Document:

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                                                                     Exhibit 4.4

                               TRANSFER AGREEMENT

                                     between

                      CONSECO FINANCE SECURITIZATIONS CORP.
                                    Purchaser

                                       and

                              CONSECO FINANCE CORP.
                                     Seller

                                   dated as of

                                  March 1, 2000
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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I.  DEFINITIONS........................................................1
         SECTION 1.1.      General.............................................1
         SECTION 1.2.      Specific Terms......................................1
         SECTION 1.3.      Usage of Terms......................................3
         SECTION 1.4.      No Recourse.........................................3

ARTICLE II.  CONVEYANCE OF THE INITIAL LOANS
             AND THE INITIAL OTHER CONVEYED PROPERTY...........................4
         SECTION 2.1.      Conveyance of the Initial Loans and the Initial
                               Other Conveyed Property.........................4
         SECTION 2.2.      Purchase Price of Initial Loans.....................4
         SECTION 2.3.      Conveyance of Subsequent Loans and Subsequent
                               Other Conveyed Property.........................4

ARTICLE III.  REPRESENTATIONS AND WARRANTIES...................................5
         SECTION 3.1.      Representations and Warranties of CFC...............5
         SECTION 3.2.      Representations and Warranties of CFSC..............7

ARTICLE IV.  COVENANTS OF CFC..................................................9
         SECTION 4.1.      Protection of Title of CFSC and the Trust...........9
         SECTION 4.2.      Other Liens or Interests...........................10
         SECTION 4.3.      Indemnification....................................10

ARTICLE V.  REPURCHASES.......................................................11
         SECTION 5.1.      Repurchase of Loans Upon Breach of Warranty........11
         SECTION 5.2.      Reassignment of Purchased Loans....................11
         SECTION 5.3.      Waivers............................................12

ARTICLE VI.  MISCELLANEOUS....................................................12
         SECTION 6.1.      Liability of CFC...................................12
         SECTION 6.2.      Merger or Consolidation of CFC or CFSC.............12
         SECTION 6.3.      Limitation on Liability of CFC and Others..........13
         SECTION 6.4.      Amendment..........................................13
         SECTION 6.5.      Notices............................................14
         SECTION 6.6.      Merger and Integration.............................14
         SECTION 6.7.      Severability of Provisions.........................14
         SECTION 6.8.      Intention of the Parties...........................14

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         SECTION 6.9.      Governing Law......................................15
         SECTION 6.10.     Counterparts.......................................15
         SECTION 6.11.     Conveyance of the Initial Loans and the Initial
                               Other Conveyed Property to the Trust...........15
         SECTION 6.12.     Nonpetition Covenant...............................15

                                    SCHEDULES

Schedule A  --  Schedule of Initial and Additional Loans

                                    EXHIBITS

Exhibit A  --  Form of Subsequent Transfer Agreement

Exhibit B  --  Form of Assignment

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                               TRANSFER AGREEMENT
                               ------------------

         THIS TRANSFER AGREEMENT, dated as of March 1, 2000, executed between
Conseco Finance Securitizations Corp., a Minnesota corporation, as purchaser
("CFSC"), and Conseco Finance Corp., a Delaware corporation, as seller ("CFC").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, CFSC has agreed to purchase from CFC and CFC, pursuant to this
Agreement, is transferring to CFSC the certain home equity loans specified in
the Schedule of Initial and Additional Loans attached hereto as Schedule A (the
"Initial and Additional Loans") and the Initial Other Conveyed Property; and

         WHEREAS, CFSC has agreed to purchase from CFC and CFC has agreed to
transfer to CFSC the Subsequent Loans and Subsequent Other Conveyed Property in
an amount set forth herein, prior to June 14, 2000.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements hereinafter contained, and for other good and valuable consideration,
the receipt of which is acknowledged, CFSC and CFC, intending to be legally
bound, hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.1. General. The specific terms defined in this Article
include the plural as well as the singular. The words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section or other subdivision, and Article,
Section, Schedule and Exhibit references, unless otherwise specified, refer to
Articles and Sections of and Schedules and Exhibits to this Agreement.
Capitalized terms used herein without definition shall have the respective
meanings assigned to such terms in the Pooling and Servicing Agreement, dated as
of March 1, 2000, by and among Conseco Finance Securitizations Corp. (as
Seller), Conseco Finance Corp. (as Originator, Guarantor and Servicer), and U.S.
Bank Trust National Association, as Trustee (the "Trustee").

         SECTION 1.2. Specific Terms. Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, shall have
the following meanings:

         "Agreement" shall mean this Transfer Agreement and all amendments
hereof and supplements hereto.

         "Closing Date" means March 27, 2000.
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         "Initial Other Conveyed Property" means all monies at any time paid or
payable on the Initial and Additional Loans or in respect thereof after the
Cut-off Date (excluding amounts due on or before the Cut-off Date but received
by CFC after the Cut-off Date), an assignment of security interests in the
related real estate, the Certificate Account (including all Eligible Investments
therein and all proceeds therefrom), all items contained in the Loan Files
relating to the Initial and Additional Loans, any and all other documents or
electronic records that CFC keeps on file in accordance with its customary
procedures relating to the Initial and Additional Loans, the Obligors or the
related real estate, property (including the right to receive future Liquidation
Proceeds) that secures an Initial Loan and that has been acquired by or on
behalf of the Trust pursuant to liquidation of such Initial Loan, and all
proceeds of the foregoing.

         "Initial and Additional Loans" means the Loans listed on the Schedule
of Initial and Additional Loans attached hereto as Schedule A.

         "Other Conveyed Property" means the Initial Other Conveyed Property
conveyed by CFC to CFSC pursuant to this Agreement together with any and all
Subsequent Other Conveyed Property conveyed by CFC to CFSC pursuant to each
Subsequent Transfer Agreement.

         "Related Documents" means the Certificates, the Pooling and Servicing
Agreement, each Subsequent Transfer Agreement and the Underwriting Agreement
among CFC, CFSC and the underwriters of the Certificates. The Related Documents
to be executed by any party are referred to herein as "such party's Related
Documents," "its Related Documents" or by a similar expression.

         "Repurchase Event" means the occurrence of a breach of any of CFC's
representations and warranties hereunder or under any Subsequent Transfer
Agreement or any other event which requires the repurchase of a Loan by CFC
under the Pooling and Servicing Agreement.

         "Pooling and Servicing Agreement" means the Pooling and Servicing
Agreement, dated as of March 1, 2000, executed and delivered by Conseco Finance
Corp., as Originator, Servicer and Guarantor, Conseco Finance Securitizations
Corp., as Seller, and the Trustee.

         "Schedule of Initial and Additional Loans" means the schedule of all
Loans sold and transferred pursuant to this Agreement which is attached hereto
as Schedule A.

         "Schedule of Loans" means the Schedule of Initial and Additional Loans
attached hereto as Schedule A as supplemented by each Schedule of Subsequent
Loans attached to each Subsequent Transfer Agreement as Schedule A.

         "Schedule of Subsequent Loans" means the schedule of all Loans sold and
transferred pursuant to a Subsequent Transfer Agreement which is attached to
such Subsequent

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Transfer Agreement as Schedule A, which Schedule of Subsequent Loans shall
supplement the Schedule of Initial and Additional Loans.

         "Subsequent Loans" means the Loans specified in the Schedule of
Subsequent Loans attached as Schedule A to each Subsequent Transfer Agreement.

         "Subsequent Other Conveyed Property" means the Subsequent Other
Conveyed Property conveyed by CFC to CFSC pursuant to each Subsequent Transfer
Agreement.

         "Subsequent Transfer Agreement" shall have the meaning given in Section
2.3(b)(iii).

         "Trust" means the trust created by the Pooling and Servicing Agreement,
the estate of which consists of the Trust Fund.

         "Trustee" means U.S. Bank Trust National Association, a national
banking association organized and existing under the laws of the United States,
not in its individual capacity but solely as trustee of the Trust, and any
successor trustee appointed and acting pursuant to the Pooling and Servicing
Agreement.

         "Trust Property" means the property and proceeds of every description
conveyed by the Seller to the Trustee pursuant to the Pooling and Servicing
Agreement and pursuant to any Subsequent Transfer Instrument, together with the
Certificate Account, Capitalized Interest Account and Pre-Funding Account
(including all investments of the Certificate Account and all proceeds
therefrom).

         SECTION 1.3. Usage of Terms. With respect to all terms used in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other gender; references to "writing" include
printing, typing, lithography, and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
subsequent amendments thereto or changes therein entered into in accordance with
their respective terms and not prohibited by this Agreement or the Pooling and
Servicing Agreement; references to Persons include their permitted successors
and assigns; and the terms "include" or "including" mean "include without
limitation" or "including without limitation."

         SECTION 1.4. No Recourse. Without limiting the obligations of CFC
hereunder, no recourse may be taken, directly or indirectly, under this
Agreement or any certificate or other writing delivered in connection herewith
or therewith, against any stockholder, officer or director, as such, of CFC, or
of any predecessor or successor of CFC.

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                                   ARTICLE II
                 CONVEYANCE OF THE INITIAL AND ADDITIONAL LOANS
                     AND THE INITIAL OTHER CONVEYED PROPERTY

         SECTION 2.1. Conveyance of the Initial and Additional Loans and the
Initial Other Conveyed Property. Subject to the terms and conditions of this
Agreement, CFC hereby sells, transfers, assigns, and otherwise conveys to CFSC
without recourse (but without limitation of its obligations in this Agreement or
in the Pooling and Servicing Agreement), and CFSC hereby purchases, all right,
title and interest of CFC in and to the Initial and Additional Loans and the
Initial Other Conveyed Property. It is the intention of CFC and CFSC that the
transfer and assignment contemplated by this Agreement shall constitute a sale
of the Initial and Additional Loans and the Initial Other Conveyed Property from
CFC to CFSC, conveying good title thereto free and clear of any Liens, and the
Initial and Additional Loans and the Initial Other Conveyed Property shall not
be part of CFC's estate in the event of the filing of a bankruptcy petition by
or against CFC under any bankruptcy or similar law.

         SECTION 2.2. Purchase Price of Initial and Additional Loans.
Simultaneously with the conveyance of the Initial and Additional Loans and the
Initial Other Conveyed Property to CFSC, CFSC has paid or caused to be paid to
or upon the order of CFC approximately $990,082,857.83 by wire transfer of
immediately available funds (representing the proceeds to CFSC from the sale of
the Initial and Additional Loans after (i) deducting expenses of approximately
$425,000 incurred by CFSC in connection with such sale and (ii) depositing the
Pre-Funded Amount in the Pre-Funding Account.

         SECTION 2.3. Conveyance of Subsequent Loans and Subsequent Other
Conveyed Property.

                  (a) Subject to the conditions set forth in paragraph (b) below
         and the terms and conditions in the related Subsequent Transfer
         Agreement, in consideration of CFSC's delivery on the related
         Subsequent Transfer Date to or upon the order of CFC of an amount equal
         to the purchase price of the Subsequent Loans (as set forth in the
         related Subsequent Transfer Agreement), CFC hereby agrees to sell,
         transfer, assign, and otherwise convey to CFSC without recourse (but
         without limitation of its obligations in this Agreement and the related
         Subsequent Transfer Agreement), and CFSC hereby agrees to purchase all
         right, title and interest of CFC in and to the Subsequent Loans and the
         Subsequent Other Conveyed Property described in the related Subsequent
         Transfer Agreement.

                  (b) CFC shall transfer to CFSC, and CFSC shall acquire, the
         Subsequent Loans and the Subsequent Other Conveyed Property to be
         transferred on any Subsequent Transfer Date only upon the satisfaction
         of each of the following conditions on or prior to such Subsequent
         Transfer Date:

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                           (i) CFSC shall have provided the Trustee and the
                  Rating Agencies with an Addition Notice at least five Business
                  Days prior to the Subsequent Transfer Date and shall

                  have provided any information reasonably requested by the
                  Trustee with respect to the Subsequent Loans;

                           (ii) CFC shall have delivered the related Loan File
                  for each Subsequent Loan to the Trustee at least two Business
                  Days prior to the Subsequent Transfer Date;

                           (iii) CFC shall have delivered to CFSC a duly
                  executed Subsequent Transfer Agreement substantially in the
                  form of Exhibit A hereto (the "Subsequent Transfer
                  Agreement"), which shall include a List of Loans identifying
                  the related Subsequent Loans;

                           (iv) as of each Subsequent Transfer Date, as
                  evidenced by delivery of the Subsequent Transfer Agreement,
                  neither CFC nor CFSC shall be insolvent nor shall they have
                  been made insolvent by such transfer nor shall they be aware
                  of any pending insolvency;

                           (v) such transfer shall not result in a material
                  adverse tax consequence to the Trust (including the REMIC or
                  the Certificateholders or Class C Certificateholder;

                           (vi) the Pre-Funding Period shall not have ended; and

                           (vii) no Subsequent Loan will have a Combined LTV
                  greater than 100%, and;

                  (c) CFC covenants to transfer to CFSC pursuant to paragraph
         (a) above Subsequent Loans with aggregate Scheduled Principal Balances
         of approximately equal to $9,492,242.17; provided, however, that the
         sole remedy of CFSC with respect to a failure of such covenant shall be
         to enforce the provisions of Section 8.08 of the Pooling and Servicing
         Agreement.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

         SECTION 3.1. Representations and Warranties of CFC. CFC makes the
following representations and warranties, on which CFSC relies in purchasing the
Initial and Additional Loans and the Initial Other Conveyed Property and in
transferring the Initial and Additional Loans and the Initial Other Conveyed
Property to the Trustee under the Pooling and Servicing Agreement. Such
representations are made as of the execution and delivery of this Agreement, but
shall survive the sale, transfer and assignment of the Initial and Additional
Loans and the Initial Other Conveyed Property hereunder and the sale, transfer
and assignment thereof by CFSC to the Trustee under the Pooling and Servicing
Agreement. CFC and CFSC agree that

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CFSC will assign to the Trustee all of CFSC's rights under this Agreement and
that the Trustee will thereafter be entitled to enforce this Agreement against
CFC in the Trustee's own name.

