRIBUTIONS.

             (a) On each Payment Date, the Trustee (based on the information
contained in the Servicer's Certificate delivered on the related Determination
Date) shall make the following distributions in the following order of priority:

                  (i) to the Backup Servicer so long as the Backup Servicer is
         not acting as the successor Servicer, from the Total Distribution
         Amount, any amount deposited in the Collection Account pursuant to
         Section 5.5(a) and any amount deposited in the Collection Amount
         pursuant to Section 5.12(a) in respect of Backup Servicing Fees, the
         Backup Servicing Fee and all unpaid Backup Servicing Fees from prior
         Collection Periods;

                  (ii) to the Servicer, from the Total Distribution Amount (as
         such Total Distribution Amount has been reduced by payments pursuant to
         clause (i) above), any amount deposited in the Collection Account
         pursuant to Section 5.5(a) and any amount deposited in the Collection
         Account pursuant to Section 5.12(a) in respect of Servicing Fees, the
         Servicing Fee and all unpaid Servicing Fees from prior Collection
         Periods and all reimbursements to which the Servicer is entitled
         pursuant to Section 5.3;

                  (iii) if the Backup Servicer becomes the successor Servicer,
         to the Backup Servicer, from the Total Distribution Amount (as such
         Total Distribution Amount has been reduced by payments pursuant to
         clauses (i) and (ii) above), any amount deposited in the Collection
         Account pursuant to Section 5.5(a) and any amount deposited in the
         Collection Account pursuant to Section 5.12(a), to the extent not
         previously paid by the predecessor Servicer pursuant to this Agreement,
         reasonable transition expenses (up to a maximum of $50,000 for all such
         expenses incurred over the term of this Agreement) incurred by the
         Backup Servicer in becoming the successor Servicer;

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                  (iv) concurrently on a pro rata basis, from the Total
         Distribution Amount (as such Total Distribution Amount has been reduced
         by payments pursuant to clauses (i) through (iii) above),

                           (A) to the Trustee and the Owner Trustee pro rata,
                  any amount deposited in the Collection Account pursuant to
                  Section 5.5(a) and any amount deposited in the Collection
                  Account pursuant to Section 5.12(a) in respect of Trustee
                  Fees, the Trustee Fees and reasonable out-of-pocket expenses
                  thereof (including reasonable counsel fees and expenses) and
                  all unpaid Trustee Fees and unpaid reasonable out-of-pocket
                  expenses (including reasonable counsel fees and expenses) from
                  prior Collection Periods;

                           (B) to the Residual Certificateholders pro rata based
                  on their respective Percentage Interests, the Supplemental
                  Residual Certificate Distribution;

         provided, however, that expenses and other amounts payable to the
         Trustee, the Owner Trustee and the Residual Certificateholders pursuant
         to this clause (iv) shall be limited to a total of $50,000 per annum;
         PROVIDED FURTHER, HOWEVER, (I) that if an Event of Default specified
         under Section 5.1(a)(i) or (ii) of the Indenture has occurred and is
         continuing or (II) if the Controlling Party otherwise agrees in writing
         to waive such $50,000 per annum limitation described in the first
         proviso, in its sole discretion, then such expenses payable pursuant to
         this priority (iv) shall not be so limited;

                  (v) to the Note Distribution Account, from the Total
         Distribution Amount (as such Total Distribution Amount has been reduced
         by payments pursuant to clauses (i) through (iv) above), and any amount
         deposited in the Collection Account pursuant to Sections 5.5(a) and
         5.12(a), the Noteholders' Interest Distributable Amount for such
         Payment Date;

                  (vi) to the Residual Certificateholders pro rata based on
         their respective Percentage Interests, from the Total Distribution
         Amount (as such Total Distribution Amount has been reduced by payments
         pursuant to clauses (i) through (v) above), the Residual Certificate
         Interest Distributable Amount for such Payment Date, subject to the
         limitation thereon contained in the proviso to the definition thereof;

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                  (vii) to the Note Distribution Account from the Total
         Distribution Amount (as such Total Distribution Amount has been reduced
         by payments pursuant to clauses (i) through (vi) above) and any amount
         deposited in the Collection Account pursuant to Sections 5.5(a) and
         5.12(a), the sum of (A) the Noteholders' Principal Distributable Amount
         and (B) the Noteholders' Parity Deficit Amount, if any;

                  (viii) to the Note Insurer, from the Total Distribution Amount
         (as such Total Distribution Amount has been reduced by payments made
         pursuant to clauses (i) through (vii) above) and any amount deposited
         in the Collection Account pursuant to Section 5.5(a), any amounts owing
         to the Note Insurer under this Agreement and the Insurance Agreement
         and not paid;

                  (ix) if any Person other than the Backup Servicer becomes the
         successor Servicer, to such successor Servicer from the Total
         Distribution Amount (as such Total Distribution Amount has been reduced
         by payments pursuant to clauses (i) through (viii) above), any amount
         deposited in the Collection Account pursuant to Section 5.5(a) and any
         amount deposited in the Collection Account pursuant to Section 5.12(a),
         to the extent not previously paid by the predecessor Servicer pursuant
         to this Agreement, reasonable transition expenses (up to a maximum of
         $50,000 for all such expenses incurred over the term of this Agreement)
         incurred by such successor Servicer in becoming the successor Servicer;

                  (x) to the Collateral Agent, from the Total Distribution
         Amount (as such Total Distribution Amount has been reduced by payments
         made pursuant to clauses (i) through (ix) above) for deposit into the
         Series 2008-A Spread Account, the remaining Total Distribution Amount
         until the amount in the Series 2008-A Spread Account equals the
         Specified Spread Account Requisite Amount;

                  (xi) to the Note Distribution Account, from the Total
         Distribution Amount (as such Total Distribution Amount has been reduced
         by payments made pursuant to clauses (i) through (x) above), the
         Targeted Principal Distributable Amount, if any, for such Payment Date;

                  (xii) (a) to the Backup Servicer and the Owner Trustee, as
         applicable, from the Total Distribution Amount (as such Total
         Distribution has been reduced by payments made pursuant to clauses (i)
         through (xi) above), any amounts owing to the Backup Servicer hereunder
         and any amounts to the Owner Trustee under the Trust Agreement, to the
         extent not previously paid, and (b) to any successor Servicer
         (including the Backup Servicer, if the Backup Servicer is then acting
         in such capacity), if any, from the Total Distribution Amount (as such
         Total Distribution has been reduced by payments made pursuant to
         clauses (i) through (xi) above), the Successor Servicing Fees due, if
         any;

                  (xiii) to the Residual Certificateholders pro rata based on
         their respective Percentage Interests, from the Total Distribution
         Amount (as such Total Distribution Amount has been reduced by payments
         made pursuant to clauses (i) through (xii) above), the Residual
         Certificate Interest Distributable Amount remaining to be paid after
         giving effect to the distribution pursuant to clause (vi) above;

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<PAGE>

                  (xiv) to the Residual Certificateholders pro rata based on
         their respective Percentage Interests, from the Total Distribution
         Amount (as such Total Distribution Amount has been reduced by payments
         made pursuant to clauses (i) through (xiii) above), the Residual
         Certificate Principal Distributable Amount, if any, for such Payment
         Date; and

                  (xv) to the Residual Certificateholders pro rata based on
         their respective Percentage Interests, any remaining Total Distribution
         Amount;

         provided, however, that, (A) following an acceleration of the Notes or,
(B) if an Insurer Default shall have occurred and be continuing and an Event of
Default pursuant to Sections 5.1(a)(i), 5.1(a)(ii) or 5.1(a)(v) of the Indenture
shall have occurred and be continuing, the Total Distribution Amount shall be
paid pursuant to Section 5.6(a) of the Indenture.

             (b) In the event that the Collection Account is maintained with an
institution other than the Trustee, the Servicer shall instruct and cause such
institution to make all deposits and distributions pursuant to Section 5.7(a) on
the related Payment Date.

         SECTION 5.8 NOTE DISTRIBUTION ACCOUNT.

             (a) On each Payment Date, the Trustee shall distribute all amounts
on deposit in the Note Distribution Account to the Noteholders in respect of the
Notes to the extent of amounts due and unpaid on the Notes for principal and
interest in the following amounts and in the following order of priority:

                  (i) to the Holders of the Notes, the Noteholders' Interest
         Distributable Amount; provided that if there are not sufficient funds
         in the Note Distribution Account to pay the entire amount then due on
         each Class of Notes, the amount in the Note Distribution Account shall
         be applied to the payment of such interest on each Class of Notes pro
         rata on the basis of the amount of accrued and unpaid interest due on
         each Class of Notes;

                  (ii) to the Holders of the Class A-1 Notes, the sum of (x) the
         Noteholders' Principal Distributable Amount and (y) the Noteholders'
         Parity Deficit Amount, if any, until the Class A-1 Note Balance is
         reduced to zero;

                  (iii) to the Holders of the Class A-1 Notes, the Targeted
         Principal Distributable Amount, if any, for such Payment Date until the
         Class A-1 Note Balance is reduced to zero;

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                  (iv) to the Holders of the Class A-2 Notes, the sum of (x) the
         Noteholders' Principal Distributable Amount (as reduced by any
         distributions made on such Payment Date pursuant to clause (ii) above)
         and (y) the Noteholders' Parity Deficit Amount, if any, remaining after
         distributions made on such Payment Date pursuant to clauses (ii) and
         (iii) above, until the Class A-2 Note Balance is reduced to zero;

                  (v) to the Holders of the Class A-2 Notes, the Targeted
         Principal Distributable Amount, if any, for such Payment Date until the
         Class A-2 Note Balance is reduced to zero;

                  (vi) to the Holders of the Class A-3 Notes, the sum of (x) the
         Noteholders' Principal Distributable Amount (as reduced by any
         distributions made on such Payment Date pursuant to clauses (ii) and
         (iv) above) and (y) the Noteholders' Parity Deficit Amount, if any,
         remaining after distributions made on such Payment Date pursuant to
         clauses (ii) through (v) above, until the Class A-3 Note Balance is
         reduced to zero;

                  (vii) to the Holders of the Class A-3 Notes, the Targeted
         Principal Distributable Amount, if any, for such Payment Date until the
         Class A-3 Note Balance is reduced to zero;

                  (viii) to the Holders of the Class A-4 Notes, the sum of (x)
         the Noteholders' Principal Distributable Amount (as reduced by any
         distributions made on such Payment Date pursuant to clauses (ii), (iv)
         and (vi) above) and (y) the Noteholders' Parity Deficit Amount, if any,
         remaining after distributions made on such Payment Date pursuant to
         clauses (ii) through (vii) above, until the Class A-4 Note Balance is
         reduced to zero; and then

                  (ix) to the Holders of the Class A-4 Notes, the Targeted
         Principal Distributable Amount, if any, for such Payment Date until the
         Class A-4 Note Balance is reduced to zero.

             (b) On each Payment Date, the Trustee shall provide or make
available electronically (or, upon written request, by first class mail or
facsimile) to each Noteholder the statement or statements provided to the
Trustee by the Servicer pursuant to Section 5.11 hereof on such Payment Date;
PROVIDED, HOWEVER, the Trustee shall have no obligation to provide such
information described in this Section 5.8(b) until it has received the requisite
information from the Servicer.

             (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to a Noteholder, such tax shall reduce the
amount otherwise distributable to the Noteholder in accordance with this Section
5.8. The Trustee is hereby authorized and directed to retain from amounts
otherwise distributable to the Noteholders sufficient funds for the payment of
any tax that is legally owed by the Trust (but such authorization shall not
prevent the Trustee from contesting any such tax in appropriate proceedings, and
withholding payment of such tax, if permitted by law, pending the outcome of
such proceedings). The amount of any withholding tax imposed with respect to a
Noteholder shall be treated as cash distributed to such Noteholder at the time
it is withheld by the Trust and remitted to the appropriate taxing authority.
If, after consultations with experienced counsel, the Trustee determines that
there is a reasonable likelihood that withholding tax is payable with respect to
a distribution (such as a distribution to a Non-United States Investor), the
Trustee may in its sole discretion withhold such amounts in accordance with this
clause (c). In the event that a Noteholder wishes to apply for a refund of any
such withholding tax, the Trustee shall reasonably cooperate with such
Noteholder in making such claim so long as such Noteholder agrees to reimburse
the Trustee for any out-of-pocket expenses incurred.

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             (d) Distributions required to be made to Noteholders on any Payment
Date shall be made to each Noteholder of record on the preceding Record Date
either by wire transfer, in immediately available funds, to the account of such
Noteholder at a bank or other entity having appropriate facilities therefor, if
(i) such Holder shall have provided to the Note Registrar appropriate written
instructions at least five Business Days prior to such Payment Date and such
Holder's Notes in the aggregate evidence a denomination of not less than
$1,000,000 or (ii) such Noteholder is the Seller, or an Affiliate thereof, or,
if not, by check mailed to such Noteholder at the address of such holder
appearing in the Note Register; provided, however, that, unless Definitive Notes
have been issued pursuant to Section 2.12 of the Indenture, with respect to
Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), distributions will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Notwithstanding the foregoing, the final distribution in respect of any
Note (whether on the related Final Scheduled Payment Date or otherwise) will be
payable only upon presentation and surrender of such Note at the office or
agency maintained for that purpose by the Note Registrar pursuant to Section 2.4
of the Indenture.

         Each Noteholder, by its acceptance of its Note, will be deemed to have
consented to the provisions of Sections 5.7 and 5.8 relating to the priority of
payments, and will be further deemed to have acknowledged that no property
rights in any amount or the proceeds of any such amount shall vest in such
Noteholder until such amounts have been distributed to such Noteholder pursuant
to such provisions; PROVIDED, that the foregoing shall not restrict the right of
any Noteholder, upon compliance with the provisions hereof from seeking to
compel the performance of the provisions hereof by the parties hereto. Each
Noteholder, by its acceptance of its Note, will be deemed to have further agreed
that withdrawals of funds by the Collateral Agent from the Series 2008-A Spread
Account for application hereunder, shall be made in accordance with the
provisions of the Master Spread Account Agreement.

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         SECTION 5.9 CERTAIN RIGHTS OF THE RESIDUAL CERTIFICATEHOLDERS.On each
Payment Date, the Trustee shall provide or make available electronically (or,
upon written request, send by first class mail or facsimile) to each Residual
Certificateholder the statement or statements provided to the Trustee by the
Servicer pursuant to Section 5.11 hereof on such Payment Date; PROVIDED,
HOWEVER, the Trustee shall have no obligation to provide such information
described in this Section 5.9(a) until it has received the requisite information
from the Servicer.

             (b) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to a Residual Certificateholder, such tax
shall reduce the amount otherwise distributable to such Residual
Certificateholder in accordance with Section 5.7(a). The Trustee is hereby
authorized and directed to retain from amounts otherwise distributable to the
Residual Certificateholders sufficient funds for the payment of any tax that is
legally owed by the Trust (but such authorization shall not prevent the Trustee
from contesting any such tax in appropriate proceedings, and withholding payment
of such tax, if permitted by law, pending the outcome of such proceedings). The
amount of any withholding tax imposed with respect to a Residual
Certificateholder shall be treated as cash distributed to such Residual
Certificateholder at the time it is withheld by the Trust and remitted to the
appropriate taxing authority. If, after consultations with experienced counsel,
the Trustee determines that there is a reasonable likelihood that withholding
tax is payable with respect to a distribution (such as a distribution to a
Non-United States Investor), the Trustee may in its sole discretion withhold
such amounts in accordance with this clause (b). In the event that a Residual
Certificateholder wishes to apply for a refund of any such withholding tax, the
Trustee shall reasonably cooperate with such Residual Certificateholder in
making such claim so long as such Residual Certificateholder agrees to reimburse
the Trustee for any out-of-pocket expenses incurred.

             (c) Distributions required to be made to Residual
Certificateholders on any Payment Date shall be made to each Residual
Certificateholder of record on the preceding Record Date either by wire
transfer, in immediately available funds, to the account of such Residual
Certificateholder at a bank or other entity having appropriate facilities
therefor, if (i) such Residual Certificateholder shall have provided to the
Certificate Registrar appropriate written instructions at least five Business
Days prior to such Payment Date and such Residual Certificateholder's Residual
Pass-through Certificates in the aggregate evidence a denomination of not less
than $1,000,000 or (ii) such Residual Certificateholder is the Seller, or an
Affiliate thereof, or, if not, by check mailed to such Residual
Certificateholder at the address of such holder appearing in the Certificate
Register. Notwithstanding the foregoing, the final distribution in respect of
any Residual Pass-through Certificate will be payable only upon presentation and
surrender of such Residual Pass-through Certificate at the office or agency
maintained for that purpose by the Certificate Registrar pursuant to Section 3.8
of the Trust Agreement.

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         Each Residual Certificateholder, by its acceptance of its Residual
Pass-through Certificate, will be deemed to have consented to the provisions of
Sections 5.7, 5.8 and 5.9 relating to the priority of payments, and will be
further deemed to have acknowledged that no property rights in any amount or the
proceeds of any such amount shall vest in such Residual Certificateholder until
such amounts have been distributed to such Residual Certificateholder pursuant
to such provisions; PROVIDED, that the foregoing shall not restrict the right of
any Residual Certificateholder, upon compliance with the provisions hereof from
seeking to compel the performance of the provisions hereof by the parties
hereto. Each Residual Certificateholder, by its acceptance of its Residual
Pass-through Certificate, will be deemed to have further agreed that withdrawals
of funds by the Collateral Agent from the Series 2008-A Spread Account for
application hereunder, shall be made in accordance with the provisions of the
Master Spread Account Agreement.

         Each Residual Certificateholder, by its acceptance of a Residual
Pass-through Certificate, further specifically acknowledges that it has no right
to or interest in any moneys at any time held pursuant to the Master Spread
Account Agreement prior to the release of such moneys as aforesaid, such moneys
being held in trust for the benefit of the Securityholders and the Note Insurer
as their interests may appear prior to such release. Notwithstanding the
foregoing, in the event that it is ever determined that any property held in the
Series 2008-A Spread Account constitutes a pledge of collateral, then the
provisions of this Agreement and the Master Spread Account Agreement shall be
considered to constitute a security agreement and the Residual
Certificateholders hereby grant to the Collateral Agent a first priority
perfected security interest in such amounts, to be applied as set forth in
Section 3.03(b) of the Master Spread Account Agreement. In addition, each
Residual Certificateholder, by its acceptance of a Residual Pass-through
Certificate, hereby grants a first priority perfected security interest in its
interest in the Series 2008-A Spread Account, if any, and any property held
therein from time to time to the Collateral Agent for the benefit of the Note
Insurer pursuant to the Master Spread Account Agreement and agrees to execute
and deliver such instruments of conveyance, assignment, grant, confirmation,
etc., as well as any financing statements, in each case as the Note Insurer
shall consider reasonably necessary in order to perfect the Collateral Agent's
Security Interest in the Collateral (as such terms are defined in the Master
Spread Account Agreement).

         SECTION 5.10 [RESERVED].

         SECTION 5.11 STATEMENTS TO SECURITYHOLDERS.

             (a) On or prior to each Payment Date, the Servicer shall provide to
the Trustee and the Owner Trustee (with a copy to the Note Insurer and the
Rating Agencies) for the Trustee and the Owner Trustee to forward to each
Securityholder of record (in the case of the Trustee, pursuant to Sections
5.8(b) and 5.9(a) hereof) the statement or statements provided by the Servicer
in substantially the form attached hereto as Exhibit E setting forth at least
the following information as to the Notes and the Residual Pass-through
Certificates to the extent applicable:

                  (i) the amount of such distribution allocable to principal of
         each Class of Notes and the Residual Certificate Principal
         Distributable Amount;

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                  (ii) the amount of such distribution allocable to interest on
         or with respect to each Class of Notes and Residual Certificate
         Interest Distributable Amount;

                  (iii) the Pool Balance as of the close of business on the last
         day of the related Collection Period;

                  (iv) the Note Balance for each Class of Notes after giving
         effect to payments allocated to principal reported under clause (i)
         above and the Residual Certificate Notional Balance after giving effect
         to the Residual Certificate Principal Distributable Amount reported
         under clause (i) above;

                  (v) the amount of the Servicing Fee paid to the Servicer with
         respect to the related Collection Period, and the amount of any unpaid
         Servicing Fees and the change in such amount from the prior Payment
         Date;

                  (vi) the amount of the Backup Servicing Fee, the Trustee Fees
         and the Cayman Trustee Fees paid to the Backup Servicer, the Trustee,
         the Owner Trustee and the Cayman Trust, as applicable, and the
         Supplemental Residual Certificate Distribution, if any, in each case
         with respect to the related Collection Period, and the amount of any
         unpaid Backup Servicing Fees, Trustee Fees and Cayman Trustee Fees and
         the amount of any unpaid Supplemental Residual Certificate
         Distributions and the change in all such amounts from the prior Payment
         Date;

                  (vii) the Noteholders' Interest Carryover Shortfall for each
         Class of Notes and the Residual Certificate Interest Carryover
         Shortfall for such Payment Date;

                  (viii) the amount, if any, paid to the Noteholders under the
         Note Policy or from the Series 2008-A Spread Account for such Payment
         Date;

                  (ix) the amount distributable to the Note Insurer on such
         Payment Date;

                  (x) the aggregate amount in the Series 2008-A Spread Account
         and the change in such amount from the previous Payment Date and the
         Specified Spread Account Requisite Amount for such Payment Date;

                  (xi) the number of Receivables and the aggregate gross amount
         scheduled to be paid thereon, including unearned finance and other
         charges, for which the related Obligors are delinquent in making
         Scheduled Receivable Payments for (a) 31 to 60 days, (b) 61 to 90 days,
         and (c) 91 days or more;

                  (xii) the number and the aggregate Purchase Amounts for
         Receivables purchased by CPS or purchased by the Servicer during the
         related Collection Period and summary information as to losses and
         delinquencies with respect to such Receivables;

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                  (xiii) the Principal Balance of all Receivables that have
         become Liquidated Receivables, net of Recoveries, during the related
         Collection Period;

                  (xiv) the cumulative Principal Balance of all Receivables that
         have become Liquidated Receivables, net of Recoveries, during the
         period from the Cutoff Date to the last day of the related Collection
         Period;

                  (xv) the amount, if any, paid by the Note Insurer to the
         Trustee for deposit into the Collection Account pursuant to Section
         5.12;

                  (xvi) the amount of any Texas Franchise Tax due and owing by
         CPS under the Receivables Purchase Agreement to the taxing authority of
         the State of Texas on or prior to the related Payment Date or paid by
         CPS since the prior Payment Date; and

                  (xvii) the Three-Month Rolling Average Extension Ratio, the
         Cumulative Net Loss Rate, the Delinquency Ratio and the Three-Month
         Rolling Average Delinquency Ratio.

             (b) Within 60 days after the end of each calendar year, the
Servicer shall deliver to the Trustee a statement setting forth the amounts paid
during such preceding calendar year in respect of paragraphs (i), (ii), (v) and
(vi) above. The Trustee shall mail a copy of such statement to each person who
at any time during such preceding calendar year shall have been a Securityholder
of record and received any payment in respect of the Securities.

             (c) The Trustee may make available to the Securityholders, via the
Trustee's Internet Website, all statements described herein and, with the
consent or at the direction of the Seller, such other information regarding the
Notes and/or the Receivables as the Trustee may have in its possession, but only
with the use of a password provided by the Trustee. The Trustee will make no
representation or warranties as to the accuracy or completeness of such
documents and will assume no responsibility therefor.

             The Trustee's Internet Website shall be initially located at
"www.CTSLink.com" or at such other address as shall be specified by the Trustee
from time to time in writing to the Securityholders. In connection with
providing access to the Trustee's Internet Website, the Trustee may require
registration and the acceptance of a disclaimer. The Trustee shall not be liable
for the dissemination of information in accordance with this Agreement.

         SECTION 5.12 OPTIONAL DEPOSITS BY THE NOTE INSURER; NOTICE OF WAIVERS.

