Document:

GUARANTY

                          Dated as of August 16, 2000,

                                     between

                        BANKERS LIFE AND CASUALTY COMPANY
                                  as Guarantor,

                                       and

                                  GARY C. WENDT

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                                    GUARANTY

         THIS GUARANTY (this "Guaranty") is entered into as of August 16, 2000
by Bankers Life and Casualty Company, an Illinois insurance corporation
("Guarantor"), in favor of Gary C. Wendt ("Wendt") who is a party to the
Supplemental Retirement Agreement (as hereinafter defined). Unless otherwise
defined herein, capitalized terms used herein shall have the meanings assigned
to such terms pursuant to Article I hereof.

                                    WHEREAS:

         A. Pursuant to an Employment Agreement dated June 28, 2000 between
Conseco, Inc., the parent of Guarantor ("Conseco") and Wendt (the "Employment
Agreement"), Conseco undertook to cause the Guarantor directly to provide
certain retirement benefits to Wendt and/or his spouse; and

         B. The parties have determined to satisfy Conseco's obligations to
Wendt in respect of such retirement obligations by means of a Supplemental
Retirement Agreement, dated as of the date hereof, executed directly between
Conseco and Wendt (the "Supplemental Retirement Agreement") pursuant to which
Conseco agrees to make certain benefit payments to Wendt and/or his Surviving
Spouse (as defined in the Supplemental Retirement Agreement) commencing on March
13, 2007; and

         C. Guarantor has derived and expects to derive substantial direct and
indirect benefits arising from the Employment Agreement; and the Guarantor has
accordingly agreed to guaranty such benefit payments pursuant to this Agreement;

         D. The Board of Directors of Guarantor has determined that it is in
the best interests of Guarantor to execute this Guaranty;

         NOW THEREFORE, for good and valuable consideration the receipt and
sufficiency of which is hereby acknowledged, and in order to induce Wendt to
enter into the Supplemental Retirement Agreement directly with Conseco,
Guarantor agrees, for the benefit of Wendt and his Surviving Spouse and their
respective heirs and beneficiaries, as follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1. Certain Terms. Capitalized terms used herein, unless
otherwise defined herein, shall have the respective meanings assigned thereto in
the Supplemental Retirement Agreement. In addition, when used herein the
following terms shall have the following meanings (such definitions to be
equally applicable to the singular and plural forms thereof):

                                        1

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         "Supplemental Retirement Agreement" - defined in recital B.

         "Guarantied Party" or "Guarantied Parties" - Gary C. Wendt and/or his
Surviving Spouse and/or his and/or her beneficiaries (including their respective
estates) under the Supplemental Retirement Agreement

         "Obligations" - defined in Section 2.1(a).

                                   ARTICLE II

                               GUARANTY PROVISIONS

         SECTION 2.1. Guaranty. Guarantor hereby absolutely, unconditionally and
irrevocably:

         (a) guaranties to the Guarantied Parties the full and punctual payment
to the Guarantied Parties when due, at the times provided for in the
Supplemental Retirement Agreement, of all Benefit Amounts provided for and
required to be paid by Conseco under the Supplemental Retirement Agreement,
whether such payments are absolute or contingent, or now or hereafter existing,
or due or to become due under the Supplemental Retirement Agreement, and all
interest, fees, expenses or other amounts due or to become due in the future
under the Supplemental Retirement Agreement (including all such amounts which
would become due but for the operation of the automatic stay provisions under
Section 362(a) of the United States Bankruptcy Code, 11 U.S.C. Section 362(a),
and the operation of Sections 502(b) and 506(b) of the United States Bankruptcy
Code, 11 U.S.C. Section 502(b) and Section 506(b)) (all such obligations
sometimes hereinafter collectively called the "Obligations"); and

         (b) indemnifies and holds harmless each Guarantied Party for any and
all costs and expenses (including, without limitation, reasonable attorneys'
fees and expenses) incurred by such Guarantied Party or such holder, as the case
may be, in enforcing any rights under this Guaranty.

         This Guaranty constitutes a guaranty of payment when due and not of
collection, and Guarantor specifically agrees that it shall not be necessary or
required that any Guarantied Party exercise any right, assert any claim or
demand or enforce any remedy whatsoever against Conseco before the performance
of, or as a condition to, the performance of the obligations of Guarantor
hereunder.

         SECTION 2.2. Guaranty Absolute, etc. This Guaranty shall in all
respects be a continuing, absolute, unconditional and irrevocable guaranty of
payment, and shall remain in full force and effect until all Obligations of
Conseco have been paid in full, and all obligations of Guarantor hereunder shall
have been paid in full. Guarantor guarantees that the Obligations of Conseco
will be paid strictly in accordance with the terms of the Supplemental
Retirement Agreement regardless of any law, regulation or order now or hereafter
in effect in any

                                        2

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jurisdiction affecting any of such terms or the rights of any Guarantied Party.
The liability of Guarantor under this Guaranty shall be absolute, unconditional
and irrevocable irrespective of:

         (a) any lack of validity, legality or enforceability of the
Supplemental Retirement Agreement;

         (b) the failure of any Guarantied Party to assert any claim or demand
or to enforce any right or remedy against Conseco under the provisions of the
Supplemental Retirement Agreement; or

         (c) any reduction, limitation, impairment or termination of the
Obligations of Conseco for any reason, including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to (and Guarantor
hereby waives any right to or claim of) any defense or setoff, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality,
nongenuineness, irregularity, compromise, unenforceability of, or any other
event or occurrence affecting, the Obligations of Conseco; or

         (d) any other circumstance which might otherwise constitute a defense
available to, or a legal or equitable discharge of, Conseco, including but not
limited to any defense based on (i) a determination of unenforceability of the
Obligations of Conseco by any court, (ii) the rejection of the Supplemental
Retirement Agreement or any of the Obligations of Conseco thereunder in any
proceeding under the United States Bankruptcy Code, (iii) the disallowance of
any claim asserted by any of the Guarantied Parties in any proceeding under the
United States Bankruptcy Code or otherwise based on the Obligations of Conseco
under the Supplemental Retirement Agreement or (iv) any limitation or diminution
of the amounts payable by Conseco under the Supplemental Retirement Agreement
imposed by law or any court, it being the intention of the parties that this
Guarantee shall in any or all of such circumstances be payable to the full
extent of the Obligations of Conseco as set forth in the Supplemental Retirement
Agreement as if no such defense were available or asserted.

         SECTION 2.3. Reinstatement, etc. Guarantor agrees that this Guaranty
shall continue to be effective or be reinstated, as the case may be, if at any
time any payment (in whole or in part) of any of the Obligations is rescinded or
must otherwise be restored by any Guarantied Party, whether upon the insolvency,
bankruptcy or reorganization of Conseco or otherwise, all as though such payment
had not been made.

         SECTION 2.4. Waiver, etc. Guarantor hereby waives promptness,
diligence, notice of acceptance and any other notice with respect to any of the
Obligations of Conseco and/or obligations under this Guaranty and any
requirement that any Guarantied Party exhaust any right or take any action
against Conseco.

                                        3

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         SECTION 2.5. Successors, Transferees and Assigns. This Guaranty shall:

         (a) be binding upon Guarantor, and its successors, transferees and
assigns; and

         (b) inure to the benefit of and be enforceable by each Guarantied
Party.

                                   ARTICLE III

                   REPRESENTATIONS AND WARRANTIES BY GUARANTOR

         To induce Wendt to enter into the Supplemental Retirement Agreement,
Guarantor represents and warrants that:

         SECTION 3.1. Organization, etc. Guarantor is a corporation, duly
organized, validly existing and in good standing under the laws of the state of
its incorporation or formation and Guarantor is duly qualified to transact
business and in good standing as a foreign corporation, authorized to do
business in each jurisdiction where the nature of its business makes such
qualification necessary and failure to so qualify could reasonably be expected
to have a material adverse effect upon its business or assets or upon its
ability or right to carry out all of the terms of this Guaranty.

         SECTION 3.2. Authorization. Guarantor (a) has the power to execute,
deliver and perform this Guaranty, and (b) has taken all necessary action to
authorize the execution, delivery and performance by it of this Guaranty,
including, without limitation, ratification of this Guaranty by the Board of
Directors of the Guarantor which, in connection with such approval, reviewed a
true copy of the Supplemental Retirement Agreement and determined that the
consideration being received by the Guarantor for the execution and delivery of
this Guaranty is fair to the Guarantor and reasonable. A copy of the resolution
of the said Board of Directors is annexed hereto.

         SECTION 3.3. No Conflict. The execution, delivery and performance by
Guarantor of this Guaranty does not and will not (a) contravene or conflict with
any provision of any law, statute, rule or regulation, (b) contravene or
conflict with, result in any breach of, or constitute a default under, any
material agreement or instrument binding on Guarantor (including, without
limitation, any writ, judgment, injunction or other similar court order), (c)
result in the creation or imposition of or the obligation to create or impose
any lien upon any of the property or assets of Guarantor or (d) contravene or
conflict with any provision of the Articles of Incorporation or by-laws of
Guarantor.

         SECTION 3.4. No Default or Event of Default. No Default or Event of
Default has occurred and is continuing with respect to Guarantor.

                                        4

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                                   ARTICLE IV

                                  MISCELLANEOUS

         SECTION 4.1. Indemnification. Guarantor agrees to indemnify the
Guarantied Parties and hold the Guarantied Parties harmless from and against any
and all liabilities, losses, claims, damages, costs and expenses of any kind to
which the Guarantied Parties may incur or to which any of them may become
subject, whether directly or indirectly (including, without limitation, the
reasonable fees and disbursements of counsel for the Guarantied Parties),
relating to or arising out of this Guaranty or the enforcement by the Guarantied
Parties hereof. All obligations of Guarantor provided for in this Section 4.1
shall survive termination of this Guaranty.

         SECTION 4.2. Notices. All notices, requests and other communications to
any party hereunder shall be in writing and shall be given to such party at its
address or facsimile number set forth on the signature or acknowledgment pages
hereof or such other address or facsimile number as such party may hereafter
specify for the purpose by written notice to Wendt and Guarantor similarly
given. Each such notice, request or other communication shall be effective (a)
if given by facsimile when such facsimile is transmitted to the facsimile number
specified in this Section, (b) if given by United States mail, seventy-two (72)
hours after such communication is deposited in the mails by certified or
registered mail, return receipt requested, with sufficient postage prepaid,
addressed as aforesaid or (c) if given by recognized courier (such as Federal
Express or UPS) which guarantees next business day delivery, when delivered at
the address specified in this Section.

         SECTION 4.3. No Assignment. Neither Guarantor nor any of the Guarantied
Parties shall assign this Guaranty nor any interest herein.

         SECTION 4.4. Amendments. The provisions of this Guaranty may from time
to time be amended, modified or waived, only if such amendment, modification or
waiver is in writing and consented to by Guarantor and Wendt, and then any such
amendment, modification, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

         SECTION 4.5. Section Headings. The section headings in this Guaranty
are inserted for convenience of reference and shall not be considered a part of
this Guaranty or used in its interpretation.

         SECTION 4.6. No Limitation of Other Obligations. All obligations of
Guarantor and rights of Wendt or obligation expressed in this Guaranty shall be
in addition to and not in limitation of those provided in applicable law or in
any other written instrument or agreement relating to any of the Obligations.

                                        5

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         SECTION 4.7. Governing Law. This guaranty shall be a contract made
under and governed by the laws of the state of Illinois, without regard to
conflicts of laws principles. All obligations of Guarantor and rights of the
Guarantied Parties in respect of the obligations of Guarantor expressed herein
shall be in addition to and not in limitation of those provided by applicable
law.