                  (a) Representations Regarding Loans. The representations and
         warranties set forth in Sections 3.02, 3.04 and 3.05 of the Pooling and
         Servicing Agreement are true and correct.

                  (b) Organization and Good Standing. CFC has been duly
         organized and is validly existing as a corporation in good standing
         under the laws of the State of Delaware, with power and authority to
         own its properties and to conduct its business as such properties are
         currently owned and such business is currently conducted, and had at
         all relevant times, and now has, power, authority and legal right to
         acquire, own and sell the Initial and Additional Loans and the Initial
         Other Conveyed Property transferred to CFSC.

                  (c) Due Qualification. CFC is duly qualified to do business as
         a foreign corporation in good standing, and has obtained all necessary
         licenses and approvals, in all jurisdictions in which the ownership or
         lease of its property or the conduct of its business requires such
         qualification.

                  (d) Power and Authority. CFC has the power and authority to
         execute and deliver this Agreement and its Related Documents and to
         carry out its terms and their terms, respectively; CFC has full power
         and authority to sell and assign the Initial and Additional Loans and
         the Initial Other Conveyed Property to be sold and assigned to and
         deposited with CFSC hereunder and has duly authorized such sale and
         assignment to CFSC by all necessary corporate action; and the
         execution, delivery and performance of this Agreement and CFC's Related
         Documents have been duly authorized by CFC by all necessary corporate
         action.

                  (e) Valid Sale; Binding Obligations. This Agreement and CFC's
         Related Documents have been duly executed and delivered, shall effect a
         valid sale, transfer and assignment of the Initial and Additional Loans
         and the Initial Other Conveyed Property, enforceable against CFC and
         creditors of and purchasers from CFC; and this Agreement and CFC's
         Related Documents constitute legal, valid and binding obligations of
         CFC enforceable in accordance with their respective terms, except as
         enforceability may be limited by bankruptcy, insolvency, reorganization
         or other similar laws affecting the enforcement of creditors' rights
         generally and by equitable limitations on the availability of specific
         remedies, regardless of whether such enforceability is considered in a
         proceeding in equity or at law.

                  (f) No Violation. The consummation of the transactions
         contemplated by this Agreement and the Related Documents and the
         fulfillment of the terms of this Agreement and the Related Documents
         shall not conflict with, result in any breach of any of the

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          terms and provisions of or constitute (with or without notice, lapse
          of time or both) a default under, the articles of incorporation or
          bylaws of CFC, or any indenture, agreement, mortgage, deed of trust or
          other instrument to which CFC is a party or by which it is bound, or
          result in the creation or imposition of any Lien, upon any of its
          properties pursuant to the terms of any such indenture, agreement,
          mortgage, deed of trust or other instrument, other than this Agreement
          and the Pooling and Servicing Agreement, or violate any law, order,
          rule or regulation applicable to CFC of any court or of any federal or
          state regulatory body, administrative agency or other governmental
          instrumentality having jurisdiction over CFC or any of its properties.

                  (g) No Proceedings. There are no proceedings or investigations
         pending or, to CFC's knowledge, threatened against CFC, before any
         court, regulatory body, administrative agency or other tribunal or
         governmental instrumentality having jurisdiction over CFC or its
         properties (i) asserting the invalidity of this Agreement or any of the
         Related Documents, (ii) seeking to prevent the issuance of the
         Certificates or the consummation of any of the transactions
         contemplated by this Agreement or any of the Related Documents, (iii)
         seeking any determination or ruling that might materially and adversely
         affect the performance by CFC of its obligations under, or the validity
         or enforceability of, this Agreement or any of the Related Documents or
         (iv) seeking to affect adversely the federal income tax or other
         federal, state or local tax attributes of, or seeking to impose any
         excise, franchise, transfer or similar tax upon, the transfer and
         acquisition of the Initial and Additional Loans and the Initial Other
         Conveyed Property hereunder or under the Pooling and Servicing
         Agreement.

                  (h) Chief Executive Office. The chief executive office of CFC
         is located at 1100 Landmark Towers, 345 St. Peter Street, Saint Paul,
         MN 55102-1639.

                  (i) Licensing. CFC is duly licensed in each state in which
         Loans were originated to the extent CFC is required to be licensed by
         applicable law in connection with the origination and servicing of the
         Loans.

         SECTION 3.2. Representations and Warranties of CFSC. CFSC makes the
following representations and warranties, on which CFC relies in selling,
assigning, transferring and conveying the Initial and Additional Loans and the
Initial Other Conveyed Property to CFSC hereunder. Such representations are made
as of the execution and delivery of this Agreement, but shall survive the sale,
transfer and assignment of the Initial and Additional Loans and the Initial
Other Conveyed Property hereunder and the sale, transfer and assignment thereof
by CFSC to the Trust under the Pooling and Servicing Agreement.

                  (a) Organization and Good Standing. CFSC has been duly
         organized and is validly existing and in good standing as a corporation
         under the laws of the State of Minnesota, with the power and authority
         to own its properties and to conduct its business as such properties
         are currently owned and such business is currently conducted, and had

                                       -7-
<PAGE>

         at all relevant times, and has, full power, authority and legal right
         to acquire and own the Initial and Additional Loans and the Initial
         Other Conveyed Property and to transfer the Initial and Additional
         Loans and the Initial Other Conveyed Property to the Trust pursuant to
         the Sale and Servicing Agreement.

                  (b) Due Qualification. CFSC is duly qualified to do business
         as a foreign corporation in good standing, and has obtained all
         necessary licenses and approvals in all jurisdictions where the failure
         to do so would materially and adversely affect (i) CFSC's ability to
         acquire the Initial and Additional Loans or the Initial Other Conveyed
         Property, (ii) the validity or enforceability of the Initial and
         Additional Loans and the Initial Other Conveyed Property or (iii)
         CFSC's ability to perform its obligations hereunder and under the
         Related Documents.

                  (c) Power and Authority. CFSC has the power, authority and
         legal right to execute and deliver this Agreement and its Related
         Documents and to carry out the terms hereof and thereof and to acquire
         the Initial and Additional Loans and the Initial Other Conveyed
         Property hereunder; and the execution, delivery and performance of this
         Agreement and its Related Documents and all of the documents required
         pursuant hereto or thereto have been duly authorized by CFSC by all
         necessary action.

                  (d) No Consent Required. CFSC is not required to obtain the
         consent of any other Person, or any consent, license, approval or
         authorization or registration or declaration with, any governmental
         authority, bureau or agency in connection with the execution, delivery
         or performance of this Agreement and the Related Documents, except for
         such as have been obtained, effected or made.

                  (e) Binding Obligation. This Agreement and each of its Related
         Documents constitutes a legal, valid and binding obligation of CFSC,
         enforceable against CFSC in accordance with its terms, subject, as to
         enforceability, to applicable bankruptcy, insolvency, reorganization,
         conservatorship, receivership, liquidation and other similar laws and
         to general equitable principles.

                  (f) No Violation. The execution, delivery and performance by
         CFSC of this Agreement, the consummation of the transactions
         contemplated by this Agreement and the Related Documents and the
         fulfillment of the terms of this Agreement and the Related Documents do
         not and will not conflict with, result in any breach of any of the
         terms and provisions of or constitute (with or without notice or lapse
         of time) a default under the certificate of incorporation or bylaws of
         CFSC, or conflict with or breach any of the terms or provisions of, or
         constitute (with or without notice or lapse of time) a default under,
         any indenture, agreement, mortgage, deed of trust or other instrument
         to which CFSC is a party or by which CFSC is bound or to which any of
         its properties are subject, or result in the creation or imposition of
         any Lien upon any of its properties pursuant to the terms of any such
         indenture, agreement, mortgage, deed of trust or other instrument
         (other than the

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<PAGE>

         Pooling and Servicing Agreement and the Indenture), or violate any law,
         order, rule or regulation, applicable to CFSC or its properties, of any
         federal or state regulatory body or any court, administrative agency,
         or other governmental instrumentality having jurisdiction over CFSC or
         any of its properties.

                  (g) No Proceedings. There are no proceedings or investigations
         pending, or, to the knowledge of CFSC, threatened against CFSC, before
         any court, regulatory body, administrative agency, or other tribunal or
         governmental instrumentality having jurisdiction over CFSC or its
         properties: (i) asserting the invalidity of this Agreement or any of
         the Related Documents, (ii) seeking to prevent the consummation of any
         of the transactions contemplated by this Agreement or any of the
         Related Documents, (iii) seeking any determination or ruling that might
         materially and adversely affect the performance by CFSC of its
         obligations under, or the validity or enforceability of, this Agreement
         or any of the Related Documents or (iv) that may adversely affect the
         federal or state income tax attributes of, or seeking to impose any
         excise, franchise, transfer or similar tax upon, the transfer and
         acquisition of the Initial and Additional Loans and the Initial Other
         Conveyed Property hereunder or the transfer of the Initial and
         Additional Loans and the Initial Other Conveyed Property to the Trust
         pursuant to the Pooling and Servicing Agreement.

In the event of any breach of a representation and warranty made by CFSC
hereunder, CFC covenants and agrees that it will not take any action to pursue
any remedy that it may have hereunder, in law, in equity or otherwise, until a
year and a day have passed since the later of (i) the date on which all
pass-through certificates or other similar securities issued by the Trust, or a
trust or similar vehicle formed by CFSC, have been paid in full, or (ii) all
Certificates or other similar securities issued by the Trust, or a trust or
similar vehicle formed by CFSC, have been paid in full. CFC and CFSC agree that
damages will not be an adequate remedy for such breach and that this covenant
may be specifically enforced by CFSC or by the Trustee on behalf of the Trust.

                                   ARTICLE IV
                                COVENANTS OF CFC

         SECTION 4.1 Transfer of Loans.

                  (a) On or prior to the Closing Date, or the Subsequent
         Transfer Date in the case of Subsequent Loans, CFC shall deliver the
         Loan Files to CFSC. CFC has filed a form UCC-1 financing statement
         regarding the sale of the Loans to CFSC, and shall file continuation
         statements in respect of such UCC-1 financing statement as if such
         financing statement were necessary to perfect such sale. CFC shall take
         any other actions necessary to maintain the perfection of the sale of
         the Loans to CFSC.

                                       -9-
<PAGE>

                  (b) If at any time during the term of this Agreement CFC does
         not have a long-term senior debt rating of A- or higher from S&P,
         Moody's (if rated by Moody's) and Duff & Phelps (if rated by Duff &
         Phelps), (i) CFC shall within 30 days execute and deliver to CFSC (if
         it has not previously done so) endorsements of each Loan and
         assignments in recordable form of each mortgage, deed of trust or
         security deed securing a Loan, and (ii) CFSC, at CFC's expense, shall
         within 60 days file in the appropriate recording offices the
         assignments to CFSC of each mortgage, deed of trust or security deed
         securing a Loan; provided, however, that such execution and filing of
         the assignments with respect to the Loans shall not be required if CFSC
         receives written confirmation from each of S&P, Moody's and Duff &
         Phelps that the ratings of the Certificates would not be reduced or
         withdrawn by the failure to execute and file such assignments;
         provided, however, that such execution and filing shall not be required
         if CFC delivers an Opinion of Counsel to the effect that such
         assignment and recordation is not necessary to effect the assignment to
         CFSC of CFC's lien on the real property securing each Loan.

                  (c) If, as of the Post-Funding Payment Date, the aggregate
         Scheduled Principal Balance of Loans secured by real property located
         in Maryland ("Maryland Loans") exceeds 10% of the Pool Scheduled
         Principal Balance, CFC shall, within sixty (60) days, submit to the
         appropriate recording offices the assignments to CFSC on behalf of the
         Trust of the number of mortgages, deeds of trust or security deeds
         required to reduce to less than 10% of the Pool Scheduled Principal
         Balance the aggregate Scheduled Principal Balance of Maryland Loans as
         to which such assignments are not recorded.

         SECTION 4.2. Costs and Expenses. CFC shall pay all reasonable costs and
disbursements in connection with the performance of its obligations hereunder
and under each Subsequent Transfer Agreement and its Related Documents.

         SECTION 4.3. Indemnification.