             (a) The Note Insurer shall at any time, and from time to time, with
respect to a Payment Date, have the option (but shall not be required, except as
provided in Section 6.1(a)) to deliver amounts to the Trustee for deposit into
the Collection Account for any of the following purposes: (i) to provide funds
in respect of the payment of fees or expenses of any provider of services to the
Trust with respect to such Payment Date, or (ii) to include such amount as part
of the Total Distribution Amount for such Payment Date, in each case only to the
extent that without such amount a draw would be required to be made on the Note
Policy.

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             (b) If the Note Insurer waives the satisfaction of any of the
events that might trigger an Insurance Agreement Event of Default and so
notifies the Trustee in writing pursuant to Section 5.02(d) of the Insurance
Agreement, the Trustee shall notify Moody's and S&P of such waiver.

                                   ARTICLE VI
                                   ----------

                                 THE NOTE POLICY

         SECTION 6.1 CLAIMS UNDER NOTE POLICY.

             (a) In the event that the Trustee has delivered a Deficiency Notice
with respect to any Determination Date pursuant to Section 5.5 hereof, the
Trustee shall on the related Draw Date determine whether the application of
funds in accordance with Section 5.7, together with any amounts deposited by the
Note Insurer pursuant to Section 5.12 and the application of any Deficiency
Claim Amount pursuant to Section 5.5 would result in a shortfall in amounts
distributable pursuant to Sections 5.7(a)(v) and 5.7(a)(vii) on any Payment
Date; provided, however, in calculating such shortfall, any portion of the
Noteholders' Interest Distributable Amount due to the Noteholders representing
interest on any Noteholders' Interest Carryover Shortfall accrued from and
including the date of payment of the amount of such Noteholders' Interest
Carryover Shortfall shall be excluded from such shortfall; provided, further, in
calculating such shortfall, the amount distributable pursuant to Section
5.7(a)(vii) shall equal the Noteholders' Parity Deficit Amount, or, if such
Payment Date is the Final Scheduled Payment for any Class of Notes, the greater
of (i) the Noteholders' Parity Deficit Amount and (ii) the unpaid Note Balance
of such Class of Notes (any such shortfall, a "Note Policy Claim Amount"). If
the Note Policy Claim Amount for such Payment Date is greater than zero, the
Trustee shall furnish to the Note Insurer no later than 12:00 noon New York City
time on the related Draw Date a completed Notice of Claim (as defined in clause
(b) below) in the amount of the Note Policy Claim Amount. Amounts paid by the
Note Insurer pursuant to a claim submitted under this Section 6.1 shall be
deposited by the Trustee into the Note Distribution Account for payment to
Noteholders on the related Payment Date.

             (b) Any notice delivered by the Trustee to the Note Insurer
pursuant to Section 6.1(a) shall specify the Note Policy Claim Amount claimed
under the Note Policy and shall constitute a "Notice of Claim" (as defined in
the Note Policy). In accordance with the provisions of the Note Policy, the Note
Insurer is required to pay to the Trustee the Note Policy Claim Amount properly
claimed thereunder by 12:00 noon, New York City time, on the later of (i) the
third Business Day (as defined in the Note Policy) following receipt on a
Business Day of the Notice of Claim, and (ii) the applicable Payment Date. Any
payment made under the Note Policy by the Note Insurer shall be applied solely
to the payment of the Notes, and for no other purpose.

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<PAGE>

             (c) The Trustee shall (i) receive as attorney-in-fact of each
Noteholder any Note Policy Claim Amount from the Note Insurer and (ii) deposit
the same in the Note Distribution Account for distribution to Noteholders. Any
and all Note Policy Claim Amounts disbursed by the Trustee from claims made
under the Note Policy shall not be considered payment by the Trust or from the
Series 2008-A Spread Account with respect to such Notes, and shall not discharge
the obligations of the Trust with respect thereto. The Note Insurer shall, to
the extent it makes any payment with respect to the Notes, become subrogated to
the rights of the recipients of such payments to the extent of such payments.
Subject to and conditioned upon any payment with respect to the Notes by or on
behalf of the Note Insurer, the Trustee and the Noteholders shall assign to the
Note Insurer all rights to the payment of interest or principal with respect to
the Notes which are then due for payment to the extent of all payments made by
the Note Insurer, and the Note Insurer may exercise any option, vote, right,
power or the like with respect to the Notes to the extent that it has made
payment pursuant to the Note Policy. To evidence such subrogation, the Note
Registrar shall note the Note Insurer's rights as subrogee upon the register of
Noteholders upon receipt from the Note Insurer of proof of payment by the Note
Insurer of any Noteholders' Interest Distributable Amount, Noteholders' Parity
Deficit Amount or Noteholders' Principal Distributable Amount. The foregoing
subrogation shall in all cases be subject to the rights of the Noteholders to
receive all Scheduled Payments (as defined in the Note Policy).

             (d) The Trustee shall keep a complete and accurate record of all
funds deposited by the Note Insurer into the Note Distribution Account and the
allocation of such funds to payment of interest on and principal paid in respect
of any Note. The Note Insurer shall have the right to inspect such records at
reasonable times upon one Business Day's prior notice to the Trustee.

             (e) The Trustee shall be entitled to enforce on behalf of the
Noteholders the obligations of the Note Insurer under the Note Policy.
Notwithstanding any other provision of this Agreement or any Basic Documents,
the Noteholders are not entitled to make any claims under the Note Policy or
institute proceedings directly against the Note Insurer.

         SECTION 6.2 PREFERENCE CLAIMS.

             (a) In the event that the Trustee has received a certified copy of
an order of the appropriate court that any Scheduled Payment (as defined in the
Note Policy) paid on a Note has been avoided in whole or in part as a preference
payment under applicable bankruptcy law, the Trustee shall so notify the Note
Insurer, shall comply with the provisions of the Note Policy to obtain payment
by the Note Insurer of such avoided payment, and shall, at the time it provides
notice to the Note Insurer, notify Holders of the Notes by mail that, in the
event that any Noteholder's payment is so recoverable, such Noteholder will be
entitled to payment pursuant to the terms of the Note Policy. The Trustee shall
furnish to the Note Insurer its records evidencing the payments of principal of
and interest on Notes, if any, which have been made by the Trustee and
subsequently recovered from Noteholders, and the dates on which such payments
were made. Pursuant to the terms of the Note Policy, the Note Insurer will make
such payment on behalf of the Noteholder to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Final Order (as
defined in the Note Policy) and not to the Trustee or any Noteholder directly
(unless a Noteholder has previously paid such payment to the receiver,
conservator, debtor-in-possession or trustee in bankruptcy, in which case the
Note Insurer will make such payment to the Trustee for distribution to such
Noteholder upon proof of such payment reasonably satisfactory to the Note
Insurer).

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<PAGE>

             (b) The Trustee shall promptly notify the Note Insurer of any
proceeding or the institution of any action (of which the Trustee has actual
knowledge) seeking the avoidance as a preferential transfer under applicable
bankruptcy, insolvency, receivership, rehabilitation or similar law (a
"Preference Claim") of any distribution made with respect to the Notes. Each
Holder, by its purchase of Notes, and the Trustee hereby agrees that so long as
an Insurer Default shall not have occurred and be continuing, the Note Insurer
may at any time during the continuation of any proceeding relating to a
Preference Claim direct all matters relating to such Preference Claim including,
without limitation, (i) the direction of any appeal of any order relating to any
Preference Claim and (ii) the posting of any surety, supersedeas or performance
bond pending any such appeal at the expense of the Note Insurer, but subject to
reimbursement as provided in the Insurance Agreement. In addition, and without
limitation of the foregoing, as set forth in Section 6.1(c), the Note Insurer
shall be subrogated to, and each Noteholder and the Trustee hereby delegate and
assign, to the fullest extent permitted by law, the rights of the trustee and
each Noteholder in the conduct of any proceeding with respect to a Preference
Claim, including, without limitation, all rights of any party to an adversary
proceeding action with respect to any court order issued in connection with any
such Preference Claim.

         SECTION 6.3 SURRENDER OF NOTE POLICY. The Trustee shall surrender the
Note Policy to the Note Insurer for cancellation upon the expiration of such
policy in accordance with the terms thereof.

                                  ARTICLE VII
                                  -----------

                                   [RESERVED]

                                  ARTICLE VIII
                                  ------------

                                   THE SELLER

         SECTION 8.1 REPRESENTATIONS OF THE SELLER. The Seller makes the
following representations for the benefit of the Securityholders and on which
the Note Insurer shall be deemed to have relied in executing and delivering the
Note Policy, on which the Issuer is deemed to have relied in acquiring the
Receivables and on which the Trustee is deemed to have relied in executing and
performing pursuant to this Agreement, the Indenture and the other Basic
Documents to which it is a party. The representations speak as of the execution
and delivery of this Agreement, as of the Closing Date and shall survive the
sale of the Receivables to the Issuer and the pledge thereof to the Trustee
pursuant to the Indenture and the issuance of the Notes and the Residual
Pass-through Certificates.

                                       67
<PAGE>

             (a) ORGANIZATION AND GOOD STANDING. The Seller has been duly formed
and is validly existing as a limited liability company solely under the laws of
the State of Delaware and is in good standing under the laws of the State of
Delaware, with power and authority to own its properties and to conduct its
business as such properties are currently owned and such business is currently
conducted, and had at all relevant times, and now has, power, authority and
legal right to acquire, own and sell the Receivables and the Other Conveyed
Property transferred to the Trust.

             (b) DUE QUALIFICATION. The Seller is duly qualified to do business
as a foreign limited liability company in good standing, and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or
lease of property or the conduct of its business or the consummation of the
transactions contemplated by the Basic Documents shall require such
qualifications.

             (c) POWER AND AUTHORITY. The Seller has the power and authority to
execute and deliver this Agreement and the Basic Documents to which it is a
party and to carry out its terms and their terms, respectively; the Seller has
full power and authority to sell and assign the Receivables and the Other
Conveyed Property to be sold and assigned to and deposited with the Trust by it
and has duly authorized such sale and assignment to the Trust by all necessary
corporate action; and the execution, delivery and performance of this Agreement
and the Basic Documents to which the Seller is a party have been duly authorized
by the Seller by all necessary corporate action.

             (d) VALID SALE, BINDING OBLIGATIONS. This Agreement effects a valid
sale, transfer and assignment of the Receivables and the Other Conveyed
Property, enforceable against the Seller and creditors of and purchasers from
the Seller; and this Agreement and the Basic Documents to which the Seller is a
party, when duly executed and delivered, shall constitute legal, valid and
binding obligations of the Seller enforceable in accordance with their
respective terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors' rights generally and by equitable limitations on the availability of
specific remedies, regardless of whether such enforceability is considered in a
proceeding in equity or at law.

             (e) NO VIOLATION. The consummation of the transactions contemplated
by this Agreement and the Basic Documents and the fulfillment of the terms of
this Agreement and the Basic Documents shall not conflict with, result in any
breach of any of the terms and provisions of or constitute (with or without
notice, lapse of time or both) a default under the certificate of formation or
the limited liability company agreement of the Seller, or any indenture,
agreement, mortgage, deed of trust or other instrument to which the Seller is a
party or by which it is bound, or result in the creation or imposition of any
Lien upon any of its properties pursuant to the terms of any such indenture,
agreement, mortgage, deed of trust or other instrument, other than the Basic
Documents, or violate any law, order, rule or regulation applicable to the
Seller of any court or of any Federal or State regulatory body, administrative
agency or other governmental instrumentality having jurisdiction over the Seller
or any of its properties.

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<PAGE>

             (f) NO PROCEEDINGS. There are no proceedings or investigations
pending or, to the Seller's knowledge, threatened against the Seller, before any
court, regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over the Seller or its properties (A)
asserting the invalidity of this Agreement, the Securities or any of the Basic
Documents, (B) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement or any of
the Basic Documents, (C) seeking any determination or ruling that might
materially and adversely affect the performance by the Seller of its obligations
under, or the validity or enforceability of, this Agreement or any of the Basic
Documents, or (D) relating to the Seller and which might adversely affect the
Federal or State income, excise, franchise or similar tax attributes of the
Securities.

             (g) NO CONSENTS. No consent, approval, authorization or order of or
declaration or filing with any governmental authority is required for the
issuance or sale of the Securities or the consummation of the other transactions
contemplated by this Agreement, except such as have been duly made or obtained.

             (h) FINANCIAL CONDITION. The Seller has a positive net worth and is
able to and does pay its liabilities as they mature. The Seller is not in
default under any obligation to pay money to any Person except for matters being
disputed in good faith which do not involve an obligation of the Seller on a
promissory note. The Seller will not use the proceeds from the transactions
contemplated by the Basic Documents to give any preference to any creditor or
class of creditors, and such transaction will not leave the Seller with
remaining assets which are unreasonably small compared to its ongoing
operations.

             (i) FRAUDULENT CONVEYANCE. The Seller is not selling the
Receivables to the Trust with any intent to hinder, delay or defraud any of its
creditors; the Seller will not be rendered insolvent as a result of the sale of
the Receivables to the Trust.

             (j) TAX RETURNS. The Seller has filed on a timely basis all tax
returns which are required to be filed by it and paid all taxes, including any
assessments received by it, to the extent that such taxes have become due (other
than taxes, the amount or validity of which are currently being contested in
good faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided by the books of the Seller).

             (k) CERTIFICATES, STATEMENTS AND REPORTS. The officer's
certificates, statements, reports and other documents prepared by Seller and
furnished by Seller to the Note Insurer or the Trustee pursuant to this
Agreement or any other Basic Document to which it is a party, and in connection
with the transactions contemplated hereby or thereby, when taken as a whole, do
not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements contained herein or therein not
misleading.

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<PAGE>

             (l) LEGAL COUNSEL, ETC. Seller consulted with its own legal counsel
and independent accountants to the extent it deems necessary regarding the tax,
accounting and regulatory consequences of the transactions contemplated hereby,
Seller is not participating in such transactions in reliance on any
representations of any other party, their affiliates, or their counsel with
respect to tax, accounting and regulatory matters.

             (m) CHIEF EXECUTIVE OFFICE. The chief executive office of the
Seller is at 16355 Laguna Canyon, Irvine, CA 92618 and its organizational number
is 4459429.

             (n) SEPARATENESS COVENANTS. The Seller is in compliance in all
material respects with Section 9(b) of its limited liability company agreement
relating to the separateness of the Seller from any other Person.

         SECTION 8.2 SALE TREATMENT. The Seller agrees to treat the conveyances
hereunder as secured financings for tax and accounting purposes and as a sale
for all other purposes (including without limitation legal and bankruptcy
purposes), on all relevant books, records, tax returns, financial statements and
other applicable documents.

         SECTION 8.3 CHANGES TO SELLER'S CONTRACT PURCHASE GUIDELINES. The
Seller covenants that it will not make any material changes to the Seller's
Contract Purchase Guidelines, or its classification of Obligors within such
programs during the Funding Period unless (i) the Controlling Party expressly
consents in writing to such changes and (ii) after giving effect to any such
changes, the Rating Agency Condition is satisfied.

         SECTION 8.4 LIABILITY OF SELLER; INDEMNITIES. The Seller shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement.

             (a) The Seller shall indemnify, defend and hold harmless the
Issuer, the Owner Trustee, the Note Insurer, the Securityholders, the Backup
Servicer and the Trustee from and against any taxes that may at any time be
asserted against any such Person with respect to the transactions contemplated
in this Agreement and any of the Basic Documents (except any income taxes
arising out of fees paid to the Owner Trustee, the Trustee, the Backup Servicer
and the Note Insurer and except any taxes to which the Owner Trustee, or the
Trustee may otherwise be subject), including without limitation any sales, gross
receipts, general corporation, tangible personal property, privilege or license
taxes (but, in the case of the Issuer and the Securityholders, not including any
taxes asserted with respect to federal or other income taxes arising out of
distributions on the Notes and the Residual Pass-through Certificates) and costs
and expenses in defending against the same.

             (b) The Seller shall indemnify, defend and hold harmless the
Issuer, the Owner Trustee, the Trustee, the Note Insurer and the Securityholders
from and against any loss, liability or expense incurred by reason of (i) the
Seller's willful misfeasance, bad faith or negligence in the performance of its
duties under this Agreement, or by reason of reckless disregard of its
obligations and duties under this Agreement and (ii) the Seller's or the
Issuer's violation of Federal or State securities laws in connection with the
offering and sale of the Notes or the Residual Pass-through Certificates.

                                       70
<PAGE>

             (c) The Seller shall indemnify, defend and hold harmless the Owner
Trustee, the Trustee, and the Backup Servicer and its officers, directors,
employees and agents from and against any and all costs, expenses, losses,
claims, damages and liabilities arising out of, or incurred in connection with
the acceptance or performance of the trusts and duties set forth herein and in
the Basic Documents except to the extent that such cost, expense, loss, claim,
damage or liability shall be due to the willful misfeasance, bad faith or
negligence (except for errors in judgment) of the Owner Trustee.

         Indemnification under this Section shall survive the resignation or
removal of the Owner Trustee or the Trustee and the termination of this
Agreement or the Indenture or the Trust Agreement, as applicable, and shall
include reasonable fees and expenses of counsel and other expenses of
litigation. If the Seller shall have made any indemnity payments pursuant to
this Section and the Person to or on behalf of whom such payments are made
thereafter shall collect any of such amounts from others, such Person shall
promptly repay such amounts to the Seller, without interest.

         SECTION 8.5 MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF, SELLER. Any Person (a) into which the Seller may be merged or
consolidated, (b) which may result from any merger or consolidation to which the
Seller shall be a party or (c) which may succeed to the properties and assets of
the Seller substantially as a whole, which Person in any of the foregoing cases
executes an agreement of assumption to perform every obligation of the Seller
under this Agreement, shall be the successor to the Seller hereunder without the
execution or filing of any document or any further act by any of the parties to
this Agreement; provided, however, that (i) the Seller shall have received the
written consent of the Note Insurer prior to entering into any such transaction,
(ii) immediately after giving effect to such transaction, no representation or
warranty made pursuant to Section 3.1 shall have been breached and no Servicer
Termination Event, and no event which, after notice or lapse of time, or both,
would become a Servicer Termination Event shall have occurred and be continuing,
(iii) the Seller shall have delivered to the Owner Trustee, the Trustee and the
Note Insurer an Officers' Certificate and an Opinion of Counsel each stating
that such consolidation, merger or succession and such agreement of assumption
comply with this Section and that all conditions precedent, if any, provided for
in this Agreement relating to such transaction have been complied with, (iv) the
Rating Agency Condition shall have been satisfied with respect to such
transaction and (v) the Seller shall have delivered to the Owner Trustee, the
Trustee and the Note Insurer an Opinion of Counsel stating that, in the opinion
of such counsel, either (A) all financing statements and continuation statements
and amendments thereto have been authorized and filed that are necessary fully
to preserve and protect the interest of the Owner Trustee and the Trustee,
respectively, in the Receivables and the Other Conveyed Property and reciting
the details of such filings or (B) no such action shall be necessary to preserve
and protect such interest. Notwithstanding anything herein to the contrary, the
execution of the foregoing agreement of assumption and compliance with clauses
(i), (ii), (iii), (iv) and (v) above shall be conditions to the consummation of
the transactions referred to in clauses (a), (b) or (c) above.

                                       71
<PAGE>

         SECTION 8.6 LIMITATION ON LIABILITY OF SELLER AND OTHERS. The Seller
and any director or officer or employee or agent of the Seller may rely in good
faith on the advice of counsel or on any document of any kind, prima facie
properly executed and submitted by any Person respecting any matters arising
under any Basic Document. The Seller shall not be under any obligation to appear
in, prosecute or defend any legal action that shall not be incidental to its
obligations under this Agreement, and that in its opinion may involve it in any
expense or liability.

         SECTION 8.7 SELLER MAY OWN RESIDUAL PASS-THROUGH CERTIFICATES OR NOTES.
The Seller and any Affiliate thereof may in its individual or any other capacity
become the owner or pledgee of Securities with the same rights as it would have
if it were not the Seller or an Affiliate thereof, except as expressly provided
herein or in any Basic Document. Securities so owned by the Seller or such
Affiliate shall have an equal and proportionate benefit under the provisions of
the Basic Documents, without preference, priority or distinction as among all of
the Securities; provided, however, that any Notes owned by the Seller or any
Affiliate thereof (other than the Cayman Trust), during the time such Securities
are so owned by them, shall be without voting rights for any purpose set forth
in the Basic Documents and such Securities shall not be entitled to the benefits
of the Note Policy. The Seller shall notify the Owner Trustee, the Trustee and
the Note Insurer promptly after it or any of its Affiliates become the owner of
a Security.

                                   ARTICLE IX
                                   ----------

                                  THE SERVICER

         SECTION 9.1 REPRESENTATIONS OF SERVICER. The Servicer makes the
following representations for the benefit of the Securityholders and on which
the Note Insurer shall be deemed to have relied in executing and delivering the
Note Policy, on which the Issuer is deemed to have relied in acquiring the
Receivables and on which the Trustee is deemed to have relied in executing and
performing pursuant to this Agreement, the Indenture and the other Basic
Documents to which it is a party. The representations speak as of the execution
and delivery of this Agreement and as of the Closing Date and shall survive the
sale of the Receivables to the Issuer and the pledge thereof to the Trustee
pursuant to the Indenture.

             (a) ORGANIZATION AND GOOD STANDING. The Servicer has been duly
incorporated and is validly existing as a corporation solely under the laws of
the State of California, in good standing thereunder, with power, authority and
legal right 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 service the Receivables.

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<PAGE>

             (b) DUE QUALIFICATION. The Servicer is duly qualified to do
business as a foreign corporation in good standing and has obtained all
necessary licenses and approvals, in all jurisdictions in which the ownership or
lease of property or the conduct of its business (including the servicing of the
Receivables as required by this Agreement) or the consummation of the
transactions contemplated by the Basic Documents requires or shall require such
qualification.

             (c) POWER AND AUTHORITY. The Servicer has the power and authority
to execute and deliver this Agreement and the Basic Documents to which it is a
party and to carry out its terms and their terms, respectively, and the
execution, delivery and performance of this Agreement and the Basic Documents to
which it is a party have been duly authorized by the Servicer by all necessary
corporate action.

             (d) BINDING OBLIGATION. This Agreement and the Basic Documents to
which the Servicer is a party shall constitute legal, valid and binding
obligations of the Servicer enforceable in accordance with their respective
terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, or other similar laws affecting the enforcement of creditors'
rights generally and by equitable limitations on the availability of specific
remedies, regardless of whether such enforceability is considered in a
proceeding in equity or at law.

             (e) NO VIOLATION. The consummation of the transactions contemplated
by this Agreement and the Basic Documents to which to the Servicer is a party,
and the fulfillment of the terms of this Agreement and the Basic Documents to
which the Servicer is a party, shall not conflict with, result in any breach of
any of the terms and provisions of, or constitute (with or without notice or
lapse of time) a default under, the articles of incorporation or bylaws of the
Servicer, or any indenture, agreement, mortgage, deed of trust or other
instrument to which the Servicer is a party or by which it is bound or any of
its properties are subject, or result in the creation or imposition of any Lien
upon any of its properties pursuant to the terms of any such indenture,
agreement, mortgage, deed of trust or other instrument, other than the Basic
Documents, or violate any law, order, rule or regulation applicable to the
Servicer of any court or of any Federal or State regulatory body, administrative
agency or other governmental instrumentality having jurisdiction over the
Servicer or any of its properties.

             (f) NO PROCEEDINGS. There are no proceedings or investigations
pending or, to the Servicer's knowledge, threatened against the Servicer, before
any court, regulatory body, administrative agency or other tribunal or
governmental instrumentality having jurisdiction over the Servicer or its
properties (A) asserting the invalidity of this Agreement or any of the Basic
Documents, (B) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement or any of
the Basic Documents, or (C) except for the Pending Litigation, seeking any
determination or ruling that might materially and adversely affect the
performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement, the Securities or any of the Basic Documents
or (D) relating to the Servicer and which might adversely affect the Federal or
State income, excise, franchise or similar tax attributes of the Securities.