         SECTION 4.8. Counterparts. This Guaranty may be executed in any number
of counterparts, each of which shall for all purposes be deemed an original, but
all such counterparts shall constitute but one and the same agreement. Guarantor
hereby acknowledges receipt of a true, correct and complete counterpart of this
Guaranty.

         SECTION 4.9 Not a Contract of Insurance. Nothing contained in this
Guaranty shall be interpreted as creating a contract of insurance between the
Guarantor, and the Guarantied Parties shall not be deemed policyholders for any
purpose under this Guaranty.

         SECTION 4.10 Funding. All amounts payable or credited to the Guarantied
Parties shall be paid in cash from the general assets of Guarantor. Guarantor
shall be under no obligation to establish a special or separate fund, or to
segregate any of its assets, to assure payment of amounts under this Guaranty.

         SECTION 4.11 Unsecured Creditor. Nothing contained in this Guaranty,
and no action taken pursuant to its provisions, shall create or be construed to
create a trust of any kind, nor a fiduciary relationship between the Guarantor
and the Guarantied Parties. To the extent that the Guarantied Parties acquire a
right to receive any amount from Guarantor under this Agreement, such rights
shall be no greater than the right of an unsecured creditor of Guarantor. Wendt
acknowledges that, in the event Guarantor becomes financially distressed
(whether due to bankruptcy, insolvency or otherwise), Guarantor's ability to pay
benefits to the Guarantied Parties under this Agreement could be impaired.

         SECTION 4.12 Surviving Spouse as Third-Party Beneficiary. The Surviving
Spouse of Wendt shall be a third-party beneficiary of this Guaranty and she
and/or her estate shall be entitled to enforce, on her own behalf and/or on
behalf of her estate, all of the terms hereof pertaining to the Guarantor's
obligations hereunder.

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<PAGE>

         IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly
executed and delivered by its officer thereunto duly authorized as of the date
first above written.

                                       BANKERS LIFE AND CASUALTY COMPANY

                                       By: /s/ Thomas J. Kilian
                                           -----------------------------------
                                       Name:   Thomas J. Kilian
                                       Title:  President

                                        7AMENDED AND RESTATED AGREEMENT

         This Amended and Restated Agreement (this "Agreement") is made and
entered into this 22nd day of September, 2000 by and among Conseco Finance Corp.
(the "Company"), Conseco, Inc. ("Conseco"), CIHC, Incorporated ("CIHC"), Green
Tree Residual Finance Corp I ("Green Tree Residual"), Green Tree Finance Corp. B
Five ("Green Tree Five") and Lehman Brothers Holdings Inc. (collectively with
its direct and indirect subsidiaries "Lehman").

         WHEREAS, the Company, Conseco, CIHC and Lehman have entered into the
Agreement dated May 11, 2000 (the "Original Agreement");

         WHEREAS, Lehman ALI Inc. (as assignee of Lehman Commercial Paper Inc.)
has entered into the Asset Assignment Agreement dated as of February 13, 1998
with Green Tree Residual, the Master Repurchase Agreement dated as of September
30, 1999 with Lehman Brothers Inc., and the other agreements, instruments and
documents delivered under or in connection therewith (such agreements, as
amended, supplemented or otherwise modified from time to time, collectively the
"Residual Facility Documents");

         WHEREAS, Lehman Commercial Paper Inc. and Green Tree Finance Corp. B
Five ("Green Tree Five") have entered into the Amended and Restated Repurchase
Agreement dated May 9, 2000 (the "Repurchase Agreement") and the other
agreements, instruments and documents delivered under or in connection therewith
(such agreements, as amended, supplemented or otherwise modified from time to
time, collectively the "Warehouse Facility Documents");

         WHEREAS, Conseco has entered into the Facilities (as defined in the
Credit Agreement dated as of September 25, 1998 among Conseco, the lenders party
thereto and Bank of America, N.A., as agent, as amended on the date hereof)
(such Facilities, collectively the "Existing Bank Facilities");

         WHEREAS, the parties hereto desire to amend and restate the Original
Agreement on the Effective Date (as defined in Section 1 below) to (a) modify
certain provisions in the Original Agreement, including the provision
restricting distributions to Conseco, (b) add additional covenants on the part
of Conseco and the Company, and (c) provide for the delivery of amendments to
the Residual Facility Documents and the Warehouse Facility Documents;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

1.   Effective Date. The following conditions shall be satisfied on the date on
     or prior to September 22, 2000 (the date on which such conditions are
     satisfied is the "Effective Date"):

         (a) All documentation to be entered into in connection with the
     restructuring by Conseco of the Existing Bank Facilities (such agreements,
     as amended, supplemented or otherwise modified from time to time, the "New
     Bank Facility Documents") shall be in form and substance and on terms
     satisfactory to Lehman,

<PAGE>

     and all conditions precedent to the effectiveness thereof shall have been
     satisfied on or prior to the Effective Date.

         (b) There shall not have occurred any material default or any event of
     default under any of the Original Agreement, the Warehouse Facility
     Documents or the Residual Facility Documents.

         (c) There shall have occurred no material adverse change in the
     financial markets generally (including without limitation the repurchase
     markets) from that which existed on September 11, 2000 which, in the
     reasonable judgment of Lehman, renders it impractical or inadvisable to
     enter into the transactions contemplated hereby.

         (d) All fees and expenses of Lehman incurred in connection with this
     Agreement and the transactions contemplated hereby (including without
     limitation the reasonable fees and expenses of counsel to Lehman, and all
     other fees and expenses owing to Lehman under the Original Agreement, the
     Residual Facility Documents, the Warehouse Facility Documents through and
     including the Effective Date) and all other fees and expenses due and
     payable on the Effective Date shall have been paid.

         (e) A portion of the principal amount outstanding under the
     intercompany note issued by the Company to Conseco dated May 11, 2000 in an
     amount not less than $750 million shall have been converted by Conseco into
     redeemable preferred stock (the "Preferred Stock") with an annual dividend
     rate not to exceed 9% per annum.

         (f) Lehman shall have received (1) this Agreement, duly executed and
     delivered by the parties thereto; (2) amendments to the Residual Facility
     Documents in form and substance satisfactory to Lehman, duly executed and
     delivered by the parties thereto; (3) amendments to the Warehouse Facility
     Documents in form and substance satisfactory to Lehman, duly executed and
     delivered by the parties thereto; (4) a fee letter in form and substance
     satisfactory to Lehman, duly executed and delivered by the parties thereto;
     (5) a copy of the note by the Company in favor of CIHC evidencing
     indebtedness of $1,460,799,080, in form and substance satisfactory to
     Lehman (the "Intercompany Note"), duly executed and delivered by the
     Company, together with a copy of the prior note or notes evidencing the
     intercompany indebtedness marked "cancelled"; (6) a side letter in form and
     substance satisfactory to Lehman, duly executed and delivered by the
     parties thereto; (7) the guaranty by CIHC in form and substance
     satisfactory to Lehman (the "CIHC Guaranty"), duly executed and delivered
     by CIHC; and (8) a copy of all documentation necessary to effect the
     conversion and the issuance of Preferred Stock referred to in clause (e)
     above (each of the foregoing, together with the Residual Facility
     Documents, the Warehouse Facility Documents and the New Bank Facility
     Documents, collectively the "Transaction Documents").

<PAGE>

         (g) Lehman shall have received certified copies of (a) resolutions of
     the Board of Directors of each of Conseco, the Company, CIHC, Green Tree
     Five, Green Tree Residual and authorizing each such party to enter into
     this Agreement and each other Transaction Document to which it is a party
     and the transactions contemplated hereby and thereby and (b) the New Bank
     Facilities.

         (h) Lehman shall have received a favorable opinion of counsel to each
     of Conseco, the Company, CIHC, Green Tree Residual and Green Tree Five as
     to the matters relating to this Agreement and the other Transaction
     Documents and the transactions contemplated hereby and thereby, in form and
     substance satisfactory to Lehman.

         (i) A certificate signed by the applicable officer of each of Conseco,
     the Company, CIHC, Green Tree Residual and Green Tree Five certifying that:

               (x) The representations and warranties contained in the
         Transaction Documents to which such Person is a party are correct on
         and as of the date of such certificate as though made on and as of such
         date, and

               (y) no event has occurred and is continuing which constitutes a
         Default or an Event of Default. For purposes of this Agreement,
         "Default" means the occurrence of any event which, with the giving of
         notice or the passage of time or both would become an Event of Default,
         and "Event of Default" means any "event of default" under and as
         defined in any Transaction Document.

         (j) Lehman shall have received all Securities (as defined in the
     Residual Facility Documents) constituting B2 Securities that are required
     by the terms of the Residual Facility Documents to be delivered on or prior
     to the Effective Date.

         (k) A certificate in the form required under Section 4.1(d)(i) (it
     being understood that Lehman waives the requirement therein for delivery at
     least 3 business days prior to the transfers to be made on the Effective
     Date).

2.   Affiliate Transactions.

     2.1 Repayment of Existing Intercompany Indebtedness. The Company shall not
directly or indirectly repay any indebtedness for borrowed money outstanding on
the date hereof owed to Conseco or any Affiliate (as defined below) thereof
except as provided on Exhibit A hereto. The term "Affiliate" means any Person
(as defined below) that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with the
person specified, provided however, that for purposes of all sections of this
Agreement other than Sections 9 and 13.4 the term "Affiliate" shall not include
any direct or indirect majority-owned subsidiaries of the Company. The term
"Person" means any natural person, corporation, limited liability company,
general partnership, limited partnership, proprietorship, trust, union,
association, court, tribunal, agency, government, department, commission,
self-regulatory organization, arbitrator, board, bureau, instrumentality, or
other entity, enterprise, authority, or business organization.

<PAGE>

     2.2 Dividend Restrictions. The Company shall not directly or indirectly pay
any dividends, or purchase, redeem, retire, defease or otherwise acquire for
value or establish a sinking fund with respect to any preferred stock, or make
any distributions or transfer any assets of the Company to Conseco or any of its
Affiliates, in each case except as provided on Exhibit A hereto.

     2.3 Restrictions on Other Affiliate Transactions. The Company shall not
effect any transactions or enter into, amend, modify or waive any agreement,
arrangement or understanding (including without limitation any guaranty, loan,
note (including without limitation the Intercompany Note), or extension of
credit by or to the Company) with Conseco or any of its Affiliates, or make any
payments thereunder, except (i) as provided on Exhibit A hereto, (ii) that the
Company may borrow funds and/or obtain extensions of credit from Conseco and any
of its Affiliates at any time and from time to time during the term hereof but
none of such indebtedness shall be due, payable or paid except for short-term
loans made by Conseco or an Affiliate to the Company to provide the Company with
liquidity pending receipt of funding from other sources which is expected to be
received within seven business days of such loan provided such funding is
actually received, whether or not within such period, (iii) that the Company may
borrow funds from Conseco at any time and from time to time in an amount not to
exceed $250,000,000 outstanding at any time provided that each such loan is made
in accordance with the terms set forth in Section 4.09(a) of the Credit
Agreement dated as of September 25, 1998 (the "Five-Year Credit Agreement")
among Conseco, the lenders party thereto and Bank of America, N.A., as agent, as
amended as of the Effective Date and (iv) that the Company may enter into
agreements, arrangements or understandings with Conseco or any of its Affiliates
(other than those covered by clauses (ii) and (iii) above) upon terms no less
favorable to the Company than the Company could obtain from third parties in
arms length transactions. Nothing in this Agreement shall be deemed to prohibit
the Company from paying interest on any indebtedness incurred by the Company
after the date hereof in accordance with clause (ii) above, provided that the
interest rate paid shall not exceed the interest rate charged on the
Intercompany Note.