                  (a) CFC will defend and indemnify CFSC against any and all
         costs, expenses, losses, damages, claims and liabilities, including
         reasonable fees and expenses of counsel and expenses of litigation
         arising out of or resulting from the use or ownership of any real
         estate related to a Loan by CFC or the Servicer or any Affiliate of
         either. Notwithstanding any other provision of this Agreement, the
         obligation of CFC under this Section shall not terminate upon a Service
         Transfer pursuant to Article VII of the Pooling and Servicing
         Agreement, except that the obligation of CFC under this Section 4.3
         shall not relate to the actions of any subsequent Servicer after a
         Service Transfer.

                  (b) No obligation or liability to any Obligor under any of the
         Loans is intended to be assumed by CFSC under or as a result of this
         Agreement and the transactions contemplated hereby and, to the maximum
         extent permitted and valid under mandatory provisions of law, CFSC
         expressly disclaims such assumption.

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<PAGE>

                  (c) CFC agrees to pay, and to indemnify, defend and hold
         harmless CFSC from, any taxes which may at any time be asserted with
         respect to, and as of the date of, the transfer of the Loans to CFSC,
         including, without limitation, any sales, gross receipts, general
         corporation, personal property, privilege or license taxes and costs,
         expenses and reasonable counsel fees in defending against the same,
         whether arising by reason of the acts to be performed by CFC under this
         Agreement or imposed against CFSC.

                  (d) Indemnification under this Section 4.3 shall include,
         without limitation, reasonable fees and expenses of counsel and
         expenses of litigation. If the Originator has made any indemnity
         payments to CFSC pursuant to this Section 4.3 and CFSC thereafter
         collects any of such amounts from others, CFSC will repay such amounts
         collected to CFC, without interest.

                                    ARTICLE V
                                   REPURCHASES

         SECTION 5.1. Repurchase of Loans Upon Breach of Warranty.

                  (a) Upon the occurrence of a Repurchase Event CFC shall,
         unless such breach shall have been cured in all material respects,
         repurchase such Loan from the Trust pursuant to Section 3.06 of the
         Pooling and Servicing Agreement, subject to the limitation of Section
         3.07 of the Pooling and Servicing Agreement. It is understood and
         agreed that, the obligation of CFC to repurchase any Loan as to which a
         breach has occurred and is continuing shall, if such obligation is
         fulfilled, constitute the sole remedy against CFC for such breach
         available to CFSC, the Certificateholders or the Trustee on behalf of
         Certificateholders. The provisions of this Section 5.1 are intended to
         grant the Trustee a direct right against CFC to demand performance
         hereunder, and in connection therewith, CFC waives any requirement of
         prior demand against CFSC with respect to such repurchase obligation.
         Any such purchase shall take place in the manner specified in Section
         3.06 of the Pooling and Servicing Agreement. Notwithstanding any other
         provision of this Agreement, any Subsequent Transfer Agreement or the
         Pooling and Servicing Agreement or any Subsequent Transfer Agreement to
         the contrary, the obligation of CFC under this Section shall not
         terminate upon a termination of CFC as Servicer under the Pooling and
         Servicing Agreement and shall be performed in accordance with the terms
         hereof notwithstanding the failure of the Servicer or CFSC to perform
         any of their respective obligations with respect to such Loan under the
         Pooling and Servicing Agreement.

                  (b) In lieu of repurchasing a Loan when required by Section
         5.1(a) of this Agreement and Section 3.06(a) of the Pooling and
         Servicing Agreement, CFC may deliver an Eligible Substitute Loan
         pursuant to the provisions of Section 3.06(b) of the Pooling and
         Servicing Agreement.

                  (c) In addition to the foregoing and notwithstanding whether
         the related Loan shall have been purchased by CFC, CFC shall indemnify
         the Trustee, the Trust and the Certificateholders against all costs,
         expenses, losses, damages, claims and liabilities, including

                                      -11-
<PAGE>

         reasonable fees and expenses of counsel, which may be asserted against
         or incurred by any of them as a result of third party claims arising
         out of the events or facts giving rise to such Repurchase Events.

         SECTION 5.2. Reassignment of Purchased Loans. Upon deposit of the
Repurchase Price of any Loan repurchased or replaced by CFC under Section 5.1,
CFSC shall cause the Trustee to take such steps as may be reasonably requested
by CFC in order to assign to CFC all of CFSC's and the Trust's right, title and
interest in and to such Loan and all security and documents and all Other
Conveyed Property conveyed to CFSC and the Trust directly relating thereto,
without recourse, representation or warranty, except as to the absence of liens,
charges or encumbrances created by or arising as a result of actions of CFSC or
the Trustee. Such assignment shall be a sale and assignment outright, and not
for security. If, following the reassignment of a Loan, in any enforcement suit
or legal proceeding, it is held that CFC may not enforce any such Loan on the
ground that it shall not be a real party in interest or a holder entitled to
enforce the Loan, CFSC and the Trustee shall, at the expense of CFC, take such
steps as CFC deems reasonably necessary to enforce the Loan, including bringing
suit in CFSC's or the Trustee's name.

         SECTION 5.3. Waivers. No failure or delay on the part of CFSC, or the
Trustee as assignee of CFSC, in exercising any power, right or remedy under this
Agreement or under any Subsequent Transfer Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or
remedy preclude any other or future exercise thereof or the exercise of any
other power, right or remedy.

                                   ARTICLE VI
                                  MISCELLANEOUS

         SECTION 6.1. Liability of CFC. CFC shall be liable in accordance
herewith only to the extent of the obligations in this Agreement or in any
Subsequent Transfer Agreement specifically undertaken by CFC and the
representations and warranties of CFC.

         SECTION 6.2. Merger or Consolidation of CFC or CFSC. Any corporation or
other entity (i) into which CFC or CFSC may be merged or consolidated, (ii)
resulting from any merger or consolidation to which CFC or CFSC is a party or
(iii) succeeding to the business of CFC or CFSC, in the case of CFSC, which
corporation has a certificate of incorporation containing provisions relating to
limitations on business and other matters substantively identical to those
contained in CFSC's certificate of incorporation, provided that in any of the
foregoing cases such corporation shall execute an agreement of assumption to
perform every obligation of CFC or CFSC, as the case may be, under this
Agreement and each Subsequent Transfer Agreement and, whether or not such
assumption agreement is executed, shall be the successor to CFC or CFSC, as the
case may be, hereunder and under each such Subsequent Transfer Agreement
(without relieving CFC or CFSC of its responsibilities hereunder, if it survives
such merger or consolidation) without the execution or filing of any document or
any further act by

                                      -12-
<PAGE>

any of the parties to this Agreement or each Subsequent Transfer Agreement. CFC
or CFSC shall promptly inform the other party and the Trustee of such merger,
consolidation or purchase and assumption. Notwithstanding the foregoing, as a
condition to the consummation of the transactions referred to in clauses (i),
(ii) and (iii) above, (x) immediately after giving effect to such transaction,
no representation or warranty made pursuant to Sections 3.1 and 3.2 and the
Pooling and Servicing Agreement, or similar representation or warranty made in
any Subsequent Transfer Agreement, shall have been breached (for purposes
hereof, such representations and warranties shall speak as of the date of the
consummation of such transaction), (y) CFC or CFSC, as applicable, shall have
delivered written notice of such consolidation, merger or purchase and
assumption to the Rating Agencies prior to the consummation of such transaction
and shall have delivered to the Trustee an Officer's Certificate and an Opinion
of Counsel each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section 6.3 and that all conditions
precedent, if any, provided for in this Agreement, or in each Subsequent
Transfer Agreement, relating to such transaction have been complied with, and
(z) CFC or CFSC, as applicable, shall have delivered to the Trustee an Opinion
of Counsel, stating that, in the opinion of such counsel, either (A) all
financing statements and continuation statements and amendments thereto have
been executed and filed that are necessary to preserve and protect the interest
of the Trustee in the Trust Property and reciting the details of the filings or
(B) no such action shall be necessary to preserve and protect such interest.

         SECTION 6.3. Limitation on Liability of CFC and Others. CFC shall not
be under any obligation to appear in, prosecute or defend any legal action that
is not incidental to its obligations under this Agreement, any Subsequent
Transfer Agreement or its Related Documents and that in its opinion may involve
it in any expense or liability.

         SECTION 6.4. Amendment.

                  (a) This Agreement and any Subsequent Transfer Agreement may
         be amended by CFC and CFSC and without the consent of the Trustee or
         any of the Certificateholders (A) to cure any ambiguity or (B) to
         correct any provisions in this Agreement or any such Subsequent
         Transfer Agreement; provided, however, that such action shall not, as
         evidenced by an Opinion of Counsel delivered to the Trustee, adversely
         affect in any material respect the interests of any Certificateholder.

                  (b) This Agreement may also be amended from time to time by
         CFC and CFSC, with the prior written consent of the Trustee and the
         Holders of Certificates representing, in the aggregate, 66 2/3% or more
         of the Aggregate Certificate Principal Balance, for the purpose of
         adding any provisions to or changing in any manner or eliminating any
         of the provisions of this Agreement, or of modifying in any manner the
         rights of the Certificateholders; provided, however, that no such
         amendment shall (i) increase or reduce in any manner the amount of, or
         accelerate or delay the timing of, collections of payments on the Loans
         or, distributions that are required to be made on any Certificate or
         (ii) reduce the aforesaid percentage required to consent

                                      -13-
<PAGE>

         to any such amendment or any waiver hereunder, without the consent of
         the Holders of all Certificates then outstanding.

                  (c) This Agreement shall not be amended under this Section
         without the consent of 100% of the Certificateholders and the Class C
         Certificateholder if such amendment would result in the
         disqualification of the Trust as a REMIC under the Code.

                  (d) Concurrently with the solicitation of any consent pursuant
         to this Section 6.4, CFSC shall furnish written notification to S&P,
         Moody's and Duff & Phelps. Promptly after the execution of any
         amendment or consent pursuant to this Section 6.4, CFSC shall furnish
         written notification of the substance of such amendment to S&P, Moody's
         and Duff & Phelps, each Certificateholder and the Class P and Class C
         Certificateholder.

                  (e) It shall not be necessary for the consent of
         Certificateholders pursuant to this Section 6.4 to approve the
         particular form of any proposed amendment or consent, but it shall be
         sufficient if such consent shall approve the substance thereof. The
         manner of obtaining such consents and of evidencing the authorization
         of the execution thereof by Certificateholders shall be subject to such
         reasonable requirements as the Trustee may prescribe, including the
         establishment of record dates. The consent of any Holder of a
         Certificate given pursuant to this Section or pursuant to any other
         provision of this Agreement shall be conclusive and binding on such
         Holder and on all future Holders of such Certificate and of any
         Certificate issued upon the transfer thereof or in exchange thereof or
         in lieu thereof whether or not notation of such consent is made upon
         the Certificate.

         SECTION 6.5. Notices. All demands, notices and communications to CFC or
CFSC hereunder shall be in writing, personally delivered, or sent by telecopier
(subsequently confirmed in writing), reputable overnight courier or mailed by
certified mail, return receipt requested, and shall be deemed to have been given
upon receipt (a) in the case of CFC, to Conseco Finance Corp., 1100 Landmark
Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-1639, Attention: Chief
Financial Officer, or such other address as shall be designated by CFC in a
written notice delivered to the other party or to the Trustee or (b) in case of
CFSC, to Conseco Finance Securitizations Corp., 300 Landmark Towers, 345 St.
Peter Street, Saint Paul, Minnesota 55102-1639, Attention: Chief Financial
Officer.

         SECTION 6.6. Merger and Integration. Except as specifically stated
otherwise herein, this Agreement and the Related Documents set forth the entire
understanding of the parties relating to the subject matter hereof, and all
prior understandings, written or oral, are superseded by this Agreement and the
Related Documents. This Agreement may not be modified, amended, waived or
supplemented except as provided herein.

         SECTION 6.7. Severability of Provisions. If any one or more of the
covenants, provisions or terms of this Agreement shall be for any reason
whatsoever held invalid, then such covenants, provisions or terms shall be
deemed severable from the remaining covenants,

                                      -14-
<PAGE>

provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement.

         SECTION 6.8. Intention of the Parties. The execution and delivery of
this Agreement and of each Subsequent Transfer Agreement shall constitute an
acknowledgment by CFC and CFSC that they intend that each assignment and
transfer herein and therein contemplated constitute a sale and assignment
outright, and not for security, of the Initial and Additional Loans and the
Initial Other Conveyed Property and the Subsequent Loans and Subsequent Other
Conveyed Property, as the case may be, conveying good title thereto free and
clear of any liens, from CFC to CFSC, and that the Initial and Additional Loans
and the Initial Other Conveyed Property and the Subsequent Loans and Subsequent
Other Conveyed Property shall not be a part of CFC's estate in the event of the
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding,
or other proceeding under any federal or state bankruptcy or similar law, or the
occurrence of another similar event, of, or with respect to, CFC. In the event
that such conveyance is determined to be made as security for a loan made by
CFSC, the Trust or the Certificateholders to CFC, the parties intend that CFC
shall have granted to CFSC a security interest in all of CFC's right, title and
interest in and to the Initial and Additional Loans and the Initial Other
Conveyed Property and the Subsequent Loans and Subsequent Other Conveyed
Property, as the case may be, conveyed pursuant to Section 2.1 hereof or
pursuant to any Subsequent Transfer Agreement, and that this Agreement and each
Subsequent Transfer Agreement shall constitute a security agreement under
applicable law.