                                       73
<PAGE>

             (g) NO CONSENTS. No consent, approval, authorization or order of or
declaration or filing with any governmental authority is required for the
issuance or sale of the Securities or the consummation of the other transactions
contemplated by this Agreement, except such as have been duly made or obtained.

             (h) TAXES. The Servicer has filed on a timely basis all tax returns
which are required to be filed by it and paid all taxes, including any
assessments received by it, to the extent that such taxes have become due (other
than taxes, the amount or validity of which are currently being contested in
good faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided on the books of the Servicer).

             (i) CHIEF EXECUTIVE OFFICE. The Servicer hereby represents and
warrants to the Trustee that the Servicer's principal place of business and
chief executive office is, and for the four months preceding the date of this
Agreement has been, located at: 16355 Laguna Canyon, Irvine, CA 92618.

         SECTION 9.2 LIABILITY OF SERVICER; INDEMNITIES.

             (a) The Servicer (in its capacity as such) shall be liable
hereunder only to the extent of the obligations in this Agreement specifically
undertaken by the Servicer and the representations made by the Servicer.

                  (i) The Servicer shall indemnify, defend and hold harmless the
         Trust, the Trustee, the Owner Trustee, the Backup Servicer, the
         Collateral Agent, the Note Insurer, and the Securityholders from and
         against any and all costs, expenses, losses, damages, claims and
         liabilities, arising out of or resulting from the use, ownership,
         repossession or operation by the Servicer or any Affiliate or agent or
         sub-contractor thereof of any Financed Vehicle;

                  (ii) The Servicer (unless the Backup Servicer is the Servicer)
         shall indemnify, defend and hold harmless the Trust, the Trustee, the
         Owner Trustee, the Backup Servicer, the Collateral Agent, the Note
         Insurer, and the Securityholders from and against any taxes that may at
         any time be asserted against any of such parties with respect to the
         transactions contemplated in this Agreement, including, without
         limitation, any sales, gross receipts, general corporation, tangible
         personal property, privilege or license taxes (but not including
         federal or other income taxes, including franchise taxes (other than
         Texas Franchise Tax, if CPS is the Servicer) asserted with respect to,
         and as of the date of, the sale of the Receivables and the Other
         Conveyed Property to the Trust or the issuance and original sale of the
         Securities and, in the case of the Issuer and the Securityholders, not
         including any taxes asserted with respect to federal or other income
         taxes arising out of distributions on the Notes and Residual
         Pass-through Certificates) and costs and expenses in defending against
         the same;

                                       74
<PAGE>

                  (iii) The Servicer shall indemnify, defend and hold harmless
         the Trust, the Trustee, the Owner Trustee, the Backup Servicer, the
         Collateral Agent, the Note Insurer, each Placement Agent, their
         respective officers, directors, agents and employees and the
         Securityholders from and against any and all costs, expenses, losses,
         claims, damages, and liabilities to the extent that such cost, expense,
         loss, claim, damage, or liability arose out of, or was imposed upon the
         Trust, the Trustee, the Owner Trustee, the Backup Servicer, the Note
         Insurer, each Placement Agent or the Securityholders or such officers,
         directors, agents or employees through the negligence, willful
         misfeasance or bad faith of the Servicer in the performance of its
         duties under this Agreement, by reason of reckless disregard of its
         obligations and duties under this Agreement or as a result of a breach
         of any representation or warranty made by the Servicer in this
         Agreement (without regard to any exception relating to the Pending
         Litigation).

                  (iv) The Servicer shall indemnify, defend, and hold harmless
         the Trustee, the Owner Trustee, the Backup Servicer and the Collateral
         Agent from and against all costs, expenses, losses, claims, damages,
         and liabilities arising out of or incurred in connection with the
         acceptance or performance of the trusts and duties herein contained or
         in the Trust Agreement, if any, except to the extent that such cost,
         expense, loss, claim, damage or liability: (A) shall be due to the
         willful misfeasance, bad faith, or negligence (except for errors in
         judgment) of the Trustee, the Owner Trustee, the Backup Servicer or the
         Collateral Agent, as applicable or (B) relates to any tax other than
         the taxes with respect to which the Servicer shall be required to
         indemnify the Trustee, the Owner Trustee, the Backup Servicer or the
         Collateral Agent.

                  (v) CPS shall indemnify, defend and hold harmless the Trust,
         the Trustee, the Owner Trustee, the Backup Servicer, the Collateral
         Agent, the Note Insurer and the Securityholders against any and all
         costs, expenses, losses, damages, claims and liabilities arising out of
         or resulting from CPS's involvement in, or the effect on any Receivable
         as a result of, the Pending Litigation.

             (b) Notwithstanding the foregoing, the Servicer shall not be
obligated to defend, indemnify, and hold harmless any Noteholders for any
losses, claims, damages or liabilities incurred by any Securityholders arising
out of claims, complaints, actions and allegations relating to Section 406 of
ERISA or Section 4975 of the Code as a result of the purchase or holding of a
Security by such Noteholder with the assets of a plan subject to such provisions
of ERISA or the Code or the servicing, management and operation of the Trust.

             (c) For purposes of this Section 9.2, in the event of the
termination of the rights and obligations of the Servicer (or any successor
thereto pursuant to Section 9.3) as Servicer pursuant to Section 10.1, or a
resignation by such Servicer pursuant to this Agreement, such Servicer shall be
deemed to be the Servicer pending appointment of a successor Servicer pursuant
to Section 10.2. The provisions of this Section 9.2(c) shall in no way affect
the survival pursuant to Section 9.2(d) of the indemnification by the Servicer
provided by Section 9.2(a).

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             (d) Indemnification under this Section 9.2 shall survive the
termination of this Agreement and any resignation or removal of CPS as Servicer
and shall include reasonable fees and expenses of counsel and expenses of
litigation. If the Servicer shall have made any indemnity payments pursuant to
this Section and the recipient thereafter collects any of such amounts from
others, the recipient shall promptly repay such amounts to the Servicer, without
interest.

         SECTION 9.3 MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF, THE SERVICER OR BACKUP Servicer.

             (a) CPS shall not merge or consolidate with any other person,
convey, transfer or lease substantially all its assets as an entirety to another
Person, or permit any other Person to become the successor to CPS's business
unless, after the merger, consolidation, conveyance, transfer, lease or
succession, the successor or surviving entity shall be capable of fulfilling the
duties of CPS contained in this Agreement. Any corporation (i) into which CPS
may be merged or consolidated, (ii) resulting from any merger or consolidation
in which CPS shall be a constituent corporation, (iii) which acquires by
conveyance, transfer, or lease substantially all of the assets of CPS, or (iv)
succeeding to the business of CPS, in any of the foregoing cases shall execute
an agreement of assumption to perform every obligation of CPS under this
Agreement and, whether or not such assumption agreement is executed, shall be
the successor to CPS under this Agreement without the execution or filing of any
paper or any further act on the part of any of the parties to this Agreement,
anything in this Agreement to the contrary notwithstanding; provided, however,
that nothing contained herein shall be deemed to release CPS from any
obligation. CPS shall provide notice of any merger, consolidation or succession
pursuant to this Section to the Owner Trustee, the Trustee, the Securityholders,
the Note Insurer and each Rating Agency. Notwithstanding the foregoing, CPS
shall not merge or consolidate with any other Person or permit any other Person
to become a successor to CPS's business, unless (x) immediately after giving
effect to such transaction, no representation, warranty or covenant made
pursuant to Sections 9.1 or 4.6 shall have been breached (for purposes hereof,
such representations and warranties shall be deemed made as of the date of the
consummation of such transaction) and no event that, after notice or lapse of
time, or both, would become an Insurance Agreement Event of Default shall have
occurred and be continuing, (y) CPS shall have delivered to the Owner Trustee,
the Trustee, the Rating Agencies and the Note Insurer an Officer's Certificate
and an Opinion of Counsel each stating that such consolidation, merger or
succession and such agreement of assumption comply with this Section and that
all conditions precedent, if any, provided for in this Agreement relating to
such transaction have been complied with, and (z) CPS shall have delivered to
the Owner Trustee, the Trustee, the Rating Agencies and the Note Insurer an
Opinion of Counsel, stating in the opinion of such counsel, either (A) all
financing statements and continuation statements and amendments thereto have
been authorized and filed that are necessary to preserve and protect the
interest of the Owner Trustee and the Trustee, respectively, in the Receivables
and the Other Conveyed Property and reciting the details of the filings or (B)
no such action shall be necessary to preserve and protect such interest.

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             (b) Any corporation (i) into which the Backup Servicer may be
merged or consolidated, (ii) resulting from any merger or consolidation in which
the Backup Servicer shall be a constituent corporation, (iii) which acquires by
conveyance, transfer or lease substantially all of the assets of the Backup
Servicer, or (iv) succeeding to the business of the Backup Servicer, in any of
the foregoing cases shall execute an agreement of assumption to perform every
obligation of the Backup Servicer under this Agreement and, whether or not such
assumption agreement is executed, shall be the successor to the Backup Servicer
under this Agreement without the execution or filing of any paper or any further
act on the part of any of the parties to this Agreement, anything in this
Agreement to the contrary notwithstanding; provided, however, that nothing
contained herein shall be deemed to release the Backup Servicer from any
obligation.

         SECTION 9.4 LIMITATION ON LIABILITY OF SERVICER, BACKUP SERVICER AND
OTHERS. Neither the Servicer, the Backup Servicer nor any of the directors or
officers or employees or agents of the Servicer or Backup Servicer shall be
under any liability to the Trust or the Securityholders, except as provided in
this Agreement, for any action taken or for refraining from the taking of any
action pursuant to this Agreement; provided, however, that this provision shall
not protect the Servicer, the Backup Servicer or any such person against any
liability that would otherwise be imposed by reason of a breach of this
Agreement or willful misfeasance, bad faith or negligence in the performance of
duties. CPS, the Backup Servicer and any director, officer, employee or agent of
CPS or the Backup Servicer may rely in good faith on the written advice of
counsel or on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising under this Agreement. In
addition, the Backup Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action that shall not be incidental to its
obligations under this Agreement, and that in its opinion may involve it in any
expense or liability.

         SECTION 9.5 DELEGATION OF DUTIES. The Servicer may at any time delegate
duties under this Agreement to sub-contractors who are in the business of
servicing automotive receivables with the prior written consent of the
Controlling Party as determined pursuant to Section 13.15; provided, however,
that no such delegation or sub-contracting of duties by the Servicer shall
relieve the Servicer of its responsibility with respect to such duties.

         SECTION 9.6 SERVICER AND BACKUP SERVICER NOT TO RESIGN. Subject to the
provisions of Section 9.3, neither the Servicer nor the Backup Servicer shall
resign from the obligations and duties imposed on it by this Agreement as
Servicer or Backup Servicer except (i) upon a determination that by reason of a
change in legal requirements the performance of its duties under this Agreement
would cause it to be in violation of such legal requirements in a manner which
would have a material adverse effect on the Servicer or the Backup Servicer, as
the case may be, and Controlling Party does not elect to waive the obligations
of the Servicer or the Backup Servicer, as the case may be, to perform the
duties which render it legally unable to act or to delegate those duties to
another Person or, (ii) in the case of the Backup Servicer, upon the prior
written consent of the Note Insurer. Any such determination permitting the

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resignation of the Servicer or Backup Servicer shall be evidenced by an Opinion
of Counsel to such effect delivered and acceptable to the Trustee, the Owner
Trustee and the Note Insurer (so long as (i) the Notes are outstanding or any
amounts are due to the Note Insurer under the Basic Documents and (ii) no
Insurer Default shall have occurred and be continuing). No resignation of the
Servicer shall become effective until, so long as no Insurer Default shall have
occurred and be continuing, the Backup Servicer or an entity acceptable to the
Note Insurer shall have assumed the responsibilities and obligations of the
Servicer or, if an Insurer Default shall have occurred and be continuing or the
Notes are no longer outstanding and no amounts are due to the Note Insurer under
the Basic Documents, the Backup Servicer or a successor Servicer that is an
Eligible Servicer shall have assumed the responsibilities and obligations of the
Servicer. No resignation of the Backup Servicer shall become effective until, so
long as no Insurer Default shall have occurred and be continuing, an entity
acceptable to the Note Insurer shall have assumed the responsibilities and
obligations of the Backup Servicer or, if an Insurer Default shall have occurred
and be continuing or the Notes are no longer outstanding and no amounts are due
to the Note Insurer under the Basic Documents, a Person that is an Eligible
Servicer shall have assumed the responsibilities and obligations of the Backup
Servicer; provided, however, that in the event a successor Backup Servicer is
not appointed within 60 days after the Backup Servicer has given notice of its
resignation and has provided the Opinion of Counsel required by this Section
9.6, the Backup Servicer may petition a court for its removal.

                                   ARTICLE X
                                   ---------

                                     DEFAULT

         SECTION 10.1 SERVICER TERMINATION EVENT. For purposes of this
Agreement, each of the following shall constitute a "SERVICER TERMINATION
EVENT":

             (a) Any failure by the Servicer to deliver to the Trustee for
distribution to the Securityholders and the Note Insurer or for deposit into the
Collection Account or the Series 2008-A Spread Account any payment required
under the terms of this Agreement, which failure continues unremedied for a
period of two Business Days (one Business Day with respect to the payment of
Purchase Amounts) after the earlier of knowledge thereof by the Servicer or
after written notice is received by the Servicer from the Trustee or the
Controlling Party, or after discovery of such failure by a Responsible Officer
of the Servicer; or

             (b) Failure by the Servicer to deliver to the Trustee and the Note
Insurer (so long as an Insurer Default shall not have occurred and be
continuing), the Servicer's Certificate within three days after the date on
which such Servicer's Certificate is required to be delivered under Section 4.9,
or failure on the part of the Servicer to observe or perform its covenants and
agreements set forth in Section 9.3(a); or

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             (c) Failure on the part of the Servicer duly to observe or perform
any other covenants or agreements of the Servicer set forth in this Agreement
or, if the Servicer is CPS, failure of CPS to duly perform any other covenants
or agreements of CPS set forth in this Agreement, which failure (i) materially
and adversely affects the rights of Noteholders (determined without regard to
the availability of funds under the Note Policy), the Note Insurer (unless an
Insurer Default shall have occurred and be continuing) or the Residual
Certificateholders (after the Notes have been paid in full and all other amounts
owed to the Note Insurer have been paid in full and the Note Policy has expired
in accordance with its terms), and (ii) continues unremedied for a period of 30
days after the earlier of knowledge thereof by the Servicer or after the date on
which written notice of such failure, requiring the same to be remedied, shall
have been given (1) to the Servicer by the Trustee or the Note Insurer or (2)
or, if an Insurer Default shall have occurred and be continuing, to the
Servicer, the Trustee and the Note Insurer by each of the Holders of Notes
evidencing not less than 25% of the aggregate outstanding Note Balance of each
Class of Notes or, after the Notes have been paid in full and all amounts due to
the Note Insurer have been paid in full, by the Majority Certificateholders; or

             (d) The occurrence of an Insolvency Event with respect to the
Servicer or the Seller (or, for so long as CPS is Servicer, any of the Specified
Affiliates); or

             (e) Failure on the part of the Servicer to observe its covenants
and agreements relating to (a) merger or consolidation or (b) preservation of
its ownership (or security interest) in repossessed Financed Vehicles delivered
for sale to dealers; or

             (f) Any representation, warranty or statement of the Servicer made
in this Agreement or any certificate, report or other writing delivered pursuant
hereto shall prove to be incorrect in any material respect as of the time when
the same shall have been made (excluding, however, any representation or
warranty set forth in this Agreement relating to the characteristics of the
Receivables), and the incorrectness of such representation, warranty or
statement has a material adverse effect on the Trust, the Note Insurer or the
Securityholders and, within 30 days after the earlier of knowledge thereof by
the Servicer or after written notice thereof shall have been given (1) to the
Servicer by the Collateral Agent, the Trustee or the Note Insurer or (2) if an
Insurer Default shall have occurred and be continuing, to the Servicer and to
the Trustee and the Note Insurer by each of the Holders of Notes evidencing not
less than 25% of the aggregate outstanding Note Balance of each Class of Notes
or, after the Notes have been paid in full and all amounts due to the Note
Insurer have been paid in full, by the Majority Certificateholders, the
circumstances or condition in respect of which such representation, warranty or
statement was incorrect shall not have been eliminated or otherwise cured; or

             (g) So long as an Insurer Default shall not have occurred and be
continuing, the Note Insurer shall not have delivered a Servicer Extension
Notice pursuant to Section 4.14; or

             (h) So long as an Insurer Default shall not have occurred and be
continuing, an Insurance Agreement Event of Default shall have occurred; or

             (i) A claim is made under the Note Policy.

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         SECTION 10.2 CONSEQUENCES OF A SERVICER TERMINATION EVENT. If a
Servicer Termination Event shall occur and be continuing, the Note Insurer (or,
if an Insurer Default shall have occurred and be continuing either the Trustee
(to the extent it has knowledge thereof) or the Holders of Notes evidencing not
less than 25% of the aggregate outstanding Note Balance for each Class of Notes
or, after the Notes have been paid in full and all amounts due to the Note
Insurer have been paid in full, the Majority Certificateholders), by notice
given in writing to the Servicer (and to the Trustee if given by the Note
Insurer or the Noteholders) or by non-extension of the term of the Servicer as
referred to in Section 4.14 may terminate all of the rights and obligations of
the Servicer under this Agreement. The Servicer shall be entitled to its pro
rata share of the Servicing Fee for the number of days in the Collection Period
prior to the effective date of its termination. On or after the receipt by the
Servicer of such written notice or upon termination of the term of the Servicer,
all authority, power, obligations and responsibilities of the Servicer under
this Agreement, whether with respect to the Notes, the Residual Pass-through
Certificates, the Receivables or the Other Conveyed Property or otherwise,
automatically shall pass to, be vested in and become obligations and
responsibilities of the Backup Servicer (or such other successor Servicer
appointed by the Controlling Party under Section 10.3); provided, however, that
the successor Servicer shall have no liability with respect to any obligation
which was required to be performed by the terminated Servicer prior to the date
that the successor Servicer becomes the Servicer or any claim of a third party
based on any alleged action or inaction of the terminated Servicer. The
successor Servicer is authorized and empowered by this Agreement to execute and
deliver, on behalf of the terminated Servicer, as attorney-in-fact or otherwise,
any and all documents and other instruments and to do or accomplish all other
acts or things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the Receivables
and the Other Conveyed Property and related documents to show the Trust as
lienholder or secured party on the related Lien Certificates, or otherwise. The
terminated Servicer agrees to cooperate with the successor Servicer in effecting
the termination of the responsibilities and rights of the terminated Servicer
under this Agreement, including, without limitation, the transfer to the
successor Servicer for administration by it of all cash amounts that shall at
the time be held by the terminated Servicer for deposit, or have been deposited
by the terminated Servicer, in the Collection Account or thereafter received
with respect to the Receivables and the delivery to the successor Servicer of
all Receivable Files that shall at the time be held by the terminated Servicer
and a computer tape in readable form as of the most recent Business Day
containing all information necessary to enable the successor Servicer to service
the Receivables and the Other Conveyed Property. All reasonable costs and
expenses (including reasonable attorneys' fees and boarding fees) incurred in
connection with transferring any Receivable Files to the successor Servicer and
amending this Agreement to reflect such succession as Servicer pursuant to this
Section 10.2 shall be paid by the predecessor Servicer upon presentation of
reasonable documentation of such costs and expenses. In addition, any successor
Servicer shall be entitled to payment from the immediate predecessor Servicer
for reasonable transition expenses incurred in connection with acting as
successor Servicer, and to the extent not so paid, such payment shall be made
pursuant to Section 5.7(a) hereof. Upon receipt of notice of the occurrence of
Servicer Termination Event, the Trustee shall give notice thereof to the Rating
Agencies. If requested by the Controlling Party, the successor Servicer shall
terminate the Lockbox Agreement and direct the Obligors to make all payments
under the Receivables directly to the successor Servicer (in which event the
successor Servicer shall process such payments in accordance with Section
4.2(e)), or to a lockbox established by the successor Servicer at the direction
of the Controlling Party, at the successor Servicer's expense. The terminated
Servicer shall grant the Trustee, the successor Servicer and the Controlling
Party reasonable access to the terminated Servicer's premises at the terminated
Servicer's expense.

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         SECTION 10.3 APPOINTMENT OF SUCCESSOR.

             (a) On and after the time the Servicer receives a notice of
termination pursuant to Section 10.2, upon non-extension of the servicing term
as referred to in Section 4.14, or upon the resignation of the Servicer pursuant
to Section 9.6, the predecessor Servicer shall continue to perform its functions
as Servicer under this Agreement, in the case of termination, only until the
date specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice and, in the case of
expiration and non-renewal of the term of the Servicer upon the expiration of
such term, and, in the case of resignation, until the later of (x) the date 45
days from the delivery to the Trustee of written notice of such resignation (or
written confirmation of such notice) in accordance with the terms of this
Agreement and (y) the date upon which the predecessor Servicer shall become
unable to act as Servicer, as specified in the notice of resignation and
accompanying Opinion of Counsel. In the event of termination of the Servicer,
Wells Fargo Bank, National Association, as Backup Servicer, shall assume the
obligations of Servicer hereunder on the date specified in such written notice
(the "Assumption Date") pursuant to the Servicing Assumption Agreement or, in
the event that the Note Insurer shall have determined that a Person other than
the Backup Servicer shall be the successor Servicer in accordance with Section
10.2, on the date of the execution of a written assumption agreement by such
Person to serve as successor Servicer. Notwithstanding the Backup Servicer's
assumption of, and its agreement to perform and observe, all duties,
responsibilities and obligations of CPS as Servicer under this Agreement arising
on and after the Assumption Date, the Backup Servicer shall not be deemed to
have assumed or to become liable for, or otherwise have any liability, whether
provided for by the terms of this Agreement, arising by operation of law or
otherwise, for any duties, responsibilities, obligations or liabilities of CPS
or any predecessor Servicer (i) arising under Sections 4.7 and 9.2 of this
Agreement, regardless of when the liability, duty, responsibility or obligation
of CPS or any predecessor Servicer therefor arose, (ii) required to be performed
by CPS or any predecessor Servicer prior to the Assumption Date or any claim of
any third party based on any alleged action or inaction of CPS or any
predecessor Servicer, or (iii) with respect to the payment of any taxes required
to be paid by CPS or any predecessor Servicer. The indemnification obligations
of the Backup Servicer, upon becoming a successor Servicer, are expressly
limited to those instances of gross negligence or willful misconduct of the
Backup Servicer in its role as successor Servicer that occur after the
Assumption Date. Notwithstanding the above, if the Backup Servicer shall be
legally unable or unwilling to act as Servicer, and an Insurer Default shall
have occurred and be continuing, the Backup Servicer, the Trustee or a Note
Majority or, if the Note Balance has been reduced to zero and all amounts due
and owing to the Note Insurer have been paid in full and the Policy has expired
in accordance with its terms, the Majority Certificateholders may petition a
court of competent jurisdiction to appoint any Eligible Servicer as the
successor to the Servicer. Pending appointment pursuant to the preceding
sentence, the Backup Servicer shall act as successor Servicer unless it is
legally unable to do so, in which event the outgoing Servicer shall continue to
act as Servicer until a successor has been appointed and accepted such
appointment. Subject to Section 9.6, no provision of this Agreement shall be
construed as relieving the Backup Servicer of its obligation to succeed as
successor Servicer upon the termination of the Servicer pursuant to Section
10.2, the resignation of the Servicer pursuant to Section 9.6 or the
non-extension of the servicing term of the Servicer, as referred to in Section
4.14. If upon the termination of the Servicer pursuant to Section 10.2 or the
resignation of the Servicer pursuant to Section 9.6, the Controlling Party
appoints a successor Servicer other than the Backup Servicer, the Backup
Servicer shall not be relieved of its duties as Backup Servicer hereunder.

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<PAGE>

             (b) Any successor Servicer shall be entitled to receive the
compensation set forth in Section 5.7(a)(ii), (iii), (ix) and (xii).