     2.4 Tax Sharing Agreement. Conseco shall (and shall cause its Affiliates
to) pay to the Company when due any and all amounts owed to the Company by
Conseco (or any Affiliate of Conseco) under the Consolidated Federal Income Tax
Agreement as in effect on May 11, 2000 (the "Tax Sharing Agreement") among
Conseco, the Company, and the other Conseco Affiliates party thereto.

     2.5 Intercompany Receivables. Conseco shall (and shall cause its Affiliates
to) pay interest on any amount owed by Conseco or any of its Affiliates to the
Company or any subsidiary thereof as of May 11, 2000 a rate per annum equal to
150 basis points in excess of the London interbank offered rate for a
three-month period, as published in The Wall Street Journal. Such interest shall
be paid monthly.

     2.6 Maintenance of Separate and Independent Corporate Identities. The
Company, CIHC and Conseco shall maintain separate and independent corporate
identities and shall observe separate and independent corporate formalities
related thereto. Without limiting the generality of the foregoing, each of
Conseco and CIHC, on the one hand, and the Company, on the other, shall (i)
maintain separate and independent (A) business locations, (B) operating

<PAGE>

accounts, (C) employees, (D) assets and liabilities, and (E) proceeds from the
sale of each entity's respective stock (it being recognized that an immaterial
sharing of employees and facilities may occur so long as there is an appropriate
allocation of costs relating thereto) and (ii) not commingle any funds or other
assets.

     2.7 No Guaranty of Indebtedness. Without limiting the generality of Section
2.3, the Company shall not assume or guaranty any indebtedness of Conseco or any
Affiliate thereof.

     2.8 Notice of Dividend Payments. The Company shall not declare or pay any
dividend or make any other distribution, direct or indirect, on account of the
Common Stock of the Company unless written notice of such dividend or other
distribution is given to Lehman at least 5 business days' prior to the record
date for such dividend or other distribution. The obligations of the Company
under this covenant shall terminate upon the exchange of the Warrant pursuant to
Section 12 hereof.

30   Maintenance of Financing Facilities And Obtaining Commitments. The Company
     shall use commercially reasonable efforts to maintain the Company's current
     warehouse financing facilities with parties other than Lehman and to obtain
     commitments thereunder similar to the commitments provided by Lehman under
     the applicable warehouse financing facilities, provided that the Company
     may replace such warehouse financing facilities with facilities having
     substantially similar or more favorable terms to those currently in
     existence or proposed by an existing lender to the Company.

40   Additional Covenants.

     4.1 Financial Reporting By the Company. The Company shall furnish to Lehman
the following:

         (a) Monthly. (i) As soon as available but not later than 30 days after
     the end of each month commencing with December 2000 financial information
     regarding the Company consisting of consolidated unaudited balance sheets
     as of the close of such month and the related statements of income and cash
     flow for such month, in each case certified by the chief executive officer,
     chief operating officer, chief financial officer or treasurer, or any other
     officer having substantially the same authority and responsibility,
     including any vice president with responsibility for or knowledge of
     financial matters (a "Responsible Officer"), of the Company as fairly
     presenting the consolidated financial position of the Company and its
     subsidiaries as at the dates indicated and the results of their operations
     and cash flow for the periods indicated in accordance with generally
     accepted accounting principles set forth from time to time in the opinions
     and pronouncements of the Accounting Principles Board and the American
     Institute of Certified Public Accountants and statements and pronouncements
     of the Financial Accounting Standards Board (or agencies with similar
     functions of comparable stature and authority within the U.S. accounting
     profession), which are applicable to the circumstances as of the date of
     determination ("GAAP"); (ii) as soon as available but not later than 15
     days after the end of each month commencing with December 2000, a budget
     forecast for

<PAGE>

     cash use by the Company for the two month period then commencing, setting
     forth sources and uses of such cash by the Company for such period,
     certified by a Responsible Officer of the Company; (iii) as soon as
     available but not later than 15 days after the end of each month commencing
     December 2000, a certificate of a Responsible Officer of the Company
     stating that, to the best knowledge of such officer, no Default or Event of
     Default has occurred and is continuing, or if a Default or an Event of
     Default has occurred and is continuing, stating the nature thereof and the
     action which the Company proposes to take with respect thereto; and (iv) as
     soon as available but not later than the 20th day in each calendar month
     commencing with December 2000, a report prepared by management of the
     Company setting forth in reasonable detail (A) all principal and interest
     payments received in respect of all Purchased Securities, Additional
     Purchased Securities and Pledged Assets (in each case as defined in the
     Residual Facility Documents) for the immediately preceding month, (B) an
     analysis of the aging (or other applicable measurement as agreed to by the
     parties) by each category of asset for all Purchased Eligible Assets (as
     defined in the Warehouse Facility Documents) and (C) a schedule calculating
     the applicable advance rates based upon assets pledged and actual advances
     in respect of all Purchased Eligible Assets;

         (b) Quarterly. (i) As soon as available but not later than 60 days
     after the end of each fiscal quarter of each of the first three fiscal
     quarters of each fiscal year, (A) financial information regarding the
     Company and its subsidiaries consisting of consolidated unaudited balance
     sheets as of the close of such quarter and the related statements of income
     and cash flow for such quarter and that portion of the fiscal year ending
     as of the close of such quarter, setting forth in comparative form the
     figures for the corresponding period in the prior year, in each case
     certified by a Responsible Officer of the Company as fairly presenting the
     consolidated financial position of the Company and its subsidiaries as at
     the dates indicated and the results of their operations and cash flow for
     the periods indicated in accordance with GAAP, (B) forecasts prepared by
     management of the Company for each of the succeeding months for a twelve
     month period setting forth in reasonable detail the projected origination
     level, operating cost and estimate of the net interest margin assumptions
     and resulting cash flow, balance sheet and income statement as at the end
     of each such month and such twelve-month period, together with a statement
     of all the material assumptions on which such forecasts are based; and (C)
     a compliance certificate of a Responsible Officer of the Company setting
     forth in reasonable detail the calculations used in determining the
     financial covenants set forth in Section 4.4 and demonstrating compliance
     with all such financial covenants;

         (c) Annual. As soon as available but not later than 120 days after the
     end of each fiscal year of the Company, (i) copies of the audited
     consolidated balance sheet of the Company and its subsidiaries and the
     unaudited consolidating balance sheet of the Company and its subsidiaries
     as at the end of such year and the related consolidated statements of
     earnings, shareholders' equity and cash flows

<PAGE>

     for such year, setting forth in the case of the audited consolidated
     statements in comparative form the figures for the previous fiscal year,
     and accompanied by an opinion of PricewaterhouseCoopers or another
     nationally recognized independent accounting firm which report shall state
     that such audited consolidated financial statements present fairly the
     financial positions and result of operations of the Company and its
     subsidiaries for the periods indicated in conformity with GAAP applied on a
     basis consistent with prior years, except as stated therein, (such opinion
     shall not be qualified or limited because of a restricted or limited
     examination by such auditors of any material portion of the Company's or
     any subsidiary's records); and (ii) a compliance certificate of a
     Responsible Officer of the Company setting forth in reasonable detail the
     calculations used in determining the financial covenants set forth in
     Section 4.4 and demonstrating compliance with all such financial covenants
     for all applicable periods during such fiscal year.

         (d) Minimum Liquidity Amount Test. As soon as available but at least 3
     business days prior to any proposed dividend, distribution or transfer by
     the Company to Conseco or any of its Affiliates permitted under Items 4 or
     5 of Exhibit A, the Company shall furnish to Lehman (i) a certificate
     prepared by the management of the Company showing in reasonable detail (a)
     the calculations used in determining the Liquidity Amount and the Liquidity
     Threshold and demonstrating compliance with the Minimum Liquidity Amount
     Test, before and after giving effect to such dividend, distribution or
     transfer, and (b) describing the nature and material terms (including the
     proposed amounts) and conditions of such proposed dividend, distribution or
     transfer, identifying whether the event giving rise to such proposed action
     is set forth on Schedule I to Exhibit A, certified by a Responsible Officer
     of the Company; and (ii) certificate of a Responsible Officer of the
     Company stating that, to the best knowledge of such officer, (a) no Default
     or Event of Default has occurred and is continuing and (b) there is no
     significant reasonably anticipated cash need of the Company or any of its
     subsidiaries in excess of projected cash sources for the thirty day period
     following such dividend, distribution or transfer.

         (e) Default Notices. The Company shall promptly notify Lehman in
     writing of the occurrence of any Default or Event of Default under any
     Transaction Document.

         (f) Other. Promptly, but in any event not later than 10 business days
     after Lehman's request therefor, a report prepared by management of the
     Company setting forth in reasonable detail (x) all principal and interest
     payments received in respect of all assets other than the Purchased
     Securities, Additional Purchased Securities and Pledged Assets for the
     applicable thirty day period, such payment schedule to provide such
     information as per each category of asset, (y) an analysis of the aging (or
     other applicable measurement as agreed to by the parties) by each category
     of asset for all such assets and (z) a schedule calculating the applicable

<PAGE>

     advance rates based upon assets pledged and actual advances in respect of
     such assets financed by a Person other than a party hereto.

         The parties agree that it shall not constitute a breach of the
     applicable requirements set forth above if any financial statements
     required to be delivered under clauses (b) or (c) above are filed pursuant
     to a filing with the Securities and Exchange Commission within the required
     time period and delivered promptly thereafter by the Company to Lehman.

     4.2 Financial Reporting By Conseco. Conseco shall furnish to Lehman (a)
promptly after the furnishing thereof, but not later than 5 days thereafter,
copies of all compliance certificates and other financial reports furnished to
the lenders pursuant to the New Bank Facility Documents, and (b) written notice
of the occurrence of any Default or Event of Default under any Transaction
Document.

     4.3 Compliance with Transaction Documents. Each of Conseco, the Company,
CIHC, Green Tree Residual and Green Tree Five shall comply with all terms,
covenants or agreements contained in any Transaction Document (including without
limitation the Transaction Documents referred to in Section 1(f)(4) and (6)) on
its part to be performed or observed within the applicable grace period, if any,
specified in the relevant Transaction Document.

     4.4 Financial Covenants.

         The Company on a consolidated basis with its subsidiaries shall:

               (i) at all times commencing December 31, 2000, maintain an
Adjusted Tangible Net Worth of at least $1,950,000,000;

               (ii) for the three-month period ending on the last day of the
fiscal quarter ending December 31, 2000, the six-month period ending on the last
day of the fiscal quarter ending March 31, 2001, the nine-month period ending on
the last day of the fiscal quarter ending June 30, 2001, the twelve-month period
ending on the last day of the fiscal quarter ending September 30, 2001, and the
twelve-month period ending on the last day of each subsequent fiscal quarter,
maintain a Fixed Charge Coverage Ratio of not less than 1.0:1.0;

               (iii) at all times commencing December 31, 2000, maintain a ratio
of GAAP Net Worth to Total Managed Receivables of not less than 4:100;

               (iv) for each fiscal quarter commencing with the fiscal quarter
ending December 31, 2000, maintain a ratio of Non-Warehouse Debt to GAAP Net
Worth of not more than 1.0:2.0;

               (v) for the three-month period ending on the last day of the
fiscal quarter ending December 31, 2000, the six-month period ending on the last
day of the fiscal quarter ending March 31, 2001, the nine-month period ending on
the last day of the fiscal quarter ending June 30, 2001, the twelve-month period
ending on the last day of

<PAGE>

the fiscal quarter ending September 30, 2001, and the twelve-month period ending
on the last day of each subsequent fiscal quarter, maintain positive Operating
Cash Flow; and

               (vi) on any date a dividend, distribution or other transfer is
permitted hereunder to be made by the Company to Conseco or any of its
Affiliates under Items 4 or 5 on Exhibit A, maintain on such date the Liquidity
Amount of not less than the Liquidity Threshold, before and after giving effect
to such dividend, distribution or transfer (such requirement, the "Minimum
Liquidity Amount Test").