         SECTION 6.9. Governing Law. This Agreement shall be construed in
accordance with, the laws of the State of Minnesota without regard to the
principles of conflicts of laws thereof, and the obligations, rights and
remedies of the parties under this Agreement shall be determined in accordance
with such laws.

         SECTION 6.10. Counterparts. For the purpose of facilitating the
execution of this Agreement and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

         SECTION 6.11. Conveyance of the Initial and Additional Loans and the
Initial Other Conveyed Property to the Trust. CFC acknowledges that CFSC
intends, pursuant to the Pooling and Servicing Agreement, to convey the Initial
and Additional Loans and the Initial Other Conveyed Property, together with its
rights under this Agreement, to the Trust on the date hereof. CFC acknowledges
and consents to such conveyance and waives any further notice thereof and
covenants and agrees that the representations and warranties of CFC contained in
this Agreement and the rights of CFSC hereunder are intended to benefit the
Trustee, the Trust, and the Certificateholders. In furtherance of the foregoing,
CFC covenants and agrees to perform its duties and obligations hereunder, in
accordance with the terms hereof for the benefit of the Trustee, the Trust, and
the Certificateholders and that, notwithstanding anything to the contrary in
this Agreement, CFC shall be directly liable to the Trustee and the Trust
(notwithstanding any

                                      -15-
<PAGE>

failure by the Servicer or CFSC to perform its duties and obligations hereunder
or under the Pooling and Servicing Agreement) and that the Trustee may enforce
the duties and obligations of CFC under this Agreement against CFC for the
benefit of the Trust and the Certificateholders.

         SECTION 6.12. Nonpetition Covenant. Neither CFSC nor CFC shall petition
or otherwise invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Trust (or, in the case of
CFC, against CFSC) under any federal or state bankruptcy, insolvency or similar
law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Trust (or CFSC) or any substantial
part of its property, or ordering the winding up or liquidation of the affairs
of the Trust (or CFSC).

                                      -16-
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Transfer Agreement to
be duly executed by their respective officers this 27th day of March, 2000.

                                   CONSECO FINANCE SECURITIZATIONS CORP.,
                                      as Purchaser

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

                                   CONSECO FINANCE CORP., as Seller

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

                                      -17-
<PAGE>

                                   SCHEDULE A

                    SCHEDULE OF INITIAL AND ADDITIONAL LOANS

           [Included as Exhibit L to Pooling and Servicing Agreement]

                                       A-1
<PAGE>

                                                                       EXHIBIT A

                                     FORM OF

                          SUBSEQUENT TRANSFER AGREEMENT

                                     between

                      CONSECO FINANCE SECURITIZATIONS CORP.
                                    Purchaser

                                       and

                              CONSECO FINANCE CORP.
                                     Seller

                                   dated as of

                                 ________, 2000
<PAGE>

         SUBSEQUENT TRANSFER AGREEMENT, dated as of ________, 2000, between
Conseco Finance Securitizations Corp., a Minnesota corporation, as purchaser
("CFSC"), and Conseco Finance Corp., a Delaware corporation, as seller ("CFC"),
pursuant to the Transfer Agreement, dated as of March 1, 2000, between CFSC and
CFC.

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, CFC and CFSC are parties to a Transfer Agreement, dated as of
March 1, 2000 (as amended or supplemented, the "Transfer Agreement");

         WHEREAS, pursuant to the Transfer Agreement and this Agreement, CFSC
has agreed to purchase from CFC and CFC is transferring to CFSC the Subsequent
Loans and the Subsequent Other Conveyed Property.

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements hereinafter contained, and for other good and valuable consideration,
the receipt of which is acknowledged, CFSC and CFC, intending to be legally
bound, hereby agree as follows:

         1. Defined Terms. Capitalized terms used but not otherwise defined
herein shall have the respective meanings assigned to such terms in the Transfer
Agreement.

         "Agreement" means this Subsequent Transfer Agreement and all amendments
hereof and all supplements hereto.

         "Schedule of Subsequent Loans" means the schedule of all home equity
loans sold and transferred pursuant to this Agreement attached hereto as
Schedule A, which Schedule of Subsequent Loans shall supplement the Schedule of
Initial and Additional Loans attached to the Transfer Agreement.

         "Subsequent Cutoff Date" shall mean, with respect to the Subsequent
Loans conveyed hereby, _________, 2000.

         "Subsequent Other Conveyed Property" means, for the purposes of this
Agreement, all monies at any time paid or payable on the Subsequent Loans
conveyed hereby or in respect thereof after the Subsequent Cut-off Date
(including amounts due on or before the Subsequent Cut-off Date but received by
CFC after the Subsequent Cut-off Date), an assignment of security interests in
the related real estate and any and all other documents or electronic records
that CFC keeps on file in accordance with its customary procedures relating to
the Subsequent Loans, the Obligors or the related real estate, property
(including the right to receive future Liquidation Proceeds) that secures a
Subsequent Loan and that has been acquired by or on behalf of the Trust pursuant
to liquidation of such Subsequent Loan, and all proceeds of the foregoing.

                                     Ex. A-1
<PAGE>

         "Subsequent Loans" means, for purposes of this Agreement, the Loans
listed in the Schedule of Subsequent Loans.

         2. Conveyance of the Subsequent Loans and the Subsequent Other Conveyed
Property. Subject to the terms and conditions of this Agreement and the Transfer
Agreement, CFC hereby sells, transfers, assigns, and otherwise conveys to CFSC
without recourse (but without limitation of its obligations in this Agreement
and the Transfer Agreement), and CFSC hereby purchases, all right, title and
interest of CFC in and to the Subsequent Loans and the Subsequent Other Conveyed
Property. It is the intention of CFC and CFSC that the transfer and assignment
contemplated by this Agreement shall constitute a sale of the Subsequent Loans
and the Subsequent Other Conveyed Property from CFC to CFSC, conveying good
title thereto free and clear of any Liens, and the Subsequent Loans and the
Subsequent Other Conveyed Property shall not be part of CFC's estate in the
event of the filing of a bankruptcy petition by or against CFC under any
bankruptcy or similar law.

         3. Purchase Price. Simultaneously with the conveyance of the Subsequent
Loans and the Subsequent Other Conveyed Property to CFSC, CFSC has paid or
caused to be paid to or upon the order of CFC, by wire transfer of immediately
available funds (representing certain proceeds to CFSC from the sale of the
Certificates on deposit in the Pre-Funding Account), the amount of funds as
specified below:

                  (i)  Principal Balance of Subsequent Loans: $_______

                  (ii) Proceeds to CFC:                       $_______

         4. Representations and Warranties of CFC. CFC makes the following
representations and warranties, on which CFSC relies in purchasing the
Subsequent Loans and the Subsequent Other Conveyed Property and in transferring
the Subsequent Loans and the Subsequent Other Conveyed Property to the Trust
under the Subsequent Transfer Agreement. Such representations are made as of the
execution and delivery of this Agreement, but shall survive the sale, transfer
and assignment of the Subsequent Loans and the Subsequent Other Conveyed
Property hereunder, and the sale, transfer and assignment thereof by CFSC to the
Trust under the Subsequent Transfer Agreement. CFC and CFSC agree that CFSC will
assign to the Trust all of CFSC's rights under the Agreement, and that the Trust
will thereafter be entitled to enforce this Agreement against CFC in the Trust's
own name.

                  (a) Schedule of Representations. The representations and
         warranties set forth in Sections 3.02, 3.03 and 3.04 of the Pooling and
         Servicing Agreement are true and correct.

                  (b) Organization and Good Standing. CFC has been duly
         organized and is validly existing as a corporation in good standing
         under the laws of the State of Delaware, with power and authority to
         own its properties and to conduct its business as such

                                     Ex. A-2
<PAGE>

         properties are currently owned and such business is currently
         conducted, and had at all relevant times, and now has, power, authority
         and legal right to acquire, own and sell the Subsequent Loans and the
         Subsequent Other Conveyed Property transferred to CFSC.

                  (c) Due Qualification. CFC is duly qualified to do business as
         a foreign corporation in good standing, and has obtained all necessary
         licenses and approvals, in all jurisdictions in which the ownership or
         lease of its property or the conduct of its business requires such
         qualification.

                  (d) Power and Authority. CFC has the power and authority to
         execute and deliver this Agreement and the Subsequent Transfer
         Agreement and to carry out its terms and their terms, respectively; CFC
         has full power and authority to sell and assign the Subsequent Loans
         and the Subsequent Other Conveyed Property to be sold and assigned to
         and deposited with CFSC hereunder and has duly authorized such sale and
         assignment to CFSC by all necessary corporate action; and the
         execution, delivery and performance of this Agreement and the
         Subsequent Transfer Agreement have been duly authorized by CFC by all
         necessary corporate action.

                  (e) Valid Sale; Binding Obligations. This Agreement and the
         Subsequent Transfer Agreement have been duly executed and delivered,
         shall effect a valid sale, transfer and assignment of the Subsequent
         Loans and the Subsequent Other Conveyed Property, enforceable against
         CFC and creditors of and purchasers from CFC; and this Agreement
         constitutes the legal, valid and binding obligation of CFC enforceable
         in accordance with its terms, except as enforceability may be limited
         by bankruptcy, insolvency, reorganization or other similar laws
         affecting the enforcement of creditors' rights generally and by
         equitable limitations on the availability of specific remedies,
         regardless of whether such enforceability is considered in a proceeding
         in equity or at law.

                  (f) No Violation. The consummation of the transactions
         contemplated by this Agreement and the Subsequent Transfer Agreement
         and the fulfillment of the terms of this Agreement and the Subsequent
         Transfer Agreement shall not conflict with, result in any breach of any
         of the terms and provisions of or constitute (with or without notice,
         lapse of time or both) a default under, the certificate of
         incorporation or bylaws of CFC, or any indenture, agreement, mortgage,
         deed of trust or other instrument to which CFC is a party or by which
         it is bound, or result in the creation or imposition of any lien upon
         any of its properties pursuant to the terms of any such indenture,
         agreement, mortgage, deed of trust or other instrument, other than this
         Agreement and the Subsequent Transfer Agreement, or violate any law,
         order, rule or regulation applicable to CFC of any court or of any
         federal or state regulatory body, administrative agency or other
         governmental instrumentality having jurisdiction over CFC or any of its
         properties.

                                     Ex. A-3
<PAGE>

                  (g) No Proceedings. There are no proceedings or investigations
         pending or, to CFC's knowledge, threatened against CFC, before any
         court, regulatory body, administrative agency or other tribunal or
         governmental instrumentality having jurisdiction over CFC or its
         properties (i) asserting the invalidity of this Agreement or the
         Subsequent Transfer Agreement, (ii) seeking to prevent or the
         consummation of any of the transactions contemplated by this Agreement
         or the Subsequent Transfer Agreement, (iii) seeking any determination
         or ruling that might materially and adversely affect the performance by
         CFC of its obligations under, or the validity or enforceability of,
         this Agreement or the Subsequent Transfer Agreement, or (iv) seeking to
         affect adversely the federal income tax or other federal, state or
         local tax attributes of, or seeking to impose any excise, franchise,
         transfer or similar tax upon, the transfer and acquisition of the
         Subsequent Loans and the Subsequent Other Conveyed Property hereunder
         or under the Subsequent Transfer Agreement.

                  (h) Insolvency. As of the Subsequent Cut-off Date and the
         Subsequent Transfer Date, neither CFC nor CFSC is insolvent nor will
         either of them have been made insolvent after giving effect to the
         conveyance set forth in Section 2 of this Agreement, nor are any of
         them aware of any pending insolvency.

                  (i) Chief Executive Office. The chief executive office of CFC
         is located at 1100 Landmark Towers, 345 St. Peter Street, Saint Paul,
         Minnesota 55102-1639.

                  (j) Licensing. CFC is duly licensed in each state in which
         Loans were originated to the extent CFC is required to be licensed by
         applicable law in connection with the origination and servicing of the
         Loans.

         5. Representations and Warranties of CFSC. CFSC makes the following
representations and warranties, on which CFC relies in selling, assigning,
transferring and conveying the Subsequent Loans and the Subsequent Other
Conveyed Property to CFSC hereunder. Such representations are made as of the
execution and delivery of this Agreement, but shall survive the sale, transfer
and assignment of the Subsequent Loans and the Subsequent Other Conveyed
Property hereunder and the sale, transfer and assignment thereof by CFSC to the
Trust under the Subsequent Transfer Instrument.

                  (a) Organization and Good Standing. CFSC has been duly
         organized and is validly existing and in good standing as a corporation
         under the laws of the State of Minnesota, with the power and authority
         to own its properties and to conduct its business as such properties
         are currently owned and such business is currently conducted, and had
         at all relevant times, and has, full power, authority and legal right
         to acquire and own the Subsequent Loans and the Subsequent Other
         Conveyed Property, and to transfer the Subsequent Loans and the
         Subsequent Other Conveyed Property to the Trust pursuant to the
         Subsequent Transfer Instrument.