         SECTION 10.4 NOTIFICATION TO SECURITYHOLDERS. Upon any termination of,
or appointment of a successor to, the Servicer, the Trustee shall give prompt
written notice thereof to each Securityholder, the Owner Trustee and to the
Rating Agencies.

         SECTION 10.5 WAIVER OF PAST DEFAULTS. The Controlling Party may waive
any default by the Servicer in the performance of its obligations under this
Agreement and the consequences thereof (except a default in making any required
deposits to or payments from any of the Trust Accounts in accordance with the
terms of this Agreement). Upon any such waiver of a past default, such default
shall cease to exist, and any Servicer Termination Event arising therefrom shall
be deemed to have been remedied for every purpose of this Agreement). No such
waiver shall extend to any subsequent or other default or impair any right
consequent thereto.

         SECTION 10.6 ACTION UPON CERTAIN FAILURES OF THE SERVICER. In the event
that a Responsible Officer of the Trustee shall have actual knowledge of any
failure of the Servicer specified in Section 10.1 which would give rise to a
right of termination under such Section upon the Servicer's failure to remedy
the same after notice, the Trustee shall give notice thereof to the Servicer and
the Note Insurer. For all purposes of this Agreement (including, without
limitation, Section 6.2(b) and this Section 10.6), the Trustee shall not be
deemed to have knowledge of any failure of the Servicer as specified in Sections
10.1(c) through (i) unless notified thereof in writing by the Servicer, the Note
Insurer or by a Securityholder. The Trustee shall be under no duty or obligation
to investigate or inquire as to any potential failure of the Servicer specified
in Section 10.1.

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                                   ARTICLE XI
                                   ----------

                                   TERMINATION

         SECTION 11.1 OPTIONAL PURCHASE OF ALL RECEIVABLES.

             (a) On any Payment Date on or after the last day of any Collection
Period as of which the Pool Balance shall be less than or equal to 10% of the
Original Pool Balance, the Servicer shall have the option to purchase the Owner
Trust Estate, other than the Trust Accounts (with the consent of the Note
Insurer if such purchase would result in a claim on the Note Policy or would
result in any amount owing under the Insurance Agreement remaining unpaid). To
exercise such option, the Servicer shall (subject to the proviso below) deposit
in the Collection Account pursuant to Section 5.6 an amount equal to the fair
market value of the Receivables (including Liquidated Receivables) as of such
date, plus the appraised value of any other property held by the Trust, such
value to be determined by an appraiser mutually agreed upon by the Servicer, the
Note Insurer and the Trustee, and shall succeed to all interests in and to the
Trust; provided, however, that the amount to be paid for such purchase shall be
sufficient to pay the (i) the aggregate outstanding Note Balance, (ii) the
outstanding Residual Certificate Notional Balance, (iii) accrued and unpaid
interest on the Notes, (iv) any accrued and unpaid Residual Certificate Interest
Distributable Amount, (v) any unpaid Supplemental Residual Certificate
Distribution, and (vi) the unpaid expenses of the Trust and the Note Insurer
(and any expense reimbursements due to any Person under the Insurance
Agreement), including without limitation expenses incurred by the Trust and the
Note Insurer in connection with the exercise of such repurchase option. Upon
receipt of an amount equal to the fair market value of the Receivables and
written instructions from the Servicer, the Trustee shall release to CPS or its
designee the related Receivables Files and shall execute and deliver all
reasonable instruments of transfer or assignment, without recourse, as are
prepared by the Seller and delivered to the Trustee and necessary to vest in CPS
or such designee title to the Receivables including a Trustee's Certificate in
the form of Exhibit F-2. To the extent such option to purchase the Owner Trust
Estate is rescinded pursuant to Section 10.1 of the Indenture, the
Securityholders shall on the related Payment Date receive the payments of
interest and principal that would be due to the Securityholders on such Payment
Date as if such option to purchase the Owner Trust Estate had never been
exercised.

             (b) Notice of any termination of the Trust shall be given by the
Servicer, which notice shall include, among other things, the items specified in
Section 9.1(c) of the Trust Agreement, to the Owner Trustee, the Trustee, the
Note Insurer and the Rating Agencies as soon as practicable after the Servicer
has received notice thereof.

             (c) Following the satisfaction and discharge of the Indenture and
the payment in full of the principal of and interest on the Notes, the Residual
Certificateholders will succeed to the rights of the Noteholders hereunder and
the Owner Trustee will succeed to the rights of, and assume the obligations of,
the Trustee under this Agreement.

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                                  ARTICLE XII
                                  -----------

                      ADMINISTRATIVE DUTIES OF THE SERVICER

         SECTION 12.1 ADMINISTRATIVE DUTIES.

             (a) DUTIES WITH RESPECT TO THE INDENTURE. The Servicer shall
perform all its duties and the duties of the Issuer under the Indenture. In
addition, the Servicer shall consult with the Owner Trustee as the Servicer
deems appropriate regarding the duties of the Issuer under the Indenture. The
Servicer shall monitor the performance of the Issuer and shall advise the Owner
Trustee when action is necessary to comply with the Issuer's duties under the
Indenture. The Servicer shall prepare for execution by the Issuer or shall cause
the preparation by other appropriate Persons of all such documents, reports,
filings, instruments, certificates and opinions as it shall be the duty of the
Issuer to prepare, file or deliver pursuant to the Indenture. In furtherance of
the foregoing, the Servicer shall take all necessary action that is the duty of
the Issuer to take pursuant to the Indenture, including, without limitation,
pursuant to Sections 2.7, 3.5, 3.6, 3.7, 3.9, 3.17, 5.1(b), 7.3, 8.3, 9.2, 9.3,
11.1 and 11.15 of the Indenture.

             (b) DUTIES WITH RESPECT TO THE ISSUER.

                  (i) In addition to the duties of the Servicer set forth in
         this Agreement or any of the Basic Documents, the Servicer shall
         perform such calculations and shall prepare for execution by the Issuer
         or the Owner Trustee or shall cause the preparation by other
         appropriate Persons of all such documents, reports, filings,
         instruments, certificates and opinions as it shall be the duty of the
         Issuer or the Owner Trustee to prepare, file or deliver pursuant to
         this Agreement or any of the Basic Documents or under State and Federal
         tax and securities laws, and at the request of the Owner Trustee shall
         take all appropriate action that it is the duty of the Issuer to take
         pursuant to this Agreement or any of the Basic Documents, including,
         without limitation, pursuant to Sections 2.6 and 2.10 of the Trust
         Agreement. In accordance with the directions of the Issuer or the Owner
         Trustee, the Servicer shall administer, perform or supervise the
         performance of such other activities in connection with the Collateral
         (including the Basic Documents) as are not covered by any of the
         foregoing provisions and as are expressly requested by the Issuer or
         the Owner Trustee and are reasonably within the capability of the
         Servicer. The Servicer shall perform its administrative duties with
         respect to the Issuer in accordance with the requirements enumerated in
         Section 6.7 of the Trust Agreement. The Servicer shall monitor the
         activities of the Issuer to assure compliance by the Issuer with the
         requirements of Section 6.7 of the Trust Agreement. The Servicer shall
         promptly take such action as may be required to correct any
         noncompliance by the Issuer with the requirements of Section 6.7 of the
         Trust Agreement.

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<PAGE>

                  (ii) Notwithstanding anything in this Agreement or any of the
         Basic Documents to the contrary, the Servicer shall be responsible for
         promptly notifying the Owner Trustee and the Trustee in the event that
         any withholding tax is imposed on the Issuer's payments (or allocations
         of income) to a Noteholder as contemplated by this Agreement. Any such
         notice shall be in writing and specify the amount of any withholding
         tax required to be withheld by the Owner Trustee or the Trustee
         pursuant to such provision.

                  (iii) Notwithstanding anything in this Agreement or the Basic
         Documents to the contrary, the Servicer shall be responsible for
         performance of the duties of the Issuer or the Seller set forth in
         Section 5.1 of the Trust Agreement with respect to, among other things,
         accounting and reports to Residual Certificateholders; provided,
         however, that, once prepared by the Servicer, the Owner Trustee shall
         retain responsibility for the distribution of any such reports or
         accounting actually provided to the Owner Trustee and necessary to
         enable each Residual Certificateholder to prepare its Federal and State
         income tax returns.

                  (iv) The Servicer shall perform the duties of the Servicer
         specified in Section 10.2 of the Trust Agreement required to be
         performed in connection with the resignation or removal of the Owner
         Trustee, and any other duties expressly required to be performed by the
         Servicer under this Agreement or any of the Basic Documents.

                  (v) In carrying out the foregoing duties or any of its other
         obligations under this Agreement, the Servicer may enter into
         transactions with or otherwise deal with any of its Affiliates;
         provided, however, that the terms of any such transactions or dealings
         shall be in accordance with any directions received from the Issuer and
         shall be, in the Servicer's opinion, no less favorable to the Issuer in
         any material respect.

             (c) TAX MATTERS. The Servicer shall prepare and file, on behalf of
the Seller, all tax returns, tax elections, financial statements and such annual
or other reports of the Issuer as are necessary for preparation of tax reports
as provided in Article V of the Trust Agreement, including without limitation,
Internal Revenue Service Form 1099. All tax returns will be signed by the person
required or authorized to sign such returns under applicable law.

             (d) NON-MINISTERIAL MATTERS. With respect to matters that in the
reasonable judgment of the Servicer are non-ministerial, the Servicer shall not
take any action pursuant to this Article XII unless within a reasonable time
before the taking of such action, the Servicer shall have notified the Owner
Trustee and the Trustee of the proposed action and the Owner Trustee and, with
respect to items (i), (ii), (iii) and (iv) below, the Trustee shall not have
withheld consent or provided an alternative direction. For the purpose of the
preceding sentence, "non-ministerial matters" shall include:

                  (i) the amendment of or any supplement to the Indenture;

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                  (ii) the initiation of any claim or lawsuit by the Issuer and
         the compromise of any action, claim or lawsuit brought by or against
         the Issuer (other than in connection with the collection of the
         Receivables);

                  (iii) the amendment, change or modification of this Agreement
         or any of the Basic Documents;

                  (iv) the appointment of successor Note Registrars, successor
         Paying Agents and successor Trustees pursuant to the Indenture or the
         appointment of successor Servicers or the consent to the assignment by
         the Note Registrar, Paying Agent or Trustee of its obligations under
         the Indenture; and

                  (v) the removal of the Trustee.

             (e) EXCEPTIONS. Notwithstanding anything to the contrary in this
Agreement except as expressly provided herein or in the other Basic Documents,
the Servicer, in its capacity as such hereunder, shall not be obligated to, and
shall not, (1) make any payments to the Securityholders under the Basic
Documents, (2) sell the Owner Trust Estate pursuant to Section 5.3 of the
Indenture, (3) take any other action that the Issuer directs the Servicer not to
take on its behalf or (4) in connection with its duties hereunder assume any
indemnification obligation of any other Person.

             (f) LIMITATION OF SUCCESSOR SERVICER'S OBLIGATIONS. The successor
Servicer shall not be responsible for any obligations or duties of the Servicer
under this Section 12.1.

         SECTION 12.2 RECORDS. The Servicer shall maintain appropriate books of
account and records relating to services performed under this Agreement, which
books of account and records shall be accessible for inspection by the Issuer,
the Trustee and the Note Insurer at any time during normal business hours.

         SECTION 12.3 ADDITIONAL INFORMATION TO BE FURNISHED TO THE ISSUER. The
Servicer shall furnish to the Issuer from time to time such additional
information regarding the Collateral as the Issuer shall reasonably request.

                                  ARTICLE XIII
                                  ------------

                            MISCELLANEOUS PROVISIONS

         SECTION 13.1 AMENDMENT.

             (a) This Agreement may be amended from time to time by the parties
hereto, with the consent of the Trustee (which consent may not be unreasonably
withheld), with the prior written consent of the Note Insurer (so long as (i)
the Notes are outstanding or any amounts are due to the Note Insurer under the
Basic Documents and (ii) no Insurer Default shall have occurred and be
continuing) but without the consent of any of the Securityholders, to cure any
ambiguity, to correct or supplement any provisions in this Agreement, to comply
with any changes in the Code, or to make any other provisions with respect to
matters or questions arising under this Agreement which shall not be
inconsistent with the provisions of this Agreement or the Insurance Agreement;
provided, however, that such action shall not, as evidenced by an Opinion of
Counsel delivered to the Owner Trustee, the Note Insurer and the Trustee,
adversely affect in any material respect the interests of any Securityholder;
provided further that if an Insurer Default has occurred and is continuing, such
action shall not materially and adversely affect the interests of the Note
Insurer. Any such amendment shall be deemed to not adversely affect in any
material respect the interests of any Securityholder if the Rating Agency
Condition is satisfied.

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         This Agreement may also be amended from time to time by the parties
hereto, with the consent of the Note Insurer (so long as (i) the Notes are
outstanding or any amounts are due to the Note Insurer under the Basic Documents
and (ii) no Insurer Default shall have occurred and be continuing) and the
Trustee, or, if an Insurer Default has occurred and is continuing, with the
consent of a Note Majority (if any Notes are then outstanding), the Majority
Certificateholders and the Trustee, for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Agreement
or of modifying in any manner the rights of the Securityholders; provided,
however, that no such amendment shall (a) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, collections of payments on
Receivables or distributions that shall be required to be made for the benefit
of the Securityholders or (b) reduce the aforesaid percentage of the Note
Balance of any Class or the Percentage Interest, the Holders of which are
required to consent to any such amendment, without the consent of the Holders of
all the outstanding Notes affected thereby and the Holders of all of the
outstanding Residual Pass-through Certificates affected thereby; provided
further, that if an Insurer Default has occurred and is continuing, such action
shall not materially adversely affect the interests of the Note Insurer. Any
such amendment shall not be deemed to adversely affect in any material respect
the interests of any Securityholder if the Rating Agency Condition has been
satisfied.

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

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

         Prior to the execution of any amendment to this Agreement, the Owner
Trustee and the Trustee shall be entitled to receive and rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement and the Opinion of Counsel referred to in Section 13.2(i)(i)
has been delivered. The Owner Trustee, the Backup Servicer and the Trustee may,
but shall not be obligated to, enter into any such amendment which affects the
Issuer's, the Owner Trustee's, the Backup Servicer's or the Trustee's, as
applicable, own rights, duties or immunities under this Agreement or otherwise.

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             (b) Notwithstanding anything to the contrary contained in Section
13.1(a) above, the provisions of this Agreement relating to (i) the Master
Spread Account Agreement, the Series 2008-A Spread Account, the Specified Spread
Account Requisite Amount, a Trigger Event or any component definition of a
Trigger Event and (ii) any additional sources of funds which may be added to the
Series 2008-A Spread Account or uses of funds on deposit in the Series 2008-A
Spread Account may be amended in any respect by the Seller, the Servicer, the
Note Insurer and the Collateral Agent (the consent of which shall not be
withheld or delayed with respect to any amendment that does not adversely affect
the Collateral Agent) without the consent of, or notice to, the Securityholders;
provided that any such amendment satisfies the Rating Agency Condition and the
Servicer shall provide copies of any such amendment to the Residual
Certificateholders.

             (c) Notwithstanding the foregoing, no amendment shall be made that
would cause the Trust to fail to be classified as a Grantor Trust or a United
States Person (as such terms are defined under the Trust Agreement).

         SECTION 13.2 PROTECTION OF TITLE TO TRUST.

             (a) The Seller or Servicer or both shall authorize and file such
financing statements and cause to be authorized and filed such continuation
statements, all in such manner and in such places as may be required by law
fully to preserve, maintain and protect the interest of the Issuer and the
interests of the Trustee in the Receivables and in the proceeds thereof. The
Seller shall deliver (or cause to be delivered) to the Note Insurer, the Owner
Trustee and the Trustee file-stamped copies of, or filing receipts for, any
document filed as provided above, as soon as available following such filing.

             (b) Neither the Seller nor the Servicer shall change its name,
identity, jurisdiction of organization, form of organization or corporate
structure in any manner that would, could or might make any financing statement
or continuation statement filed in accordance with paragraph (a) above seriously
misleading within the meaning of section 9-506(a) of the UCC, unless it shall
have given the Note Insurer, the Owner Trustee and the Trustee at least five
days' prior written notice thereof and shall have promptly filed appropriate
amendments to all previously filed financing statements or continuation
statements. Promptly upon such filing, the Seller or the Servicer, as the case
may be, shall deliver an Opinion of Counsel to the Issuer, the Owner Trustee,
the Trustee and the Note Insurer, in form and substance reasonably satisfactory
to the Note Insurer, stating either (A) all financing statements and
continuation statements have been authorized and filed that are necessary fully
to preserve and protect the interest of the Trust and the Trustee in the
Receivables, and reciting the details of such filings or referring to prior
Opinions of Counsel in which such details are given, or (B) no such action shall
be necessary to preserve and protect such interest.

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<PAGE>

             (c) Each of the Seller and the Servicer shall have an obligation to
give the Note Insurer, the Owner Trustee and the Trustee at least 60 days' prior
written notice of any change in its jurisdiction of organization if, as a result
of such change, 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 shall promptly file any such amendment or new
financing statement. The Servicer shall at all times maintain its jurisdiction
of organization within the United States of America. Each of the Seller and
Servicer shall at all times be organized solely under the laws of one State.

             (d) The Servicer 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 and the amounts from time to time deposited in the Collection Account
in respect of such Receivable.

             (e) The Servicer shall maintain its computer systems so that, from
and after the time of sale under this Agreement of the Receivables to the
Issuer, the Servicer's master computer records (including any backup archives)
that refer to a Receivable shall indicate clearly the interest of the Trust in
such Receivable and that such Receivable is owned by the Trust. Indication of
the Trust's interest in a Receivable shall be deleted from or modified on the
Servicer's computer systems when, and only when, the related Receivable shall
have been paid in full or repurchased.

             (f) If at any time the Seller or the Servicer shall propose to
sell, grant a security interest in or otherwise transfer any interest in
automotive receivables to any prospective purchaser, lender or other transferee,
the Servicer shall give to such prospective purchaser, lender or other
transferee computer tapes, records or printouts (including any restored from
backup archives) that, if they shall refer in any manner whatsoever to any
Receivable, shall indicate clearly that such Receivable has been sold and is
owned by the Trust.

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

             (h) Upon request, the Servicer shall furnish to the Note Insurer,
the Owner Trustee or to the Trustee, within five Business Days, a list of all
Receivables (by contract number and name of Obligor) then held as part of the
Owner Trust Estate, together with a reconciliation of such list to the Schedule
of Receivables and to each of the Servicer's Certificates furnished before such
request indicating removal of Receivables from the Owner Trust Estate.

             (i) The Servicer shall deliver to the Note Insurer, the Owner
Trustee and the Trustee:

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                  (i) promptly after the execution and delivery of this
         Agreement and, if required pursuant to Section 13.1, of each amendment
         waiver or consent, an Opinion of Counsel, in form and substance
         satisfactory to the Note Insurer, stating that, in the opinion of such
         counsel, either (A) all financing statements and continuation
         statements have been authorized and filed that are necessary fully to
         preserve and protect the interest of the Trust and the Trustee in the
         Receivables, and reciting the details of such filings or referring to
         prior Opinions of Counsel in which such details are given, or (B) no
         such action shall be necessary to preserve and protect such interest;
         and

                  (ii) within 90 days after the beginning of each calendar year
         beginning with the first calendar year beginning more than three months
         after the Cutoff Date, an Opinion of Counsel, dated as of a date during
         such 90-day period, stating that, in the opinion of such counsel,
         either (A) all financing statements and continuation statements have
         been authorized and filed that are necessary fully to preserve and
         protect the interest of the Trust and the Trustee in the Receivables,
         and reciting the details of such filings or referring to prior Opinions
         of Counsel in which such details are given, or (B) no such action shall
         be necessary to preserve and protect such interest.

         Each Opinion of Counsel referred to in clause (i) or (ii) above shall
specify any action necessary (as of the date of such opinion) to be taken in the
following year to preserve and protect such interest.

         SECTION 13.3 NOTICES.

             (a) All demands, notices and communications upon or to the Seller,
the Servicer, the Owner Trustee, the Trustee or the Rating Agencies under this
Agreement shall be in writing, personally delivered, electronically delivered,
or mailed by certified mail, return receipt requested, and shall be deemed to
have been duly given upon receipt (a) in the case of the Seller to CPS
Receivables LLC, 16355 Laguna Canyon, Irvine, CA 92618, (b) in the case of the
Servicer to Consumer Portfolio Services, Inc., 16355 Laguna Canyon, Irvine, CA
92618, Attention: General Counsel, (c) in the case of the Issuer or the Owner
Trustee, at the Corporate Trust Office of the Owner Trustee, (d) in the case of
the Trustee or the Backup Servicer, at the Corporate Trust Office, (e) in the
case of the Note Insurer, to Financial Security Assurance Inc., 31 West 52nd
Street, New York, New York 10019-6118, Attention: Transaction Oversight
Department, Re: Policy No. 51897-N (Telecopy: (212) 339-3518 or (212) 339-3529,
Confirmation: (212) 826-0100; (f) in the case of Moody's, to Moody's Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York
10007; and (g) in the case of Standard & Poor's, via electronic delivery to
Servicer_reports@sandp.com; for any information not available in electronic
format, send hard copies to: Standard & Poor's Ratings Services, 55 Water
Street, 41st Floor, New York, New York 10041-0003, Attention: ABS Surveillance
Group. Any notice required or permitted to be mailed to a Securityholder shall
be given by first class mail, postage prepaid, at the address of such
Securityholder as shown in the Certificate Register or Note Register, as
applicable. Any notice so mailed within the time prescribed in the Agreement
shall be conclusively presumed to have been duly given, whether or not the
Securityholder shall receive such notice.

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<PAGE>

             (b) Any notice delivered to the Noteholders or to the Trustee for
distribution to the Noteholders shall also be delivered concurrently to the
Residual Certificateholders or to the Owner Trustee for distribution to the
Residual Certificateholders by the party responsible for delivering such notice
to the Noteholders or to the Trustee for distribution to the Noteholders.

         SECTION 13.4 ASSIGNMENT. This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective successors and
permitted assigns. Notwithstanding anything to the contrary contained herein,
except as provided in Sections 8.5 and 9.3 and as provided in the provisions of
this Agreement concerning the resignation of the Servicer, this Agreement may
not be assigned by the Seller or the Servicer without the prior written consent
of the Owner Trustee, the Trustee, the Backup Servicer and the Note Insurer (or
(i) if an Insurer Default shall have occurred and be continuing, the Holders of
Notes evidencing not less than 66% of the Aggregate Note Balance or (ii) if no
Notes are outstanding and no amounts are due to the Note Insurer under the Basic
Documents, the Majority Certificateholders), and prompt written notice to the
Rating Agencies.

         SECTION 13.5 LIMITATIONS ON RIGHTS OF OTHERS. The provisions of this
Agreement are solely for the benefit of the parties hereto and for the benefit
of the Owner Trustee, the Residual Certificateholders, the Trustee, the
Noteholders and the Cayman Indenture Trustee, as third-party beneficiaries. The
Note Insurer and its successors and assigns shall be a third-party beneficiary
to the provisions of this Agreement, and shall be entitled to rely upon and
directly enforce such provisions of this Agreement, so long as no Insurer
Default shall have occurred and be continuing. Except as expressly stated
otherwise, any right of the Note Insurer to direct, appoint, consent to, approve
of, or take any action under this Agreement, shall be a right exercised by the
Note Insurer in its sole and absolute discretion. The Note Insurer may disclaim
any of its rights and powers under this Agreement (but not its duties and
obligations under the Note Policy) upon delivery of a written notice to the
Owner Trustee and the Trustee. Nothing in this Agreement, whether express or
implied, shall be construed to give to any other Person any legal or equitable
right, remedy or claim in the Owner Trust Estate or under or in respect of this
Agreement or any covenants, conditions or provisions contained herein.