         For purposes of this Section 4.4:

         "Adjusted Tangible Net Worth" means, at any date, the sum of (a) GAAP
Net Worth plus (b) the amount of intercompany indebtedness converted to
Preferred Stock on the Effective Date in accordance with Section 1(e) (to the
extent such Preferred Stock is not included in GAAP Net Worth), plus (c)
writedowns after the Effective Date of all IOs and capitalized servicing rights
of the Company and its subsidiaries, in an aggregate amount not to exceed
$450,000,000, minus (d) any indebtedness owing by Conseco or any of its
Affiliates (other than the Company or any Subsidiary thereof) to the Company or
any Subsidiary thereof as of such date, minus (e) any amount that would be
included on the consolidated balance sheet of the Company as goodwill and
deferred charges in accordance with GAAP.

         "Cash Equivalents" means (a) securities issued or fully guaranteed or
insured by the United States government or any agency thereof, (b) certificates
of deposit, eurodollar time deposits, overnight bank deposits and bankers'
acceptances of any commercial bank organized under the laws of the United
States, any state thereof, the District of Columbia, any foreign bank, or its
branches or agencies (fully protected against currency fluctuations) which, at
the time of acquisition, are rated at least "A-1" by Standard & Poor's Rating
Services ("S&P") or "P-1" by Moody's Investors Services, Inc. ("Moody's"), (c)
commercial paper of an issuer rated at least "A-1" by S&P or "P-1" by Moody's,
and (d) shares of any money market fund that (i) has at least 95% of its assets
invested continuously in the types of investments referred to in clauses (a)
through (c) above, (ii) has net assets of not less than $500,000,000 and (iii)
is rated at least "A-1" by S&P or "P-1" by Moody's; provided, however, that the
maturities of all obligations of the type specified in clauses (a) through (c)
above shall not exceed 180 days.

         "Fixed Charge Coverage Ratio" means, for any period, the ratio of (a)
Pre Tax Operating Income for such period to (b) Interest Expense for such
period.

         "GAAP Net Worth" means, at any date, the stockholders' equity that
would be reflected on a consolidated balance sheet of the Company and its
subsidiaries at such date prepared in accordance with GAAP, inclusive of
Preferred Stock, to the extent such Preferred Stock is not included in
stockholders' equity in accordance with GAAP.

         "Interest Expense" means, for any period, all interest paid or accrued
during such period by the Company and its subsidiaries on a consolidated basis,
determined in accordance with GAAP.

<PAGE>

         "IOs" means interest only securities.

         "Liquidity Amount" means, on any date, the sum of Unrestricted Cash and
Cash Equivalents (including an amount not to exceed $150,000,000 in liquidity
available at Conseco Bank, Inc. and other banking subsidiaries of the Company
plus the aggregate amount available to be drawn under all committed and
uncommitted facilities to which the Company, Green Tree Residual, Green Tree
Five or any other Affiliate is a party, and calculated on the basis of eligible
excess collateral pledged to the lender thereunder multiplied by the advance
rate applied by such lender to such collateral). For purposes hereof, the
Liquidity Amount shall be calculated as of any date that the Minimum Liquidity
Amount Test is to be measured by determining the average of Unrestricted Cash,
Cash Equivalents and other such available amounts for the 30-day period ending
on and including such date.

         "Liquidity Threshold" means $250,000,000 plus an amount equal to (a)
50% of cash up to $100,000,000 generated by the Company at any time from and
after the date hereof and (b) 25% of cash generated by the Company in excess of
such $100,000,000, provided that the aggregate amount of the Liquidity Threshold
shall not exceed $350,000,000, and provided further that the calculation of cash
generated by the Company for purposes of this definition shall not include
operating cash flow operated in the normal course of business or net cash
proceeds actually received by the Company from those asset sales and other
events set forth on Schedule I to Exhibit A.

         "Net Income" means, for any period, with respect to the Company and its
subsidiaries on a consolidated basis (other than any subsidiary which is
prohibited from declaring or paying dividends or otherwise advancing funds to
its parent whether by contract or otherwise), cumulative net income earned
during such period as determined in accordance with GAAP.

         "Non-Warehouse Debt" means, at any time, all indebtedness of the
Company for borrowed money (including without limitation all liabilities in
respect of deposit products, notes payable, note payables to Conseco (net of
receivables due from Conseco), bonds and other indebtedness) less the sum of
Unrestricted Cash and Cash Equivalents at such time plus the book value of all
finance receivables and plus 85% of servicing advance receivables.

         "Operating Cash Flow" means, for any period, cash flow from the
operations of the Company for such period (as reported under "Cash Flow From
Operations" in the Company's statements of cash flow filed with the Securities
and Exchange Commission) for such period.

         "Pre Tax Operating Income" means, for any period, Net Income for such
period, plus (a) income and franchise taxes paid or accrued during such period,
(b) Interest Expense, (c) losses derived from discontinued operations of the
Company and its subsidiaries during such period and (d) extraordinary losses and
non-recurring losses of the Company and its subsidiaries in an amount with
respect to IOs and capitalized servicing rights of the Company and its
subsidiaries not to exceed $450,000,000 in the

<PAGE>

aggregate minus (a) income derived from discontinued operations of the Company
and its subsidiaries during such period and (b) extraordinary gains and
non-recurring gains of the Company and its subsidiaries.

         "Total Managed Receivables" means, for any period, the "averaged
managed receivables", as such term is reported in the related filing with the
Securities and Exchange Commission for such period.

         "Unrestricted Cash" means, at any date, all available cash on deposit
in bank accounts of the Company, provided the accounts into which such cash is
deposited are not subject to any lien, security interest or control agreement or
otherwise encumbered (excluding customary rights of set-off) or restricted in
any way. No new borrowings after the Effective Date from Conseco or its
Subsidiaries shall constitute Unrestricted Cash other than the amounts not to
exceed $50,000,000 in the aggregate received pursuant to Section 4.09(a)(i)(x)
of the Five-Year Credit Agreement as in effect on the Effective Date.

     4.5 Other Agreements. None of Conseco, the Company, Green Tree Residual or
Green Tree Five shall enter into any agreement containing any provision which
(a) would be violated or breached by the performance of its obligations
hereunder or under any instrument or document delivered or to be delivered by it
hereunder or in connection herewith or (b) prohibits or restricts the ability of
any such Person to amend or otherwise modify this Agreement or any other
document executed in connection herewith. The documentation governing any
guarantee by CIHC of any of the obligations under the New Bank Facility
Documents (including any related subordination arrangements) shall not at any
time be materially more favorable to the beneficiaries thereof than the CIHC
Guaranty.

     4.6 Application of Payments. Each of CIHC and Conseco shall apply all
amounts received from any dividend, distribution or transfer permitted to be
made under Item 5 of Exhibit B after the Effective Date as follows: first, to
any unpaid interest accruing on the Intercompany Note; second, to repay or
prepay principal of the Intercompany Note or an increase in any intercompany
receivable; third, to dividends on the Preferred Stock; fourth, to the
redemption of the Preferred Stock; and fifth, as a common stock dividend.

     4.7 Conduct of Business. Each of Conseco and the Company shall, and shall
cause their respective subsidiaries to, pay and discharge when the same becomes
due and payable all obligations owing therefrom, consistent with past practice.

     4.8 Certain Actions. Neither Conseco nor the Company, nor any of their
respective directors or officers, shall take any action, and the Company shall
not permit any of its subsidiaries to take any action, in connection with any
sale, assignment, lease, encumbrance, transfer, contribution or disposition of
any material assets or property of the Company, which would be inconsistent with
their respective fiduciary duties under Delaware law to Lehman (or any assignee
of Lehman) as the holder of the Warrant referred to in Section 12 hereof.
Notwithstanding any other provision of this Agreement,

<PAGE>

the Warehouse Facility Documents, the Residual Facility Documents or the New
Bank Facility Documents, a breach of this Section 4.8 shall not constitute an
Event of Default under the Warehouse Facility Documents, the Residential
Facility Documents or the New Bank Facility Documents.

     4.9 No Restriction on Certain Dispositions. Except in the ordinary course
of business, none of Conseco, the Company, Green Tree Residual or Green Tree
Five shall enter into any agreement which directly or indirectly prohibits or
restricts the ability of the Company or any of its subsidiaries to sell, assign,
lease, transfer, contribute, convey, issue or dispose of, or grant any rights
with respect to (a) loans, leases, receivables, installment contracts and other
financial products originated, acquired, sold or securitized by the Company or
any of its subsidiaries or (b) interests in or components of any interest,
including servicing fees, retained by the Company or any of its subsidiaries
relating to the sale or securitization of loans, leases receivables or
installment contracts, which constitutes either an interest only security or a
servicing right asset in accordance with GAAP.

50   Board Matters.

     5.1 Independent Board Member. Concurrently herewith, Conseco shall nominate
an Independent Director (as defined in the certificate of incorporation of the
Company) to the Company's Board of Directors (the "Independent Board Member").
The Independent Board Member shall be subject to Lehman's consent and approval,
which shall not be unreasonably delayed. Conseco and the Company agree to take
all action within their respective power (including, without limitation, the
voting of capital stock of the Company owned by Conseco and any of its
Affiliates) required to cause the Board of Directors of the Company to at all
times include such nominee (and any replacement nominee) as a director of the
Company's Board of Directors.

     5.2 Vacancies. If, prior to election to the Board of Directors of the
Company pursuant to Section 5.1 hereof, any Independent Board Member shall be
unable or unwilling to serve as a director of the Company, Conseco shall
promptly nominate a replacement in accordance with Section 5.1 hereof, who shall
then be the Independent Board Member for purposes of this Section 6. If,
following an election to the Board of Directors of the Company pursuant to this
Section 6, any Independent Board Member shall resign or be removed or be unable
to serve for any reason prior to the expiration of his term as a director of the
Company, Conseco shall notify the Board of Directors of the Company in writing
of a replacement Independent Board Member, and either (i) Conseco shall vote its
shares of capital stock of the Company, at any regular or special meeting called
for the purpose of filling positions on the Board of Directors of the Company or
by written consent executed in lieu of such a meeting of stockholders, and shall
take all such other actions necessary to ensure the election to the Board of
Directors of the Company of such replacement Independent Board Member to fill
the unexpired term of the Independent Board Member whom such new Independent
Board Member is replacing or (ii) the remaining members of the Board of
Directors (whether or not constituting a quorum) shall elect such replacement
Independent Board Member to fill the unexpired

<PAGE>

term of the Independent Board Member who such new Independent Board Member is
replacing.

     5.3 Observer Designee. Lehman shall be entitled to have one designee (an
"Observer Designee") attend all of the meetings of the Board of Directors (and
each committee thereof) of the Company, in each case other than those portions
(if any) of any meeting (a) dealing with (i) the Company's obligations to Lehman
or Lehman's Affiliates, (ii) matters reasonably expected to be adverse to Lehman
or (iii) matters the disclosure of which to Lehman could reasonably be expected
to be adverse to the Company or (b) where necessary to protect the
attorney-client privilege of any matter material to the Company. The Observer
Designee shall not be entitled to vote on any matters presented to the Board of
Directors or to such committees. The Company shall give notice, including,
without limitation, any proposed agenda, to Lehman of each such meeting at the
same time and in the same manner as the members of the Board of Directors (or
any committee thereof) receive notice of such meetings. Lehman shall be entitled
to receive all written materials and other information given to the directors of
the Company in connection with such meetings at the same time such materials are
given to such directors. If the Company proposes to take action by written
consent in lieu of a meeting of its Board of Directors, the Company shall give a
copy of such consent to Lehman at the same time as the members of the Board of
Directors. Such Observer Designee shall maintain the confidentiality of all
confidential information of the Company, provided that such Observer Designee
may share such information with Lehman.