                                     Ex. A-4
<PAGE>

                  (b) Due Qualification. CFSC is duly qualified to do business
         as a foreign corporation in good standing, and has obtained all
         necessary licenses and approvals in all jurisdictions where the failure
         to do so would materially and adversely affect CFSC's ability to
         acquire the Subsequent Loans or the Subsequent Other Conveyed Property
         or the validity or enforceability of the Subsequent Loans and the
         Subsequent Other Conveyed Property or to perform CFSC's obligations
         hereunder and under the Subsequent Transfer Instrument.

                  (c) Power and Authority. CFSC has the power, authority and
         legal right to execute and deliver this Agreement and to carry out the
         terms hereof and to acquire the Subsequent Loans and the Subsequent
         Other Conveyed Property hereunder; and the execution, delivery and
         performance of this Agreement and all of the documents required
         pursuant hereto have been duly authorized by CFSC by all necessary
         action.

                  (d) No Consent Required. CFSC is not required to obtain the
         consent of any other Person, or any consent, license, approval or
         authorization or registration or declaration with, any governmental
         authority, bureau or agency in connection with the execution, delivery
         or performance of this Agreement and the Subsequent Transfer Agreement,
         except for such as have been obtained, effected or made.

                  (e) Binding Obligation. This Agreement constitutes a legal,
         valid and binding obligation of CFSC, enforceable against CFSC in
         accordance with its terms, subject, as to enforceability, to applicable
         bankruptcy, insolvency, reorganization, conservatorship, receivership,
         liquidation and other similar laws and to general equitable principles.

                  (f) No Violation. The execution, delivery and performance by
         CFSC of this Agreement, the consummation of the transactions
         contemplated by this Agreement and the Subsequent Transfer Instrument
         and the fulfillment of the terms of this Agreement and the Subsequent
         Transfer Instrument do not and will not conflict with, result in any
         breach of any of the terms and provisions of, or constitute (with or
         without notice or lapse of time) a default under, the articles of
         incorporation or bylaws of CFSC, or conflict with or breach any of the
         terms or provisions of, or constitute (with or without notice or lapse
         of time) a default under, any indenture, agreement, mortgage, deed of
         trust or other instrument to which CFSC is a party or by which CFSC is
         bound or to which any of its properties are subject, or result in the
         creation or imposition of any lien upon any of its properties pursuant
         to the terms of any such indenture, agreement, mortgage, deed of trust
         or other instrument (other than the Pooling and Servicing Agreement and
         the Subsequent Transfer Instrument), or violate any law, order, rule or
         regulation, applicable to CFSC or its properties, of any federal or
         state regulatory body, any court, administrative agency, or other
         governmental instrumentality having jurisdiction over CFSC or any of
         its properties.

                                     Ex. A-5
<PAGE>

                  (g) No Proceedings. There are no proceedings or investigations
         pending, or, to the knowledge of CFSC, threatened against CFSC, before
         any court, regulatory body, administrative agency, or other tribunal or
         governmental instrumentality having jurisdiction over CFSC or its
         properties: (i) asserting the invalidity of this Agreement or the
         Subsequent Transfer Instrument, (ii) seeking to prevent the
         consummation of any of the transactions contemplated by this Agreement
         or the Subsequent Transfer Instrument, (iii) seeking any determination
         or ruling that might materially and adversely affect the performance by
         CFSC of its obligations under, or the validity or enforceability of,
         this Agreement or the Subsequent Transfer Instrument, or (iv) that may
         adversely affect the federal or state income tax attributes of, or
         seeking to impose any excise, franchise, transfer or similar tax upon,
         the transfer and acquisition of the Subsequent Loans and the Subsequent
         Other Conveyed Property hereunder or the transfer of the Subsequent
         Loans and the Subsequent Other Conveyed Property to the Trust pursuant
         to the Subsequent Transfer Instrument.

In the event of any breach of a representation and warranty made by CFSC
hereunder, CFC covenants and agrees that it will not take any action to pursue
any remedy that it may have hereunder, in law, in equity or otherwise, until a
year and a day have passed since the date on which all pass-through certificates
or other similar securities issued by the Trust, or a trust or similar vehicle
formed by CFSC, have been paid in full. CFC and CFSC agree that damages will not
be an adequate remedy for such breach and that this covenant may be specifically
enforced by CFSC or by the Trustee on behalf of the Trust.

         6. Conditions Precedent. The obligation of CFSC to acquire the
Subsequent Loans and the Subsequent Other Conveyed Property hereunder is subject
to the satisfaction, on or prior to the Subsequent Transfer Date, of the
following conditions precedent, and CFC hereby confirms that such conditions
precedent are satisfied;

                  (a) Representations and Warranties. Each of the
         representations and warranties made by the CFC in Section 4 of this
         Agreement and in Section 3.1 of the Transfer Agreement shall be true
         and correct as of the date of this Agreement and as of the Subsequent
         Transfer Date.

                  (b) Transfer Agreement Conditions. Each of the conditions set
         forth in Section 2.3(b) of the Transfer Agreement applicable to the
         conveyance of Subsequent Loans and the Subsequent Other Conveyed
         Property shall have been satisfied.

                  (c) Additional Information. CFC has have delivered to CFSC
         such information as was reasonably requested by CFSC to satisfy itself
         as to (i) the accuracy of the representations and warranties set forth
         in Section 4 of this Agreement and in Section 3.1 of the Transfer
         Agreement and (ii) the satisfaction of the conditions set forth in this
         Section 6.

                                     Ex. A-6
<PAGE>

         7. Ratification of Transfer Agreement. As supplemented by this
Agreement, the Transfer Agreement is in all respects ratified and confirmed and
the Transfer Agreement as so supplemented by this Agreement shall be read, taken
and construed as one and the same instrument.

         8. Governing Law. This Agreement shall be construed in accordance with
the laws of the State of Minnesota without regard to the principles of conflicts
of laws thereof, and the obligations, rights and remedies of the parties under
this Agreement shall be determined in accordance with such laws.

         9. Counterparts. For the purposes of facilitating the execution of this
Agreement and for other purposes, this Agreement may be executed simultaneously
in any number of counterparts, each of which counterparts shall be deemed to be
an original, and all of which counterparts shall constitute but one and the same
instrument.

         10. Conveyance of the Subsequent Loans and the Subsequent Other
Conveyed Property to the Trust. CFC acknowledges that CFSC intends, pursuant to
a Subsequent Transfer Instrument, to convey the Subsequent Loans and the
Subsequent Other Conveyed Property, together with its rights under this
Agreement and under the Transfer Agreement, to the Trust on the date hereof. CFC
acknowledges and consents to such conveyance and waives any further notice
thereof and covenants and agrees that the representations and warranties of CFC
contained in this Agreement and the rights of CFSC hereunder and thereunder are
intended to benefit the Trustee, the Trust and the Certificateholders. In
furtherance of the foregoing, CFC covenants and agrees to perform its duties and
obligations hereunder and under the Transfer Agreement, in accordance with the
terms hereof and thereof for the benefit of the Trustee, the Trust and the
Certificateholders and that, notwithstanding anything to the contrary in this
Agreement or in the Transfer Agreement, CFC shall be directly liable to the
Trustee and the Trust (notwithstanding any failure by CFSC to perform its duties
and obligations hereunder or under the Pooling and Servicing Agreement or the
Subsequent Transfer Agreement) and that the Trustee may enforce the duties and
obligations of CFC under this Agreement and the Transfer Agreement against CFC
for the benefit of the Trust and the Certificateholders.

                                     Ex. A-7
<PAGE>

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

                                        CONSECO FINANCE SECURITIZATIONS CORP.,
                                           as Purchaser

                                        By  _______________________________
                                            [Name]
                                            [Title]

                                        CONSECO FINANCE CORP., as Seller

                                        By  _______________________________
                                            [Name]
                                            [Title]

                                     Ex. A-8
<PAGE>

                                                                       EXHIBIT B

                               FORM OF ASSIGNMENT
                               ------------------

         In accordance with the Transfer Agreement (the "Agreement") dated as of
March 1, 2000, between the undersigned and Conseco Finance Securitizations
Corp., the undersigned does hereby transfer, convey and assign, set over and
otherwise convey, without recourse, to Conseco Finance Home Equity Loan Trust
2000-B, created by the Agreement, to be held in trust as provided in the
Agreement, (i) all right, title and interest in the home equity loans identified
in the List of Loans attached to the Agreement (including, without limitation,
all related mortgages, deeds of trust and security deeds and any and all rights
to receive payments on or with respect to the Loans due after the applicable
Cut-off Date), (ii) all rights under any hazard, flood or other individual
insurance policy on the real estate securing a Loan for the benefit of the
creditor of such Initial Loan, (iii) all rights Conseco Finance Corp. may have
against the originating lender with respect to Initial and Additional Loans
originated by a lender other than Conseco Finance Corp., (iv) all rights of the
Seller under the Transfer Agreement, (v) all rights under the Errors and
Omissions Protection Policy and the Fidelity Bond as such policy and bond relate
to the Initial and Additional Loans, (vi) all rights under any title insurance
policies, if applicable, on any of the properties securing Initial and
Additional Loans, (vii) all documents contained in the Loan Files relating to
the Initial and Additional Loans, (viii) amounts in the Certificate Account, the
Capitalized Interest Account and the Pre-Funding Account (including all proceeds
of investments of the funds in Certificate Account) and (ix) all proceeds and
products of the foregoing.

         This Assignment is made pursuant to and upon the representations and
warranties on the part of the undersigned contained in Article III of the
Agreement and no others. All undefined capitalized terms used in this Assignment
have the meanings given them in the Agreement.

         IN WITNESS WHEREOF, the undersigned has caused this Assignment to be
duly executed this ________ day of ______________, 2000.

                                        CONSECO FINANCE CORP.

[Seal]                                  By:
                                            -----------------------------------
                                            [Name]
                                            [Title]

                                    Ex. B-1Exhibit 10.6

                            FFP MARKETING COMPANY, INC.
                               STOCK OPTION PLAN

                           Scope and Purpose of Plan

   The  purpose of the FFP  Marketing  Company,  Inc.  Stock  Option  Plan is to
provide  an  incentive  for  employees  of  FFP  Marketing  Company,  Inc.  (the
"Company")  and its Affiliates  (defined  below) to remain in the service of the
Company  or its  Affiliates,  to extend  to them the  opportunity  to  acquire a
proprietary  interest in the Company so that they will apply their best  efforts
for the  benefit  of the  Company,  and to aid the  Company  in  attracting  and
retaining personnel.

PARAGRAPH 1.  Definitions.

   1.1. "Act" shall mean the Securities  Exchange Act of 1934, as amended or any
similar or superseding statute or statutes.

   1.2. "Affiliates" shall mean (a) any corporation,  other than the Company, in
an  unbroken  chain  of  corporations  ending  with the  Company  if each of the
corporations,  other than the Company, owns stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the
other  corporations  in such  chain,  and (b) any  corporation,  other  than the
Company,  in an unbroken chain of  corporations  beginning with the Company,  if
each of the corporations, other than the last corporation in the unbroken chain,
owns stock  possessing  fifty percent (50%) or more of the total combined voting
power of all  classes of stock in one of the other  corporations  in such chain;
provided,  however,  with respect to the grants of  Nonstatutory  Options  only,
Affiliates shall also include (i) any limited liability company,  partnership or
other entity,  other than the Company,  in an unbroken chain of entities  ending
with the Company if each of the entities, other than the Company, controls fifty
percent (50%) or more of the total combined voting power or equity  interests in
one of the other entities in such chain, and (ii) any limited liability company,
partnership  or other entity,  other than the Company,  in an unbroken  chain of
entities  beginning  with the Company,  if each of the entities,  other than the
last entity in the unbroken  chain,  controls fifty percent (50%) or more of the
total combined voting power or equity  interests in one of the other entities in
such chain.

   1.3.  "Agreement" shall mean the written agreement between the Company and an
Optionee evidencing the Option granted by the Company.

   1.4. "Board of Directors" or "Director(s)"  shall mean the board of directors
of the Company.

  1.5.  "Code" shall mean the Internal  Revenue Code of 1986,  as amended.

   1.6.  "Committee" shall mean the committee  appointed pursuant to Paragraph 3
of the Plan by the Board of Directors to administer this Plan, or in the absence
of any such appointment, the Board of Directors.

   1.7. "Company" shall mean FFP Marketing Company, Inc., a Texas corporation.

   1.8.  "Disability" shall mean a total and permanent  disability as defined in
the  Company's  long term  disability  plan,  or if the Company has no long term
disability plan in effect at the time of the Optionee's  disability,  shall have
the  meaning  provided  in section  22(e)(3)  of the Code.  Notwithstanding  the
preceding  sentence,  for any  Incentive  Option,  "Disability"  shall  have the
meaning provided in section 22(e)(3) of the Code.

   1.9. "Eligible Individuals" shall mean the employees,  officers and directors
of the Company or of any of its Affiliates.  For purposes of this Plan, the term
"employee"  means an individual  employed by the Company or its Affiliates whose
income from those  entities is subject to Federal  Insurance  Contributions  Act
("FICA") withholding.

   1.10. "Exercise Price" shall mean the price per share of Stock as established
pursuant to Paragraph 6.2 of the Plan.