         SECTION 13.6 SEVERABILITY. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         SECTION 13.7 SEPARATE COUNTERPARTS. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

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         SECTION 13.8 HEADINGS. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

         SECTION 13.9 GOVERNING LAW. EXCEPT AS PROVIDED OTHERWISE IN SECTION
13.17, THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND THIS AGREEMENT
AND ALL MATTERS ARISING OUT OF OR RELATING IN ANY WAY TO THIS AGREEMENT SHALL BE
GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF
LAWS PRINCIPLES.

         SECTION 13.10 ASSIGNMENT TO TRUSTEE. The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Issuer to the Trustee pursuant to the Indenture for the benefit of the
Issuer Secured Parties of all right, title and interest of the Issuer in, to and
under the Receivables and Other Conveyed Property and/or the assignment of any
or all of the Issuer's rights and obligations hereunder to the Trustee.

         SECTION 13.11 NONPETITION COVENANTS.

             (a) Notwithstanding any prior termination of this Agreement, none
of the Servicer, the Seller or the Backup Servicer shall, prior to the date
which is one year and one day after the termination of this Agreement with
respect to the Issuer, acquiesce, petition or otherwise invoke or cause the
Issuer to invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Issuer under any Federal
or State bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Issuer or any substantial part of its property, or ordering the winding
up or liquidation of the affairs of the Issuer.

             (b) Notwithstanding any prior termination of this Agreement, none
of the Servicer or the Backup Servicer shall, prior to the date that is one year
and one day after the termination of this Agreement in accordance with Article
XI, with respect to the Seller, acquiesce to, petition or otherwise invoke or
cause the Seller to invoke the process of any court or government authority for
the purpose of commencing or sustaining a case against the Seller under any
Federal or State bankruptcy, insolvency or similar law, appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator, or other similar
official of the Seller or any substantial part of its property, or ordering the
winding up or liquidation of the affairs of the Seller.

         SECTION 13.12 LIMITATION OF LIABILITY OF OWNER TRUSTEE AND TRUSTEE.

             (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by Wilmington Trust Company not in its
individual capacity but solely in its capacity as Owner Trustee of the Issuer
and in no event shall Wilmington Trust Company in its individual capacity or,
except as expressly provided in the Trust Agreement, as Owner Trustee have any
liability for the representations, warranties, covenants, agreements or other
obligations of the Issuer hereunder or in any of the certificates, notices or
agreements delivered pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Issuer. For all purposes of this Agreement, in the
performance of its duties or obligations hereunder or in the performance of any
duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Articles VI, VII and VIII of the Trust Agreement.

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<PAGE>

             (b) Notwithstanding anything contained herein to the contrary, this
Agreement has been executed and delivered by Wells Fargo Bank, National
Association, not in its individual capacity but solely as Trustee and Backup
Servicer and in no event shall Wells Fargo Bank, National Association, have any
liability for the representations, warranties, covenants, agreements or other
obligations of the Issuer hereunder or in any of the certificates, notices or
agreements delivered pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Issuer.

             (c) In no event shall Wells Fargo Bank, National Association, in
any of its capacities hereunder, be deemed to have assumed any duties of the
Owner Trustee under the Delaware Statutory Trust Statute, common law, or the
Trust Agreement.

         SECTION 13.13 INDEPENDENCE OF THE SERVICER. For all purposes of this
Agreement, the Servicer shall be an independent contractor and shall not be
subject to the supervision of the Issuer, the Trustee and Backup Servicer or the
Owner Trustee with respect to the manner in which it accomplishes the
performance of its obligations hereunder. Unless expressly authorized by this
Agreement, the Servicer shall have no authority to act for or represent the
Issuer or the Owner Trustee in any way and shall not otherwise be deemed an
agent of the Issuer or the Owner Trustee.

         SECTION 13.14 NO JOINT VENTURE. Nothing contained in this Agreement (i)
shall constitute the Servicer and either of the Issuer or the Owner Trustee as
members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (ii) shall be construed to
impose any liability as such on any of them or (iii) shall be deemed to confer
on any of them any express, implied or apparent authority to incur any
obligation or liability on behalf of the others.

         SECTION 13.15 CONTROLLING PARTY.

             (a) The "Controlling Party" shall be determined as follows:

                  (i) Each Noteholder and Residual Certificateholder by purchase
         of the Notes or Residual Certificates held by it acknowledges that the
         Trustee, as partial consideration of the issuance of the Note Policy,
         has agreed that the Note Insurer shall have certain rights hereunder
         for so long as no Insurer Default shall have occurred and be
         continuing. So long as no Insurer Default has occurred and is
         continuing, the Note Insurer shall be the Controlling Party, and
         whenever Noteholder or Residual Certificateholder action, consent or
         approval is required under this Agreement, such action, consent or
         approval shall be deemed taken or given on behalf of, and shall be
         binding upon, all Noteholders and Residual Certificateholder if the
         Note Insurer agrees to take such action or give such consent or
         approval.

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<PAGE>

                  (ii) So long as an Insurer Default has occurred and is
         continuing, the Trustee acting, unless otherwise specified, at the
         direction of a Note Majority, shall be the Controlling Party, and any
         provision giving the Note Insurer the right to direct, appoint or
         consent to, approve of, or take any action under this Agreement shall
         be inoperative during the period of such Insurer Default.

                  (iii) From and after such time as the Notes have been paid in
         full and no amounts are owing to the Note Insurer under the Basic
         Documents, the Trustee acting at the direction of the Residual
         Certificateholders shall be the Controlling Party and any provision
         giving the Note Insurer or the Noteholders the right to direct, appoint
         or consent to, approve of, or take any action under this Agreement
         shall be inoperative, unless otherwise specified.

             (b) The Note Insurer may disclaim any of its rights and powers
under this Agreement (but not its duties and obligations under the Note Policy)
upon delivery of a written notice to the Trustee. The Note Insurer may give or
withhold any consent hereunder in its sole and absolute discretion. In
exercising its rights as Controlling Party, the Note Insurer (or the Trustee
acting at the direction of Noteholders) shall have no duty to the Residual
Certificateholders or any other Issuer Secured Party, and the Trustee shall be
fully protected in acting upon the direction of the Note Insurer as Controlling
Party (or in acting as Controlling Party at the direction of Noteholders)
without regard to the interests of the Residual Certificateholders.

             (c) Each Residual Certificateholder, by its acceptance of a
Residual Certificate, agrees that it shall not (and hereby waives any right to)
contest or support any other Person in contesting, in any proceeding, the
validity or enforceability of the Notes or this Indenture.

             (d) No right of the Note Insurer (or the Trustee acting at the
direction of Noteholders) as Controlling Party shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Issuer or
by any act or failure to act, in good faith, by the Controlling Party, or by any
non-compliance by the Issuer with the terms, provisions and covenants of this
Agreement, regardless of any knowledge thereof that the Note Insurer or the
Trustee may have or be otherwise charged with.

             (e) So long as the Note Insurer (or the Trustee acting at the
direction of Noteholders) is the Controlling Party:

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                  (i) no Residual Certificateholder shall have any right to (A)
         ask, demand, sue for, take or receive, or retain, from the Issuer or
         any other Person, by setoff or in any other manner, payment or
         prepayment of all or any part of the obligations due to the Residual
         Certificateholders, except in strict accordance with Section 5.7 of the
         Sale and Servicing Agreement or Section 5.6 of the Indenture, as
         applicable; (B) ask, demand or receive any security (other than the
         Collateral) for the Residual Certificate Secured Obligations; (C)
         exercise or seek to exercise any rights or remedies (including setoff)
         with respect to any Collateral or institute any action or proceeding
         with respect to such rights or remedies (including any action of
         foreclosure); (D) contest, protest or object to any foreclosure
         proceeding or action brought by the Trustee or any other exercise by
         the Trustee of any rights and remedies relating to the Collateral; or
         (E) object to the forbearance by the Trustee from bringing or pursuing
         any foreclosure proceeding or action or any other exercise of any
         rights or remedies relating to the Collateral;

                  (ii) the Controlling Party shall, except as otherwise
         expressly provided herein, have the exclusive right to direct the
         Trustee with respect to enforcing rights, exercising remedies
         (including setoff and the right to credit bid their debt) and making
         determinations regarding the release, disposition, or restrictions with
         respect to the Collateral without any consultation with or the consent
         of any Residual Certificateholder.

             (f) So long as the Note Insurer (or the Trustee acting at the
direction of Noteholders) is the Controlling Party, each Residual
Certificateholder hereby waives any and all rights it may have as a junior lien
creditor or otherwise to object to the manner in which the Trustee seeks to
enforce or collect the Insurer Secured Obligations or the Trustee Secured
Obligations or the Liens granted in any of the Collateral, regardless of whether
any action or failure to act by or on behalf of the Trustee or the Controlling
Party is adverse to the interest of any Residual Certificateholder.

             (g) So long as the Note Insurer (or the Trustee acting at the
direction of Noteholders) is the Controlling Party, to the extent that the
Residual Certificateholders shall be entitled to vote as a separate class with
respect to any plan of reorganization involving the Issuer, each Residual
Certificateholder agrees that (i) it will not take any action or vote in any way
which supports any plan of reorganization that is inconsistent with the terms of
this Agreement, (ii) it will vote any claims or interest it holds to accept any
such plan of reorganization that is supported by the Controlling Party and (iii)
it will vote any claims or interests it holds to reject any such plan of
reorganization that is not supported by the Controlling Party. Each Residual
Certificateholder hereby grants to the Trustee (acting at the direction of the
Controlling Party) a power of attorney to vote such Residual Certificateholder's
claims and interests, if any, in any such plan of reorganization in a manner
consistent with the foregoing so long as the Note Insurer (or the Trustee acting
at the direction of Noteholders) is the Controlling Party.

             (h) So long as the Note Insurer (or the Trustee acting at the
direction of Noteholders) is the Controlling Party, each Residual
Certificateholder agrees that it shall not assert or finance, or support any
other person in asserting or financing, in any bankruptcy or insolvency
proceeding, any surcharge, lien, recovery or claim against any of the Collateral
under Section 506(c) of the United States Bankruptcy Code.

                                       95
<PAGE>

             (i) So long as the Note Insurer (or the Trustee acting at the
direction of Noteholders) is the Controlling Party, each Residual
Certificateholder agrees that it shall not seek adequate protection on account
of any claim or interest it may have, or (to the extent it would otherwise have
a right to object) object to any financing provided by or supported by the
Controlling Party and that (to the extent its consent is necessary or desired)
it will consent to any sale of Collateral that is supported by the Controlling
Party.

             (j) Each of the Trustee and the Controlling Party is each hereby
authorized to demand specific performance of the provisions of this Section
13.15 at any time when any Residual Certificateholder shall have failed to
comply with any term or provision of this Section 13.15. Each Residual
Certificateholder hereby irrevocably waives any defense based on the adequacy of
a remedy at law that might be asserted as a bar to such remedy of specific
performance.

         SECTION 13.16 ACKNOWLEDGMENT OF ROLES

         The parties expressly acknowledge and consent to Wells Fargo Bank,
National Association acting in the multiple capacities of Backup Servicer,
Collateral Agent and Trustee and the Cayman Indenture Trustee under the Basic
Documents. The parties agree that Wells Fargo Bank, National Association in such
multiple capacities shall not be subject to any claim, defense or liability
arising from its performance in any such capacity based on conflict of interest
principles, duty of loyalty principles or other breach of fiduciary duties to
the extent that any such conflict or breach arises from the performance by Wells
Fargo Bank, National Association of any other such capacity or capacities in
accordance with this Agreement or any other Basic Documents to which it is a
party.

         SECTION 13.17 INTENTION OF PARTIES REGARDING DELAWARE SECURITIZATION
ACT. It is the intention of the Seller and the Issuer that the transfer and
assignment of the Trust Property contemplated by Section 2.1 of this Agreement
shall constitute a sale of the Trust Property from the Seller to the Issuer,
conveying good title thereto free and clear of any liens, and the beneficial
interest in and title to the Trust Property shall 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 or similar law. In addition, for purposes of
complying with the requirements of the Asset-Backed Securities Facilitation Act
of the State of Delaware, 6 Del. C. ss. 2701A, et seq. (the "Securitization
Act"), each of the parties hereto hereby agrees that:

             (a) any property, assets or rights purported to be transferred, in
whole or in part, by the Seller to the Issuer pursuant to this Agreement shall
be deemed to no longer be the property, assets or rights of the Seller;

             (b) none of the Seller, its creditors or, in any insolvency
proceeding with respect to the Seller or the Seller's property, a bankruptcy
trustee, receiver, debtor, debtor in possession or similar person, to the extent
the issue is governed by Delaware law, shall have any rights, legal or
equitable, whatsoever to reacquire (except pursuant to a provision of this
Agreement), reclaim, recover, repudiate, disaffirm, redeem or recharacterize as
property of the Seller any property, assets or rights purported to be
transferred, in whole or in part, by the Seller to the Issuer pursuant to this
Agreement;

                                       96
<PAGE>

             (c) in the event of a bankruptcy, receivership or other insolvency
proceeding with respect to the Seller or the Seller's property, to the extent
the issue is governed by Delaware law, such property, assets and rights shall
not be deemed to be part of the Seller's property, assets, rights or estate; and

             (d) the transaction contemplated by this Agreement shall constitute
a "securitization transaction" as such term is used in the Securitization Act.

                                       97
<PAGE>

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

                                        CPS AUTO RECEIVABLES TRUST 2008-A

                                        By: WILMINGTON TRUST COMPANY, not in its
                                        individual capacity, but solely as Owner
                                        Trustee on behalf of the Trust

                                        By: /S/ DORRI E. WOLHAR
                                            ------------------------------------
                                        Title: FINANCIAL SERVICES OFFICER

                                        CPS RECEIVABLES LLC, as Seller

                                        By: /S/ MARK CREATURA
                                            ------------------------------------
                                        Title: VP AND SECRETARY

                                        CONSUMER PORTFOLIO SERVICES, INC., in
                                        its individual capacity and in its
                                        capacity as Servicer

                                        By: /S/ ROBERT E. RIEDL
                                            ------------------------------------
                                        Title: SR VP AND CIO

                                        WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                        not in its individual capacity, but
                                        solely as Backup Servicer and Trustee

                                        By: /S/ MELISSA PHILIBERT
                                            ------------------------------------
                                        Title: VICE PRESIDENT

<PAGE>

                                   SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                     [AVAILABLE UPON REQUEST TO THE TRUSTEE]

<PAGE>

                                   SCHEDULE B

                    LOCATION FOR DELIVERY OF RECEIVABLE FILES

                     [AVAILABLE UPON REQUEST TO THE TRUSTEE]

                                    SCH. B-1
<PAGE>

                                    EXHIBIT A

                                   [RESERVED]

                                      A-2
<PAGE>

                                    EXHIBIT B

                             SERVICER'S CERTIFICATE

                                      B-1
<PAGE>

                                    EXHIBIT C

                               REQUEST FOR RELEASE

TO:

Wells Fargo Bank, National Association
ABS Custody Vault
1055 10th Avenue SE
MAC N9401-011
Minneapolis, MN 55414
Attention:  Corporate Trust Services - Asset Backed Securities Vault

         In connection with the servicing of the Receivables that are owned by
CPS Auto Receivables Trust 2008-A (the "Issuer") and are pledged by the Issuer
to the Trustee for the benefit of the Noteholders and the Note Insurer to
support the Issuer's Asset-Backed Notes, Series 2008-A, and pursuant to Section
3.5 of the Sale and Servicing Agreement described below, the undersigned, as
Servicer of the Receivables, requests the Receivables Files related to the
Receivables described below for the reason indicated. The undersigned shall
return all documents to you when the undersigned's need therefor no longer
exists, except where the Receivable is paid in full or otherwise disposed of (as
indicated below). Capitalized terms used but not otherwise defined herein shall
have the respective meanings assigned to such terms in the Sale and Servicing
Agreement, dated as of March 1, 2008, among the Issuer, CPS Receivables LLC, as
the seller, Consumer Portfolio Services, Inc., individually and as the servicer
(the "Servicer"), and Wells Fargo Bank, National Association, as the trustee and
as the backup servicer.

CONTRACT NUMBERS AND OBLIGOR NAMES:

[[INSERT INFO. HERE]]

         The undersigned hereby certifies that if this release is requested due
to payment in full of a Receivable, or repurchase upon breach, all amounts
received in connection therewith that are required to be deposited in the
Collection Account have been so deposited.

REASON FOR REQUESTING DOCUMENTS:

         --        CONTRACT PAID IN FULL
         --        REPURCHASE UPON BREACH
         --        REPOSSESSION AND LIQUIDATION
         --        DELIVERY TO COUNSEL FOR ENFORCEMENT
         --        OTHER - EXPLAIN REASON AND REFERENCE TO
         APPROPRIATE SECTION OF SALE AND SERVICING AGREEMENT

                                      C-1
<PAGE>

                                        CONSUMER PORTFOLIO SERVICES, INC.,
                                        as Servicer

                                        By:
                                           Name:
                                           Title:

                                        CONTRACT NUMBERS
                                        CUSTOMERS

                                      C-2
<PAGE>

                                    EXHIBIT D

                                   [RESERVED]

                                      D-1
<PAGE>

                                    EXHIBIT E

                    FORM OF MONTHLY SECURITYHOLDER STATEMENT

                     [AVAILABLE UPON REQUEST TO THE TRUSTEE]

                                      E-1
<PAGE>

                                   EXHIBIT F-1

                              TRUSTEE'S CERTIFICATE
                       PURSUANT TO SECTIONS 3.2 OR 3.4 OF
                        THE SALE AND SERVICING AGREEMENT

         Wells Fargo Bank, National Association, as trustee (the "Trustee") of
the CPS Auto Receivables Trust 2008-A (the "Trust") under the Sale and Servicing
Agreement (the "Sale and Servicing Agreement"), dated as of March 1, 2008, among
the Trust, CPS Receivables LLC, as Seller, Consumer Portfolio Services, Inc.,
individually and as Servicer, and Wells Fargo Bank, National Association, as
Trustee and Backup Servicer, does hereby sell, transfer, assign, and otherwise
convey to Consumer Portfolio Services, Inc., without recourse, representation,
or warranty, all of the Trustee's right, title, and interest in and to all of
the Receivables (as defined in the Sale and Servicing Agreement) identified in
the attached Servicer's Certificate as "Purchased Receivables," which are to be
repurchased by Consumer Portfolio Services, Inc. pursuant to Section 3.2 or
Section 3.4 of the Sale and Servicing Agreement and all security and documents
relating thereto.

         IN WITNESS WHEREOF I have hereunto set my hand this __ day of ____,
20__.

                                        WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                        Name:
                                        Title:

                                     F-1-1
<PAGE>

                                   EXHIBIT F-2

                              TRUSTEE'S CERTIFICATE
                    PURSUANT TO SECTIONS 4.7, 4.16 OR 11.1 OF
                        THE SALE AND SERVICING AGREEMENT

         Wells Fargo Bank, National Association, as trustee (the "Trustee") of
the CPS Auto Receivables Trust 2008-A (the "Trust") under the Sale and Servicing
Agreement (the "Sale and Servicing Agreement"), dated as of March 1, 2008, among
the Trust, CPS Receivables LLC, as Seller, Consumer Portfolio Services, Inc.
("CPS"), individually and as Servicer, and Wells Fargo Bank, National
Association, as Trustee and Backup Servicer, does hereby sell, transfer, assign,
and otherwise convey to [CPS][the Servicer], without recourse, representation,
or warranty, all of the Trustee's right, title, and interest in and to all of
the Receivables identified in the attached Servicer's Certificate as "Purchased
Receivables," which are to be repurchased by [CPS][the Servicer] pursuant to
Sections 4.7, 4.16 or 11.1 of the Sale and Servicing Agreement and all security
and documents relating thereto.

         Capitalized terms used but not defined herein have the meaning assigned
to such terms in the Sale and Servicing Agreement.

         IN WITNESS WHEREOF I have hereunto set my hand this __ day of ____,
20__.

                                        WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                        Name:
                                        Title:

                                     F-2-1
<PAGE>

                                    EXHIBIT G
         SCHEDULE OF SUCCESSOR SERVICING FEES, EXPENSES & DISTRIBUTIONS
         --------------------------------------------------------------

I.       FEES

         ACTIVE SERVICING

         1. Boarding Fee $10.00 per loan 2. Monthly Fee $13.00 per loan

II.      EXPENSES

A.       TRANSITION EXPENSES

The Backup Servicer shall be reimbursed for all reasonable costs and expenses
incurred by the Backup Servicer during the Transfer Period specifically related
to the servicing transfer of the Receivables. Such items include, but are not
limited to, those related to travel, Obligor mailings, freight and file
shipping.

B.       ACTIVE SERVICING

The Backup Servicer shall be reimbursed for all reasonable out-of-pocket
expenses relating to its duties hereunder and under the Existing Servicing
Agreement including, but not limited to, those associated with the recovery of
Financed Vehicles, liquidation of Financed Vehicles, legal proceedings related
to replevin actions or Obligor bankruptcies, mailing costs, title processing,
bank charges and insurance tracking.

III.     DISTRIBUTIONS

ACTIVE SERVICING

All fees, expenses and other amounts due the Backup Servicer for each Collection
Period shall be reflected on the Servicer Certificate. All such amounts shall be
paid to the Backup Servicer on each Payment Date.

IV.      MISCELLANEOUS

A.       CLAIM FILING COSTS

In the event the Backup Servicer files credit enhancement insurance claims in
connection with any Receivable, the Backup Servicer shall receive $25.00 per
filing.

                                      G-1
<PAGE>

B.       DEFICIENCY COLLECTIONS

Under separate agreement, the Backup Servicer may provide deficiency balance
collections services on a contingency fee basis.

                                      G-2
<PAGE>

                                   EXHIBIT H-1

                             WELLS FARGO BANK, N.A.
                                SCHEDULE OF FEES
                        CPS AUTO RECEIVABLES TRUST 2008-A

I. ACCOUNT ACCEPTANCE FEE:                                                $5,000

         This fee covers all initial services including the examination of the
         governing documents, acceptance of the transaction and establishment of
         the necessary records and accounts. Fee payable at closing.

II.      COUNSEL FEE:                                                     ACTUAL

         Fees for counsel covers the review of both draft and final
         documentation. Fee includes only an enforceability opinion. Should
         other opinions be required, notice will be given in advance concerning
         the billing of additional amounts. Any out-of-pockets will be billed in
         addition to above. This fee is not contingent upon the transaction
         closing.

III.     ANNUAL ADMINISTRATION:                                 4.0 BASIS POINTS
                                                          $2,500 MONTHLY MINIMUM

         A fee for the ordinary administration of the transaction will be
         charged as indicated above. This fee covers trustee and paying agent
         duties and all wire charges. The fee also includes the verification of
         the monthly servicer report and the monthly duties of the back-up
         servicer. Fee assumes various Collection, Reserve and other accounts
         will be invested in "Permitted Investments" in money market mutual
         funds. Fee assumes Wells Fargo will receive funds for distribution at
         least one business day prior to distribution date with Wells Fargo
         having use of the funds.

IV.      CUSTODIAL DUTIES:

                  INITIAL FILE CHECK-IN                           $2.00 PER LOAN

                  ANNUAL SAFEKEEPING                              $2.00 PER LOAN
                  (billed quarterly ($.50) based upon the number
                  of loans held as of the last day of each quarter)

                  FILE PULLS OR RELEASES                          $2.50 PER LOAN

                  TRAILING DOCUMENTS                              $1.25 PER LOAN

                                     H-1-1
<PAGE>

         Responsibilities include initial review of files and loan file
         safekeeping. In addition to the above, the Issuer is responsible for
         all delivery of fees for shipment of loans/files to Wells Fargo Bank.

V.       BACK-UP SERVICER

         BACK-UP SERVICER MONTHLY FEE                             2 BASIS POINTS
                                                          $2,000 MONTHLY MINIMUM

         The successor servicer shall receive an electronic transmission of
         servicing information (such as address and telephone number, auto loan
         principal balance and payment information, including any comment
         histories and collection notes) and shall review each file to ensure
         that it is in readable form and that it can be loaded onto the back-up
         servicer's servicing system. The transmission will occur monthly until
         the controlling party requires more frequent transmissions. The fee
         also includes the verification of the monthly servicer report and the
         monthly duties of the back-up servicer.