     5.4 Costs and Expenses. The Company shall pay all reasonable out-of-pocket
expenses incurred by the Independent Board Member and the Board Observer in
connection with their participation in meetings of the Board of Directors (and
committees thereof) of the Company. The Company shall also pay the Independent
Board Member customary and appropriate retainer and fees as may be mutually
agreed upon by the Company and such Independent Board Member. The Company and
such Independent Board Member shall negotiate such retainer and fees in good
faith so as to ensure that such amounts are customary and appropriate.

60   Restrictions on Transfer of Stock

     6.1 Tag Along Right.

         (a) No Stockholder (as defined below) shall Transfer (as defined below)
     any Stock (as defined below), if, after giving effect to all prior
     Transfers from and after the date hereof by such Stockholder such Transfers
     constitute more than ten percent (10%) of the Common Stock (as defined
     below) owned by all Stockholders on the date hereof, in a single
     transaction or related series of transactions, to any Purchaser (as defined
     below) unless the terms and conditions of such sale, transfer or other
     disposition (the "Tag Along Sale") to such Purchaser shall contain an offer
     to each Potential Seller (as defined below) to include in such Tag Along
     Sale such number of shares of Common Stock as is determined in accordance
     with Section 6.1(b) below. At least 15 days prior to effecting any Tag
     Along Sale, such selling Stockholder (the "Selling Stockholder") shall
     promptly

<PAGE>

     cause the terms and conditions of the Tag Along Sale to be reduced to a
     reasonably detailed writing (which writing shall identify the Purchaser and
     shall include the offer to Potential Sellers to purchase or otherwise
     acquire their Common Stock according to the terms and subject to the
     conditions of this Section 6), and shall deliver, or cause the Purchaser to
     deliver, written notice (the "Notice") of the terms of such Tag Along Sale
     to each Potential Seller. The Notice shall be accompanied by a true and
     correct copy of the agreement, if any, embodying the terms and conditions
     of the proposed Tag Along Sale or such written summary thereof if there is
     no agreement. At any time after receipt of the Notice (but in no event
     later than 10 business days after receipt), each Potential Seller may
     accept the offer included in the Notice for up to such number of its shares
     of Common Stock as determined in accordance with the provisions of Section
     6.1(b) below, by furnishing irrevocable written notice of such acceptance
     to the Selling Stockholder and to the Purchaser.

         (b) In the event that any Potential Seller elects to accept the offer
     included in the Notice described in Section 6.1(a) above, such Potential
     Seller (the "Included Stockholder") shall have the right to sell, transfer
     or otherwise dispose of such number of its shares of Common Stock pursuant
     to, and upon consummation of, the Tag Along Sale which is equal to the
     product of (X) the total number of shares of Common Stock owned by the
     Included Stockholder and (Y) a fraction, the numerator of which shall equal
     the total number of shares of Common Stock to be sold to the Purchaser by
     the Selling Stockholder, and the denominator of which shall equal the total
     number of shares of Common Stock owned by the Selling Stockholder. If the
     Purchaser is not willing to purchase such additional shares, the number of
     shares to be sold by the Selling Stockholder and the Included Stockholders
     shall be proportionately reduced.

         (c) The purchase of Stock pursuant to this Section 6 shall be made on
     the same terms (including, without limitation, the per share consideration
     and method of payment, and the date of sale, transfer or other
     disposition), and subject to the same conditions, if any, as are provided
     to the Selling Stockholder and stated in the Notice.

         (d) Upon the consummation of the disposition of Stock to the Purchaser
     pursuant to the Tag Along Sale, the Selling Stockholder shall (i) cause the
     Purchaser to remit directly to each Included Stockholder the sales price of
     its Stock disposed of pursuant thereto, and (ii) furnish such other
     evidence of the completion and time of completion of such disposition and
     the terms thereof as may reasonably be requested by such Included
     Stockholder.

         (e) If a Potential Seller has not delivered to the Selling Stockholder
     and to the Purchaser written notice of its acceptance of the offer
     contained in the Notice within 10 business days after the receipt of such
     Notice, it shall be deemed to have waived any and all rights pursuant to
     this Section 6 with respect to the disposition of its Stock described in
     the Notice, and the Selling Stockholder shall have 45

<PAGE>

     days (calculated from the first day next succeeding the expiration of the
     10 business day acceptance period described above), in which to dispose of
     the aggregate amount of Stock described in the Notice to the Purchaser
     identified in the Notice, on terms not more favorable to the Selling
     Stockholder than those which were set forth in the Notice. If a Potential
     Seller has delivered irrevocable written notice of acceptance as described
     in the preceding sentence and, if after 30 days following receipt of the
     Notice, the Selling Stockholder and the Purchaser shall not have completed
     the disposition of Stock to be sold in connection therewith in accordance
     with the terms of the Tag Along Sale, all the restrictions on the
     disposition of Stock contained in this Section 6 shall again be in force
     and effect.

     6.2 Drag-Along Right.

         (a) If a Stockholder proposes to Transfer to any Purchaser a number of
     shares of Stock which represents at least a majority of the outstanding
     shares of Common Stock on a fully-diluted basis (the "Transferred Shares")
     then, at the election of such holder or holders (a "Drag Along Seller"),
     each other Stockholder (each, a "Drag Along Stockholder") shall be required
     to sell to such Purchaser (a "Drag Along Sale") a number of shares of Stock
     determined by the Drag Along Seller up to the total number of shares of
     Stock then held by such Drag Along Stockholder (the "Drag Along Shares").
     If the percentage of any Drag Along Stockholder's Stock required to be sold
     as Drag Along Shares exceeds the percentage of the Drag Along Seller's
     Stock to be sold to Purchaser in a Drag Along Sale, Drag Along Seller,
     shall, at its sole expense, arrange for the delivery of a fairness opinion
     by an investment banking firm of nationally recognized standing acceptable
     to such Drag Along Stockholder (which acceptance shall not be unreasonably
     withheld or delayed). Such fairness opinion shall confirm that the terms of
     the Drag Along Sale are fair to the Drag Along Stockholders from a
     financial point of view.

         (b) The Drag Along Seller shall deliver to each Drag Along Stockholder
     written notice (the "Drag Along Notice") of any sale to be made pursuant to
     Section 6.2(a) above, which notice shall set forth the consideration to be
     paid by the Purchaser for each Transferred Share, the number of Transferred
     Shares to be sold by the Drag Along Seller, the number of shares to be sold
     by each Drag Along Stockholder, and the other terms and conditions, if any,
     of such transaction. Pending consummation of the Drag Along Sale, the Drag
     Along Seller shall promptly notify each Drag Along Stockholder of any
     changes in the proposed timing for the Drag Along Sale and any other
     material developments in connection therewith. The Drag Along Sale shall be
     on the same terms and conditions as the sale of the Transferred Shares by
     the Drag Along Seller. The Drag Along Stockholder shall only be required to
     give representations and warranties as to its due organization, its due
     authorization and title to the Drag Along Shares and shall only be required
     to indemnify for breach of its own representations and warranties.

<PAGE>

         (c) If, within 15 days after the Drag Along Seller provides the Drag
     Along Notice, no sale of the Transferred Shares owned by the Drag Along
     Seller or the Drag Along Stockholder in accordance with the provisions of
     this Section 6 shall have been completed, the Drag Along Sale shall be
     terminated for purposes hereof.

         (d) Simultaneously with the consummation of the sale of the Transferred
     Shares pursuant to this Section 6 the Drag Along Seller shall cause the
     Purchaser to remit directly to the Drag Along Stockholder the consideration
     with respect to the Drag Along Shares and shall furnish such other evidence
     of the completion and time of completion of such sale and terms and
     conditions, if any, thereof as may reasonably be requested by the Drag
     Along Stockholder.

         (e) The provisions of this Section 6, however, shall remain in effect
     for any subsequent proposed sale.

     6.3 Permitted Dispositions of Stock. Each Stockholder shall be entitled to
directly or indirectly Transfer all or any portion of its Stock to any Affiliate
of such Stockholder, and no such Transfer (other than a Transfer to a Purchaser)
shall give rise to any rights under Sections 6.1 or 6.2. No Transfer may be made
under this Section 6.3 unless the Person acquiring the shares of Stock pursuant
to such Transfer agrees in writing to be bound by the provisions of this Section
6. No Transfer permitted by this Section 6.3 shall relieve the Stockholder
effecting such Transfer from its obligations hereunder.

     6.4 Definitions. For the purposes hereof, the following terms have the
respective meanings:

         (a) "Common Stock" means the common stock, $.01 par value, of the
     Company.

         (b) "Potential Seller(s)" means any Stockholder other than the Selling
     Stockholder.

         (c) "Purchaser" means any Person to which shares of Stock are proposed
     to be Transferred, but shall not include:

               (i) any Person 30% or more of the fully diluted capital stock or
other equity or ownership interests of which are directly or indirectly owned by
the Selling Stockholder(s) and/or any Affiliates thereof (in the case of a Tag
Along Sale) or the Drag Along Seller(s) and/or any Affiliates thereof (in the
case of a Drag Along Sale); or

               (ii) any Person 30% or more of the voting power of which is
directly or indirectly owned by the Selling Stockholder(s) and/or any Affiliates
thereof (in the case of a Tag Along Sale) or the Drag Along Seller(s) and/or any
Affiliates thereof (in the case of a Drag Along Sale).

<PAGE>

         (d) "Stock" means (i) Common Stock, (ii) any capital stock into which
     such common stock may be changed or converted, (iii) capital stock of the
     Company of any other class (regardless of how denominated) issued to the
     holders of shares of Common Stock upon any reclassification thereof which
     is also not preferred as to dividends or assets on liquidation over any
     other class of stock of the Company and which is not subject to redemption,
     (iv) shares of common stock of any successor or acquiring corporation
     received by or distributed to the holders of Common Stock of the Company
     and (v) any warrant, option or other right exercisable for or convertible
     into capital stock of the Company (including without limitation that
     certain Warrant, dated May 11, 2000, issued by the Company to Lehman),
     together with any shares of capital stock of the Company issued upon the
     exercise or conversion thereof. For purposes of all calculations under this
     Section 6, any warrants, options and other rights referred to in Section
     6.4(c)(v) shall be assumed to have been fully vested, exercised, and
     converted, as the case may be, immediately prior to any such calculation,
     and shall be treated for purposes of such calculations as the number of
     shares of Common Stock into which such warrants, options and other rights
     are exercisable or convertible.

         (e) "Stockholders" means each of the parties hereto and their
     respective successors and assigns (other than the Company), whom on the
     date hereof are holders of shares of Stock (including without limitation
     Lehman).

         (f) "Transfer(s)" means to directly or indirectly, transfer, sell,
     assign, donate, contribute, or otherwise voluntarily or involuntarily
     dispose of.