   1.11. "Fair Market Value" shall mean:

   (a) If shares of Stock of the same class are listed or  admitted  to unlisted
trading privileges on any national or regional  securities  exchange at the date
of  determining  the Fair Market  Value,  the last  reported  sale price on such
exchange on the last business day prior to the date in question; or

   (b) If shares of Stock of the same class  shall not be listed or  admitted to
unlisted trading privileges as provided in Subparagraph 1.11(a) and sales prices
for such shares in the  over-the-counter  market shall be reported by the Nasdaq
stock market  ("NASDAQ")  National  Market System at the date of determining the
Fair Market Value, the last reported sale price so reported on the last business
day prior to the date in question; or

   (c) If shares of Stock of the same class  shall not be listed or  admitted to
unlisted trading privileges as provided in Subparagraph 1.11(a) and sales prices
for such shares shall not be reported by the NASDAQ  National  Market  System as
provided  in  Subparagraph 1.11(b),  and bid and asked  prices  therefor  in the
over-the-counter  market shall be reported by NASDAQ (or, if not so reported, by
the National  Quotations  Bureau  Incorporated or the OTC Bulletin Board) at the
date of  determining  the Fair Market Value,  the average of the closing bid and
asked prices on the last business day prior to the date in question; and

   (d) If shares of Stock of the same class  shall not be listed or  admitted to
unlisted trading privileges as provided in Subparagraph 1.11(a) and sales prices
or bid and asked  prices for such shares shall not be reported by NASDAQ (or the
National Quotations Bureau  Incorporated) as provided in Subparagraph 1.11(b) or
Subparagraph 1.11(c) at the date of determining the Fair Market Value, the value
determined in good faith by the Board of Directors.

   1.12.  "For Cause" shall mean either (a) an  Optionee's  material  failure or
refusal to perform  his duties if  Optionee  has failed to cure such  failure or
refusal to perform within thirty (30) days after the Company  notifies  Optionee
in writing of such  failure or refusal to perform,  or (b) that the  Optionee is
involuntarily terminated from employment based upon his commission of any of the
following:

   (i) an intentional act of fraud, embezzlement or theft in connection with his
duties or in the course of his employment with the Company;

   (ii)  intentional  wrongful  damage to  property  of the Company or any other
willful gross  misconduct that causes  material  economic harm to the Company or
that brings substantial discredit to the Company's reputation;

   (iii)  intentional  wrongful  disclosure  of trade  secrets  or  confidential
information of the Company;

   (iv) willful  violation of any law,  rule or  regulation  (other than traffic
violations or similar offenses) or final cease and desist order, including,  but
not limited to, a final,  nonappealable conviction of an Optionee for commission
of a felony involving moral turpitude; or

   (v)  intentional  breach  of  fiduciary  duty owed to the  Company  involving
personal profit.

   For the purpose of this Agreement,  no act, or failure to act, on the part of
the Optionee shall be deemed  "intentional" unless the Board of Directors finds,
in its sole  discretion,  that the act or failure to act was done, or omitted to
be done, by the Optionee in other than good faith and without  reasonable belief
that his  action  or  omission  was in the best  interest  of the  Company.  Any
determination  that an Optionee has been  terminated  For Cause shall be made by
the Board of Directors in its sole and absolute discretion.

   1.13.  "Incentive  Options"  shall mean stock  options  that are  intended to
satisfy the requirements of section 422 of the Code.

   1.14. "Nonstatutory Options" shall mean stock options that do not satisfy the
requirements of section 422 of the Code.

   1.15. "Optionee" shall mean an Eligible Individual to whom an Option has been
granted.

   1.16. "Options" shall mean either Incentive Options or Nonstatutory  Options,
or both.

   1.17. "Plan" shall mean the FFP Marketing Company, Inc. Stock Option Plan.

   1.18. "Retirement" shall mean "Retirement" as defined by any other pension or
retirement  plan or policy of the  Company,  and if such term is not so  defined
therein,  shall mean an Optionee's termination of employment with the Company on
or after attainment of age 65.

   1.19.  "Securities Act" shall mean the Securities Act of 1933, as amended, or
any similar or superseding statute or statutes.

   1.20.  "Stock" shall mean the Company's  authorized  common stock,  $0.01 par
value, together with any other securities that may be received upon the exercise
of Options granted under the Plan.

   PARAGRAPH 2. Stock and Maximum Number of Shares Subject to the Plan.

   2.1.  Description of Stock and Maximum Shares Allocated.  The Stock which may
be issued upon the  exercise of an Option may be either  unissued or  reacquired
shares  of  Stock,  as the  Board of  Directors  may,  in its sole and  absolute
discretion, from time to time determine.

   Subject to the adjustments provided in Paragraph 6.6, the aggregate number of
shares of Stock to be issued  pursuant to the  exercise  of all Options  granted
under the Plan may equal but shall not exceed 1,000,000 shares of Stock.

   2.2.  Restoration of Unpurchased  Shares. If an Option granted under the Plan
expires or  terminates  for any reason during the term of this Plan and prior to
the  exercise  of the Option in full,  the shares of Stock  subject  to, but not
issued under, such Option shall again be available for Options granted under the
Plan after such shares become available again.

   PARAGRAPH 3. Administration of the Plan.

   3.1. Committee. If so determined by the Board of Directors, the Plan shall be
administered by the Committee.  The Committee shall consist of not less than two
(2)  individuals.  In the event a  Committee  is not  appointed  by the Board of
Directors, then the Board of Directors shall be the Committee. In the event that
the  Stock is  registered  under  section  12 of the  Act,  all  members  of the
Committee shall be "outside  directors." "Outside directors" shall mean a member
of the Board of  Directors  who  qualifies  as an "outside  director"  under the
regulations  promulgated  under  section 162 of the Code and as a  "non-employee
director" under Rule 16b-3 promulgated under the Act.

   3.2. Duration,  Removal, Etc. The members of the Committee shall serve at the
pleasure of the Board of Directors,  which shall have the power, at any time and
from time to time, to remove members from the Committee or to add members to the
Committee. Vacancies on the Committee, however caused, shall be filled by action
of the Board of Directors.

   3.3. Meetings and Actions of Committee.  The Committee shall elect one of its
members as its  Chairman and shall hold its meetings at such times and places as
it may determine.  All decisions and  determinations  of the Committee  shall be
made by the  majority  vote  or  decision  of all of its  members  present  at a
meeting;  provided,  however,  that any  decision  or  determination  reduced to
writing  and  signed by all of the  members of the  Committee  shall be as fully
effective  as if it had  been  made at a  meeting  duly  called  and  held.  The
Committee may make any rules and regulations for the conduct of its business, as
it may deem  advisable,  that are not  inconsistent  with the provisions of this
Plan and with the bylaws of the Company.

   3.4. Committee's Powers.  Subject to the express provisions of this Plan, the
Committee shall have the authority, in its sole and absolute discretion,  (a) to
adopt, amend, and rescind  administrative and interpretive rules and regulations
relating  to  the  Plan;  (b) to  determine  the  terms  and  provisions  of the
respective  Agreements  (which  need  not be  identical),  including  provisions
defining or  otherwise  relating to (i) subject to Paragraph 6, the term and the
period or periods and extent of exercisability  of the Options,  (ii) the extent
to which the  transferability of shares of Stock issued upon exercise of Options
is  restricted,   (iii)  the  effect  of  termination  of  employment  upon  the
exercisability of the Options, and (iv) the effect of approved leaves of absence
(consistent with any applicable  regulations of the Internal  Revenue  Service);
(c) to  accelerate  the  time of  exercisability  of any  Option  that  has been
granted;  (d) to construe the terms of any  Agreement  and the Plan;  and (e) to
make all other  determinations and perform all other acts necessary or advisable
for  administering  the Plan,  including the delegation of such ministerial acts
and  responsibilities  as the  Committee  deems  appropriate.  The Committee may
correct any defect or supply any omission or reconcile any  inconsistency in the
Plan or in any Agreement in the manner and to the extent it shall deem expedient
to carry it into  effect,  and it  shall  be the  sole and  final  judge of such
expediency.  The Committee shall have full discretion to make all determinations
on the matters referred to in this Paragraph and such
determinations shall be final, binding and conclusive.

   PARAGRAPH 4. Eligibility and Participation.

   4.1.  Eligible  Individuals.  Options  may be granted  under the Plan only to
persons who are Eligible  Individuals at the time of grant.  Notwithstanding any
provision contained in the Plan to the contrary,  a person shall not be eligible
to receive  an  Incentive  Option  hereunder  if he, at the time such  Option is
granted,  would own (within  the  meaning of  sections  422 and 424 of the Code)
Stock  possessing more than ten percent (10%) of the total combined voting power
or value of all  classes of Stock of the Company or of an  Affiliate,  unless at
the time such Incentive  Option is granted the Exercise Price per share of Stock
is at least one  hundred ten  percent  (110%) of the Fair  Market  Value of each
share of Stock to which the Incentive Option relates and the Incentive Option is
not  exercisable  after the  expiration  of five (5)  years  from the date it is
granted (the "Maximum Term").

   4.2. No Right to Option. The adoption of the Plan shall not be deemed to give
any person a right to be granted an Option.

   PARAGRAPH 5. Grant of Options and Certain Terms of the Agreements.

   5.1. Award Criteria. Subject to the express provisions of this Paragraph, the
Committee  shall, in its sole discretion,  determine which Eligible  Individuals
shall be granted Options under the Plan from time to time. In making grants, the
Committee shall take into  consideration the level of responsibility  within the
organization and the contribution the potential Optionee has made or may make to
the success of the Company or its  Affiliates and such other  considerations  as
the Board of Directors may from time to time specify.  The Committee  shall also
determine  the  number  of  shares  subject  to each of such  Options  and shall
authorize  and  cause the  Company  to grant  Options  in  accordance  with such
determinations.

   5.2. Grant. The date on which the Committee completes all action constituting
an offer of an Option  to an  individual,  including  the  specification  of the
Exercise  Price and the number of shares of Stock to be  subject to the  Option,
shall be the date on which the Option  covered by an Agreement is granted,  even
though  certain terms of the Agreement  may not be at such time  determined  and
even though the Agreement may not be executed  until a later time.  For purposes
of the  preceding  sentence,  an offer shall be deemed made if the Committee has
completed all such action except communication of the grant of the Option to the
potential Optionee. In no event,  however,  shall an Optionee gain any rights in
addition to those  specified by the  Committee in its grant,  regardless  of the
time that may pass  between the grant of the Option and the actual  execution of
the Agreement by the Company and the Optionee.

   Each  Option  granted  under the Plan  shall be  evidenced  by an  Agreement,
executed  by the  Company  and the  Eligible  Individual  to whom the  Option is
granted,  incorporating  such terms as the  Committee  shall deem  necessary  or
desirable.  More than one Option may be granted to the same Eligible  Individual
and be outstanding concurrently.  In the event an Eligible Individual is granted
both one or more Incentive  Options and one or more Nonstatutory  Options,  such
grants shall be evidenced by separate Agreements,  one for each of the Incentive
Option grants and one for each of the Nonstatutory Option grants.

   5.3.  Transferability  Restrictions.  Each Agreement may contain or otherwise
provide for  conditions  giving  rise to the  forfeiture  of the Stock  acquired
pursuant to an Option  granted under the Plan and for such  restrictions  on the
transferability  of shares of the Stock  acquired  pursuant  to an Option as the
Committee, in its sole and absolute discretion,  shall deem proper or advisable.
Such conditions  giving rise to forfeiture may include,  but need not be limited
to, the requirement that the Optionee render substantial services to the Company
or  its  Affiliates  for a  specified  period  of  time.  Such  restrictions  on
transferability  may include,  but need not be limited to, options and rights of
first refusal in favor of the Company and shareholders of the Company other than
an Optionee who is a party to the  particular  Agreement or a subsequent  person
who is bound by such Agreement.

   PARAGRAPH 6. Terms and Conditions of Options.

   All Options  granted  under the Plan shall comply with, be deemed to include,
and shall be subject to the following terms and conditions:

   6.1.  Number of Shares.  Each  Agreement  shall state the number of shares of
Stock to which it relates.

   6.2.  Exercise Price. Each Agreement shall state the Exercise Price per share
of the Stock.  Except as provided in Paragraph 4.1, the Exercise Price per share
of the Stock subject to any  Incentive  Option under this Plan shall not be less
than the  greater of (a) the par value per share of the Stock or (b) one hundred
percent  (100%) of the Fair  Market  Value per share of the Stock on the date of
the grant of the  Incentive  Option.  The Exercise  Price per share of the Stock
subject to a  Nonstatutory  Option shall be determined by the Committee upon the
granting of the Nonstatutory Option.