VI.      MISCELLANEOUS:

         The fees set forth above are subject to the review and acceptance of
         final documentation are subject to change should circumstances warrant.
         Additional out-of-pocket expenses may be billed in addition to the
         above which can include, but are not limited to, travel expenses for
         trust officers attending out-of-town closings and all company visits.
         Any fees charged for services not specifically covered in this proposal
         will be assessed in amounts commensurate with the services rendered.

         This proposal assumes that the deal documents will contain appropriate
         transition expenses and a successor servicing fee of $13 per loan per
         month paid on a priority basis in the waterfall.

                                      H-1-2
<PAGE>

                                   EXHIBIT H-2

                             WELLS FARGO BANK, N.A.
                                SCHEDULE OF FEES
                        CPS CAYMAN RESIDUAL TRUST 2008-A

I.       ACCOUNT ACCEPTANCE FEE:                                          $2,000

         This fee covers all initial services including the examination of the
         governing documents, acceptance of the transaction and establishment of
         the necessary records and accounts. Fee payable at closing.

II.      COUNSEL FEE:                                                     ACTUAL

         Fees for counsel covers the review of both draft and final
         documentation. Fee includes only an enforceability opinion. Should
         other opinions be required, notice will be given in advance concerning
         the billing of additional amounts. Any out-of-pockets will be billed in
         addition to above. This fee is not contingent upon the transaction
         closing.

III.     TRUSTEE AND BACK-UP ADMINISTRATOR FEE:                  $5,000 PER YEAR

         A fee for the ordinary administration of the transaction will be
         charged as indicated above. This fee covers trustee and paying agent
         duties and all wire charges. The fee also includes the verification of
         the monthly servicer report and the monthly duties of the back-up
         servicer. Fee assumes Wells Fargo will receive funds for distribution
         at least one business day prior to distribution date with Wells Fargo
         having use of the funds. Fee includes safekeeping of the collateral -
         Residual Certificates of the underlying deals.

IV.      MISCELLANEOUS:

         The fees set forth above are subject to the review and acceptance of
         final documentation are subject to change should circumstances warrant.
         Additional out-of-pocket expenses may be billed in addition to the
         above which can include, but are not limited to, travel expenses for
         trust officers attending out-of-town closings and all company visits.
         Any fees charged for services not specifically covered in this proposal
         will be assessed in amounts commensurate with the services rendered.

                                     H-2-1

<PAGE>

<TABLE>
<S>            <C>
                                           TABLE OF CONTENTS

                                                                                                   PAGE
                                                                                                   ----

ARTICLE I DEFINITIONS...............................................................................  2
   SECTION 1.1          Definitions.................................................................  2

ARTICLE II CONVEYANCE OF RECEIVABLES................................................................ 26
   SECTION 2.1          Conveyance of Receivables................................................... 26
   SECTION 2.2          [Reserved].................................................................. 27
   SECTION 2.3          Transfers Intended as Sales................................................. 27
   SECTION 2.4          Further Encumbrance of Trust Property....................................... 27
   SECTION 2.5          Conveyance of Additional Servicing Compensation............................. 28

ARTICLE III THE RECEIVABLES......................................................................... 28
   SECTION 3.1          Representations and Warranties of Seller.................................... 28
   SECTION 3.2          Repurchase upon Breach...................................................... 36
   SECTION 3.3          Custody of Receivables Files................................................ 38
   SECTION 3.4          Acceptance of Receivable Files by Trustee................................... 38
   SECTION 3.5          Access to Receivable Files.................................................. 39
   SECTION 3.6          Trustee to Deliver Monthly Receivable File Report........................... 40
   SECTION 3.7          Trustee to Maintain Secure Facilities....................................... 40

ARTICLE IV ADMINISTRATION AND SERVICING OF RECEIVABLES.............................................. 40
   SECTION 4.1          Duties of the Servicer...................................................... 40
   SECTION 4.2          Collection of Receivable Payments; Modifications of Receivables;
                         Lockbox Agreements......................................................... 41
   SECTION 4.3          Realization Upon Receivables................................................ 43
   SECTION 4.4          Insurance................................................................... 43
   SECTION 4.5          Maintenance of Security Interests in Vehicles............................... 44
   SECTION 4.6          Additional Covenants of Servicer............................................ 45
   SECTION 4.7          Purchase of Receivables Upon Breach of Covenant............................. 45
   SECTION 4.8          Servicing Fee............................................................... 46
   SECTION 4.9          Servicer's Certificate...................................................... 46
   SECTION 4.10         Annual Statement as to Compliance, Notice of Servicer Termination Event..... 46
   SECTION 4.11         Annual Independent Accountants' Report...................................... 47
   SECTION 4.12         Access to Certain Documentation and Information Regarding Receivables....... 48
   SECTION 4.13         Verification of Servicer's Certificate...................................... 48
   SECTION 4.14         Retention and Termination of Servicer....................................... 50
   SECTION 4.15         Fidelity Bond............................................................... 50
   SECTION 4.16         Optional Purchase of Certain Receivables.................................... 50

ARTICLE V TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO SECURITYHOLDERS.............................. 52
   SECTION 5.1          Establishment of Trust Accounts............................................. 52
   SECTION 5.2          [Reserved].................................................................. 54
   SECTION 5.3          Certain Reimbursements to the Servicer...................................... 54

<PAGE>

   SECTION 5.4          Application of Collections.................................................. 54
   SECTION 5.5          Withdrawals from Series 2008-A Spread Account............................... 54
   SECTION 5.6          Additional Deposits......................................................... 55
   SECTION 5.7          Distributions............................................................... 55
   SECTION 5.8          Note Distribution Account................................................... 58
   SECTION 5.9          Certain Rights of the Residual Certificateholders........................... 61
   SECTION 5.10         [Reserved].................................................................. 62
   SECTION 5.11         Statements to Securityholders............................................... 62
   SECTION 5.12         Optional Deposits by the Note Insurer; Notice of Waivers.................... 64

ARTICLE VI THE NOTE POLICY.......................................................................... 65
   SECTION 6.1          Claims Under Note Policy.................................................... 65
   SECTION 6.2          Preference Claims........................................................... 66
   SECTION 6.3          Surrender of Note Policy.................................................... 67

ARTICLE VII [RESERVED].............................................................................. 67

ARTICLE VIII THE SELLER............................................................................. 67
   SECTION 8.1          Representations of the Seller............................................... 67
   SECTION 8.2          Sale Treatment.............................................................. 70
   SECTION 8.3          Changes to Seller's Contract Purchase Guidelines............................ 70
   SECTION 8.4          Liability of Seller; Indemnities............................................ 70
   SECTION 8.5          Merger or Consolidation of, or Assumption of the Obligations of, Seller..... 71
   SECTION 8.6          Limitation on Liability of Seller and Others................................ 72
   SECTION 8.7          Seller May Own Residual Pass-through Certificates or Notes.................. 72

ARTICLE IX THE SERVICER............................................................................. 72
   SECTION 9.1          Representations of Servicer................................................. 72
   SECTION 9.2          Liability of Servicer; Indemnities.......................................... 74
   SECTION 9.3          Merger or Consolidation of, or Assumption of the Obligations of, the
                         Servicer or Backup Servicer................................................ 76
   SECTION 9.4          Limitation on Liability of Servicer, Backup Servicer and Others............. 77
   SECTION 9.5          Delegation of Duties........................................................ 77
   SECTION 9.6          Servicer and Backup Servicer Not to Resign.................................. 77

ARTICLE X DEFAULT................................................................................... 78
   SECTION 10.1         Servicer Termination Event.................................................. 78
   SECTION 10.2         Consequences of a Servicer Termination Event................................ 80
   SECTION 10.3         Appointment of Successor.................................................... 81
   SECTION 10.4         Notification to Securityholders............................................. 82
   SECTION 10.5         Waiver of Past Defaults..................................................... 82
   SECTION 10.6         Action Upon Certain Failures of the Servicer................................ 82

ARTICLE XI TERMINATION.............................................................................. 83
   SECTION 11.1         Optional Purchase of All Receivables........................................ 83

ARTICLE XII ADMINISTRATIVE DUTIES OF THE SERVICER................................................... 84
   SECTION 12.1         Administrative Duties....................................................... 84

<PAGE>

   SECTION 12.2         Records..................................................................... 86
   SECTION 12.3         Additional Information to be Furnished to the Issuer........................ 86

ARTICLE XIII MISCELLANEOUS PROVISIONS............................................................... 86
   SECTION 13.1         Amendment................................................................... 86
   SECTION 13.2         Protection of Title to Trust................................................ 88
   SECTION 13.3         Notices..................................................................... 90
   SECTION 13.4         Assignment.................................................................. 91
   SECTION 13.5         Limitations on Rights of Others............................................. 91
   SECTION 13.6         Severability................................................................ 91
   SECTION 13.7         Separate Counterparts....................................................... 91
   SECTION 13.8         Headings.................................................................... 92
   SECTION 13.9         Governing Law............................................................... 92
   SECTION 13.10        Assignment to Trustee....................................................... 92
   SECTION 13.11        Nonpetition Covenants....................................................... 92
   SECTION 13.12        Limitation of Liability of Owner Trustee and Trustee........................ 92
   SECTION 13.13        Independence of the Servicer................................................ 93
   SECTION 13.14        No Joint Venture............................................................ 93
   SECTION 13.15        Note Insurer as Controlling Party........................................... 93
   SECTION 13.16        Acknowledgment of Roles..................................................... 96
   SECTION 13.17        Intention of Parties Regarding Delaware Securitization Act.................. 96

</TABLE>

<PAGE>

                                    SCHEDULES

         Schedule A - Schedule of Receivables

         Schedule B - Location for Delivery of Receivable Files

         EXHIBITS

         Exhibit A - [Reserved]

         Exhibit B - Form of Servicer's Certificate

         Exhibit C - Form of Release Request

         Exhibit D - Form of Servicing Officer's Certificate

         Exhibit E - Form of Monthly Securityholder Statement

         Exhibit F-1 - Form of Trustee's Certificate Pursuant to

                  Section 3.2 or 3.4

         Exhibit F-2 - Form of Trustee's Certificate Pursuant to

                  Section 4.7, 4.16 or 11.1

         Exhibit G - Schedule of Successor Servicing Fees, Expenses and
                     Distributions

         Exhibit H-1 - Fee Schedule - CPS Auto Receivables Trust 2008-A

         Exhibit H-2 - Fee Schedule - CPS Cayman Residual Trust 2008-Anewcardio_ex0401.htm

    Exhibit 4.1

     

    
      State
of Delaware

      Secretary
of State

      Division
of
Corporations

      Delivered
12:17 PM 12/27/2007

      FILED
12:19 PM 12/27/2007

      SRV
071365248 - 3698479 FILE

      
        

         

        MARINE
PARK HOLDINGS, INC.

         

        AMENDED
CERTIFICATE OF DESIGNATION OF PREFERENCES,

        RIGHTS
AND LIMITATIONS

        OF

        SERIES
A 10% CONVERTIBLE PREFERRED STOCK

         

        PURSUANT
TO SECTION 151 OF THE

        DELAWARE
GENERAL CORPORATION LAW

         

        The
undersigned, David Stefansky and Richard Rosenblum, do hereby certify
that:

         

        1. They are
the President and Secretary, respectively, of Marine Park Holdings, Inc., a
Delaware corporation (the "Corporation").

         

        2. The
Corporation is authorized to issue 1,000,000 shares of preferred stock, none of
which have been issued.

         

        3. The
following resolutions were duly adopted by the board of directors of the
Corporation (the "Board of
Directors"):

         

        WHEREAS,
the certificate of incorporation of the Corporation provides for a class of its
authorized stock known as preferred stock, comprised of 1,000,000 shares, $0.001
par value per share, issuable from time to time in one or more
series;

         

        WHEREAS,
the Board of Directors is authorized to fix the dividend rights, dividend rate,
voting rights, conversion rights, rights and terms of redemption and liquidation
preferences of any wholly unissued series of preferred stock and the number of
shares constituting any series and the designation thereof, of any of them;
and

         

        WHEREAS,
it is the desire of the Board of Directors, pursuant to its authority as
aforesaid, to fix the rights, preferences, restrictions and other matters
relating to a series of the preferred stock, which shall consist of, except as
otherwise set forth in the Purchase Agreement, 12,000 shares of the preferred
stock which the Corporation has the authority to issue, as follows:

         

        NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for
the issuance of a series of preferred stock for cash or exchange of other
securities, rights or property and does hereby fix and determine the rights,
preferences, restrictions and other matters relating to such series of preferred
stock as follows:

         

        
          
             

          

          
            1

            
              

            

          

          
             

          

        

         

        TERMS
OF PREFERRED STOCK

         

        Section 1. Definitions.
Capitalized terms used and not otherwise defined herein
that are defined in the Purchase Agreement shall have the meanings given such
terms in the Purchase Agreement. For the purposes hereof, the following terms
shall have the following meanings:

         

        "Alternate
Consideration" shall have the meaning set forth in Section
7(e).

         

        "Bankruptcy Event"
means any of the following events: (a) the Corporation or any Significant
Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) thereof
commences a case or other proceeding under any bankruptcy, reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or
liquidation or similar law of any jurisdiction relating to the Corporation or
any Significant Subsidiary thereof; (b) there is commenced against the
Corporation or any Significant Subsidiary thereof any such case or proceeding
that is, not dismissed within 60 days after commencement; (c) the Corporation or
any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any
order of relief or other order approving any such case or proceeding is entered;
(d) the Corporation or any Significant Subsidiary thereof suffers any
appointment of any custodian or the like for it or any substantial part of its
property that is not discharged or stayed within 60 calendar days after such
appointment; (e) the Corporation or any Significant Subsidiary thereof makes a
general assignment for the benefit of creditors; (f) the Corporation or any
Significant Subsidiary thereof calls a meeting of its creditors with a view to
arranging a composition, adjustment or restructuring of its debts; or (g) the
Corporation or any Significant Subsidiary thereof, by any act or failure to act,
expressly indicates its consent to, approval of or acquiescence in any of the
foregoing or takes any corporate or other action for the purpose of effecting
any of the foregoing.

         

        "Base Conversion
Price" shall have the meaning set forth in Section 7(b).

         

        "Business Day" means
any day except Saturday, Sunday, any day which shall be a federal legal holiday
in the United States or any day on which banking institutions in the State of
New York are authorized or required by law or other governmental action to
close.

         

        "Buy-1n" shall have
the meaning set forth in Section 6(e)(iii).

         

        "Change of Control
Transaction" means the occurrence after the date of the Merger (as
defined in the Purchase Agreement) and after giving effect to the issuance of
the Preferred Stock as provided in the Purchase Agreement of any of (i) an
acquisition after the date hereof by an individual, legal entity or "group" (as
described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective
control (whether through legal or beneficial ownership of capital stock of the
Corporation, by contract or

         

         

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

        otherwise)
of in excess of 33% of the voting securities of the Corporation (other than by
means of conversion or exercise of Preferred Stock and the Securities issued
together with the Preferred Stock), or (ii) the Corporation merges into or
consolidates with any other Person, or any Person merges into or consolidates
with the Corporation and, after giving effect to such transaction, the
stockholders of the Corporation immediately prior to such transaction own less
than 66% of the aggregate voting power of the Corporation or the successor
entity of such transaction, or (iii) the Corporation sells or transfers all or
substantially all of its assets to another Person and the stockholders of the
Corporation immediately prior to such transaction own less than 66% of the
aggregate voting power of the acquiring entity immediately after the
transaction, or (iv) a replacement at one time or within a one year period of
more than one-half of the members of the Corporation's board of directors which
is not approved by a majority of those individuals who are members of the board
of directors on the date hereof (or by those individuals who are serving as
members of the board of directors on any date whose nomination to the board of
directors was approved by a majority of the members of the board of directors
who are members on the date hereof), or (v) the execution by the Corporation of
an agreement to which the Corporation is a party or by which it is bound,
providing for any of the events set forth in clauses (i) through (iv)
above.

         

        "Closing Date" means
the Trading Day when all of the Transaction Documents have been executed and
delivered by the applicable parties thereto and all conditions precedent to (i)
each Holder's obligations to pay the Subscription Amount and (ii) the
Corporation's obligations to deliver the Securities have been satisfied or
waived.

         

        "Commission" means
the Securities and Exchange Commission.

         

        "Common Stock" means
the Corporation's common stock, par value $0.001 per share, and stock of any
other class of securities into which such securities may hereafter be
reclassified or changed into.

         

        "Common Stock
Equivalents" means any securities of the Corporation or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or
exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

         

        "Conversion Amount"
means the sum of the Stated Value at issue. 

         

        "Conversion Date"
shall have the meaning set forth in Section 6(a).

         

         "Conversion Price"
shall have the meaning set forth in Section 6(b).

         

        "Conversion Shares"
means, collectively, the shares of Common Stock issuable upon conversion of the
shares of Preferred Stock in accordance with the terms hereof.

         

         

        
          
             

          

          
            3

            
              

            

          

          
             

          

        

        "Conversion Shares
Registration Statement" means a registration statement that registers the
resale of all Conversion Shares of the Holders, who shall be named as a "selling
stockholder" therein and meets the requirements of the Registration Rights
Agreement.

         

        "Dilutive Issuance"
shall have the meaning set forth in Section 7(b). 

         

        "Dilutive Issuance
Notice" shall have the meaning set forth in Section 7(b). 

         

        "Dividend Payment
Date" shall have the meaning set forth in Section 3(a). 

         

        "Dividend Share
Amount" shall have the meaning set forth in Section 3(a).

         

        "Effective Date"
means the date that the Conversion Shares Registration Statement is declared
effective by the Commission.

         

        "Equity Conditions"
means, during the period in question, (i) the Corporation shall have duly
honored all conversions scheduled to occur or occurring by virtue of one or more
Notices of Conversion of the applicable Holder on or prior to the dates so
requested or required, if any, (ii) the Corporation shall have paid all
liquidated damages and other amounts owing to the applicable Holder in respect
of the Preferred Stock, (iii) there is an effective Conversion Shares
Registration Statement pursuant to which the Holders are permitted to utilize
the prospectus thereunder to resell all of the shares of Common Stock issuable
pursuant to conversion of the Preferred Stock (and the Corporation believes, in
good faith, that such effectiveness will continue uninterrupted for the
foreseeable future), (iv) the Common Stock is trading on a Trading Market and
all of the shares issuable upon conversion of the Preferred Stock are listed for
trading on such Trading Market (and the Corporation believes, in good faith,
that trading of the Common Stock on a Trading Market will continue uninterrupted
for the foreseeable future), (v) there is a sufficient number of authorized, but
unissued and otherwise unreserved, shares of Common Stock for the issuance of
all of the shares of Common Stock issuable pursuant to the Transaction
Documents, (vi) there is no existing Triggering Event or no existing event
which, with the passage of time or the giving of notice, would constitute a
Triggering Event, (vii) the issuance of the shares in question (or, in the case
of a Forced Conversion, the shares issuable upon conversion in full of the
Forced Conversion amount) to the applicable Holder would not violate the
limitations set forth in Section 6(c), (viii) there has been no public
announcement of a pending or proposed Fundamental Transaction or Change of
Control Transaction that has not been consummated, and (ix) the applicable
Holder is not in possession of any information provided by the Company that
constitutes, or may constitute, material non-public information.

         

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

         

         

        
          
             

          

          
            4

            
              

            

          

          
             

          

        

        "Exempt Issuance"
means the issuance of (a) shares of Common Stock or options to employees,
officers or directors of the Corporation pursuant to the Employee Stock Option
Plan (as defined in the Purchase Agreement), (b) securities upon the exercise of
or conversion of any securities issued hereunder and/or other securities
exercisable or exchangeable for or convertible into shares of Common Stock
issued and outstanding on the date of the Purchase Agreement, provided that such
securities have not been amended since the date of the Purchase Agreement to
increase the number of such securities or to decrease the exercise or conversion
price of any such securities, and (c) securities issued pursuant to acquisitions
or strategic transactions approved by a majority of the disinterested directors,
provided that any such issuance shall only be to a Person which is, itself or
through its subsidiaries, an operating company in a business synergistic with
the business of the Corporation and shall provide to the Corporation additional
benefits in addition to the investment of funds, but shall not include a
transaction in which the Corporation is issuing securities primarily for the
purpose of raising capital or to an entity whose primary business is investing
in securities.

         

        "Forced Conversion"
means a conversion of the Preferred Stock into Common Stock by the Company in
accordance with Section 8.

         

        "Forced Conversion
Amount" means the sum of (i) the aggregate Stated Value then outstanding,
(ii) accrued but unpaid dividends and (iii) all liquidated damages and other
amounts due in respect of the Preferred Stock.

         

        "Forced Conversion
Date" shall have the meaning set forth in Section 8. 

         

        "Forced Conversion
Notice" shall have the meaning set forth in Section 8. 

         

        "Forced Conversion Notice
Date" shall have the meaning set forth in Section 8. 

         

        "Fundamental
Transaction" shall have the meaning set forth in Section 7(e).

         

        "Holder" shall have
the meaning given such term in Section 2.

         

        "Junior Securities"
means the Common Stock and all other Common Stock Equivalents of the Corporation
other than those securities which are explicitly senior or pari passu to the
Preferred Stock in dividend rights or liquidation preference.

         

        "Liquidation" shall
have the meaning set forth in Section 5.

         

        "New York Courts"
shall have the meaning set forth in Section 11(d). "Notice of
Conversion" shall have the meaning set forth in Section
6(a).

         

        "Original Issue Date"
means the date of the first issuance of any shares of the Preferred Stock
regardless of the number of transfers of any particular shares of Preferred
Stock and
regardless of the number of certificates which may be issued to evidence such
Preferred Stock.

         

        
          
             

          

          
            5

            
              

            

          

          
             

          

        

         

         

        "Permitted
Indebtedness" means (a) the Indebtedness existing on the Original Issue
Date and set forth on Schedule 3.1(aa)
attached to the Purchase Agreement and (b) lease obligations and purchase money
indebtedness of up to $100,000, in the aggregate, incurred in connection with
the acquisition of capital assets and lease obligations with respect to newly
acquired or leased assets.

         

        "Permitted Lien"
means the individual and collective reference to the following: (a) Liens for
taxes, assessments and other governmental charges or levies not yet due or Liens
for taxes, assessments and other governmental charges or levies being contested
in good faith and by appropriate proceedings for which adequate reserves (in the
good faith judgment of the management of the Corporation) have been established
in accordance with GAAP; (b) Liens imposed by law which were incurred in the
ordinary course of the Corporation's business, such as carriers', warehousemen's
and mechanics' Liens, statutory landlords' Liens, and other similar Liens
arising in the ordinary course of the Corporation's business, and which (x) do
not individually or in the aggregate materially detract from the value of such
property or assets or materially impair the use thereof in the operation of the
business of the Corporation and its consolidated Subsidiaries or (y) which are
being contested in good faith by appropriate proceedings, which proceedings have
the effect of preventing for the foreseeable future the forfeiture or sale of
the property or asset subject to such Lien; and (c) Liens incurred in connection
with Permitted Indebtedness under clause (b) thereunder, provided that such
Liens are not secured by assets of the Corporation or its Subsidiaries other
than the assets so acquired or leased.

         

        "Preferred Stock"
shall have the meaning set forth in Section 2.

         

        "Purchase Agreement"
means the Securities Purchase Agreement, dated as of the Original Issue Date, to
which the Corporation and the original Holders are parties, as amended, modified
or supplemented from time to time in accordance with its terms.

         

        "Registration Rights
Agreement" means the Registration Rights Agreement, dated as of the date
of the Purchase Agreement, to which the Corporation and the original Holder are
parties, as amended, modified or supplemented from time to time in accordance
with its terms.

         

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

         

        "Share Delivery Date"
shall have the meaning set forth in Section 6(e).

         

        "Stated Value" shall
have the meaning set forth in Section 2, as the same may be increased pursuant
to Section 3.