     6.5 Non-Cash Consideration. Notwithstanding anything in this Section 6 to
the contrary, if (i) the consideration payable for shares of Stock to be sold in
a Tag Along Sale or a Drag Along Sale consists of property other than cash
("Non-Cash Consideration") and (ii) the Purchaser acquiring such shares so
requests in writing, each Included Stockholder or Drag Along Stockholder
(collectively, "Holders") shall receive cash in lieu of Non-Cash Consideration
that would otherwise be received by such Holder as consideration for the shares
of Stock to be sold in such Tag Along Sale or Drag Along Sale (as the case may
be). The amount of such cash shall equal the Appraised Value of the Non-Cash
Consideration that would otherwise be received by such Holder. The term
"Appraised Value" means:

         (A) in respect of any share of capital stock included in the Non-Cash
Consideration for which there is not a public market, the fair saleable value of
such share of capital stock (determined without giving effect to the discount
for (i) a minority interest or (ii) any lack of liquidity of such capital stock
or to the fact that the company issuing such capital stock may have no class of
equity registered under the Securities Exchange Act of 1934, as amended) as of
the last day of the most recent fiscal month end based on the value of the
Company, as determined by an investment banking firm of recognized national
standing acceptable to the Holder (which acceptance shall not be

<PAGE>

unreasonably withheld or delayed) divided by the number of fully diluted shares
of capital stock of such issuer;

         (B) in respect of any share of capital stock included in the Non-Cash
Consideration for which there is a public market, the average of the daily
market prices of such stock for 30 consecutive business days commencing 45 days
before such date. The daily market price for each such business day shall be (i)
the last sale price on such day on the principal stock exchange on which such
capital stock is then listed or admitted to trading, (ii) if no sale takes place
on such day on any such exchange, the average of the last reported closing bid
and asked prices on such day as officially quoted on any such exchange, (iii) if
such capital stock is not then listed or admitted to trading on any stock
exchange, the average of the last reported closing bid and asked prices on such
day in the over-the-counter market, as furnished by the National Association of
Securities Dealers Automatic Quotation System or the National Quotation Bureau,
Inc., (iv) if neither such corporation at the time is engaged in the business of
reporting such prices, as furnished by any similar firm then engaged in such
business, or (v) if there is no such firm, as furnished by any member of the
NASD selected mutually by the Holder and the Company or, if they cannot agree
upon such selection, an investment banking firm of recognized national standing
as selected by two such members of the NASD, one of which shall be selected by
the Holder and one of which shall be selected by the Company; and

         (C) in respect of any property included in the Non-Cash Consideration
other than those types described in paragraphs (A) and (B) above, the fair
market value of such property as determined by an entity qualified to make such
determinations acceptable to the Holder (which acceptance shall not be
unreasonably withheld or delayed).

7.   Representations and Warranties.

     7.1 Conseco, CIHC, the Company, Green Tree Residual and Green Tree Five.
Conseco, CIHC, the Company, Green Tree Residual and Green Tree Five hereby
represent and warrant to Lehman as follows:

         (a Organization. Each of Conseco, CIHC, the Company, Green Tree
     Residual and Green Tree Five is a corporation duly organized, validly
     existing, and in good standing under the Laws (as defined below) of its
     jurisdiction of incorporation, and has full corporate power and authority
     to enter into this Agreement and the other Transaction Documents to which
     it is a party and to perform its obligations under this Agreement and the
     other Transaction Documents to which it is a party. The term "Law" shall
     mean all laws, statutes, ordinances, Orders, and regulations of the United
     States of America or any state, commonwealth, city, county, or municipality
     thereof. The term "Order" shall mean an order, writ, ruling, judgment,
     directive, injunction or decree of any arbitrator, mediator or governmental
     or regulatory authority. Each of Conseco and the Company are operated as
     separate and independent corporations, and each maintains separate and
     independent (i) corporate books and records including but

<PAGE>

     not limited to all matters related thereto and (ii) financial statements
     and balance sheets.

         (b Authority. The execution and delivery of this Agreement by Conseco,
     CIHC, Green Tree Residual, Green Tree Five and the Company and the
     performance by Conseco, CIHC, Green Tree Residual, Green Tree Five and the
     Company of their respective obligations under this Agreement and the
     Transaction Documents to which they are a party have been duly and validly
     authorized by all necessary corporate action on the part of Conseco, CIHC,
     Green Tree Residual, Green Tree Five and the Company. This Agreement (i)
     has been duly executed and delivered by Conseco, CIHC, Green Tree Residual,
     Green Tree Five and the Company, (ii) constitutes a legal, valid, and
     binding obligation of Conseco, CIHC, Green Tree Residual, Green Tree Five
     and the Company and (iii) is enforceable against Conseco, CIHC, Green Tree
     Residual, Green Tree Five and the Company in accordance with its terms,
     except to the extent that (a) enforcement may be limited by or subject to
     any bankruptcy, insolvency, reorganization, moratorium, or similar Laws now
     or hereafter in effect relating to or limiting creditors' rights generally
     and (b) the remedy of specific performance and injunctive and other forms
     of equitable relief are subject to certain equitable defenses and to the
     discretion of the court or other similar Person before which any proceeding
     therefor may be brought.

         (c Business Structure. Conseco and CIHC, on the one hand, and the
     Company, on the other, being separate and independent corporations, (i)
     have observed separate and independent corporate formalities related
     thereto and have separate and independent (A) business locations, (B)
     operating accounts, (C) employees, (D) assets and liabilities, and (E)
     proceeds from the sale of each entity's respective stock (it being
     recognized that an immaterial sharing of employees and facilities has
     occurred with an appropriate allocation of costs related thereto) and (ii)
     do not commingle funds or other assets.

         (d No Conflicts or Violations. The execution and delivery of this
     Agreement by Conseco, CIHC, Green Tree Residual, Green Tree Five and the
     Company do not, and the performance by Conseco, CIHC, Green Tree Residual,
     Green Tree Five and the Company of their respective obligations under this
     Agreement will not:

               (i) violate any term or provision of any Law applicable to
Conseco, CIHC, Green Tree Residual, Green Tree Five or the Company or any of
their respective subsidiaries, other than such violations that would not
reasonably be expected to result in a Material Adverse Effect (as defined below)
on the Company, CIHC, Green Tree Residual, Green Tree Five or Conseco;

               (ii) conflict with or result in a violation or breach of any of
the provisions of the certificate of incorporation or bylaws of Conseco, CIHC,
Green Tree Residual, Green Tree Five or the Company or any of their respective
subsidiaries;

<PAGE>

               (iii) conflict with or result in a violation or breach of, or
constitute a default under, any contract or other agreement to which Conseco,
CIHC, Green Tree Residual, Green Tree Five or the Company or any of their
respective subsidiaries is a party other than such conflicts, violations,
breaches or defaults that would not reasonably be expected to result in a
Material Adverse Effect on the Company, CIHC, Green Tree Residual, Green Tree
Five or Conseco; or

               (iv) require Conseco, CIHC, Green Tree Residual, Green Tree Five
or the Company or any of their respective subsidiaries to obtain any consent,
approval, or action of, or make any filing with or give any notice to, any
Person (except disclosure of the transactions contemplated in this Agreement in
public filings as may be required by applicable securities laws or stock
exchange rules), other than those the failure of which to obtain or make would
not reasonably be expected to result in a Material Adverse Effect on the
Company, CIHC, Green Tree Residual, Green Tree Five or Conseco.

         The term "Material Adverse Effect" shall mean, as to any party hereto,
     any material adverse effect on (i) the assets, properties, business,
     licenses, income, condition (financial or otherwise) or results of the
     respective operations of such party, (ii) the transactions contemplated by
     this Agreement, (iii) the legality, validity or enforceability of this
     Agreement and the agreements and instruments to be entered into in
     connection herewith, or the realization of the rights and remedies
     thereunder, or (iv) the ability of such party to perform its respective
     obligations under this Agreement.

         (e Capitalization of the Company. As of the date hereof after giving
     effect to the transactions contemplated hereby, (i) the authorized capital
     stock of the Company consists of 1,000 shares of common stock, par value
     $.01 per share, of the Company ("Common Stock") and 1,000 shares of
     preferred stock, par value $.001 per share, of the Company and (ii) there
     are 103 shares of Common Stock issued and outstanding and 750 shares of
     Preferred Stock issued and outstanding. All issued and outstanding shares
     of Common Stock of the Company are duly authorized, validly issued, fully
     paid, and nonassessable and are owned beneficially and of record by CIHC
     and all issued and outstanding shares of Preferred Stock are duly
     authorized, validly issued, fully paid and nonassessable and are owned
     beneficially and of record by Conseco. Conseco directly owns all of the
     issued and outstanding common stock of CIHC. There are no outstanding
     securities, rights (preemptive or other), subscriptions, calls, warrants,
     options, or other agreements (except for the warrant issued as of May 11,
     2000 by the Company to Lehman (the "Warrant")) that give any Person the
     right to purchase or otherwise receive or be issued any shares of capital
     stock of the Company or CIHC or any security convertible into or
     exchangeable for any shares of capital stock of the Company or CIHC.
     Immediately after issuance of the Warrant, the shares of Common Stock into
     which the Warrant will be exercisable represented 5% of the fully diluted
     common stock of the Company (assuming full vesting, conversion, and
     exercise of all securities, options, warrants, and other rights).

<PAGE>

         (f Charter Documents and Bylaws. The Company has heretofore made
     available to Lehman true and complete copies of the certificate of
     incorporation and bylaws of the Company, in each case as in effect on the
     date hereof after giving effect to the Effective Date.

         (g Intercompany Indebtedness. Schedule 7.1(g) hereto sets forth the
     amount and nature of all indebtedness for borrowed money owed by the
     Company to Conseco or any Affiliate thereof as of the date hereof.

         (h CIHC Guaranty. The obligations of CIHC under the CIHC Guaranty do
     and will rank at least pari passu in priority of payment with all other
     unsecured indebtedness of CIHC.

     7.2 Lehman. Lehman hereby represents and warrants to the Company, CIHC,
Green Tree Residual, Green Tree Five and Conseco as follows:

         (a Organization. Lehman is a corporation duly organized, validly
     existing, and in good standing under the Laws of its jurisdiction of
     incorporation, and has full corporate power and authority to enter into
     this Agreement and to perform its obligations under this Agreement.

         (b Authority. The execution and delivery of this Agreement by Lehman
     and the performance by Lehman of its obligations under this Agreement have
     been duly and validly authorized by all necessary corporate action on the
     part of Lehman. This Agreement (i) has been duly executed and delivered by
     Lehman, (ii) constitutes a legal, valid, and binding obligation of Lehman
     and (iii) is enforceable against Lehman in accordance with its terms,
     except to the extent that (a) enforcement may be limited by or subject to
     any bankruptcy, insolvency, reorganization, moratorium, or similar Laws now
     or hereafter in effect relating to or limiting creditors' rights generally
     and (b) the remedy of specific performance and injunctive and other forms
     of equitable relief are subject to certain equitable defenses and to the
     discretion of the court or other similar Person before which any proceeding
     therefor may be brought.

         (c No Conflicts or Violations. The execution and delivery of this
     Agreement by Lehman do not, and the performance by Lehman of its
     obligations under this Agreement will not:

               (i) violate any term or provision of any Law applicable to Lehman
or any of its subsidiaries other than such violations that would not reasonably
be expected to result in a Material Adverse Effect on Lehman;

               (ii) conflict with or result in a violation or breach of any of
the provisions of the certificate of incorporation or bylaws of Lehman or any of
its subsidiaries;

               (iii) conflict with or result in a violation or breach of, or
constitute a default under, any contract or other agreement to which Lehman or
any of its

<PAGE>

subsidiaries is a party, other than such conflicts, violations, breaches or
defaults that would not reasonably be expected to result in a Material Adverse
Effect on Lehman;

               (iv) require Lehman or any of its subsidiaries to obtain any
consent, approval, or action of, or make any filing with or give any notice to,
any Person, other than those the failure to obtain or make would not reasonably
be expected to result in a Material Adverse Effect on Lehman.

8.   Survival of Representations and Warranties.

     8.1 Survival. Subject to Section 8.2 hereof, the representations and
warranties respectively made by the parties in this Agreement will expire on the
second anniversary hereof, except that the representations and warranties set
forth in Sections 7.1(e) and 7.1(g) hereof will remain in full force and effect
until the expiration of all applicable statutes of limitation (including all
periods of extension, whether automatic or permissive).