   6.3. Medium and Time of Payment,  Method of Exercise,  and Withholding Taxes.
The  Exercise  Price of an Option  shall be  payable  upon the  exercise  of the
Option:

   (a) in cash or cash equivalent; or

   (b) with Shares of Stock owned by the Optionee; or

   (c) with the consent of the Committee, with a multiple series of exchanges of
shares of Stock owned by the Optionee; or

   (d) with the consent of the Committee, by a combination of cash and shares of
Stock owned by the Optionee; or

   (e) with the consent of the Committee, with the proceeds of an employer loan;
or

   (f) with the  consent of the  Committee,  by  delivery  to the  Company of an
exercise  notice that  requests  the Company to issue to the  Optionee  the full
number of shares of Stock as to which the Option is then  exercisable,  less the
number of Shares that have an aggregate Fair Market Value,  as determined by the
Committee in its sole discretion at the time of exercise, equal to the aggregate
purchase  price of the shares of Stock to which  such  exercise  relates.  (This
method of exercise  allows the  Optionee to use a portion of the shares of Stock
issuable at the time of exercise as payment for the shares of Stock to which the
Option relates and is often referred to as "cashless  exercise." For example, if
the Optionee  elects to exercise  1,000 shares of Stock at an exercise  price of
$.25 and the current  Fair Market  Value of the Stock on the date of exercise is
$1.00,  the Optionee can use 250 of the 1,000 shares of Stock at $1.00 per share
of Stock to pay for the exercise of the entire  Option (250  multiplied by $1.00
equals $250.00) and receive only the remaining 750 shares of Stock.)

   Exercise of an Option shall not be  effective  until the Company has received
written notice of exercise.  Such notice must specify the number of whole shares
to be purchased and be accompanied by payment in full of the aggregate  Exercise
Price of the  number of  shares  purchased  in cash (as set  forth  above) or by
delivery  of shares of Stock in  negotiable  form with a value at least equal to
the  Exercise  Price,  which  shares of Stock shall be valued  based on the Fair
Market  Value of the  Stock  (or a  combination  of cash and  Stock);  provided,
however,  that nothing in this sentence shall preclude the payment for the Stock
as  provided  in  Subparagraph  6.3(f) and payment  through  so-called  cashless
exercise  shall be  considered  as payment in full to the extent  allowed by the
Committee.  The Company  shall not in any case be required  to sell,  issue,  or
deliver a fractional share of Stock with respect to any Option.

   The  Committee  may,  in its  discretion,  require an  Optionee to pay to the
Company  at the time of  exercise  of an Option (or  portion  of an Option)  the
amount that the Company  deems  necessary to satisfy its  obligation to withhold
Federal,  state or local  income  or  other  taxes  incurred  by  reason  of the
exercise.  If the exercise of an Option does not give rise to an  obligation  to
withhold Federal income or other taxes on the date of exercise, the Company may,
in its discretion,  require an Optionee to place shares of Stock purchased under
the Option in escrow for the benefit of the  Company  until such time as Federal
income or other tax  withholding  is no longer  required  with  respect  to such
shares or until such  withholding  is required on amounts  included in the gross
income  of  the  Optionee  as a  result  of the  exercise  of an  Option  or the
disposition of shares of Stock acquired pursuant to the exercise.  At such later
time,  the  Company,  in its  discretion,  may require an Optionee to pay to the
Company the amount that the Company deems necessary to satisfy its obligation to
withhold Federal, state or local income or other taxes incurred by reason of the
exercise of the Option or the  disposition  of shares of Stock.  Upon receipt of
such payment by the Company,  such shares of Stock shall be released from escrow
to the Optionee.

   6.4. Term, Time of Exercise and  Transferability  of Options.  In addition to
such other terms and  conditions  as may be included in a  particular  Agreement
granting an Option, an Option shall be exercisable during an Optionee's lifetime
only by the Optionee or by the Optionee's guardian or legal representative.  The
Committee shall in each Agreement prescribe a vesting schedule that governs when
the Option becomes fully vested and exercisable.

   An  Option  shall  not be  transferrable  other  than by will or the  laws of
descent and distribution.

   Notwithstanding anything in this Paragraph to the contrary, all Options shall
become exercisable  immediately upon an Optionee's termination of employment due
to death,  Disability or Retirement or upon the  occurrence of any of the Change
in Control Events listed in Paragraph 6.6.

   The provisions of the remainder of this  Paragraph  shall apply to the extent
an Optionee's  Agreement does not expressly  provide  otherwise.  If an Optionee
ceases to be an Eligible Individual, the Option shall terminate ninety (90) days
after such Optionee ceases to be an Eligible Individual;  provided,  however, if
an Optionee's employment (or tenure as an officer or director of the Company) is
terminated For Cause,  the Option shall terminate  immediately and any unexpired
Options shall be forfeited. Notwithstanding the foregoing, if an Optionee ceases
to be an Eligible  Individual by reason of death or Disability,  the Optionee or
the  Optionee's  designated  beneficiary  shall have the right for  twelve  (12)
months after the date of death or Disability to exercise an Option to the extent
such Option is  otherwise  exercisable  on such date.  At the end of such twelve
(12) month or ninety (90) day period, as applicable,  the Option shall terminate
and cease to be  exercisable.  Each Optionee shall have the right to designate a
beneficiary  on  the  form  provided  by the  Committee.  If no  beneficiary  is
designated,   Optionee's   estate  shall  have  the  rights  of  a  beneficiary.
Notwithstanding any other provision of this Plan, no Option shall be exercisable
after the  expiration  of ten (10) years from the date it is granted,  or in the
case of an Incentive  Option,  the Maximum Term  specified in Paragraph  4.1, if
applicable.  Except as provided  above,  the portion of the Option  which is not
exercisable on the date the Optionee ceases to be an Eligible  Individual  shall
terminate and be forfeited to the Company on the date of such cessation.

   Except as provided above, the Committee shall have the authority to prescribe
in any Agreement that the Option  evidenced by the Agreement may be exercised in
full or in part as to any number of shares  subject to the Option at any time or
from time to time during the term of the Option, or in such installments at such
times during said term as the Committee may prescribe.  Except as provided above
and unless  otherwise  provided in any Agreement,  an Option may be exercised at
any time or from time to time during the term of the Option.  Such  exercise may
be as to  any or  all  whole  (but  no  fractional)  shares  which  have  become
purchasable under the Option.

   Within a reasonable  time (or such time as may be permitted by law) after the
Company receives written notice that the Optionee has elected to exercise all or
a portion of an Option,  such notice to be accompanied by payment in full of the
aggregate Option Exercise Price of the number of shares of Stock purchased,  the
Company shall issue and deliver a certificate  representing  the shares acquired
in consequence  of the exercise and any other amounts  payable in consequence of
such exercise. In the event that an Optionee exercises both an Incentive Option,
or portion of one,  and a  Nonstatutory  Option,  or a portion of one,  separate
Stock  certificates  shall be issued, one for the Stock subject to the Incentive
Option and one for the Stock subject to the Nonstatutory  Option.  The number of
the shares of Stock  issuable  due to an exercise  of an Option  under this Plan
shall not be increased due to the passage of time,  except as may be provided in
an Agreement;  provided,  however, that the number of such shares of Stock which
are  issuable may increase  due to the  occurrence  of certain  events which are
fully described in Paragraph 6.6.

   Nothing in the Plan or in any Option granted under the Plan shall require the
Company to issue any shares upon exercise of any Option if such issuance  would,
in the reasonable judgment of the Committee based upon the advice of counsel for
the  Company,  constitute  a  violation  of the  Securities  Act,  or any  other
applicable statute or regulation, as then in effect. At the time of any exercise
of an Option, the Company may, as a condition  precedent to the exercise of such
Option,  require  from the  Optionee  (or in the event of his  death,  his legal
representatives, heirs, legatees, or distributees) such written representations,
if any, concerning his intentions with regard to the retention or disposition of
the shares being acquired by exercise of such Option and such written  covenants
and  agreements,  if any, as to the manner of disposal of such shares as, in the
opinion  of  counsel  to the  Company,  may be  necessary  to  ensure  that  any
disposition  by  such  Optionee  (or  in  the  event  of his  death,  his  legal
representatives, heirs, legatees, or distributees), will not involve a violation
of the  Securities  Act or any other  applicable  state or  federal  statute  or
regulation,  as then in effect.  Certificates for shares of Stock,  when issued,
may have the following or similar  legend,  or  statements  of other  applicable
restrictions, endorsed on them, and may not be immediately transferable:

   These shares have not been  registered  under the  Securities Act of 1933, as
amended,  or any applicable state securities laws, in reliance upon an exemption
from  registration.  These  shares  may not be sold,  transferred,  assigned  or
otherwise  disposed  of  unless,  in the  opinion of the  Company  and its legal
counsel, such sale, transfer, assignment or disposition will not be in violation
of the Securities Act of 1933, as amended,  applicable  rules and regulations of
the Securities and Exchange  Commission,  and any  applicable  state  securities
laws.

   6.5.   Limitation  on  Aggregate  Value  of  Shares  That  May  Become  First
Exercisable  During Any Calendar  Year Under an Incentive  Option.  Except as is
otherwise  provided in  Paragraph  6.6,  with  respect to any  Incentive  Option
granted  under  this Plan,  the sum of (a) and (b) may not (with  respect to any
Optionee)  exceed  $100,000,  with such Fair Market Value to be determined as of
the date the Incentive  Option or such other  incentive stock option is granted,
where:

   (a) is the  aggregate  Fair Market  Value of shares of Stock  subject to such
Incentive  Option that first become  purchasable  in a calendar  year under such
Incentive Option; and

   (b) is the  aggregate  Fair  Market  Value of shares of Stock or stock of any
Affiliate (or a predecessor of the Company or an Affiliate) subject to any other
incentive  stock  option  (within the meaning of section 422 of the Code) of the
Company or its Affiliates (or a predecessor corporation of any such corporation)
that first become purchasable in a calendar year under such Incentive Option.

   For  purposes  of  this  Paragraph,  "predecessor  corporation"  means  (i) a
corporation that was a party to a transaction described in section 424(a) of the
Code (or which would be so described if a substitution or assumption  under such
section had been effected) with the Company,  (ii) a corporation  which,  at the
time the new  incentive  stock option  (within the meaning of section 422 of the
Code) is granted, is an Affiliate of the Company or a predecessor corporation of
any  such  corporations,   or  (iii)  a  predecessor  corporation  of  any  such
corporations.

   6.6. Adjustments Upon Changes in Capitalization, Merger, Etc. Notwithstanding
any other  provision in the Plan to the contrary,  in the event of any change in
the number of outstanding shares of Stock:

   (a) effected  without receipt of  consideration by the Company by reason of a
stock  dividend,  split,  combination,  exchange  of  shares,  merger,  or other
recapitalization, in which the Company is the surviving corporation; or

   (b) by reason of a spin-off of a part of the Company into a separate  entity,
or assumptions  and  conversions of outstanding  grants due to an acquisition by
the Company of a separate entity,

   (1) the aggregate number and class of the reserved shares, (2) the number and
class of shares subject to each outstanding Option and (3) the Exercise Price of
each  outstanding  Option  shall be  automatically  adjusted to  accurately  and
equitably reflect the effect of such change; provided,  however, that any or all
such adjustments shall not occur with respect to an Incentive Option, unless:

   (i) the excess of the  aggregate  Fair Market Value of the shares  subject to
the Incentive  Option  immediately  after any such adjustment over the aggregate
Exercise  Price of such shares is not more than the excess of the aggregate Fair
Market Value of all shares subject to the Incentive  Option  immediately  before
such adjustment over the aggregate  Exercise Price of all such shares subject to
the Incentive Option; and

   (ii)  the new or  adjusted  Incentive  Option  does  not  give  the  Optionee
additional  benefits  which such  Optionee did not have under the old  Incentive
Option  (collectively  these  Subparagraphs  (i) and (ii) are the "Code  Section
424(a) Restrictions").

   In the event of a dispute concerning such adjustment,  the Committee has full
discretion to determine the resolution of the dispute.  Such determination shall
be final, binding and conclusive. The number of reserved shares or the number of
shares subject to any outstanding  Option shall be automatically  reduced to the
extent necessary to eliminate any fractional shares.

   The following  provisions of this Paragraph  shall apply unless an Optionee's
Agreement provides otherwise. In the event of:

   (a) a dissolution or liquidation of the Company; or

   (b)  a  merger  or   consolidation   (other   than  a  merger   effecting   a
re-incorporation  of the  Company  in  another  state or any  other  merger or a
consolidation in which the  shareholders of the surviving  corporation and their
proportionate  interests  therein  immediately after the merger or consolidation
are  substantially  identical  to the  shareholders  of the  Company  and  their
proportionate   interests   therein   immediately   prior  to  the   merger   or
consolidation)  in  which  the  Company  is not the  surviving  corporation  (or
survives only as a subsidiary of another  corporation  in a transaction in which
the shareholders of the parent of the Company and their proportionate  interests
therein immediately after the transaction are not substantially identical to the
shareholders  of  the  Company  and  their   proportionate   interests   therein
immediately  prior to the  transaction;  provided,  however,  that the  Board of
Directors  may at any time  prior to such a merger or  consolidation  provide by
resolution that the foregoing  provisions of this parenthetical  shall not apply
if a majority of the Board of  Directors  of such parent  immediately  after the
transaction  consists of individuals  who constituted a majority of the Board of
Directors immediately prior to the transaction); or

   (c) a  transaction  in which any  person  (other  than a  shareholder  of the
Company  on the date of the  Optionee's  Agreement)  becomes  the owner of fifty
percent (50%) or more of the total combined voting power of all classes of stock
of the Company (provided,  however,  that the Board of Directors may at any time
prior to such transaction provide by resolution that this Subparagraph shall not
apply if such acquiring  person is a corporation  and a majority of the Board of
Directors  of  the  acquiring  corporation  immediately  after  the  transaction
consists of  individuals  who  constituted  a majority of the Board of Directors
immediately  prior to the  acquisition of such fifty percent (50%) or more total
combined voting power),  (collectively the directly preceding Subparagraphs (a),
(b) and (c) are "Change in Control  Events")  all  Options  shall  become  fully
exercisable and the Board of Directors shall, in its sole discretion,  as of the
effective  date of such  transaction,  if (and only if) such Options have not at
that time expired or been terminated,  either: (1) change the number and kind of
shares of Stock  (including  substitution of shares of another  corporation) and
exercise price in the manner it deems appropriate; provided, however, that in no
event may any change be made under this  Paragraph to an Incentive  Option which
would either constitute a "modification" within the meaning of section 424(h)(3)
of the Code or a  violation  of the Code  Section  424(a)  Restrictions;  or (2)
purchase  the Options  from each  Optionee by  tendering  cash equal to the Fair
Market Value of the Stock  represented by the Options less the exercise price of
the Option specified in each Agreement,  without regard to the  determination as
to the periods and installments of exercisability made pursuant to an Optionee's
Agreement.