         

        
          
             

          

          
            6

            
              

            

          

          
             

          

        

         

        "Subscription Amount"
means, as to each Purchaser, the amount in United States Dollars and in
immediately available funds to be paid for the Preferred Stock purchased
pursuant to the Purchase Agreement as specified below such Purchaser's name on
the signature page of the Purchase Agreement and next to the heading
"Subscription Amount."

         

        "Subsidiary" shall
have the meaning set forth in the Purchase Agreement.

         

        "Trading Day" means a
day on which the New York Stock Exchange is open for business.

         

        "Trading Market"
means the following markets or exchanges on which the Common Stock is listed or
quoted for trading on the date in question: the American Stock Exchange, the
Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market, the New York Stock Exchange or the OTC Bulletin Board.

         

        "Transaction
Documents" shall have the meaning set forth in the Purchase
Agreement.

         

        "Triggering Event"
shall have the meaning set forth in Section 9(a).

         

        "Triggering Redemption
Amount" means, for each share of Preferred Stock, the sum of (i) the
greater of (A) 120% of the Stated Value and (B) the product of (a) the VWAP on
the Trading Day immediately preceding the date of the Triggering Event and
(b) the
Stated Value divided by the then Conversion Price, (ii) all accrued but unpaid
dividends thereon and (iii) all liquidated damages and other costs, expenses or
amounts due in respect of the Preferred Stock.

         

        'Triggering Redemption
Payment Date" shall have the meaning set forth in Section
9(b).

         

        "VWAP" means, for any
date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed
or quoted for trading as reported by Bloomberg Financial L.P. (based on a
Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City
time)); (b) if the OTC Bulletin Board is not a Trading Market, the volume
weighted average price of the Common Stock for such date (or the nearest
preceding date) on the OTC Bulletin Board; (c) if the
Common Stock is not then quoted for trading on the OTC Bulletin Board and if
prices for the Common Stock are then reported in the "Pink Sheets" published by
Pink Sheets, LLC (or a similar organization or agency succeeding to its
functions of reporting prices), the most recent bid price per share of the
Common Stock so reported; or (d) in all other cases, the fair market value of a
share of Common Stock as determined by an independent
appraiser selected in good faith by the Holders and reasonably acceptable to the
Corporation, the fees and expenses of which shall be paid by the
Corporation.

         

        
          
             

          

          
            7

            
              

            

          

          
             

          

        

         

        Section 2. 
Designation,
Amount and Par Value. The series of preferred stock shall be
designated as its Series A 10% Convertible Preferred Stock (the "Preferred Stock")
and the number of shares so designated shall be 12,000 (which shall not be
subject to increase without the written consent of all of the holders of the
Preferred Stock (each, a "Holder" and
collectively, the "Holders")). Each
share of Preferred Stock shall have a par value of $0.001 per share and a stated
value equal to $1,000, subject to increase set forth in Section 3(a) below (the
"Stated
Value").

         

        Section 3. 
Dividends.

         

        a) 
Dividends in Cash or
in Kind. Holders shall be entitled to receive, and the Corporation
shall pay, cumulative dividends at the rate per share (as a percentage of the
Stated Value per share) of 10% per annum (subject to increase pursuant to
Section 9(b)), payable quarterly on January 1, April 1, July 1 and October 1, beginning on
the first such date after the Original Issue Date and on each Conversion Date
(with respect only to Preferred Stock being converted) (each such date, a "Dividend Payment
Date") (if any Dividend Payment Date is not a Trading Day, the applicable
payment shall be due on the next succeeding Trading Day) in cash, or at the
Corporation's option, in duly authorized, validly issued, fully paid and
non-assessable shares of Common Stock as set forth in this Section 3(a), or a
combination thereof (the amount to be paid in shares of Common Stock, the "Dividend Share
Amount"). The form of dividend payments to each Holder shall be
determined in the following order of priority: (1) if funds are legally
available for the payment of dividends and the Equity Conditions have not been
met during the 20 consecutive Trading Days immediately prior to the applicable
Dividend Payment Date, in cash only; (ii) if funds are legally available for the
payment of dividends and the Equity Conditions have been met during the 20
consecutive Trading Days immediately prior to the applicable Dividend Payment
Date, at the sole election of the Corporation, in cash or shares of Common Stock
which shall be valued solely for such purpose (A) if not then effectively
registered for resale by the Holder, at 90% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date and (B) if then effectively
registered for resale by the Holder, at 100% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date; (iii) if funds are not legally available for the
payment of dividends and the Equity Conditions have been met during the 20
consecutive Trading Days immediately prior to the applicable Dividend Payment
Date, in shares of Common Stock which shall be valued solely for such purpose
(A) if not then
effectively registered for resale by the Holder, at 90% of the average of the
VWAPs for the 20 consecutive Trading Days ending on the Trading Day that is
immediately prior to the Dividend Payment Date and (B) if then effectively
registered for resale by the Holder, at 100% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date; and (iv) if funds are not legally available for
the payment of dividends and

         

        
          
             

          

          
            8

            
              

            

          

          
             

          

        

         

        the
Equity Conditions have not been met during the 20 consecutive Trading Days
immediately prior to the applicable Dividend Payment Date, then, at the election
of such Holder, (1) such dividends shall accrue to the next Dividend Payment
Date, (2) shall be accreted to, and increase, the outstanding Stated Value, or
(3) in shares of Common Stock which shall be valued solely for such purpose (A)
if not then effectively
registered for resale by the Holder, at 90% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date and (B) if then effectively
registered for resale by the Holder, at 100% of the average of the VWAPs for the
20 consecutive Trading Days ending on the Trading Day that is immediately prior
to the Dividend Payment Date. The Holders shall have the same rights and
remedies with respect to the delivery of any such shares as if such shares were
being issued pursuant to Section 6. On the Closing Date, after giving effect to
the receipt by the Company of the proceeds from the sale of Preferred Stock
under the Purchase Agreement, the Corporation shall have notified the Holders
whether or not it may legally pay cash dividends as of the Closing Date. The
Corporation shall promptly notify the Holders at any time the Corporation shall
become able or unable, as the case may be, to legally pay cash dividends. If at
any time the Corporation has the right to pay dividends in cash or Common Stock,
the Corporation must provide the Holders with at least 20 Trading Days' notice
of its election to pay a regularly scheduled dividend in Common Stock and
whether or not a registration statement relating thereto is then effective (the
Corporation may indicate in such notice that the election contained in such
notice shall continue for later periods until revised by a subsequent notice).
Dividends on the Preferred Stock shall be calculated on the basis of a 360-day
year, consisting of twelve 30 calendar day periods, shall accrue daily
commencing on the Original Issue Date, and shall be deemed to accrue from such
date whether or not earned or declared and whether or not there are profits,
surplus or other funds of the Corporation legally available for the payment of
dividends. Except as otherwise provided herein, if at any time the Corporation
pays dividends partially in cash and partially in shares, then such payment
shall be distributed ratably among the Holders based upon the number of shares
of Preferred Stock held by each Holder on such Dividend Payment Date. Any
dividends, whether paid in cash or shares of Common Stock, that are not paid
within three Trading Days following a Dividend Payment Date shall continue to
accrue and shall entail a late fee, which must be paid in cash, at the rate of 1.8%
per annum or the lesser rate permitted by applicable law (such fees to accrue
daily, from the Dividend Payment Date through and including the date of
payment). If at any time the Corporation delivers a notice to the Holders of its
election to pay the dividends in shares of Common Stock, the Corporation shall
timely file a prospectus supplement pursuant to Rule 424 disclosing such
election.

         

        b) So
long as any Preferred Stock shall remain outstanding, neither the Corporation
nor any Subsidiary thereof shall redeem, purchase or otherwise acquire directly
or indirectly any Junior Securities except as expressly permitted by Section
9(a)(ix). So long as any Preferred Stock shall remain outstanding, neither the
Corporation nor any Subsidiary thereof shall directly or indirectly pay or
declare any dividend or make any distribution upon (other than a dividend or
distribution described in Section 6 or dividends due and paid in the ordinary
course on preferred stock of the Corporation at

         

        
          
             

          

          
            9

            
              

            

          

          
             

          

        

         

        such
times when the Corporation is in compliance with its payment and other
obligations hereunder), nor shall any distribution be made in respect of, any
Junior Securities as long as any dividends due on the Preferred Stock remain
unpaid, nor shall any monies be set aside for or applied to the purchase or
redemption (through a sinking fund or otherwise) of any Junior Securities or
shares plri passu with the
Preferred Stock.

         

        c) The
Corporation acknowledges and agrees that the capital of the Corporation
(as such term is used in Section 154 of the Delaware General Corporation Law) in
respect of the Preferred Stock and any future issuances of the Corporation's
capital stock shall be equal to the aggregate par value of such Preferred Stock
or capital stock, as the case may be, and that, on or after the date of the
Purchase Agreement, it shall not increase the capital of the Corporation with
respect to any shares of the Corporation's capital stock issued and outstanding
on such date. The Corporation also acknowledges and agrees that it shall not
create any special reserves under Section 171 of the Delaware General
Corporation Law without the prior written consent of each Holder.

         

        Section 4. 
Voting
Rights. Except as otherwise provided herein or as otherwise required
by law, the Preferred Stock shall have no voting rights. However, as long as any
shares of Preferred Stock are outstanding, the Corporation shall not, without
the affirmative vote of the Holders of a majority of the then outstanding shares
of the Preferred Stock, (a) alter or change adversely the powers, preferences or
rights given to the Preferred Stock or alter or amend this Certificate of
Designation, (b) authorize or create any class of stock ranking as to dividends,
redemption or distribution of assets upon a Liquidation (as defined in Section
5) senior to or otherwise pad passu with the
Preferred Stock, (c) amend its certificate of incorporation or other charter
documents in any manner that adversely affects any rights of the Holders, (d)
increase the number of authorized shares of Preferred Stock, or (e) enter into
any agreement with respect to any of the foregoing.

         

        Section 5. 
Liquidation. Upon any
liquidation, dissolution or winding-up of the
Corporation, whether voluntary or involuntary (a "Liquidation"), the
Holders shall be entitled to receive out of the assets, whether capital or
surplus, of the Corporation an amount equal to 120% of the Stated Value, plus
any accrued and unpaid dividends thereon and any other fees or liquidated
damages owing thereon, for each share of Preferred Stock before any distribution
or payment shall be made to the holders of any Junior Securities, and if the
assets of the Corporation shall be insufficient to pay in full such amounts,
then the entire assets to be distributed to the Holders shall be ratably
distributed among the Holders in accordance with the respective amounts that
would be payable on such shares if all amounts payable thereon were paid in
full. A Fundamental Transaction or Change of Control Transaction shall not be
deemed a Liquidation. The Corporation shall mail written notice of any such
Liquidation, not less than 45 days prior to the payment date stated therein, to
each Holder.

         

        Section 6. 
Conversion.

         

        a) Conversions at Option of
Holder. Each share of Preferred Stock shall be convertible,
at any time and from time to time from and after the Original Issue Date
at

         

         

        
          
             

          

          
            10

            
              

            

          

          
             

          

        

        the
option of the Holder thereof, into that number of shares of Common Stock
(subject to the limitations set forth in Section 6(c)) determined by dividing
the Stated Value of such share of Preferred Stock by the Conversion Price.
Holders shall effect conversions by providing the Corporation with the form of
conversion notice attached hereto as Annex A (a "Notice of
Conversion"). Each Notice of Conversion shall specify the number of
shares of Preferred Stock to be converted, the number of shares of Preferred
Stock owned prior to the conversion at issue, the number of shares of Preferred
Stock owned subsequent to the conversion at issue and the date on which such
conversion is to be effected, which date may not be prior to the date the
applicable Holder delivers by facsimile such Notice of Conversion to the
Corporation (such date, the "Conversion  Date").
If no Conversion Date is specified in a Notice of Conversion, the Conversion
Date shall be the date that such Notice of Conversion to the Corporation is
deemed delivered hereunder_ Tice calculations and entries set forth in the
Notice of Conversion shall control in the absence of manifest or mathematical
error. To effect conversions of shares of Preferred Stock, a Holder shall not be
required to surrender the certificate(s) representing such shares of Preferred
Stock to the Corporation unless all of the shares of Preferred Stock represented
thereby are so converted, in which case such Holder shall deliver the
certificate representing such shares of Preferred Stock promptly following the
Conversion Date at issue. Shares of Preferred Stock converted into Common Stock
or redeemed in accordance with the terms hereof shall be canceled and shall not
be reissued.

         

        b) Conversion Price. The
conversion price for the Preferred Stock shall equal
$0.95, subject to adjustment herein (the "Conversion
Price").

         

        c)  Beneficial Ownership
Limitation. The Corporation shall not effect any conversion
of the Preferred Stock, and a Holder shall not have the right to convert any
portion of the Preferred Stock, to the extent that, after giving effect to the
conversion set forth on the applicable Notice of Conversion, such Holder
(together with such Holder's Affiliates, and any other person or entity acting
as a group together with such Holder or any of such Holder's Affiliates) would
beneficially own in excess of the Beneficial Ownership Limitation (as defined
below). For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by such Holder and its Affiliates shall include the
number of shares of Common Stock issuable upon conversion of the Preferred Stock
with respect to which such determination is being made, but shall exclude the
number of shares of Common Stock which are issuable upon (A) conversion of the
remaining, unconverted Stated Value of Preferred Stock beneficially owned by
such Holder or any of its Affiliates and (B) exercise or conversion of the
unexercised or unconverted portion of any other securities of the Corporation
subject to a limitation on conversion or exercise analogous to the limitation
contained herein (including the Warrants) beneficially owned by such Holder or
any of its Affiliates. Except as set forth in the preceding sentence, for
purposes of this Section 6(c), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. To the extent that the limitation contained in this
Section 6(c) applies, the determination of whether the Preferred Stock is
convertible (in relation to other securities owned by such Holder together with
any Affiliates) and of

         

         

        
          
             

          

          
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        how many
shares of Preferred Stock are convertible shall be in the sole discretion of
such Holder, and the submission of a Notice of Conversion shall be deemed to be
such Holder's determination of whether the shares of Preferred Stock may be
converted (in relation to other securities owned by such Holder together with
any Affiliates) and how many shares of the Preferred Stock are convertible, in
each case subject to the Beneficial Ownership Limitation. To ensure compliance
with this restriction, each Holder will be deemed to represent to the
Corporation each time it delivers a Notice of Conversion that such Notice of
Conversion has not violated the restrictions set forth in this paragraph and the
Corporation shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 6(c), in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as
stated in the most recent of the following: (A) the Corporation's most recent
periodic or annual filing with the Securitites and Exchange Commission, as the
case may be, (B) a more recent public announcement by the Corporation or (C) a
more recent notice by the Corporation or the Corporation's transfer agent
setting forth the number of shares of Common Stock outstanding. Upon the written
or oral request of a Holder, the Corporation shall within two Trading Days
confirm orally and in writing to such Holder the number of shares of Common
Stock then outstanding. In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of
securities of the Corporation, including the Preferred Stock, by such Holder or
its Affiliates since the date as of which such number of outstanding shares of
Common Stock was reported. The "Beneficial Ownership Limitation" shall be 4.99%
of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon conversion of
Preferred Stock held by the applicable Holder. A Holder, upon not less than 61
days' prior notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 6(c) applicable to its Preferred
Stock. Any such increase or decrease will not be effective until the 61st day
after such notice is delivered to the Company and shall only apply to such
Holder and no other Holder. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity with the terms
of this Section 6(c) to correct this paragraph (or any portion hereof) which may
be defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitations contained in this
paragraph shall apply to a successor holder of Preferred Stock.

         

        d) [RESERVED]

         

        e) Mechanics of
Conversion

         

        i. 
Delivery of
Certificate Upon Conversion. Not later than three Trading
Days after each Conversion Date (the "Share Delivery
Date"), the

         

        
          
             

          

          
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        Corporation
shall deliver, or cause to be delivered, to the converting Holder (A) a
certificate or certificates which, on or after the Effective Date, shall be free
of restrictive legends and trading restrictions (other than those which may then
be required by the Purchase Agreement) representing the number of Conversion
Shares being acquired upon the conversion of shares of Preferred Stock, and (B)
a bank check in the amount of accrued and unpaid dividends (if the Corporation
has elected or is required to pay accrued dividends in cash). On or after the
Effective Date, the Corporation shall, upon request of such Holder, use its best
efforts to deliver any certificate or certificates required to be delivered by
the Corporation under this Section 6 electronically through the Depository Trust
Company or another established clearing corporation performing similar
functions. If in the case of any Notice of Conversion such certificate or
certificates are not delivered to or as directed by the applicable Holder by the
third Trading Day after the Conversion Date, the applicable Holder shall be
entitled to elect to rescind such Conversion Notice by written notice to the
Corporation at any time on or before its receipt of such certificate or
certificates, in which event the Corporation shall promptly return to such
Holder any original Preferred Stock certificate delivered to the Corporation and
such Holder shall promptly return to the Corporation any Common Stock
certificates representing the shares of Preferred Stock unsuccessfully tendered
for conversion to the Corporation.

         

        ii. Obligation Absolute; Partial
Liquidated Damages. The Corporation's
obligation to issue and deliver the Conversion Shares upon conversion of
Preferred Stock in accordance with the terms hereof are absolute and
unconditional, irrespective of any action or inaction by a Holder to enforce the
same, any waiver or consent with respect to any provision hereof, the recovery
of any judgment against any Person or any action to enforce the same, or any
setoff, counterclaim, recoupment, limitation or termination, or any breach or
alleged breach by such Holder or any other Person of any obligation to the
Corporation or any violation or alleged violation of law by such Holder or any
other person, and irrespective of any other circumstance which might otherwise
limit such obligation of the Corporation to such Holder in connection with the
issuance of such Conversion Shares; provided, however,
that such delivery shall not operate as a waiver by the Corporation of any such
action that the Corporation may have against such Holder. In the event a Holder
shall elect to convert any or all of the Stated Value of its Preferred Stock,
the Corporation may not refuse conversion based on any claim that such Holder or
any one associated or affiliated with such Holder has been engaged in any
violation of law, agreement or for any other reason, unless an injunction from a
court, on notice to Holder, restraining and/or enjoining conversion of all or
part of the Preferred Stock of such Holder shall have been sought and obtained,
and the Corporation posts a surety bond for the benefit of such Holder in the
amount of 150% of the Stated Value of Preferred Stock which is subject to the
injunction, which bond shall remain in effect until the completion of
arbitration/litigation of the underlying dispute and the proceeds of which shall
be payable to such Holder to the extent it obtains judgment. In the

         

        
          
             

          

          
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        absence
of such injunction, the Corporation shall issue Conversion Shares and, if
applicable, cash, upon a properly noticed conversion. If the Corporation fails
to deliver to a Holder such certificate or certificates pursuant to Section
6(e)(i) on the second Trading Day after the Share Delivery Date applicable to
such conversion, the Corporation shall pay to such Holder, in cash, as
liquidated damages and not as a penalty, for each $5,000 of Stated Value of
Preferred Stock being converted, $50 per Trading Day (increasing to $100 per
Trading Day on the third Trading Day and increasing to $200 per Trading Day on
the sixth Trading Day after such damages begin to accrue) for each Trading Day
after such second Trading Day after the Share Delivery Date until such
certificates are delivered. Nothing herein shall limit a Holder's right to
pursue actual damages or declare a Triggering Event pursuant to Section 9 for
the Corporation's failure to deliver Conversion Shares within the period
specified herein and such Holder shall have the right to pursue all remedies
available to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief. The Exercise of any
such rights shall not prohibit a Holder from seeking to enforce damages pursuant
to any other Section hereof or under applicable law.

         

        iii.
Compensation for
Buy-In on Failure to Timely Deliver Certificates Upon Conversion. If
the Corporation fails to deliver to a Holder the applicable certificate or
certificates by the Share Delivery Date pursuant to Section 6(e)(i), and if
after such Share Delivery Date such Holder is required by its brokerage firm to
purchase (in an open market transaction or otherwise), or the Holder's brokerage
firm purchases, shares of Common Stock to deliver in satisfaction of a sale by
such Holder of the Conversion Shares which such Holder was entitled to receive
upon the conversion relating to such Share Delivery Date (a "Buy-In"), then the
Corporation shall (A) pay in cash to such Holder (in addition to any other
remedies available to or elected by such Holder) the amount by which (x) such
Holder's total purchase price (including any brokerage commissions) for the
shares of Common Stock so purchased exceeds (y) the product of (1) the aggregate
number of shares of Common Stock that such Holder was entitled to receive from
the conversion at issue multiplied by (2) the actual sale price at which the
sell order giving rise to such purchase obligation was executed (including any
brokerage commissions) and (B) at the option of such Holder, either reissue (if
surrendered) the shares of Preferred Stock equal to the number of shares of
Preferred Stock submitted for conversion or deliver to such Holder the number of
shares of Common Stock that would have been issued if the Corporation had timely
complied with its delivery requirements under Section 6(e)(i). For example, if a
Holder purchases shares of Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to an attempted conversion of shares of Preferred
Stock with respect to which the actual sale price (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000
under clause (A) of the immediately preceding sentence, the Corporation shall be
required to pay such Holder $1,000. The Holder shall provide the Corporation
written notice indicating the amounts payable to such

         

        
          
             

          

          
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        Holder in
respect of the Buy-In and, upon request of the Corporation, evidence of the
amount of such loss. Nothing herein shall limit a Holder's right to pursue any
other remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Corporation's failure to timely deliver certificates representing
shares of Common Stock upon conversion of the shares of Preferred Stock as
required pursuant to the terms hereof.

         

        iv. Reservation of Shares
Issuable Upon Conversion. The Corporation covenants
that it will at all times reserve and keep available out of its authorized and
unissued shares of Common Stock for the sole purpose of issuance upon conversion
of the Preferred Stock and payment of dividends on the Preferred Stock, each as
herein provided, free from preemptive rights or any other actual contingent
purchase rights of Persons other than the Holders of the Preferred Stock, not
less than such aggregate number of shares of the Common Stock as shall (subject
to the terms and conditions in the Purchase Agreement) be issuable (taking into
account the adjustments of Section 7) upon the conversion of all outstanding
shares of Preferred Stock and payment of dividends hereunder. The Corporation
covenants that all shares of Common Stock that shall be so issuable shall, upon
issue, be duly authorized, validly issued, fully paid and nonassessable and, if
the Conversion Shares Registration Statement is then effective under the
Securities Act, shall be registered for public sale in accordance with such
Conversion Shares Registration Statement.

         

        v.  Fractional Shares. No
fractional shares or scrip representing fractional
shares shall be issued upon the conversion of the Preferred Stock. As to any
fraction of a share which a Holder would otherwise be entitled to purchase upon
such conversion, the Corporation shall at its election, either pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Conversion Price or round up to the next whole
share.

         

        vi. 
Transfer Taxes.
The issuance of certificates for shares of the Common
Stock on conversion of this Preferred Stock shall be made without charge to any
Holder for any documentary stamp or similar taxes that may be payable in respect
of the issue or delivery of such certificates, provided that the Corporation
shall not be required to pay any tax that may be payable in respect of any
transfer involved in the issuance and delivery of any such certificate upon
conversion in a name other than that of the Holders of such shares of Preferred
Stock and the Corporation shall not be required to issue or deliver such
certificates unless or until the Person or Persons requesting the issuance
thereof shall have paid to the Corporation the amount of such tax or shall have
established to the satisfaction of the Corporation that such tax has been
paid.

         

        Section 7. 
Certain
Adjustments.

         

         

        
          
             

          

          
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        a) Stock Dividends and Stock
Splits. If the Corporation, at any time while this
Preferred Stock is outstanding; (A) pays a stock dividend or otherwise makes a
distribution or distributions payable in shares of Common Stock on shares of
Common Stock or any other Common Stock Equivalents (which, for avoidance of
doubt, shall not include any shares of Common Stock issued by the Corporation
upon conversion of, or payment of a dividend on, this Preferred Stock); (B)
subdivides outstanding shares of Common Stock into a larger number of shares;
(C) combines (including by way of a reverse stock split) outstanding shares of
Common Stock into a smaller number of shares; or (D) issues, in the event of a
reclassification of shares of the Common Stock, any shares of capital stock of
the Corporation, then the Conversion Price shall be multiplied by a fraction of
which the numerator shall be the number of shares of Common Stock (excluding any
treasury shares of the Corporation) outstanding immediately before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event. Any adjustment made pursuant to this
Section 7(a) shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a
subdivision, combination or re-classification.