     8.2 Pursuit of Claims. Any breach of any representation or warranty as to
which a bona fide claim for indemnification has not been asserted in accordance
with Section 9.3 hereof during the applicable survival period set forth in
Section 8.1 hereof may not be pursued and is hereby irrevocably waived, except
that if a claim for indemnification is made in accordance with Section 9.3
hereof before the expiration of the applicable survival period set forth in
Section 8.1 hereof, then (notwithstanding such survival period) the
representation or warranty applicable to such claim shall survive until, but
only for purposes of, the resolution of such claim.

9.   Indemnification.

     9.1 Indemnification by Conseco and the Company. Subject to the provisions
of Section 8 hereof, Conseco, CIHC and the Company shall jointly and severally
indemnify, defend, and hold harmless the Lehman Indemnitees (as defined below)
for any and all Damages (as defined below) resulting from or relating to (i) any
breach by Conseco, CIHC, Green Tree Residual, Green Tree Finance or the Company
of any covenant or agreement made by Conseco, CIHC, Green Trees Residual, Green
Tree Finance, the Company or any Affiliate thereof that subsequently becomes a
party to this Agreement, in this Agreement and (ii) any breach by Conseco, CIHC,
Green Tree Residual, Green Tree Five, the Company or any Affiliate thereof that
subsequently becomes a party to this Agreement of any representation or warranty
contained in Section 9.1 of this Agreement. The term "Lehman Indemnitee" shall
mean Lehman, any Affiliate of Lehman, and any officer, director, employee,
agent, or other representative of such entities. The term "Damages" shall mean
any and all monetary damages, liabilities, fines, fees, penalties, interest
obligations, deficiencies, losses, costs, expenses (including reasonable fees
and expenses of attorneys, accountants, actuaries, and other experts).

     9.2 Indemnification by Lehman. Subject to the provisions of Section 8
hereof, Lehman shall indemnify, defend, and hold harmless the Conseco
Indemnitees (as defined below) for any and all Damages resulting from or
relating to (i) any breach by Lehman of

<PAGE>

any covenant or agreement made by Lehman in this Agreement and (ii) any breach
by Lehman of any representation or warranty contained in Section 7.2 of this
Agreement. The term "Conseco Indemnitee" shall mean Conseco, any Affiliate of
Conseco, and any officer, director, employee, agent, or other representative of
such entities.

     9.3 Indemnification Procedures.

         (a If an Indemnitee becomes aware of any matter that it believes is
     indemnifiable pursuant to Section 9.1 or 9.2 hereof and such matter
     involves (i) any claim made against the Indemnitee by any Person other than
     any Lehman Indemnitee or Conseco Indemnitee or (ii) the commencement of any
     action, suit, investigation, arbitration, or similar proceeding against the
     Indemnitee by any Person other than any Lehman Indemnitee or Conseco
     Indemnitee, the Indemnitee shall give the Indemnifying Party prompt written
     notice of such claim or the commencement of such action, suit,
     investigation, arbitration, or similar proceeding, which notice must (A) be
     given during the applicable survival period, (B) provide (with reasonable
     specificity) the basis on which indemnification is being asserted, (C) set
     forth the actual or good-faith estimated amount of Damages for which
     indemnification is being asserted, if known, and (D) be accompanied by
     copies of all relevant pleadings, demands, and other papers served on the
     Indemnitee. Failure to provide notice shall not relieve an Indemnifying
     Party of any obligation to provide indemnity hereunder, except to the
     extent that the Indemnifying Party is prejudiced by such failure in its
     efforts to defend such claim

         (b The Indemnifying Party shall have a period of 30 days after the
     delivery of each notice required by Section 9.3(a) hereof during which to
     respond to such notice. If the Indemnifying Party elects to defend the
     claim described in such notice or does not respond within such 30-day
     period, the Indemnifying Party shall be obligated to compromise or defend
     (and shall control the defense of) such claim, at its own expense and by
     counsel chosen by the Indemnifying Party. The Indemnitee shall cooperate
     fully with the Indemnifying Party and counsel for the Indemnifying Party in
     the defense against any such claim, and the Indemnitee shall have the right
     to participate at its own expense in the defense of any such claim. If the
     Indemnifying Party responds within such 30-day period and elects not to
     defend such claim, the Indemnitee shall be free to compromise or defend
     (and control the defense of) such claim and to pursue such remedies as may
     be available to the Indemnitee under applicable Law.

         (c Any compromise or settlement of any claim (whether defended by the
     Indemnitee or by the Indemnifying Party) shall require the prior written
     consent of the Indemnitee and the Indemnifying Party, which consent shall
     not be unreasonably withheld or delayed. If, however, the Indemnitee
     refuses to consent to a bona fide offer of compromise or settlement that
     the Indemnifying Party desires to accept, the Indemnitee may continue to
     pursue such claim, free of any participation by the Indemnifying Party, at
     the sole expense of the Indemnitee. In

<PAGE>

     such event, the obligation of the Indemnifying Party to the Indemnitee will
     equal the lesser of (i) the amount of the offer of compromise of settlement
     that the Indemnifying Party desired to accept, plus the reasonable
     out-of-pocket expenses (except for expenses resulting from the Indemnitee's
     participation in any defense controlled by the Indemnifying Party) incurred
     by the Indemnitee before the date the Indemnifying Party notified the
     Indemnitee of the offer of compromise or settlement, or (ii) the actual
     out-of-pocket amount that the Indemnitee is obligated to pay as a result of
     the Indemnitee's continued pursuit of such claim, plus the reasonable
     out-of-pocket expenses incurred by the Indemnitee after the Indemnifying
     Party notified the Indemnitee of the offer of compromise or settlement,
     minus the reasonable out-of-pocket expenses incurred by the Indemnifying
     Party after such notice date.

         (d If an Indemnitee becomes aware of any matter that it believes is
     indemnifiable pursuant to Section 9.1 or 9.2 hereof and such matter
     involves a claim made by Lehman, Conseco or the Company, the Indemnitee
     shall give the Indemnifying Party prompt written notice of such claim,
     which notice must (i) be given during the applicable survival period, (ii)
     provide (with reasonable specificity) the bases for which indemnification
     is being asserted, and (iii) set forth the actual or good-faith estimated
     amount of Damages for which indemnification is being asserted. The
     Indemnifying Party will have a period of 30 days after the delivery of each
     notice required by this Section 9.3(d) during which to respond to such
     notice. If the Indemnifying Party accepts (in writing) full responsibility
     for the claim described in such notice, the Indemnifying Party shall pay
     upon demand to the Indemnitee the actual or estimated amount of Damages
     reflected in such notice. If the Indemnifying Party has disputed such claim
     or does not respond within such 30-day period, the Indemnifying Party and
     the Indemnitee agree to proceed in good faith to negotiate a resolution of
     such dispute. If all such disputes are not resolved through negotiations
     within 30 days after such negotiations begin or if such negotiations are
     not initiated within 30 days after notice is given, either the Indemnifying
     Party or the Indemnitee may initiate litigation to resolve such disputes.

         (e The term "Indemnitee" shall mean a Person claiming indemnification
     under this Section 9. The term "Indemnifying Party" shall mean a Person
     against whom claims of indemnification are being asserted under this
     Section 9.

10.  Termination.

     10.1 Termination Events. This Agreement shall terminate and be of no
further force or effect automatically and without any action of the parties
hereto at such time as (i) all indebtedness under the Residual Facility
Documents shall have been repaid in full in accordance with the terms of the
Residual Facility Documents and all commitments thereunder terminated and
obligations owing thereunder paid in full and (ii) the Company or an Affiliate
shall have repurchased all of the Esoteric Assets (as defined in the Warehouse
Facility Documents) and owned by Lehman Commercial Paper Inc. on the

<PAGE>

repurchase date in accordance with the terms of the Warehouse Facility Documents
and Conseco and its Affiliates shall have taken all action necessary including,
without limitation, the repurchase of other assets sold under the Warehouse
Facility Documents in accordance with the terms thereof so that immediately
after giving effect to such repurchases and actions, neither the Company nor
Green Tree Five would be in default under the Warehouse Facility Documents and
the aggregate amount of wet financing under Section 11(e) of the Repurchase
Agreement then outstanding would not exceed $150 million.

     10.2 Effect of Termination. If this Agreement terminates pursuant to
Section 10.1 hereof, this Agreement shall become null and void except that, (a)
the provisions of Sections 6, 10, 11, and 13 and the last sentence of Section
5.3 hereof will continue to apply following any such termination, and (b) no
party hereto will be relieved of any Liability (as defined below) for Damages
that such party may have to the other parties by reason of such party's breach
of this Agreement (or any representation, warranty, covenant, or agreement
included herein). The term "Liability" shall mean all debts, obligations, and
other liabilities (including without limitation surplus relief transactions) of
a person (whether known or unknown and whether absolute, accrued, contingent,
fixed, or otherwise, or whether due or to become due).

11.  Public Announcements. No party shall make any public announcement or media
     comment regarding the existence or subject matter of this Agreement without
     prior consultation with the other parties hereto, except as required by
     law, applicable regulation or the rules of any securities exchange on which
     a party's securities are publicly traded. Each party shall not, and shall
     cause its direct and indirect subsidiaries to not, issue any press release
     or make any other public announcement or filing regarding any matter
     associated with this Agreement or the matters described herein unless the
     other parties hereto have been afforded a reasonable opportunity to review
     such release or announcement.

12.  Warrant. Lehman, the Company and Conseco shall negotiate in good faith for
     the exchange of the Warrant No. 1 to Purchase Common Stock of the Company
     issued on May 11, 2000 to Lehman with a warrant to purchase common stock of
     Conseco.

13.  Miscellaneous

     13.1 Notices. Any notice or other communication given pursuant to this
Agreement must be in writing and (a) delivered personally, (b) sent by
telefacsimile or other similar facsimile transmission, (c) delivered by
overnight express, or (d) sent by registered or certified mail, postage prepaid,
as follows:

         (a If to Conseco, CIHC, Green Tree Residual, Green Tree Five or the
     Company:

<PAGE>

                      Conseco, Inc.
                      11825 North Pennsylvania Street
                      Carmel, IN 46032
                      Attention: Gary C. Wendt, Chairman of the Board
                      Facsimile:  317-817-6327

                 With a copy to:

                      Conseco, Inc.
                      11825 North Pennsylvania Street
                      Carmel, IN  46032
                      Attention:  David K. Herzog, Executive Vice President
                        and Secretary
                      Facsimile: 317-817-6327

         (b If to Lehman:

                      Lehman Brothers Holdings Inc.
                      3 World Financial Center
                      New York, NY  10285
                      Attention:  Kurt Locher, Managing Director - FAS
                      Facsimile: 212-526-8579

                 and to:

                      Lehman Brothers Holdings Inc.
                      3 World Financial Center
                      New York, NY  10285
                      Attention:  Vincent Primiano
                      Facsimile:  212-526-0035

                 With a copy to:

                      Weil, Gotshal & Manges LLP
                      767 Fifth Avenue
                      New York, NY  10153
                      Attention:  Paul R. Lovejoy
                      Facsimile:  212-310-8007

         (c All notices and other communications required or permitted under
     this Agreement that are addressed as provided in this Section will (A) if
     delivered personally or by overnight express, be deemed given upon
     delivery; (B) if delivered by telefacsimile or similar facsimile
     transmission, be deemed given when electronically confirmed; and (C) if
     sent by registered or certified mail, be deemed given when received. Any
     party from time to time may change its address for the purpose of notices
     to that party by giving a similar notice specifying a new address, but no
     such notice will be deemed to have been given until it is actually received
     by the party sought to be charged with the contents thereof

     13.2 Entire Agreement. Except for any Transaction Document or related
agreement executed by Lehman, Green Tree Residual, Green Tree Five, Conseco
and/or the Company prior hereto or concurrently herewith, this Agreement
supersedes all prior discussions and agreements between the parties with respect
to the subject matter of this Agreement, and this Agreement contains the sole
and entire agreement between the parties hereto with respect to the subject
matter hereof.