   6.7.  Rights  as  a  Shareholder.  An  Optionee  shall  have  no  right  as a
shareholder  with  respect to any shares of Stock  covered by his Option until a
certificate  representing  such shares is issued to him. No adjustment  shall be
made  for  dividends  (ordinary  or  extraordinary,  whether  in cash  or  other
property) or distributions or other rights for which the record date is prior to
the date such certificate is issued, except as provided in Paragraph 6.6.

   6.8. Modification, Extension and Renewal of Options. Subject to the terms and
conditions  of, and within the  limitations  of,  the Plan,  the  Committee  may
modify, extend or renew outstanding Options granted under the Plan or accept the
surrender of Options  outstanding  under the Plan (to the extent not  previously
exercised)  and authorize the granting of substitute  Options (to the extent not
previously  exercised).  Except as provided in Paragraph 6.6, no modification of
an Option  granted  under the Plan shall,  without the consent of the  Optionee,
alter or impair any rights or obligations  under any Option  previously  granted
under the Plan to such Optionee under the Plan, except as may be necessary, with
respect to Incentive Options,  to satisfy the requirements of section 422 of the
Code.

   6.9.  Furnish  Information.  Each  Optionee  shall furnish to the Company all
information  requested by the Company to enable it to comply with any  reporting
or other requirement imposed upon the Company by or under any applicable statute
or regulation.

   6.10. Obligation to Exercise:  Termination of Employment.  The granting of an
Option under the Plan shall impose no  obligation  upon the Optionee to exercise
it or any part of it. In the event of an  Optionee's  termination  of employment
with the Company or an Affiliate,  the unexercised  portion of an Option granted
under the Plan shall terminate in accordance with Paragraph 6.4.

   6.11. Agreement  Provisions.  The Agreements  authorized under the Plan shall
contain such  provisions in addition to those  required by the Plan  (including,
without  limitation,  restrictions  or the  removal  of  restrictions  upon  the
exercise of the Option and the retention or transfer of shares thereby acquired)
as the Committee shall deem advisable.

   Each Agreement shall identify the Option it evidences as an Incentive  Option
or a Nonstatutory  Option, as the case may be, and no Agreement shall cover both
an Incentive  Option and a Nonstatutory  Option.  Each Agreement  relating to an
Incentive  Option  granted  under this Plan shall contain such  limitations  and
restrictions  upon the exercise of the  Incentive  Option to which it relates as
shall be necessary for the Incentive  Option to which such Agreement  relates to
constitute an incentive stock option, as defined in section 422 of the Code.

   PARAGRAPH 7. Remedies and Specific Performance.

   7.1.  Remedies.  The Company  shall be  entitled to recover  from an Optionee
reasonable  attorneys'  fees incurred in connection  with the enforcement of the
terms and  provisions  of the Plan and any  Agreement,  whether  by an action to
enforce  specific  performance,  or an  action  for  damages  for its  breach or
otherwise.

   7.2. Specific Performance. The Company shall be entitled to enforce the terms
and provisions of this Paragraph,  including the remedy of specific performance,
in Tarrant County, Texas.

   PARAGRAPH 8. Duration of Plan.

   No Options  may be granted  under the Plan more than ten (10) years after the
earlier of the date the Plan is adopted or the date the Plan is  approved by the
shareholders of the Company.

   PARAGRAPH 9. Amendment and Termination of Plan.

   The Board of Directors  may at any time  terminate or from time to time amend
or suspend the Plan;  provided,  however,  that no such amendment shall, without
approval of the shareholders of the Company,  except as provided in Paragraph 6,
(a) increase the aggregate  number of shares of Stock as to which Options may be
granted under the Plan; (b) increase the maximum period during which Options may
be exercised;  or (c) extend the effective  period of the Plan. No Option may be
granted during any suspension of the Plan or after the Plan has been terminated,
and no  amendment,  suspension  or  termination  shall,  without  an  Optionee's
consent,  alter or impair, other than as provided in the Plan and the Optionee's
Agreement,  any of the rights or obligations under any Option previously granted
to such Optionee under the Plan.

   PARAGRAPH 10. General.

   10.1.  Application  of Funds.  The proceeds  received by the Company from the
sale of shares pursuant to Options may be used for general corporate purposes.

   10.2.  Right of the Company and Affiliates to Terminate  Employment.  Nothing
contained in the Plan, or in any  Agreement,  shall confer upon any Optionee the
right to continue in the employ of the Company or any Affiliate, or interfere in
any way  with the  rights  of the  Company  or any  Affiliate  to  terminate  an
Optionee's employment at any time.

   10.3.  Liability of the Company.  Neither the Company, any of its Affiliates,
its  directors,  officers or employees nor any member of the Committee  shall be
liable for any act, omission,  or determination taken or made in good faith with
respect to the Plan or any Option  granted under it, and members of the Board of
Directors  and  the  Committee   shall  be  entitled  to   indemnification   and
reimbursement by the Company in respect of any claim,  loss,  damage, or expense
(including  attorneys'  fees,  the costs of  settling  any suit  (provided  such
settlement is approved by independent legal counsel selected by the Company) and
amounts paid in satisfaction of a judgment, except a judgment based on a finding
of bad faith) arising from such claim,  loss, etc. to the full extent  permitted
by law and under any  directors'  and officers'  liability or similar  insurance
coverage  that may from time to time be in  effect.  In  addition,  neither  the
Company,  its  directors,  officers  or  employees,  nor  any of  the  Company's
Affiliates  shall be liable to any Optionee or other person if it is  determined
for any reason by the Internal Revenue Service or any court having  jurisdiction
that any  incentive  stock  options  granted  hereunder  do not  qualify for tax
treatment as incentive stock options under section 422 of the Code.

   10.4. Information Confidential.  As partial consideration for the granting of
each Option  under the Plan,  the  Agreement  may, in the  Committee's  sole and
absolute discretion, provide that the Optionee shall agree with the Company that
he will keep  confidential all information and knowledge that he has relating to
the manner and amount of his participation in the Plan; provided,  however, that
such  information  may be  disclosed  as  required  by law and may be  given  in
confidence  to the  Optionee's  spouse,  tax  and  financial  advisors,  or to a
financial institution to the extent that such information is necessary to secure
a loan.  In the event any breach of this promise  comes to the  attention of the
Committee,  it shall take into consideration such breach, in determining whether
to  recommend  the  grant of any  future  Option to such  Optionee,  as a factor
militating  against the  advisability of granting any such future Option to such
individual.

   10.5.  Other  Benefits.  Participation  in the Plan  shall not  preclude  the
Optionee from  eligibility  in any other stock option plan of the Company or any
Affiliate  or  any  old  age  benefit,   insurance,   pension,  profit  sharing,
retirement,  bonus, or other extra  compensation  plans which the Company or any
Affiliate  has  adopted,  or may,  at any  time,  adopt for the  benefit  of its
employees.

   10.6. Execution of Receipts and Releases. Any payment of cash or any issuance
or transfer of shares of Stock to the Optionee,  or to his legal representative,
heir,  legatee,  or distributee,  in accordance with the provisions of the Plan,
shall,  to the extent  thereof,  be in full  satisfaction  of all claims of such
persons  under  the  Plan.  The  Committee  may  require  any  Optionee,   legal
representative,  heir, legatee, or distributee, as a condition precedent to such
payment,  to execute a release and  receipt for such  payment in such form as it
shall determine.

   10.7.  No  Guarantee  of  Interests.  Neither the  Committee  nor the Company
guarantees the Stock from loss or depreciation.

   10.8.  Payment of  Expenses.  All  expenses  incident to the  administration,
termination, or protection of the Plan, including, but not limited to, legal and
accounting  fees,  shall be paid by the  Company  or its  Affiliates;  provided,
however,  the Company or an  Affiliate  may recover any and all  damages,  fees,
expenses  and  costs  arising  out of any  actions  taken by the  Company  or an
Affiliate to enforce its rights under the Plan.

   10.9. Company Records. Records of the Company or its Affiliates regarding the
Optionee's  period of  employment,  termination of employment and the reason for
such termination, leaves of absence,  re-employment,  and other matters shall be
conclusive for all purposes under the Plan,  unless  determined by the Committee
to be incorrect.

   10.10. Information.  The Company and its Affiliates shall, upon request or as
may be  specifically  required under the Plan,  furnish or cause to be furnished
all of the  information  or  documentation  that is necessary or required by the
Committee to perform its duties and functions under the Plan.

   10.11.  Company Action.  Any action  required of the Company  relating to the
Plan shall be by resolution of its Board of Directors or by a person  authorized
to act by resolution of the Board of Directors.

   10.12.  Severability.  If any provision of this Plan is held to be illegal or
invalid  for any  reason,  the  illegality  or  invalidity  shall not affect the
remaining  provisions of the Plan, but such provision shall be fully  severable,
and the Plan  shall be  construed  and  enforced  as if the  illegal  or invalid
provision had never been included in the Plan.

   10.13.  Notices.  Whenever any notice is required or permitted under the Plan
or any  Agreement,  such  notice must be in writing  and  personally  delivered,
telecopied (if confirmed), or sent by mail or by a nationally recognized courier
service. Any notice required or permitted to be delivered under this Plan or any
Agreement  shall be deemed to be delivered on the date on which it is personally
delivered,  or,  if  mailed,  whether  actually  received  or not,  on the third
business  day after it is  deposited  in the United  States  mail,  certified or
registered, postage prepaid, addressed to the person who is to receive it at the
address which such person has previously  specified by written notice  delivered
in accordance with this Paragraph or, if by courier, at the close of business on
the  next  business  day  after  it is  sent,  addressed  as  described  in this
Paragraph.  The Company or an Optionee may change,  at any time and from time to
time, by written notice to the other,  the address which it or he had previously
specified for receiving notices.  Until changed in accordance with the Plan, the
Company and each  Optionee  shall  specify as its and his address for  receiving
notices the address set forth in the Agreement pertaining to the shares to which
such notice relates.

   10.14.  Waiver of Notice.  Any person  entitled to notice  under the Plan may
waive such notice.

   10.15.  Successors.  The Plan shall be binding upon the  Optionee,  his legal
representatives,  heirs, legatees, distributees, and transferees (if applicable)
and upon the Company, its successors,  and assigns, and upon the Committee,  and
its successors.

   10.16.  Headings.  The titles and  headings of  Paragraphs  are  included for
convenience  of reference only and are not to be considered in  construction  of
the Plan's provisions.

   10.17. Governing Law. All questions arising with respect to the provisions of
the Plan shall be  determined by  application  of the laws of the State of Texas
except to the extent Texas law is preempted  by Federal law.  Questions  arising
with respect to the  provisions of an Agreement that are matters of contract law
shall be governed by the laws of the state specified in the Agreement, except to
the  extent  preempted  by  Federal  law and  except to the  extent  that  Texas
corporate  law  conflicts  with the contract  law of such state,  in which event
Texas  corporate  law shall  govern.  The  obligation of the Company to sell and
deliver Stock under the Plan is subject to  applicable  laws and to the approval
of any  governmental  authority  required in connection with the  authorization,
issuance, sale, or delivery of such Stock.

   10.18.  Word Usage.  Words used in the masculine  shall apply to the feminine
where  applicable,  and wherever the context of this Plan  dictates,  the plural
shall be read as the singular and the singular as the plural.

   PARAGRAPH 11. Approval of Shareholders.

   The Plan shall take effect on August 6,  1999, the date it was adopted by the
Board of Directors.

   If this  Plan is not  approved  by the  holders  of a  majority  of the votes
entitled  to be voted at a meeting of holders  of  outstanding  shares of equity
securities  of the  Company  no later  than  one year  from the date the Plan is
adopted,  this Plan and the  Options  granted  under the Plan  shall be null and
void.

   IN WITNESS WHEREOF,  FFP Marketing  Company,  Inc., acting by and through its
duly authorized officer, has executed this Plan on August 6, 1999.

                                FFP Marketing Company, Inc.,
                                a Texas corporation

                                By: /s/Craig T. Scott
                                    Craig T. Scott, Vice President

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