         

        b)  Subsequent Equity
Sales. If, at any time while this Preferred Stock is outstanding,
the Corporation or any Subsidiary sells or grants any option to purchase or
sells or grants any right to reprice its securities, or otherwise disposes of or
issues (or announces any sale, grant or any option to purchase or other
disposition) any Common Stock or Common Stock Equivalents entitling any Person
to acquire shares of Common Stock at an effective price per share that is lower
than the then Conversion Price (such lower price, the "Base Conversion
Price" and such issuances collectively, a "Dilutive Issuance")
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share that is lower than the Conversion Price, such issuance shall be
deemed to have occurred for less than the Conversion Price on such date of the
Dilutive Issuance), then (A) as to Dilutive Issuances that occur on or before
the two year anniversary of the Original Issue Date, the Conversion Price shall
be reduced to equal the Base Conversion Price and (B) as to Dilutive Issuances
that occur after the two year anniversary of the Original Issue Date, the
Conversion Price shall be reduced by multiplying the Conversion Price by a
fraction, the numerator of which is the number of shares of Common Stock issued
and outstanding immediately prior to the Dilutive Issuance plus the number of
shares of Common Stock which the offering price for such Dilutive Issuance would
purchase at the then Conversion Price, and the denominator of which shall be the
sum of the number of shares of Common Stock issued and outstanding immediately
prior to the Dilutive Issuance plus the number of shares of Common Stock so
issued or issuable in connection with the Dilutive Issuance. Notwithstanding the
foregoing, no adjustment will be made under this Section 7(b) in respect of an
Exempt Issuance. If the Corporation enters into a Variable

         

        
          
             

          

          
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        Rate
Transaction, despite the prohibition set forth in the Purchase Agreement, the
Corporation shall be deemed to have issued Common Stock or Common Stock
Equivalents at the lowest possible conversion price at which such securities may
be converted or exercised. The Corporation shall notify the Holders in writing,
no later than the Business Day following the issuance of any Common Stock or
Common Stock Equivalents subject to this Section 7(b), indicating therein the
applicable issuance price, or applicable reset price, exchange price, conversion
price and other pricing terms (such notice, the "Dilutive Issuance
Notice"). For purposes of clarification, whether or not the Corporation
provides a Dilutive Issuance Notice pursuant to this Section 7(b), upon the
occurrence of any Dilutive Issuance, the Holders are entitled to receive a
number of Conversion Shares based upon the Base Conversion Price on or after the
date of such Dilutive Issuance, regardless of whether a Holder accurately refers
to the Base Conversion Price in the Notice of Conversion.

         

        c)  Subsequent Rights
Offerings. If the Corporation, at any time while this Preferred
Stock is outstanding, shall issue rights, options or warrants to all holders of
Common Stock (and not to Holders) entitling them to subscribe for or purchase
shares of Common Stock at a price per share that is lower than the VWAP on the
record date referenced below, then the Conversion Price shall be multiplied by a
fraction of which the denominator shall be the number of shares of the Common
Stock outstanding on the date of issuance of such rights or warrants plus the
number of additional shares of Common Stock offered for subscription or
purchase, and of which the numerator shall be the number of shares of the Common
Stock outstanding on the date of issuance of such rights or warrants plus the
number of shares which the aggregate offering price of the total number of
shares so offered (assuming delivery to the Corporation in full of all
consideration payable upon exercise of such rights, options or warrants) would
purchase at such VWAP. Such adjustment shall be made whenever such rights or
warrants are issued, and shall become effective immediately after the record
date for the determination of stockholders entitled to receive such rights,
options or warrants_

         

        d)  Pro Rata
Distributions. If the Corporation, at any time while this Preferred
Stock is
outstanding, distributes to all holders of Common Stock (and not to Holders)
evidences of its indebtedness or assets (including cash and cash dividends) or
rights or warrants to subscribe for or purchase any security (other than Common
Stock, which shall be subject to Section 7(b)), then in each such case the
Conversion Price shall be adjusted by multiplying such Conversion Price in
effect immediately prior to the record date fixed for determination of
stockholders entitled to receive such distribution by a fraction of which the
denominator shall be the VWAP determined as of the record date mentioned above,
and of which the numerator shall be such VWAP on such record date less the then
fair market value at such record date of the portion of such assets, evidence of
indebtedness or rights or warrants so distributed applicable to one outstanding
share of the Common Stock as determined by the Board of Directors of the
Corporation in good faith. In either case the adjustments shall be described in
a statement delivered to the Holders describing the portion of assets or
evidences of indebtedness so distributed or such subscription rights applicable
to one share of Common Stock. Such adjustment shall be
made whenever any such distribution is made and shall become effective
immediately after the record date mentioned above.

         

        
          
             

          

          
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        e)  Fundamental
Transaction. If, at any time while this Preferred Stock is outstanding,
(A) the Corporation effects any merger or consolidation of the Corporation with
or into another Person, (B) the Corporation effects any sale of all or
substantially all of its assets in one transaction or a series of related
transactions, (C) any tender offer or exchange offer (whether by the Corporation
or another Person) is completed pursuant to which holders of Common Stock are
permitted to tender or exchange their shares for other securities, cash or
property, or (D) the Corporation effects any reclassification of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property
(in any such case, a "Fundamental
Transaction"), then, upon any subsequent conversion of this Preferred
Stock, the Holders shall have the right to receive, for each Conversion Share
that would have been issuable upon such conversion immediately prior to the
occurrence of such Fundamental Transaction, the same kind and amount of
securities, cash or property as it would have been entitled to receive upon the
occurrence of such Fundamental Transaction if it had been, immediately prior to
such Fundamental Transaction, the holder of one share of Common Stock (the "Alternate Consideration").
For purposes of any such conversion, the determination of the Conversion
Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one share
of Common Stock in such Fundamental Transaction, and the Corporation shall
apportion the Conversion Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to
the securities, cash or property to be received in a Fundamental Transaction,
then the Holders shall be given the same choice as to the Alternate
Consideration it receives upon any conversion of this Preferred Stock following
such Fundamental Transaction. To the extent necessary to effectuate the
foregoing provisions, any successor to the Corporation or surviving entity in
such Fundamental Transaction shall file a new Certificate of Designation with
the same terms and conditions and issue to the Holders new preferred stock
consistent with the foregoing provisions and evidencing the Holders' right to
convert such preferred stock into Alternate Consideration. The terms of any
agreement pursuant to which a Fundamental Transaction is effected shall include
terms requiring any such successor or surviving entity to comply with the
provisions of this Section 7(e) and insuring that this Preferred Stock (or any
such replacement security) will be similarly adjusted upon any subsequent
transaction analogous to a Fundamental Transaction.

         

        f)  Calculations. All
calculations under this Section 7 shall be made to the nearest
cent or the nearest 1/100th of a share, as the case may be. For purposes of this
Section 7, the number of shares of Common Stock deemed to be issued and
outstanding as of a given date shall be the sum of the number of shares of
Common Stock (excluding any treasury shares of the Corporation) issued and
outstanding.

         

        
          
             

          

          
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        g) 
Notice to the
Holders.

         

        i.  Adjustment to Conversion
Price. Whenever the Conversion Price is
adjusted pursuant to any provision of this Section 7, the Corporation shall
promptly deliver to each Holder a notice setting forth the Conversion Price
after such adjustment and setting forth a brief statement of the facts requiring
such adjustment.

         

        ii.  Notice to Allow Conversion
by Holder, If (A) the Corporation shall
declare a dividend (or any other distribution in whatever form) on the Common
Stock, (B) the Corporation shall declare a special nonrecurring cash dividend on
or a redemption of the Common Stock, (C) the Corporation shall authorize the
granting to all holders of the Common Stock of rights or warrants to subscribe
for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any
stockholders of the Corporation shall be required in connection with any
reclassification of the Common Stock, any consolidation or merger to which the
Corporation is a party, any sale or transfer of all or substantially all of the
assets of the Corporation, of any compulsory share exchange whereby the Common
Stock is converted into other securities, cash or property or (E) the
Corporation shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Corporation, then, in each case,
the Corporation shall cause to be filed at each office or agency maintained for
the purpose of conversion of this Preferred Stock, and shall cause to be
delivered to each Holder at its last address as it shall appear upon the stock
books of the Corporation, at least 20 calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Common Stock of record to be entitled to such
dividend, distributions, redemption, rights or warrants are to be determined or
(y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the
date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or
other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange, provided that the failure to deliver such
notice or any defect therein or in the delivery thereof shall not affect the
validity of the corporate action required to be specified in such notice. The
Holder is entitled to convert the Conversion Amount of this Preferred Stock (or
any part hereof) during the 20-day period commencing on the date of such notice
through the effective date of the event triggering such notice.

         

        Section 8.  
Forced
Conversion. Notwithstanding anything herein to the contrary,
if after the Effective Date (i) the VWAP for each of any 20 consecutive Trading
Day period, which 20 consecutive Trading Day period shall have commenced only
after the Effective Date ("Threshold Period"), exceeds
300% of the then effective Conversion

         

        
          
             

          

          
            19

            
              

            

          

          
             

          

        

         

        Price,
and (ii) the average daily trading volume for the previous 20 Trading Days
exceeds the lesser of (A) $250,000 or (B) 0.75% of the Company's total market
capitalization as of the Forced Conversion Notice Date, then the Corporation
may, within 1 Trading Day after the end of any such Threshold Period, deliver a
written notice to all Holders (a "Forced Conversion
Notice" and the date such notice is delivered to all Holders, the "Forced Conversion Notice
Date") to cause each Holder to convert all or part of such Holder's
Preferred Stock (as specified in such Forced Conversion Notice) plus all accrued
but unpaid dividends thereon and all liquidated damages and other amounts due in
respect of the Preferred Stock pursuant to Section 6, it being agreed that the
"Conversion Date" for purposes of Section 6 shall be deemed to occur on the
third Trading Day following the Forced Conversion Notice Date (such third
Trading Day, the "Forced Conversion
Date"). The Corporation may not deliver a Forced Conversion Notice, and
any Forced Conversion Notice delivered by the Corporation shall not be
effective, unless all of the Equity Conditions have been met on each Trading Day
during the applicable Threshold Period through and including the later of the
Forced Conversion Date and the Trading Day after the date that the Conversion
Shares issuable pursuant to such conversion are actually delivered to the
Holders pursuant to the Forced Conversion Notice. Any Forced Conversion Notices
shall be applied ratably to all of the Holders based on each Holder's initial
purchases of Preferred Stock hereunder, provided that any voluntary conversions
by a Holder shall be applied against such Holder's pro rata allocation, thereby
decreasing the aggregate amount forcibly converted hereunder if less than all
shares of the Preferred Stock are forcibly converted. For purposes of
clarification, a Forced Conversion shall be subject to all of the provisions of
Section 6, including, without limitation, the provisions requiring payment of
liquidated damages and limitations on conversions.

         

        Section 9.  
Redemption Upon
Triggering Events.

         

        a) 
"Triggering
Event" means any one or more of the following events (whatever
the reason and whether it shall be voluntary or involuntary or effected by
operation of law or pursuant to any judgment, decree or order of any court, or
any order, rule or regulation of any administrative or governmental
body):

         

        i. the
Corporation shall fail for any reason to pay in full the amount of cash
due pursuant to a Buy-In within five calendar days after notice therefor is
delivered hereunder or shall fail to pay all amounts owed on account of any
Event (as defined in the Registration Rights Agreement) within five days of the
date due;

         

        ii. the
Corporation shall fail to have available a sufficient number of authorized
and unreserved shares of Common Stock to issue to such Holder upon a conversion
hereunder;

         

        iii. Reserved

         

        
          
             

          

          
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        iv. the
Corporation shall redeem more than a de minimis number of
Junior
Securities other than as to repurchases of Common Stock or Common Stock
Equivalents from departing officers and directors of the Corporation, provided
that, while any of the Preferred Stock remains outstanding, such repurchases
shall not exceed an aggregate of $100,000 from all officers and
directors;

         

        v. any
breach of the agreements delivered to the initial Holders at the Closing
pursuant to Section 2.2(a)(iv) of the Purchase Agreement;

         

        vi. the
Corporation shall be party to a Change of Control Transaction;

         

        vii. there
shall have occurred a Bankruptcy Event;

         

        viii. the
Common Stock shall fail to be listed or quoted for trading on a Trading
Market for more than five Trading Days, which need not be consecutive Trading
Days; or

         

        ix. any
monetary judgment, writ or similar final process shall be entered
or filed against the Corporation, any subsidiary or any of their respective
property or other assets for greater than $50,000, and such judgment, writ or
similar final process shall remain unvacated, unbonded or unstayed for a period
of 45 calendar days.

         

        b) 
Upon the occurrence of a Triggering Event, each Holder shall (in addition
to all
other rights it may have hereunder or under applicable law) have the right,
exercisable at the sole option of such Holder, to require the Corporation to,
(A) with respect to the Triggering Events set forth in Sections 9(a)(i), (iii),
(iv), (vi) (as to Changes of Control approved by the Board of Directors of the
Corporation) and (vii) (as to voluntary filings only), redeem all of the
Preferred Stock then held by such Holder for a redemption price, in cash, equal
to the Triggering Redemption Amount or (B) at the option of each Holder and with
respect to the Triggering Events set forth in Sections 9(a) (ii), (v), (vi) (as
to Changes of Control not approved by the Board of Directors of the
Corporation), (vii) (as to involuntary filings only), (viii) and (ix), either
(a) redeem all of the Preferred Stock then held by such Holder for a redemption
price, in shares of Common Stock, equal to a number of shares of Common Stock
equal to the Triggering Redemption Amount divided by 75% of the average of the
10 VWAPs immediately prior to the date of election hereunder or (b) increase the
dividend rate on all of the outstanding Preferred Stock held by such Holder to
18% per annum thereafter. The Triggering Redemption Amount, in cash or in
shares, shall be due and payable or issuable, as the case may be, within five
Trading Days of the date on which the notice for the payment therefor is
provided by a Holder (the "Triggering Redemption
Payment Date"). If the Corporation fails to pay in full the Triggering
Redemption Amount hereunder on the date such amount is due in accordance with
this Section (whether in cash or shares of Common Stock), the Corporation will
pay interest thereon at a rate equal to the lesser of

         

        
          
             

          

          
            21

            
              

            

          

          
             

          

        

         

         

        18% per
annum or the maximum rate permitted by applicable law, accruing daily from such
date until the Triggering Redemption Amount, plus all such interest thereon, is
paid in full. For purposes of this Section, a share of Preferred Stock is
outstanding until such date as the applicable Holder shall have received
Conversion Shares upon a conversion (or attempted conversion) thereof that meets
the requirements hereof or has been paid the Triggering Redemption Amount in
cash.

         

        Section 10. Negative
Covenants. So long as any shares of Preferred Stock are outstanding,
unless the holders of at least 67% in Stated Value of the then outstanding
shares of Preferred Stock shall have otherwise given prior written consent, the
Corporation shall not, and shall not permit any of its subsidiaries (whether or
not a Subsidiary on the Original Issue Date) to, directly or
indirectly:

         

        a) other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee
or suffer to exist any indebtedness for borrowed money of any kind, including
but not limited to, a guarantee, on or with respect to any of its property or
assets now owned or hereafter acquired or any interest therein or any income or
profits therefrom;

         

        b) other
than Permitted Liens, enter into, create, incur, assume or suffer to
exist any
Liens of any kind, on or with respect to any of its property or assets now owned
or hereafter acquired or any interest therein or any income or profits
therefrom;

         

        c) amend its
certificate of incorporation, bylaws, or other charter documents so as to
materially and adversely affect any rights of any Holder;

         

        d) amend
this Certificate of Designations;

         

        e) repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a
de minimis number of
shares of its Common Stock, Common Stock Equivalents or Junior Securities,
except for the Conversion Shares to the extent permitted or required under the
Transaction Documents or as otherwise permitted by the Transaction
Documents;

         

        
          f) enter
into any agreement or understanding with respect to any of the foregoing;
or

        

         

        g) pay
cash dividends or distributions on Junior Securities of the Corporation.

         

        Section 11. 
Miscellaneous.

         

        a) 
Notices. Any
and all notices or other communications or deliveries to be provided
by the Holders hereunder including, without limitation, any Notice of
Conversion, shall be in writing and delivered personally, by facsimile, or sent
by a nationally recognized overnight courier service, addressed to the
Corporation, at the

         

        
          
             

          

          
            22

            
              

            

          

          
             

          

        

         

        address:
2033 Gateway Place, Suite 500 San Jose, CA 95110, facsimile number 408­907-8923, Attention: Branislav
Vajdic, CEOor such other facsimile number or address as the Corporation
may specify for such purposes by notice to the Holders delivered in accordance
with this Section 11.
Any and all notices or other communications or deliveries to be provided
by the Corporation hereunder shall be in writing and delivered personally, by
facsimile, or sent by a nationally recognized overnight courier service
addressed to each Holder at the facsimile number or address of such Holder
appearing on the books of the Corporation, or if no such facsimile number or
address appears on the books of the Corporation, at the principal place of
business of the Holders. Any notice or other communication or deliveries
hereunder shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section 11 prior to 5:30 p.m. (New York City
time) on any date, (ii) the date immediately following the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile
number specified in this Section 11 between 5:30 p.m. and 11:59 p.m. (New York
City time) on any date, (iii) the second Business Day following the date of
mailing, if sent by nationally recognized overnight courier service, or (iv)
upon actual receipt by the party to whom such notice is required to be
given.

         

        b)  Absolute Obligation.
Except as expressly provided herein, no provision of this
Certificate of Designation shall alter or impair the obligation of the
Corporation, which is absolute and unconditional, to pay liquidated damages,
accrued dividends and accrued interest, as applicable, on the shares of
Preferred Stock at the time, place, and rate, and in the coin or currency,
herein prescribed.

         

        c)  Lost or Mutilated Preferred
Stock Certificate. If a Holder's Preferred Stock
certificate shall be mutilated, lost, stolen or destroyed, the Corporation shall
execute and deliver, in exchange and substitution for and upon cancellation of a
mutilated certificate, or in lieu of or in substitution for a lost, stolen or
destroyed certificate, a new certificate for the shares of Preferred Stock so
mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such
loss, theft or destruction of such certificate, and of the ownership hereof
reasonably satisfactory to the Corporation.

         

        d) Governing Law. All
questions concerning the construction, validity, enforcement
and interpretation of this Certificate of Designation shall be governed by and
construed and enforced in accordance with the internal laws of the State of
Delaware, without regard to the principles of conflict of laws thereof. Each
party agrees that all legal proceedings concerning the interpretation,
enforcement and defense of the transactions contemplated by any of the
Transaction Documents (whether brought against a party hereto or its respective
Affiliates, directors, officers, shareholders, employees or agents) shall be
commenced in the state and federal courts sitting in the City of New York,
Borough of Manhattan (the "New York Courts").
Each party hereto hereby irrevocably submits to the exclusive jurisdiction of
the New York Courts for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of

         

        
          
             

          

          
            23

            
              

            

          

          
             

          

        

         

        any of
the Transaction Documents), and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of such New York Courts, or such New York Courts are
improper or inconvenient venue for such proceeding. Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Certificate
of Designation and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by
applicable law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any
legal proceeding arising out of or relating to this Certificate of Designation
or the transactions contemplated hereby. If either party shall commence an
action or proceeding to enforce any provisions of this Certificate of
Designation, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its attorneys' fees and other costs and
expenses incurred in the investigation, preparation and prosecution of such
action or proceeding.

         

        e) Waiver. Any waiver by
the Corporation or a Holder of a breach of any provision
of this Certificate of Designation shall not operate as or be construed to be a
waiver of any other breach of such provision or of any breach of any other
provision of this Certificate of Designation or a waiver by any other Holders.
The failure of the Corporation or a Holder to insist upon strict adherence to
any term of this Certificate of Designation on one or more occasions shall not
be considered a waiver or deprive that party (or any other Holder) of the right
thereafter to insist upon strict adherence to that term or any other term of
this Certificate of Designation. Any waiver by the Corporation or a Holder must
be in writing.

         

        f)
Severability. If any
provision of this Certificate of Designation is invalid, illegal
or unenforceable, the balance of this Certificate of Designation shall remain in
effect, and if any provision is inapplicable to any Person or circumstance, it
shall nevertheless remain applicable to all other Persons and circumstances. If
it shall be found that any interest or other amount deemed interest due
hereunder violates the applicable law governing usury, the applicable rate of
interest due hereunder shall automatically be lowered to equal the maximum rate
of interest permitted under applicable law.

         

        g) Next Business Day.
Whenever any payment or other obligation hereunder shall be
due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day.

         

        h)  Headings. The
headings contained herein are for convenience only, do not constitute
a part of this Certificate of Designation and shall not be deemed to limit or
affect any of the provisions hereof.

         

        
          
             

          

          
            24

            
              

            

          

          
             

          

        

         

        i) Status of Converted or
Redeemed Preferred Stock. Shares of Preferred Stock may
only be issued pursuant to the Purchase Agreement. If any shares of Preferred
Stock shall be converted, redeemed or reacquired by the Corporation, such shares
shall resume the status of authorized but unissued shares of preferred stock and
shall no longer be designated as Series A 10% Convertible Preferred
Stock.

         

        *********************

         

        
          
             

          

          
            25

            
              

            

          

          
             

          

        

         

        RESOLVED,
FURTHER, that the Chairman, the president or any vice-president, and the
secretary or any assistant secretary, of the Corporation be and they hereby are
authorized and directed to prepare and file a Certificate of Designation of
Preferences, Rights and Limitations in accordance with the foregoing resolution
and the provisions of Delaware law.

         

        IN
WITNESS WHEREOF, the undersigned have executed this Certificate this 26th day of
December 2007.

         

        
          
            	
                    /s/
      David Stefansky
      
                      
      

                  	 	
                    /s/
      Richard Rosenblum
      
                      
       

                  
	
                    Name:
      David Stefansky

                  	 	
                    Name:
      Richard Rosenblum

                  
	
                    Title:
      President, CEO, CFO, Director

                  	 	
                    Title:
      Secretary, Director

                  

          

        

        
          
             

          

          
            26

            
              

            

          

          
             

          

        

         

        ANNEX
A

         

        NOTICE OF
CONVERSION

         

        (TO BE
EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES

        OF
PREFERRED STOCK)

         

        The
undersigned hereby elects to convert the number of shares of Series A 10%
Convertible Preferred Stock indicated below into shares of common stock, par
value $0.001 per share (the "Common Stock"), of
Marine Park Holdings, Inc., a Delaware corporation (the "Corporation"),
according to the conditions hereof, as of the date written below. If shares of
Common Stock are to be issued in the name of a Person other than the
undersigned, the undersigned will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates and opinions as may be
required by the Corporation in accordance with the Purchase Agreement. No fee
will be charged to the Holders for any conversion, except for any such transfer
taxes.

         

        Conversion
calculations:

         

        Date to
Effect Conversion:
___________________________________________________________

         

        Number of
shares of Preferred Stock owned prior to
Conversion:  ______________________________

         

        Number of
shares of Preferred Stock to be Converted:
_______________________________________

         

        Stated
Value of shares of Preferred Stock to be
Converted: ___________________________________

         

        Number of
shares of Common Stock to be Issued:
__________________________________________

         

        Applicable
Conversion
Price: _________________________________________________________

         

        Number of
shares of Preferred Stock subsequent to Conversion:
_______________________________

         

        Address
for Delivery: ____________________________

        or

        DWAC
Instructions:

        Broker
no: ______________

        Account
no: ________________

         

        [HOLDER]

         

        By:   ________________________________

        Name:

        Title:

         

        27

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