<PAGE>

     13.3 Expenses. Except as otherwise expressly provided in this Agreement,
each of the parties hereto shall pay its own costs and expenses in connection
with this Agreement and the transactions contemplated hereby.

     13.4 Brokers.

         (a Indemnification by Conseco and the Company. Conseco and the Company
     shall jointly and severally indemnify and hold harmless each Lehman
     Indemnitee in respect of any and all claims or demands for commission,
     compensation, or other Damages by any broker, finder, or other agent
     (whether or not a present or former employee or agent of either of Conseco
     or the Company) claiming to have been engaged by Conseco, the Company or
     any of their respective Affiliates in connection with the transactions
     contemplated by this Agreement, and Conseco and the Company shall bear the
     cost of the reasonable out-of-pocket expenses incurred by each Lehman
     Indemnitee in investigating, defending against, or appealing any such claim
     or demand.

         (b Indemnification by Lehman. Lehman shall indemnify and hold harmless
     each Conseco Indemnitee in respect of any and all claims or demands for
     commission, compensation, or other Damages by any broker, finder, or other
     agent (whether or not a present or former employee or agent of Lehman)
     claiming to have been engaged by Lehman or any Affiliate of Lehman in
     connection with the transactions contemplated by this Agreement, and Lehman
     shall bear the cost of the reasonable out-of-pocket expenses incurred by
     each Conseco Indemnitee in investigating, defending against, or appealing
     any such claim or demand.

     13.5 Waiver. Any term or condition of this Agreement may be waived at any
time by the party that is entitled to the benefit thereof. Such waiver must be
in writing and must be executed by an executive officer of such party. A waiver
on one occasion will not be deemed to be a waiver of the same or any other
breach or nonfulfillment on a future occasion. All remedies, either under this
Agreement, or by Law or otherwise afforded, will be cumulative and not
alternative.

     13.6 Amendment. This Agreement may be modified or amended only by a writing
duly executed by or on behalf of all of the parties hereto.

     13.7 Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which will be deemed an original, but all of
which will constitute one and the same instrument.

     13.8 No Third Party Beneficiary. The terms and provisions of this Agreement
are intended solely for the benefit of Conseco, the Company, CIHC, Green Tree
Residual, Green Tree Five and Lehman, and their respective successors and
permitted assigns, and it is not the intention of the parties to confer
third-party beneficiary rights upon any other Person.

     13.9 Governing Law; Venue. This Agreement will be governed by and construed
and enforced in accordance with the laws of the State of New York applicable

<PAGE>

to a Contract executed and performable in such state. EXCLUSIVE VENUE FOR ANY
ACTION RELATING TO THIS AGREEMENT SHALL BE MAINTAINED IN ANY FEDERAL OR STATE
COURT SITTING IN NEW YORK COUNTY, NEW YORK. EACH PARTY HEREBY CONSENTS TO
PERSONAL JURISDICTION AND SERVICE OF PROCESS IN THE STATE OF NEW YORK FOR
MATTERS BETWEEN THE PARTIES HERETO THAT ARISE OUT OF THIS AGREEMENT.

     13.10 Binding Effect. This Agreement is binding upon and will inure to the
benefit of the parties and their respective successors and permitted assigns.

     13.11 No Assignment. Neither this Agreement nor any right or obligation
hereunder or part hereof may be assigned by any parties hereto without the prior
written consent of the other parties hereto (and any attempt to do so will be
void), except (a) as otherwise specifically provided herein and (b) that Lehman
may assign all or any part of its rights or obligations hereunder to one or more
of its Affiliates without the consent of the other parties hereto, provided
however, that such assignment shall not relieve Lehman of its responsibilities
hereunder.

     13.12 Invalid Provisions. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable under any present or future Law, and if the
rights or obligations under this Agreement of the parties hereto will not be
materially and adversely affected thereby, (a) such provision will be fully
severable; (b) this Agreement will be construed and enforced as if such illegal,
invalid, or unenforceable provision had never comprised a part hereof; and (c)
the remaining provisions of this Agreement will remain in full force and effect
and will not be affected by the illegal, invalid, or unenforceable provision or
by its severance from this Agreement.

     13.13 Amendment and Restatement. Upon its effectiveness, this Agreement
amends and restates in its entirety the Original Agreement. This Agreement does
not constitute and shall not be construed to evidence a novation or termination
of the Original Agreement.

     13.14 Headings. The headings of the Sections of this Agreement have been
inserted for convenience of reference only, are not intended to be considered a
part hereof, and shall not modify or restrict any term or provision hereof.

     13.15 Specific Performance. The parties recognize that if any of the
parties hereto refuses to perform under the provisions of this Agreement (each,
a "Breaching Party"), monetary damages alone will not be adequate to compensate
the other parties for their injury. Each party hereto that has not refused to
perform under the provisions of this Agreement required to be performed by it
(each, a "Non-Breaching Party") shall therefore be entitled, in addition to any
other remedies that may be available, to obtain specific performance of the
terms of this Agreement. If any such action is brought by any party to enforce
this Agreement, any Breaching Parties shall waive the defense that there is an
adequate remedy at law. In the event of a default by any party which results in
the filing of a lawsuit for damages, specific performances, or other remedies,
any Non-Breaching

<PAGE>

Parties shall be entitled to reimbursement by any Breaching Parties of
reasonable legal fees and expenses incurred by such Non-Breaching Party.

     13.16 Releases. In further consideration of the execution of this
Agreement, each of Conseco, CIHC, the Company, Green Tree Five and Green Tree
Residual hereby release Lehman and its affiliates, officers, employees,
directors, agents and attorneys (collectively, the "Releasees" from any and all
claims, demands, liabilities, responsibilities, disputes, causes of action
(whether at law or equity) and obligations of every nature whatsoever whether
liquidated or unliquidated, known or unknown, matured or unmatured, fixed or
contingent that any of such Persons may have against Releasees which arise
solely from or relate to any Transaction Document (other than the New Bank
Facility Documents), to the extent arising out of, or relating to, actions,
dealings or matters occurring on or prior to the date hereof (including, without
limitation, any actions or inactions which Releasees may have taken prior to the
date hereof); provided that such release shall in no manner amend, terminate,
alter or release any contractual right any party may have with respect to any
Releasee with respect to the terms and provisions of (a) agreements related to
financial advisory services, (b) that certain letter agreement by and between
Lehman and the Company dated May 11, 2000, (c) underwriting or placement
agreements entered into in connection with the sale of securities and (d) the
Warrant referred to in Section 12.

<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed and delivered
as of the date first written above by the duly authorized representatives of the
parties hereto.

                                  CONSECO, INC.

                                  By:     /s/ James S. Adams
                                          -------------------------------------
                                  Name:   James S. Adams
                                  Title:  Senior Vice President, Chief
                                            Accounting Officer and Treasurer

                                  CONSECO FINANCE CORP.

                                  By:     /s/ James S. Adams
                                          -------------------------------------
                                  Name:   James S. Adams
                                  Title:  Senior Vice President and Chief
                                            Accounting Officer

                                  LEHMAN BROTHERS HOLDINGS INC.

                                  By:     /s/ Vincent Primiano
                                          -------------------------------------
                                  Name:   Vincent Primiano
                                  Title:  Vice President

                                  CIHC, INCORPORATED

                                  By:     /s/ David A. Hill
                                          -------------------------------------
                                  Name:   David A. Hill
                                  Title:  Vice President

                                  GREEN TREE RESIDUAL FINANCE CORP. I

                                  By:     /s/ Phyllis A. Knight
                                          -------------------------------------
                                  Name:   Phyllis A. Knight
                                  Title:  Senior Vice President and Treasurer

                                  GREEN TREE FINANCE CORP. - FIVE

                                  By:     /s/ Phyllis A. Knight
                                          -------------------------------------
                                  Name:   Phyllis A. Knight
                                  Title:  Senior Vice President and Treasurer

<PAGE>

                                                                      Exhibit A

                 Permitted Dividends, Distributions and Transfers

     1.  The Company may pay interest and scheduled payments of principal under
         the Intercompany Note in accordance with the terms thereof.

     2.  The Company may make customary and usual payments to Conseco for
         products and services provided by Conseco to or for the benefit of the
         Company consistent with past practices consistently applied, provided
         that the Company shall have at least ten business days in which to cure
         any failure to pay any such amount on the date such payment was
         requested.

     3.  The Company may make payments to Conseco under the Tax Sharing
         Agreement in accordance with the terms of such agreement.

     4.  The Company may repay loans made by Conseco pursuant to Section
         2.3(iii) provided that (a) at the time of such repayment the Company
         shall be Solvent before and after giving effect to such repayment, (b)
         no Default or Event of Default shall have occurred and be continuing or
         would result therefrom under any Transaction Document, and (c) in the
         case of amounts to be repaid exceeding $200,000,000 in the aggregate,
         the Minimum Liquidity Amount Test shall be satisfied before and after
         giving effect to such repayment and Lehman shall have received the
         items required pursuant to Section 4.1(d). For purposes hereof,
         "Solvent" means, with respect to the Company, that the value of the
         assets of the Company (both at fair value and present fair saleable
         value) is, on the date of determination, greater than the total amount
         of liabilities (including contingent and unliquidated liabilities) of
         the Company as of such date, and that, as of such date, the Company is
         able to pay all liabilities of it as such liabilities mature and does
         not have unreasonably small capital. In computing the amount of
         contingent or unliquidated liabilities at any time, such liabilities
         will be computed at the amount which, in light of all the facts and
         circumstances existing at such time, represents the amount that can
         reasonably be expected to become an actual or matured liability.

     5.  The Company may (a) prepay principal owed under the Intercompany Note,
         (b) pay dividends to its Stockholder(s) and (c) make other
         distributions to Conseco, provided that the Minimum Liquidity Amount
         Test shall be satisfied before and after giving effect to each such
         prepayment, dividend or other distribution, Lehman shall have received
         the items required pursuant to Section 4.1(d) and no Default or Event
         of Default shall have occurred and be continuing or would result
         therefrom under any Transaction Document, and provided further that the
         Company shall not purchase, redeem, retire, defease or otherwise
         acquire for value or establish a sinking fund with respect to any
         Preferred Stock

<PAGE>

         unless and until (i) all amounts due and owing by the Company under the
         Intercompany Note shall have been paid in full and the Intercompany
         Note shall be cancelled and (ii) all amounts due and owing by Conseco
         or any of its Affiliates to the Company or any subsidiary thereof shall
         have been paid in full.

<PAGE>

        Schedule I Certain Asset Sales and Other Liquidity Raising Events

     Certain Asset Sales
     -------------------

     VISA/MC Portfolio
     ABL Portfolio
     Vendor Services
     Truck Portfolio

     Other Liquidity Raising Events
     ------------------------------

     Reduction/Elimination of Ineligible Inventory in an aggregate amount not to
        exceed $25,000,000
     Sale/Contribution of Private Label Credit Cards to Conseco Bank, Inc.
     Increase in Lehman Residual Facility ($100 million)/Pledge of Additional
        Securities
     Re-instatement of US Bank Credit Line
     Reduction of Dealer Floorplan Overconcentrations in Master Trust
     Renegotiate Repo Lines with Merrill Lynch
     Financing/Sale of Insurance Receivables

<PAGE>

                 Schedule 7.1(g)Indebtedness for Borrowed Money

           Principal balance as of  September 22, 2000          $1,460,799,080

              Including:

                 Total cash advances of                         $5,819,200,000
                 Total cash payments of                         (3,812,266,995)
                 Conversion to Preferred Stock                    (750,000,000)
                 Money borrowed for intercompany fees               61,279,246
                 Capitalized interest                              142,586,829

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